To the Members of GOLKUNDA DIAMONDS & JEWELLERY LIMITED
We have audited the attached Balance Sheet of Golkunda Diamonds & Jewellery Limited
as at March 31,2009 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 Company's Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1 We conducted our audit in accordance with auditing standards generally accepted in
India. Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material 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 the overall
financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
2 As required by the Companies (Auditors' Report) Order, 2003 issued by the Central
Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the
basis of such checks as we considered appropriate and according to the information and
explanations given to us, we set out 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:
(i) We have obtained all the information and explanations, which to the best of our
knowledge and belief were necessary for the purpose of our audit;
(ii) In our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by
this report are in agreement with the books of accounts,
(iv) 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;
(v) On the basis of written representation received from the directors as on March 31,
2009 and taken on record by the Board of Directors, we report that none of the directors
is disqualified as on March 31, 2009 from being appointed as a director in terms of Clause
(g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to the
explanations given to us, the said accounts give the information required by the Companies
Act, 1956, in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet. of the state of affairs of the Company as at 31
st March, 2009;
(b) In the case of Profit and Loss Account, of the Profit for the year ended on that
(c) In the case of Cash Flow Statement, of the cash flows for the year ended on that
||For A.J. Baliya & Associates.,
||Membership No. FCA
|Dated: 30th June, 2009.
ANNEXURE TO AUDITORS' REPORT
[Referred to in paragraph 2 of our report of even 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, the fixed assets have been physically verified by the
management during the year in a phased periodical manner, which in our opinion is
reasonable having regard to the size of the Company and nature of its assets. No material
discrepancies were noticed on such physical verification.
(c) The fixed assets disposed off during the year, in our opinion, do not constitute
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) In respect of its inventories:
(a) As explained to us, inventories have been physically verified by the management at
regular intervals during the year.
(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
(c) The Company has maintained proper records of inventories. As explained to us, there
were no material discrepancies noticed on physical verification of inventory as compared
to the book records.
(3) The Company has neither granted nor taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained Under Section 301 of
the Companies Act, 1956.
(4) In our opinion and according to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of the Company and the
nature of its business for the purchase of inventory, fixed assets and also for the sale
of goods. During the course of our audit, we have not observed any major weaknesses in
(5) (a) To the best of our knowledge and belief and according to the information and
explanations given to us, we are of the opinion that transactions that need to be entered
into the register maintained Under Section 301 of the Companies Act 1956, have been so
(b) In our opinion and according to the information and explanations given to us,
transactions made in pursuance of contracts or arrangements entered in the register
maintained Under Section 301 of the Companies Act 1956, and exceeding the value of Rupees
Five Lakhs in respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant time where such
market prices are available.
(6) The Company has not accepted any deposits form the public
(7) In our opinion, the internal audit system of the Company is commensurate with its
size and nature of its business.
(8) To the best of our knowledge, the Central Government has prescribed maintenance of
cost records under Section 209 (1)(d) of the Companies Act, 1956. In our opinion, prima
facie, the prescribed accounts and records have been maintained. However, we are not
required to and have not made examination of the records.
(9) According to the records of the Company, undisputed statutory dues of Provident
Fund and Employees State Insurance have not been regularly deposited with the appropriate
authorities. Undisputed statutory dues other than above including Investor Education and
Protection Fund, Income-Tax, Sales-Tax, Wealth Tax, Customs Duty, Excise Duty, Cess have
been regularly deposited with the appropriate authorities. According to the information
and explanations given to us, no undisputed amounts payable in respect of the aforesaid
dues were outstanding as at 31st March, 2009 for a period of more than six months from the
date of becoming payable.
(10) The Company has no accumulated losses at the end of the financial year and it has
not incurred any cash losses in the current and immediately preceding financial year.
(11) According to the information and explanations given to us and the records examined
by us, the Company has not defaulted in repayment of dues to bank
(12) In our opinion and according to explanation given to us no loans and advances have
been granted by the Company on the basis of security by way of pledge of shares,
debentures and other securities
(13) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit
(14) In our opinion and according to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures and other
(15) According to the information and explanations given to us, the Company has not
given any guarantees for loan taken by others from banks and financial institutions
(16) The Company has not raised any term loans during the year.
(17) In our opinion and according to the information and explanations given to us, and
on 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 investment and vice-versa
(18) The Company has made allotment of 28,00,000 equity shares having face value of
Rs.10/- each fully paid up for cash at a premium of Rs.1/- per share on preferential basis
to entity belonging to promoter group M/s. Neverloose Properties & Investment Private
(19) The Company has not issued any debentures during the year
(20) The Company has not raised any money by public issue during the year.
(21) During the course of our examination of the books and records of the company,
carried out in accordance with the generally accepted auditing practices in India and
according to the information and explanations given to us, we have neither come across any
instance of fraud on or by the Company, noticed or reported during the year, nor have been
informed of such case by the Management.
||For A.J. Baliya & Associates
||(M. P. MODY)
|Dated 30th June, 2009.
||Membership No. FCA 42975