Narbada Gems and Jewellery Ltd.,
(formerly Starchik Specialities Ltd.)
We have audited the attached Balance Sheet of Narbada Gems and Jewellery
Ltd.(formerly Starchik Specialities Ltd.), Hyderabad, as at March 31, 2009, and
the Profit & Loss Account for the year ended on that date annexed thereto and Cash
Flow Statement for the year ended on date. 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 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 the management, as well as evaluating the overall
financial statements presentation. We believe that our audit provides a reasonable basis
for our opinion.
2. 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 hereto a statement on the matters specified in paragraphs 4 and
5 of the said Order.
3. Further to our comments in the Annexure referred to in paragraph 2 above, we report
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, Profit & Loss Account and Cash Flow Statement dealt with by
this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report comply with the mandatory Accounting Standards referred in
sub-section(SC) of section 211 of the Companies Act, 1956;
e) In our opinion, and based on information and explanations given to us, none of the
directors are disqualified as on March 31, 2009 , from being appointed as directors in
terms of clause(g) of sub-section(l) 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 together with and subject to the Significant
Accounting Policies and Notes to Accounts thereon give the information required by the
Companies Act, 1956, in the manner so required, and present a true and fair view, in
conformity with the accounting principles generally accepted in India:
(i) In so far as it relates to Balance Sheet, of the state of affairs of the Company as
at March 31, 2009;
(ii) In so far as it relates to the Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) In so far as it relates to the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
||For VENUGOPAL & CHENOY,
Annexure to Auditors' Report
(Referred to in Paragraph 2 of our report of even date)
1. The Company does not have any fixed assets during the year.
2. In respect of its inventories:
a. The inventories have been physically verified by the management at reasonable
b. In our opinion and according to the information and explanations given to us, the
procedures of physical verification of the said stocks 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 the said stocks. As explained to us,
there were no material discrepancies noticed on physical verification of inventory as
compared to the book records.
3. The company did not take nor granted any loans, secured or unsecured, from or to
companies, firms or other parties listed in the Register maintained under Section 301 of
the Companies Act, 1956, during the year. However, it had taken temporary interest-free
unsecured loans from directors. These are not prejudicial to the interests of the Company.
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 assts and also for the sale of
5. In our opinion and according to the information and explanations given to us, the
Company entered into the register the transactions in pursuance of Section 301 of the
Companies Act, 1956, aggregating during the year to more than Rs.5,00,000/-(Rupees Five
lakhs only) in respect of one party. These transactions have been made at the prevailing
market price at the relevant time.
6. The Company has not accepted any deposits from the public.
7. The Company is yet to introduce the system of Internal Audit.
8. The Central Government did not prescribe maintenance of Cost Records under Section
209(1)(d) of the Companies Act, 1956(Act I of 1956) for any of the products of the
9. During the year, there is no person to whom the provisions of P.P. or E.S.I, are
applicable. According to information and explanations given to us, there are no other
undisputed statutory payments outstanding for more than six months from the date they
10. As per the accounts referred to in this Report, the net-worth of the Company has
been eroded beyond 50% as on March 31, 2009. The Company did not incurr cash losses during
the financial year under report and also in the preceding financial year.
11. The Company does not have any outstandings to a financial institution or bank
during the year.
12. In our opinion and according to the information and explanations 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
fund/society. Therefore, clause-4(xiii) of the Companies(Auditors' Report) Order, 2003, is
not applicable to the Company.
14. The Company has not dealt in or traded in shares, securities, debentures and other
15. The Company has not given guarantees for loans taken by others from banks or
16. The Company has not raised any new term loans during the year.
17. The Company during the year did not raise any short term loans and hence the
question of their usage does not arise.
18. During the year, 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 issued any debentures during the year.
20. The Company has not raised any money by way of public issue during the year.
In our opinion and according to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year, that causes the
financial statements to be materially misstated.
||For VENUGOPAL & CHENOY,