To,
The members of Diamond Infosystems Ltd.
Report on the Financial Statements
We have audited the accompanying financial statements of Diamond Infosystems Limited
(the Company), which comprise the balance sheet as at 31 March 2017, the statement of
profit and loss and the cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation
and presentation 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 the Companies (Accounts)
Rules, 2014. This responsibility also 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; and design, implementation and maintenance of adequate internal
financial controls, that were 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.
Auditors Responsibility
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.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the financial statements. The procedures selected depend on the
auditors 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 Companys 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 the accounting policies used and the
reasonableness of the accounting estimates made by the Companys Directors, 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 on the financial statements.
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, of the state of affairs of the Company as at 31
March 2017 and its profit and its cash flows for the year ended on that date subject to
our Report as under:
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors 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 the paragraph 3
and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we 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 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 it 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 aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31
March 2017 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2017 from being appointed as a director in terms of Section
164 (2) of the Act; and
(f) with respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial
position;
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;
and
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.
| For Vijay N. Tewar |
| Chartered Accountants |
| Firms registration number: 111422W |
| CA Vijay N. Tewar |
| Proprietor |
| Membership number: 040676 |
| Place: Baroda |
| Date: 30th May,2017. |
Annexure to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report to the members of the
Company on the financial statements for the year ended 31 March 2017, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets, however the same has not been updated.
(b) As explained to us, fixed assets have been physically verified by the management at
regular intervals although no verification report was provided to us hence we are unable
to comment on any material discrepancies noticed on such verification.
(ii) (a) As informed to us, physical verification of inventory has been conducted by
the management at reasonable intervals during the audit year.
(b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of stock followed by the management were found
reasonable and adequate in relation to the size of the Company and the nature of its
business.
(c) In case of maintaining proper records of Inventories, we like to comment that same
are maintained properly as per the available records and representation produced before
us.
(iii) (a) The Company has granted loans, secured or unsecured amounting to
Rs.1,31,68,026/- to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013 (the Act).
(b) No formal terms and conditions for payment of the principal amount and interest, so
we are not in position to give our opinion that installment payments are regular or not.
(c) There is overdue amount is more than Rs.1 Lakh, however as stated in the point no
(b) above, there are no stated terms or condition for the same and hence we are unable to
comment whether repayment of principal and interest was regular or not and reasonable
steps have been taken or not for recovery of the principal and interest.
(iv) In our opinion and according to the information and explanations given to us by
the management, there is adequate internal control system commensurate with the size of
the company and nature of its business with regard to purchase of stores, raw materials
including components, plant and machinery, equipment and other assets and for sales of
goods and services. During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in the internal control system.
(v) The Company has not accepted any deposits from the public.
(vi) As informed to us, the Central Government has not prescribed the maintenance of
cost records under section 148(1) of the Act.
(vii) (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, amounts deducted/ accrued in the books of
account in respect of undisputed statutory dues including provident fund, income tax,
sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the year by the Company with
the appropriate authorities. As explained to us, the Company did not have any dues on
account of employees state insurance and duty of excise.
According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, income tax, sales tax, wealth tax, service tax, duty
of customs, value added tax, cess and other material statutory dues were in arrears as at
31 March 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no material
dues of wealth tax, income tax, sales tax, service tax, duty of customs and cess and value
added tax which have not been deposited with the appropriate authorities on account of any
dispute.
(c) According to the information and explanations given to us, 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.
(viii) The Company does not have any accumulated losses at the end of the financial
year and has not incurred cash losses in the financial year and in the immediately
preceding financial year.
(ix) The Company has not defaulted in repayment of dues to financial institutions,
banks or debenture holders during the year.
(x) According to the information and explanations given to us, the company has not
given guarantees for loans taken by others from banks and financial institutions.
(xi) No Term loans have been raised by the company and hence, this clause does not
apply.
(xii) According to the information and explanations given to us, no material fraud by
the Company employee has been reported during the course of our audit.
|
For Vijay N Tewar & Co. |
|
Chartered Accountants |
|
CA Vijay N. Tewar |
|
Proprietor |
| Place: Vadodara |
M. No.40676 |
| Date: 30th May, 2017 |
Firm Reg. No :111422W |
+91-9892691696
