To the Members of
PRECIOUS TRADING AND INVESTMENTS LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone Ind AS financial statements of M/s. Precious Trading
And Investment Limited ("the Company"), which comprise the balance sheet as
at 31st March 2019, and the statement of profit and loss including Other Comprehensive
Income, statement of changes in equity and statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information (hereinafter referred to as
‘the standalone financial statements).
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act, 2013 in the manner so required and give a true and fair view in
conformity with the Indian Accounting Standards prescribed under section 133 of the Act
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (‘Ind
AS) and other accounting principles generally accepted in India, of the state of affairs
of the Company as at March 31, 2019, and its profit and total comprehensive income,
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. During the
course of our audit there were no significant Key Audit Matters to be reported in context
of audit of our financial statements as a whole, and in forming our opinion thereon, hence
the same has not been reported.
Other Information
The Companys Board of Directors is responsible for the other information. The other
information comprises the information included in the Management Discussion and Analysis
Report including Annexure to Boards Report, Corporate Governance and Shareholders
information and the chairmans statement but does not include the financial statements
and our auditors report thereon, which we obtained prior to the date of this auditors
report.
Our opinion on the financial statements does not cover the other information and we do
not and will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information identified above and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior
to the date of this auditors report, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in
this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone
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 of
these standalone Ind AS financial statements that give a true and fair view of the
financial position, financial performance, (changes in equity) and cash flows of the
Company in accordance with the accounting principles generally accepted in India,
including the Indian accounting Standards (Ind AS) specified under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of 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 Ind AS
financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Ind AS financial statements, the Board of Directors is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companys financial
reporting process.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit. We also
provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016 ("the Order"),
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Companies Act, 2013, we give in the "Annexure A" a statement on the matters
specified in paragraphs 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, (the Statement of Changes in
Equity) and the Cash Flow Statement dealt with by this Report are in agreement with the
books of accounts of the company.
d. In our opinion, the aforesaid standalone Ind AS 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 31st
March, 2019 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2019 from being appointed as a director in terms of Section
164(2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in "Annexure B".
g. 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 for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company during the year ended March 31, 2019
|
For S M Gupta & Co. |
|
Chartered Accountants |
|
FRN No: 310015E |
|
Neena Ramgarhia |
| Place: Mumbai |
Partner |
| Date: 30/05/2019 |
Membership No: 067157 |
Annexure – A to Independent Auditors Report
(Referred to in Paragraph 10 of the Independent Auditors Report to the Members of even
date)
i. The Company does not have any fixed assets. Accordingly, paragraph (i) of the
Order is not applicable.
ii. The Company does not have any stock of Inventories. Accordingly, paragraph (ii)
of the Order is not applicable.
iii. According to the information and explanations given to us, the Company has
granted unsecured loan to one party covered in the register maintained under section 189
of the Companies Act, 2013, in respect of which :
(a) The terms and conditions of the grant of such loan are, in our opinion, prima
facie, not prejudicial to the Companys interest.
(b) In case of loan granted to the body corporate listed in the register maintained
under Section 189 of the Act, the borrower have been regular in the payment of the
principal and interest as stipulated.
(c) There are no overdue amounts in respect of the loan granted to a body corporate
listed in the register maintained under Section 189 of the Act.
iv. The Company has complied with Section 185 and Section 186 of the Companies Act,
2013 by passing special resolution in the meeting of shareholders of the Company.
v. According to information and explanations provided to us, the company has not
obtained deposit from public as defined according to the provisions of Section 73 to 76 of
the Companies Act, 2013 and the Rules framed there under.
vi. According to information and explanations provided to us, the Company has
maintained accounts and cost records pursuant to the Companies (Cost Accounting Records)
Rules, 2011 and as specified by the Central Government of India under Section 148(1) of
the Companies Act, 2013. We have however not carried out a detailed examination of the
same.
vii.
(a) According to information and explanations given to us and the records of the
Company examined by us, in our opinion, the Company is generally regular in depositing the
undisputed statutory dues, including provident fund, employees state insurance, duty of
customs, duty of excise, income tax, sales tax, service tax, value added tax, goods and
service tax, cess and other material statutory dues, as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, employees state insurance, duty of customs, duty of
excise, income tax, sales tax, service tax, value added tax, goods and service tax, cess
and other material statutory dues were in arrears as at March 31st, 2019 for a period of
more than six months from the date they became payable.
(c) According to the information and explanations given to us and based on the records
of the company examined by us, there are no dues of provident fund, employees state
insurance, duty of customs, duty of excise, income tax, sales tax, service tax, value
added tax, goods and service tax, cess and other material statutory dues which have not
been deposited on account of any disputes.
viii. In our opinion and according to the information and explanations given to us,
the company has not raised any loans or borrowings from financial institutions, banks, and
Government or debenture holders. Accordingly, para 3(viii) of the Order is not applicable.
ix. The company has not raised any money via initial public offer or by way of
further public offer or term loans and hence reporting under para 3(ix) of the Order is
not applicable.
x. According to the information and explanations given to us, we have neither come
across any instance of materialfraud on or by the Company by its officers or employees,
noticed or reported during the year, nor have we been informed of any such case by the
Management.
xi. The Company has not paid any Managerial Remuneration during the year under
audit. Accordingly, paragraph 3(xi) of the Order is not applicable.
xii. In our opinion, the company is not a Nidhi Company. Accordingly, paragraph
3(xii) of the Order is not applicable.
xiii. According to the information and explanations provided to us, and based on
our examination of the records of the Company, all transactions with the related parties
are in compliance with Section 177 and 188 of Companies Act, 2013 where applicable and the
details have been disclosed in the standalone Ind AS financial statements as required by
the applicable Indian accounting standards.
xiv. During the year, the Company has not made any preferential allotment or
private placement of shares or fully or partly paid convertible debentures and hence
reporting under clause 3 (xiv) of the Order is not applicable to the Company.
xv. According to the information and explanations provided to us, and based on our
examination of the records of the Company, the company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of
the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934.
|
For S M Gupta & Co. |
|
Chartered Accountants |
|
FRN No: 310015E |
|
Neena Ramgarhia |
| Place: Mumbai |
Partner |
| Date: 30/05/2019 |
Membership No: 067157 |
Annexure – B to Independent Auditors Report
(Referred to in Paragraph 10(f) of the Independent Auditors Report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of
Precious Trading and Investments Limited ("the Company") as of March 31st, 2019
in conjunction with our audit of the standalone Ind AS financial statements of the Company
for the year ended on that date.
Managements Responsibility for Internal Financial Controls
2. The Companys management is responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over Financial
Reporting issued by the Institute of Chartered Accountants of India (‘ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
3. Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls over
financial reporting was established and maintained and if such controls operated
effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the
adequacy of the internal financial controls system over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. 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.
5. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Companys internal financial
controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
6. A companys internal financial control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A companys internal financial control over
financial reporting includes those policies and procedures that
(a) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
(b) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and
(c) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
7. Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2019, based on the
internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered
Accountants of India.
|
For S M Gupta & Co. |
|
Chartered Accountants |
|
FRN No: 310015E |
|
Neena Ramgarhia |
| Place: Mumbai |
Partner |
| Date: 30/05/2019 |
Membership No: 067157 |
+91-9892691696
