To the members of
Sunraj Diamond Exports Limited
I. Report on the audit of the standalone financial statements
1. Qualified Opinion
We have audited the accompanying Standalone Financial Statements of Sunraj Diamond
Exports Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss (including Other Comprehensive Income),
the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on
that date, and notes to financial statement, including a summary of the 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, except for the effects of matters described in the basis for qualified
opinion section of our report, the aforesaid Standalone Financial Statements give the
information required by the Companies Act, 2013 ("the Act") 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, 2023, the
Profit and total comprehensive income, changes in equity and its cash flows for the
year ended on that date
2. Basis for Qualified Opinion
As per the note no. 31: Employee Benefits, the company has not made the provision of
employee cost with reference to the retirement benefits of the employees. We conducted
our audit of the Standalone Financial Statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the Act (SAs). Our responsibilities
under those Standards are further described in the Auditors Responsibilities for the
Audit of the Standalone 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 (ICAI) together with the independence requirements that are relevant
to our audit of the financial statements under the provisions of the Act and the Rules
made thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the Standalone Financial Statements.
3. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the Standalone Financial Statements of the current period.
These matters were addressed in the context of our audit of the Standalone Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have not determined any key audit matters which
needs specific mention.
4. Information Other than the Standalone Financial Statements and Auditors
Report Thereon
The Companys Board of Directors is responsible for the preparation of the other
information. The other information comprises the information included in the Management
Discussion and Analysis, Boards Report including Annexures to Boards Report, Business
Responsibility Report, Corporate Governance and Shareholders Information, but does not
include the Standalone Financial Statements and our auditors report thereon. Our opinion
on the standalone financial statements does not cover the other information and we do 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 and, in doing so, consider whether the other information is
materially inconsistent with the standalone Financial Statements or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated. If, based
on the work we have performed, 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.
5. Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these Standalone Financial Statements
that give a true and fair view of the financial position, financial performance, total
comprehensive income, changes in equity and cash flows of the Company in accordance with
the Ind AS and other accounting principles generally accepted in India. 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 standalone financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the Standalone Financial Statements, management 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
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so. The Board of Directors are responsible for overseeing
the Companys financial reporting process.
6. Auditors Responsibilities for the Audit of the Standalone Financial
Statements
Our objectives are to obtain reasonable assurance about whether the Standalone
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 Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of the standalone 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.
ii) Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls with reference to financial statements in
place and the operating effectiveness of such controls
iii) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management
iv) 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 Standalone 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 v) Evaluate the overall presentation, structure and content of
the Standalone Financial Statements, including the disclosures, and whether the Standalone
Financial Statements represent the underlying transactions and events in a manner that
achieves fair presentation
Materiality is the magnitude of misstatements in the Standalone Financial Statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We
consider quantitative materiality and qualitative factors in
i) Planning the scope of our audit work and in evaluating the results of our work; and
ii) To evaluate the effect of any identified misstatements in the Standalone Financial
Statements.
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 Standalone 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
II. Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit 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 including Other Comprehensive
Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this
Report are in agreement with the relevant books of account
D. In our opinion, the aforesaid standalone financial statements comply with the Ind
AS 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 March
31, 2023 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2023 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 with reference to
financial statements of the Company and the operating effectiveness of such controls,
refer to our separate Report in "Annexure B". Our report expresses an unmodified
opinion on the adequacy and operating effectiveness of the Companys internal financial
controls with reference to financial statements.
G. With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended:In our opinion
and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with
the provisions of section 197 of the Act.
H. 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, as amended in
our opinion and to the best of our information and according to the explanations given to
us:
i) The Company does not have pending litigations having impact on its financial
position in its Standalone Financial Statements
ii) The Company does not have any material foreseeable losses, if any, on long-term
contracts including derivative contracts
iii) The company has delayed in transferring of dividend to Investor Education
Protection Fund as under:
| Financial Year |
Amount |
Due date of payment |
Date of payment |
| 2012-13 |
6,67,157 |
19th October, 2021 |
30th June 2022 |
2. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
|
For Govind Prasad and Co. |
|
Chartered Accountants |
|
FRN: 114360W |
|
Sd/- |
|
CA Govind Prasad |
|
Partner |
| Place : Mumbai |
M. No.: 047948 |
| Date : 29th May 2023 |
UDIN: 23047948BGTRIF5299 |
ANNEXURE ‘A TO THE AUDITORS REPORT
The Annexure referred to in our report to the members of Sunraj Diamond Exports Limited
for the year ended 31st March, 2023.
On the basis of the information and explanation given to us during the course of our
audit, we report that:
1. Property, Plant and Equipment:
The company has maintained proper records showing full particulars, including
quantitative details and situation of its Property, Plant and Equipment.
The Company is maintaining proper records showing full particulars of intangible
assets.
As explained to us, Property, Plant and Equipment have been physically verified by the
management at reasonable intervals; no material discrepancies were noticed on such
verification.
The Company is not having any immovable property hence the clause related to Title deed
is not applicable.
The Company has not revalued its Property, Plant and Equipment (Including right of Use
assets) or intangible assets or both during the year.
No proceedings have been initiated or are pending against the Company for holding any
Benami Property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and
rules made thereunder.
2. Inventory:
As explained to us, inventories have been physically verified during the year by the
management at reasonable intervals. No material discrepancy of 10% or more in the
aggregate for each class of inventory was noticed on physical verification of stocks by
the management as compared to book records.
During any point of time of the year, the company has not been sanctioned any working
capital limits from banks or financial institutions on the basis of security of current
assets.
3. Loans, Guarantee and Advances given:
The company has not granted loans secured or unsecured to companies, firms, Limited
Liability Partnerships or other parties covered in the register maintained under section
189 of the Companies Act, 2013
4. Loans, Guarantee and Advances to Director of Company:
During the year the company has not provided any loans, guarantees, advances and
securities to the director of the company and the company is compliant provisions of
section 185 and 186 of the Companies Act, 2013.
5. Deposits:
The Company has not accepted any deposits from the public and hence the directives
issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with
regard to the deposits accepted from the public are not applicable.
6. Maintenance of costing records:
As per information & explanation given by the management, maintenance of cost
records has not been specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013.
7. Deposit of statutory liabilities:
• The company is irregular in depositing undisputed statutory dues including
provident fund, Employees state insurance, income-tax, sales-tax, goods and service tax,
duty of customs, duty of excise, value added tax, cess and any other statutory dues to the
appropriate authorities.
• Dues of income tax or sales tax or service tax or duty of customs or duty of
excise or value added tax or goods and service tax have been deposited on time there is no
dispute pending on the part of company, except for the dispute mentioned below.
| Statute of under which dispute is pending |
Financial Year |
Amount |
Authority before which pending |
| Income Tax Act 1961 |
2012-13 |
60,24,929 |
Commissioner of Income Tax (Appeals) |
| Income Tax Act 1961 |
2013-14 |
76,73,080 |
Commissioner of Income Tax (Appeals) |
8. Surrendered or disclosed as income in the tax assessments:
The Company does not have any transactions to be recorded in the books of account that
has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act, 1961 (43 of 1961).
9. Default in repayment of borrowings:
a) In our opinion and according to the information and explanations given by the
management, we are of the opinion that, the Company has not defaulted in repayment of
loans or other borrowings or in the payment of Interest thereon to any lender.
b) The company is not declared willful defaulter by any bank or financial institution
or other lender c) The term loans were applied for the purpose for which the loans were
obtained
d) No funds raised on short term basis have been utilized for Long Term Purpose.
e) The company has not taken any funds from any entity or person on account of or to
meet the obligations of its subsidiaries, associates or joint ventures.
f) The company has not raised loans during the year on the pledge of securities held in
its subsidiaries, joint ventures or associate companies
10. Funds raised and utilisation:
Based on our audit procedures and according to the information given by the management,
the company has not raised any money by way of initial public offer or further public
offer (including debt instruments) or taken any term loan during the year.
The company has not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year under review.
11. Fraud and whistle-blower complaints:
According to the information and explanations given to us, we report that no fraud by
the company or any fraud on the Company by its officers or employees has been noticed or
reported during the year.
No Report under Sub section 12 of Section 143 of the Companies Act has been filed by
the Auditors in the form ADT-4 as prescribed under Rule 13 of the Companies (Audit and
Auditors) Rules, 2014 with the Central Government.
No Whistle-blower complaints have been received during the year by the Company.
12. Nidhi Company:
The company is not a Nidhi Company. Therefore, clause (xii) of the order is not
applicable to the company.
13. Related Party Transactions:
According to the information and explanations given to us, all transactions with the
related parties are in compliance with sections 177 and 188 of Companies Act, 2013
wherever applicable and the details have been disclosed in the Financial Statements etc.
as required by the applicable accounting standards.
14. Internal Audit:
The company does not have internal audit system and the same clause is not commented.
15. Non Cash Transactions:
The company has not entered into non-cash transactions with directors or persons
connected with him.
16. Registration under RBI act:
The company is not required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934.
The Company has not conducted any Non-Banking Financial or Housing Finance activities
hence the said clause is not applicable
The Company is not a Core Investment Company as defined in the regulations made by
Reserve Bank of India. Hence clause "C and clause "D" are not applicable
17. Cash Losses:
The company has not incurred cash losses in the current financial year as well as in
immediately preceding financial year.
18. Resignation of Statutory Auditors:
There has been no instance of any resignation of the statutory auditors occurred during
the year.
19. Material uncertainty on meeting liabilities:
On the basis of financial Ratios, Aging and expected dates of Realisation of financial
assets and payment of financial liabilities, other Information accompanying the financial
statements, In our opinion, No material uncertainty exists as on the date of the audit
report and that company is capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of 1 year from the balance sheet
date
20. Transfer to fund specified under Schedule VII of Companies Act, 2013
The same is not applicable to the company
21. Qualifications or adverse auditor remark in other group companies
This Clause is not applicable to the company
|
For Govind Prasad and Co. |
|
Chartered Accountants |
|
FRN: 114360W |
|
Sd/- |
|
CA Govind Prasad |
|
Partner |
| Place : Mumbai |
M. No.: 047948 |
| Date : 29th May 2023 |
UDIN: 23047948BGTRIF5299 |
ANNEXURE - B TO THE AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Sunraj
Diamond Exports Limited ("The Company") as of 31 March 2023 in conjunction
with our audit of the financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
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
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 Institute of Chartered Accountants of
India. 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.
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.
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
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 (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) 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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised 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
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
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 31 March 2023, 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 Govind Prasad and Co. |
|
Chartered Accountants |
|
FRN: 114360W |
|
Sd/- |
|
CA Govind Prasad |
|
Partner |
| Place : Mumbai |
M. No.: 047948 |
| Date : 29th May 2023 |
UDIN: 23047948BGTRIF5299 |
+91-9892691696
