Professional Diamonds Ltd. இன் முடிவுகள்

Mar 31, 2014

We have audited the accompanying financial statements of Professional Diamonds Limited (the "Company") which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and the summary of signifcant accounting policies and other explanatory information, which we have signed under reference to the report.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fows of the Company in accordance with the Accounting Standards notifed under Companies Act, 1956 of India (the "Act") read with the General Circular No15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fnancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these fnancial statements based on our audit in accordance with Standards on Auditing issued by the Institute of Chartered Accountants of India Because of the matters described in the Basis for Disclaimer of Opinion paragraph, however, we are not able to obtain suffcient audit evidence to provide a basis for an audit opinion.

Basis for Disclaimer of Opinion

A In respect of Trade receivables, which form a signifcant amount of the Company''s assets, amounting to Rs 5,24,35,100 the auditors have not received any confrmation of balances. The management has obtained confrmation of balances from the respective parties. The amounts have been outstanding for a considerable period of time taking into account the prevailing trade practice in respect of the Company''s business. In view of the above we are unable to comment on the realisability of the debts, and any provision to be made for unrealisability in the carrying amounts of these balances and on the consequential impact on the fnancial statements.

B The Company has made long term investments in Forever Diamonds Pvt. Ltd., SRV Polishing Technologies and J R Diamonds Pvt Ltd. amounting to Rs.3,45,350. The said investments continue to be valued at cost. In absence of availability of audited fnancial statements of the above mentioned companies we are unable to comment on the carrying costs of such investments and the provision for diminution in their value . We are unable to comment on the impact of the fnancial statements of provision for diminution in value of investments.

C In view of what has been stated above regarding recoverability of Trade receivables which form a signifcant amount of the Company''s assets and the impact it could have on the Company''s fnancials, we are unable to conclude on the ability of the Company to carry on as a going concern.

Basis of Opinion

Because of the signifcance of the matters described in the Basis of Disclaimer of Opinion paragraph specifically relating to realisability of Trade Receivables, we have not been able to obtain audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the fnancial statements

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specifed in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we report that:

(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, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report comply with the Accounting Standards referred notifed under the Act read with the General Circular No 15/2013 dated September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013

(e) On the basis of written representations received from the directors as at March 31st, 2014, and taken on record by the Board of Directors and the information and explanations given to us, none of the directors is, prima-facie, disqualifed as at March 31st, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act.

ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT (Referred to in para 1 under "Report on Other Legal and Requirements section of our report of even date ) On the basis of such checks as we considered appropriate and in terms of information and explanations given to us, we state that:

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 fxed assets have been physically verifed by the management during the year under review.

(c) Substantial part of fxed assets has not been disposed off during the year. As such the determination, only on the basis of sale of substantial portion of fxed assets, as to whether it has affected the going concern basis does not arise.

2. The Company did not have any inventories during the year under review, therefore, clauses 4 (iia), 4 (iib) and 4 (iic) of the Companies (Auditor''s Report) Order, 2003 are not applicable.

3. During the year under review, the company has not granted nor taken any loans secured or unsecured to/from companies, frms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according 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 with regard to the purchase of inventory, fxed assets and sale of goods and services. During the course of the audit we have not observed any continuing failure to correct major weakness in internal control system.

5. (a) In our opinion and according to the information and explanations given to us and on the basis of the checks carried out by us, there are no contracts or arrangements referred to in section 301 of the Companies Act, 1956 required to be entered in the register maintained under that section.

(b) As the company has not entered into any contracts or arrangement with the parties mentioned in Para 5(a) above, the question of determining whether the prices are reasonable having regards to prevailing market price does not arise.

6. The Company has not accepted any deposits from the public. As such, the question of complying with the directives issued by the Reserve Bank of India and the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under does not arise.

7. In our opinion, the company has no formal Internal Audit System as such, but its internal control procedures ensure reasonable checking of its fnancial and other records.

8. In our opinion, the company has no formal Internal Audit System as such, but its internal control procedures ensure reasonable checking of its fnancial and other records.

9. (a) According to the records of the company, undisputed statutory dues including provident fund, employees state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable have generally been regularly deposited with the appropriate authorities. No undisputed amounts are outstanding for more than six months at the end of the accounting year.

(b) According to the records of the company, there are no disputed amounts of statutory dues outstanding at the end of the accounting year.

10. The company has no accumulated losses at the end of the fnancial year. Attention is invited to our main report of even date on the paragraph, Basis for Disclaimer of Opinion, wherein in we are unable to comment on the realisability of Trade Receivables amounting to Rs 524,35,100. Further, the company has incurred cash losses during the fnancial year covered by our audit and in the immediately preceding fnancial year.

11. The Company has not during the year under review availed of any loans from banks or fnancial institutions and also no debentures have been issued by the Company and as such the question of default in payments does not arise.

12. As informed to us, the company has not granted any loans and advances on the basis of security by way of pledge of any shares, debentures and other securities. Therefore, the provisions of clause 4(xii) of the Companies (Auditor''s Report ) Order, 2003 are not applicable to the company.

13. In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/ society. Therefore the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

15. As informed to us, the company has not given any guarantees for any loans taken by others from banks or fnancial institutions. Therefore, the provisions of clause 4(xv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

16. The company has not given availed of any term loans, hence the provisions of clause 4(xvi) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

17. According to the information and explanations given to us and 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 investments.

18. The company has not made any fresh allotment of shares. Therefore, the provisions of clause 4(xviii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

19. The company has not issued any debentures. Therefore, the provisions of clause 4(xix) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

20. During the year under review, the company has not raised any monies by way of public issues. Hence, the question of verifcation of end use of monies raised in public issue as per the provisions of clause 4 (xx) of the Companies (Auditor''s Report) Order, 2003 does not arise.

21. On the basis of our examinations and according to the information and explanations given to us, no fraud/s on or by the company has been noticed or reported during the course of our audit.

For N.P. JHAVERI & ASSOCIATES Chartered Accountants (Firm Registration No 104237W)

Nitin P Jhaveri Place : Mumbai Proprietor Date : 30th May, 2014 Membership No 033851

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Mar 31, 2012

We have audited the attached Balance Sheet of PROFESSIONAL DIAMONDS LIMITED as at 31st March, 2012 and also the Profit and Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement of the Company 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 have 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 the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well 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, we enclose in the annexure 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 that:

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 these books;

c) The Balance Sheet and the Profit and Loss Account dealt with by this Report are in agreement with the books of account;

d) In our opinion, the Balance Sheet and Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the applicable accounting standards referred to in section 211 (3C) of the Companies Act 1956 ;

e) On the basis of written representations received from the Directors, as on 31st March, 2012, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

4. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the Notes thereon, 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;

i. In the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2012;

ii. In the case of Profit and Loss Account of the Profit for the year ended on that date; and

iii. In the case of Cash Flow Statement of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in para 2 of our report of even date on the accounts for the year ended 31st March, 2012 of PROFESSIONAL DIAMONDS LIMITED)

On the basis of such checks as we considered appropriate and in terms of information and explanations given to us, we state that:

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 except the assets given on lease have been physically verified by the management during the year under review.

(c) Substantial part of fixed assets has not been disposed off during the year. As such the determination as to whether it has affected the going concern basis does not arise.

2. (a) The management, at proper intervals, has done physical verification of the inventories. In our opinion the frequency of the verification is reasonable.

(b) 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 business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3. (a) During the year under review, the company has not granted any loans secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The terms and conditions of interest free unsecured loans given by the company to its employees are in our opinion prima facie not prejudicial to the interest of the company.

(c) The payments of principal amount is regul

(d) There is no overdue amounts of loans and advances in excess of Rs. 100,000/-.

(e) During the year under review, the company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 or from any other parties. Therefore, the provisions of clause 4(iii)(f) and clause 4 (iii)(g) of the Companies ( Auditor's Report ) Order,2003 are not applicable.

4. In our opinion and according 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 with regard to the purchase of inventory, fixed assets and sale of goods and services. During the course of the audit we have not observed any continuing failure to correct major weakness in internal control system.

5. (a) In our opinion and according to the information and explanations given to us and on the basis of the checks carried out by us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

(b) In the opinion of the management, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to the prevailing market prices, in view of the peculiar nature of the industry.

6. The Company has not accepted any deposits from the public. As such, the question of complying with the directives issued by the Reserve Bank of India and the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under does not arise.

7. In-our opinion, the company has no formal Internal Audit System as such, but its internal control procedures ensure reasonable checking of its financial and other records.

8. The Central Government has not prescribed the maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956, As such the question of reviewing the books of account to be maintained by the company pursuant to such an order does not arise.

9. (a) According to the records of the company, undisputed statutory dues including provident fund, employees state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable have generally been regularly deposited with the appropriate authorities. No undisputed amounts are outstanding for more than six months at the end of the accounting year.

(b) According to the records of the company, there are no disputed amounts of statutory dues outstanding at the end of the accounting year.

10. The company has no accumulated losses and the company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

11. The Company has not during the year under review availed of any loans from banks or financial institutions and also no debentures have been issued by the Company and as such the question of default in payments does not arise.

12. As informed to us, the company has not granted any loans and advances on the basis of security by way of pledge of any shares, debentures and other securities. Therefore, the provisions of clause 4(xii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

13. In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/ society. Therefore the provisions of clause 4(xiii) of the Companies ( Auditor's Report ) Order, 2003 are not applicable to the company.

14. In our opinion, die company is not dealing in or trading in shares, securities, debentures and outer investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

15. As informed to us, the company has not given any guarantees for any loans taken by others from banks or financial institutions. Therefore, the provisions of clause 4(xv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

16. The company has not given availed of any term loans, hence the provisions of clause 4(xvi) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

17. According to the information and explanations given to us and 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 investments.

18. The company has not made any fresh allotment of shares. Therefore, the provisions of clause 4(xviii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

19. The company has not issued any debentures. Therefore, the provisions of clause 4(xix) of the Companies ( Auditor's Report) Order, 2003 are not applicable to the company.

20. During me year under review, the company has not raised any monies by way of public issues. Hence, the question of verification of end use of monies raised in public issue as per the provisions of clause 4 (xx) of the Companies ( Auditor's Report ) Order, 2003 does not arise.

21. On the basis of our examinations and according to the information and explanations given to us, no fraud/s on or by the company has been noticed or reported during the course of our audit.



For N.P. JHAVERI & ASSOCIATES Chartered Accountants (Firm Registration No 104237W)

Nitin P Jhaveri Proprietor Membership No 033851

Mumbai Date : 30th May. 2012

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Mar 31, 2011

We have audited the attached Balance Sheet of PROFESSIONAL DIAMONDS LIMITED as at 31st March, 2011 and also the Profit and Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement of the Company 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 have 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 the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well 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, we enclose in the annexure 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 that:

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 these books;

c) The Balance Sheet and the Profit and Loss Account dealt with by this Report are in agreement with the books of account;

d) In our opinion, the Balance Sheet and Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the applicable accounting standards referred to in section 211 (3C) of the Companies Act 1956 ;

e) On the basis of written representations received from the Directors, as on 31st March, 2011, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

4. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the Notes thereon, 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;

i. In the case of Balance Sheet of the state of affairs of the Company as at 31 st March, 2011;

ii. In the case of Profit and Loss Account of the Profit for the year ended on that date; and

iii. In the case of Cash Flow Statement of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in para 2 of our report of even date on the accounts for the year ended 31st March, 2011 of PROFESSIONAL DIAMONDS LIMITED)

On the basis of such checks as we considered appropriate and in terms of information and explanations given to us, we state that:

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 except the assets given on lease have been physically verified by the management during the year under review.

(c) Substantial part of fixed assets have not been disposed off during the year. As such the determination as to whether it has affected the going concern basis does not arise.

2. (a) The management, at proper intervals, has done physical verification of the inventories. In our opinion the frequency of the verification is reasonable.

(b) 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 business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3. (a) During the year under review, the company has not granted any loans secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The terms and conditions of interest free unsecured loans given by the company to its employees are in our opinion prima facie not prejudicial to the interest of the company.

(c) The payments of principal amount is regular.

(d) There is no overdue amounts of loans and advances in excess of Rs. 100,000/-.

(e) During the year under review, the company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 or from any other parties. Therefore, the provisions of clause 4(iii)(f) and clause 4 (iii)(g) of the Companies ( Auditor’s Report ) Order,2003 are not applicable.

4. In our opinion and according 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 with regard to the purchase of inventory, fixed assets and sale of goods and services. During the course of the audit we have not observed any continuing failure to correct major weakness in internal control system.

5. (a) In our opinion and according to the information and explanations given to us and on the basis of the checks carried out by us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

(b) In the opinion of the management, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to the prevailing market prices, in view of the peculiar nature of the industry.

6. The Company has not accepted any deposits from the public. As such, the question of complying with the directives issued by the Reserve Bank of India and the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder does not arise.

7. In our opinion, the company has no formal Internal Audit System as such, but its internal control procedures ensure reasonable checking of its financial and other records.

8. The Central Government has not prescribed the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, as such the question of reviewing the books of account to be maintained by the company pursuant to such an order does not arise.

9. (a) According to the records of the company, undisputed statutory dues including provident fund, employees state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable have generally been regularly deposited with the appropriate authorities. No undisputed amounts are outstanding for more than six months at the end of the accounting year.

(b) According to the records of the company, there are no disputed amounts of statutory dues outstanding at the end of the accounting year.

10. The company has no accumulated losses and the company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

11. The Company has not during the year under review availed of any loans from banks or financial institutions and also no debentures have been issued by the Company and as such the question of default in payments does not arise.

12. As informed to us, the company has not granted any loans and advances on the basis of security by way of pledge of any shares, debentures and other securities. Therefore, the provisions of clause 4(xii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

13. In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/ society. Therefore the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies ( Auditor’s Report ) Order, 2003 are not applicable to the company.

15. As informed to us, the company has not given any guarantees for any loans taken by others from banks or financial institutions. Therefore, the provisions of clause 4(xv) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

16. The company has not given availed of any term loans, hence the provisions of clause 4(xvi) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

17. According to the information and explanations given to us and 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 investments.

18. The company has not made any fresh allotment of shares. Therefore, the provisions of clause 4(xviii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

19. The company has not issued any debentures. Therefore, the provisions of clause 4(xix) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the company.

20. During the year under review, the company has not raised any monies by way of public issues. Hence, the question of verification of end use of monies raised in public issue as per the provisions of clause 4 (xx) of the Companies (Auditor’s Report) Order, 2003 does not arise.

21. On the basis of our examinations and according to the information and explanations given to us, no fraud/s on or by the company has been noticed or reported during the course of our audit.



For N.P. JHAVERI & ASSOCIATES Chartered Accountants (Firm Registration No 104237W)



Nitin P Jhaveri Mumbai Proprietor Date : 31st May, 2011 Membership No 033851

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Mar 31, 2010

We have audited the attached Balance Sheet of PROFESSIONAL DIAMONDS LIMITED as at 31st March, 2010 and also the Profit and Loss Account for the year ended on that date annexed thereto and the Cash Flow Statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

1. We have 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 the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well 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, we enclose in the annexure 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 that:

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 these books:

c) The Balance Sheet and the Profit and Loss Account dealt with by this Report are in agreement with the books of account;

d) In our opinion, the Balance Sheet and Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the applicable accounting standards referred to in section 211 (3C) of the Companies Act 1956;

e) On the basis of written representations received from the Directors, as on 31st March, 2010, and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of sub-section (I) of section 274 of the Companies Act, 1956:

4. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the notes thereon, 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;

i. In the case of Balance Sheet of the state of affairs of the Company as at 31 st March, 2010:

ii. In the case of Profit and Loss Account of the Profit for the year ended on that date; and

iii. In the case of Cash Flow Statement of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

(Referred (to in para 2 of our report of even date on the accounts for the year ended 31st March, 2010 of PROFESSIONAL DIAMONDS LIMITED)

On the basis of such checks as we considered appropriate and in terms of information and explanations given to us, we state that:

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 except the assets given on lease have been physically verified by the management during the year under review.

(c) Substantial part of fixed assets have not been disposed off during the year. As such the determination as to whether it has affected the going concern basis does not arise.

2. (a) The management, at proper intervals, has done physical verification of the inventories. In our opinion the frequency of the verification is reasonable.

(b) 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 business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3. (a) During the year under review, the company has not granted any loans secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The terms and conditions of interest free unsecured loans given by the company to its employees are in our opinion prima facie not prejudicial to the interest of the company.

(c) The payments of principal amount is regular.

(d) There is no overdue amounts of loans and advances in excess of Rs. 100,000/-.

(e) During the year under review, the company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 or from any other parties. Therefore, the provisions of clause 4(iii)(f) and clause 4 (iii)(g) of the Companies (Auditors Report) Order, 2003 are not applicable.

4. In our opinion and according 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 with regard to the purchase of inventory, fixed assets and sale of goods and services. During the course of the audit we have not observed any continuing failure to correct major weakness in internal control system.

5. (a) In our opinion and according to the information and explanations given to us and on the basis of the checks carried out by us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

(b) In the opinion of the management, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to the prevailing market prices, in view of the peculiar nature of the industry.

6. The Company has not accepted any deposits from the public. As such, the question of complying with the directives issued by the Reserve Bank of India and the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder does not arise.

7. In our opinion, the company has no formal Internal Audit System as such, but its internal control procedures ensure reasonable checking of its financial and other records.

8. The Central Government has not prescribed the maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956, As such the question of reviewing the books of account to be maintained by the company pursuant to such an order does not arise.

9. (a) According to the records of the company, undisputed statutory dues including provident fund, employees state insurance, investor education and protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable have generally been regularly deposited with the appropriate authorities. No undisputed amounts are outstanding for more than six months at the end of the accounting year.

(b) According to the records of the company, there are no disputed amounts of statutory dues outstanding at the end of the accounting year.

10. The company has no accumulated losses and the company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

11. The Company has not during the year under review availed of any loans from banks or financial institutions and also no debentures have been issued by the Company and as such the question of default in payments does not arise.

12. As informed to us, the company has not granted any loans and advances on the basis of security by way of pledge of any shares, debentures and other securities. Therefore, the provisions of clause 4(xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

13. In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/ society. Therefore the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

15. As informed to us, the company has not given any guarantees for any loans taken by others from banks or financial institutions. Therefore, the provisions of clause 4(xv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

16. The company has not given availed of any term loans, hence the provisions of clause 4(xvi) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

17. According to the information and explanations given to us and 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 investments.

18. The company has not made any fresh allotment of shares. Therefore, the provisions of clause 4(xviii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

19. The company has not issued any debentures. Therefore, the provisions of clause 4(xix) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

20. During the year under review, the company has not raised any monies by way of public issues. Hence, the question of verification of end use of monies raised in public issue as per the provisions of clause 4 (xx) of the Companies (Auditors Report) Order, 2003 does not arise.

21. On the basis of our examinations and according to the information and explanations given to us, no fraud/s on or by the company has been noticed or reported during the course of our audit.

For N.P. JHAVERI & ASSOCIATES

Chartered Accountants

(FRN I04237W)

Nitin P Jhavcri

Proprietor

Mumbai: 31st May. 2010 Membership No. 033851