INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF SHEETAL DIAMONDS LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanyingid ASfinancial statements Ofheetal Diamonds Limite(“the
Company”), which comprise the Balance Sheet as at Mar3h 2023, the Statementof Profitand
Loss (including Ot her C ompr ehensivel ncome), the Statementof C hanges in E quityand the Statement
of Cash Flows for the year ended, and notes to the Ind AS financial statements includisujranary of
the significantaccountingpolicies and otherexplanatory information (hereinafter referred ao “Ind
AS financial statements”).
In our opinion and to the best of our informationand according to the explanations given to us, the
aforesaidInd AS financial statementsgive the informationrequired by thdCompanies Act, 233
(“the Act”) in the manners o requiredand give a trueand fairview in conformitywith the Indian
Accounting Standardsprescribedunder section B3 of theAct read with the Companies (Indian
Account ing S tandar ds)Rules, 205, as amended, (“Ind AS”) and other accounting pr inciplesgener ally
accepted in India, of thestate of affairsof the Company as at March , 2023, its lossand total
comprehensiveincome, changes in equity and itscash flows forthe year endedon that date.
Basis for Opinion
We conducted our auditof thefinancial statementsin accordance with the Standardson Auditing
specified undersection 43(0) of the Act (SAs). Our responsibilitiesunder thoseStandardsare
further describeih the Auditor’s Responsibilities for the Auditf Ind AS Financial Statements
section of our report.We areindependent of the Company in accordance with the Code ofEthics
issued by the Instituteof CharteredAccountantsof India (ICAI) togetherwth the independence
requirements; hat are" elevantto our auditof theInd ASfinancial statementsunder theprovisions of
the Act and the Rules made thereunder,and we have fulfilled our other ethicalresponsibilitiesi n
accordance with these requirementsand the ICAI’s Code of Ethics.We believe that the audit
evidence we have obtained is sufficientand appropriateto provide a basis for our auditopinion on the
Ind ASfinancial statements .
Key Audit Matters
Key audit matters arthose matters thatin our professional judgment, were of most significance i n
our auditof the financial statementsof the currentperiod. These matters were addressed the
context of our auditof thefinancialstatements as -whole, and in formingour opinion thereon,and we
do not provide a separateopinion on these matters. Whave determinedthat there are ike y audit
mat ters tcommunicate in our r epor t
Information Other than the Financial Statements and Auditor’s Report Thereon
T heCompany’ s B oar d of Dir ectorss r esponsiblef or the other infor mation T he other inf or mat ion
comprises theinformation includedin the Management Discussion and Analysis, Board’s Report
including Annexuresto Board’s Report, BusinessResponsibilityReport, Corporatedovernance and
Shareholder’s Information, but does not include the financial statements ancbur auditor’s report
thereon .
Our opinion on the financial statementsdoes not cover the other informationand we do not express
any formof assuranceconclusion thereon .
In connection withour auditof the Ind ASfinancia statementsour responsibility^ to readthe other
informationand, in doing so, consider whetherthe otherinformationis materiallyinconsistent withhe
Ind ASfinancial statementsor our knowledge obtained during the course of our auditor otherwise
appear s tobe mater iallymi sstated.
If, based on thework we have performed,we conclude that theres a materialmisstatementof this
other informations arerequiredto reportt hat fact. Whave nothingto reportin this regard,
Management’s Responsibility for the Financial Statements
The Company’s Board of Directorsis responsible for the matters stated, section B4(5) of theAct
with respectto the preparationof these Ind ASfinancialstatements thative a true and fair view
of the financial position, financialperfor mance, tot acompr ehensive income, changes in equity and
cash flows of the Company in accordance with the Ind AS andotheraccounting principlesgenerally
accepted in India, including Ind AS prescribed under section B3 the Act, read with he
Companies (Indian Accounting Standards) Rules, 205, as amded This responsibilityaiso
includes maintenance ofidequate accountingrecordsin accordance with the provisionsof the Act for
safeguarding the assets of the Company and for preventing and detecting frauds and other
irregularitiesselection and application of appropriate accountingpolicies; making judgments and
estimatesthat arer easonable and prudent; and design, implementation and maintenance ofadequate
internalfinancial controls hat wereperatingeffectively formsuringthe accuracy andcompleteness
of the accounting records, relevant to the preparation and presentationof theInd AS financial
statements thative a trueand fair view and are free fromaterial misstatement,whether due to
fraudor error .
In preparing thIeid ASfinancial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concer rbasis of accounting unless management eithert ends 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 Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the IND AS Financial Statements
Ourobjectives are toobtain reasonable assuranceabout whetherthe Ind ASfinancialstatements as a
whole are freefrom materialmisstatementwhetherdue to fraudor error, and tissue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guar ant ee that anudit conducted in accor dance with S Aswill always det ect amater ialmisstatement
when it exists. Misstatementsan arise from fraudor error and areconsidered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users takenon the basis oft his Ind ASfinancial statements .As part of an audit in
accordance with SAs, we exercise professiorjuldgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of thhnd AS financial statements,
whetherdue to fraucOr errordesign and performaudit proceduresresponsiveto those risksand
obtain auditevidence thati s sufficientand appropriateto provide a basis for our opinion. The risk
of not detectinga materialmisstatemenlr esultingfrom frauds higherthan for one resultingrom
error, as fraudiay involve collusion, forgery, intentionalomissions, misrepresentations, or the
over r ideof inter nabontr ol .
• Obtain an under standingof inter nafinancialcontrolsr elevantto the audit in or der to design audit
proceduresthat areippropriatein the circumstances. Undesection 43(3)(i) of theAct, we are
also responsible for expressingour opinion on whether the Company has adequate internal
financialcontrolssystemin place and the operatingeffectivenessof such controls .
• Evaluate theippropriatenessof accounting policies used and the reasonablenessof accounting
estimatesand relateddisclosuresmade by management.
• Conclude on the appropriatenessof management’s use of thegoing concern basis ofaccounting
and, based on theaudit evidence obtained, whether amaterialuncertainty existiselated to events
or conditions that may cast significant doubton the Company’s ability to continue as a going
concern. If wexonclude that amaterialuncertaintyexists, we are requiredto draw attentionin
our auditor’s reportto the related disclosures in the Ind AS financial statementsor, if such
disclosuresare inadequate, to modify our opinion. Ourconclusions are basedon theaudit evidence
obtained up to the date of our auditor’s report.However, futureevents or conditions may cause
the Company to cease to continueas a going concern.
• Evaluate the overall presentatksfructure andxontent of theInd AS financial statements,
including the disclosures, and whether the financial statements representhe underlying
transactionand eventsin a mannerthatachieves fair presentation .
Materiality, s the magnitude of misstatementsn the financial statements thatipdividually or in
aggregate, makes it probable thatthe economic decisions of a reasonably knowledgeable user of the
financialstatementsmay be influenced.We consider quantitativematerialityand qualitative factor si n
(i) planning the scope of our auditwork andin evaluatingthe results ofur work; and
(ii) to evaluate thee ffectof any identifiedmisstatementsn the financialstatements .
We communicate withthose charged with governance regarding, among other matters,the planned
scope and timing of theaudit and significant audit findings, including any significantdeficiencies in
internal contrdthat weidentifyduring our audit.
We also provide those charged with governance with a statement that wave complied with relevant
ethical requirements regarding independence^ to communicate withthem all relationshipsand
other matters thatnay reasonably be thought to bear on our independence, and where applicable,
related safeguards .
From thematterscommunicated withthose charged with governance, we determine those matters
that wereof most significance in the audit of thefinancial statementsof thecurrentperiod and are
thereforet he key audit matters. Wdescribe these matter sn our auditor’s report unless law or
regulationprecludes public disclosureabout thematteror when, in extremely rare circumstances, we
determinethat a matteshould not be communicated in our reportbecause 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 theCompanies (Auditor’s Report) Order, 2020 (“the Order”) issued by the
C ent r aGover nmentin t er msof S ect ion43 (1) of theAct, we give in ‘ ‘Annexure A” a statement
on thematterss pecified in paragraphs 3 and 4f theOrder .
21 As required by Sectioi43(3) of theAct, based on our auditwe reportthat:
a) We have sought and obtained all the informationand explanations which to the best of our
knowledge and belief were necessarforthe purposes obur audit.
b) In our opinion, proper books of account asrequired bylaw have been kept by the Company
so far asit appears fromour examinationof thosebooks.
c) The Balance Sheet, the Statementof Profitand Loss (including Other Comprehensive
Income), Statementof Changes in Equityand the Statementof Cash Flow dealt with by this
Reportare in agreement with he relevantbooks of account.
d) In our opinion, the aforesaidInd ASfinancial statementscomply with the Ind AS specified
under SectionB3 of the Act read with the Companies (Indian Accounting Standards)
Rules, 205, as amended;
e) On the basis of thwrittenrepresentationB eceived front he directoras on March3( 20 23
taken on recordby the Board of Directorspone of the directoris disqualified as on March
3,20 23 from being appointed as a directorin termsof Section64 (2) of theAct.
f) Withrespect tct he adequacy of the internalinancial controlsover financial reportingf the
Company and the operating effectiveness! such controls, refer toour separate Report in
“Annexure B”. Our reporfexpresses anunmodified opinion on the adequacy and operating
effectiveness! theCompany’s internalfinancialcontrolsover financialreporting.
g) Withrespect tot he othermatters t(be included in the Auditor’s Report in accordance with
the requirements of: ction 97(6) of theAct, as amended:
In our opinion and to the best of our informationand according to the explanations givento
us, the remuneratiopaid by the Company to its directorsduring the year is in accordance
with the provisions! section P7 of the Act.
h) Withrespect tot he othermatters t(be included in the Auditor’s Report in accordance with
Rule 1l of the Companies (Audit and Auditors)Rules, 204, as amended in our opinion and
to the best of our Informationand according to the explanations givento us:
i. The Company does not have anytending litigations which would impact itls nancial
position as at 31st March, 2023 in its financial statements
ii. the Company did not have any longerm 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 F und by the Company
iv. The management has represented that, to the best of its knowledge and belief, no
funds (which are material either individually or in aggregbtie) been advanced or
loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other persons or entities,
including foreign entities (“Intermediaries”), with the understanding, whet her
recorded in writing or otherwiseat hhe Intermediary shall:
• directly or indirectly lend or invest in other persons or entities identified in
any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the
Company or
• provide any guarantee, ecurity or the like to or on behaff the Ultimate
Beneficiaries
v. The management has represented, that, to the best of its knowledge and belief, no
funds (which are material either individually or in aggreghie) been received by
the Company from any epsons or entities, including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the
Company shall :
• directly or indirectly, lend or invest in other persons or entities identified in
any manner whastoever (“Ultimate Beneficiaries”) by or on behalf of the
F unding Party or
• provide any guarantee, security or the like from or on behalf of the Ultimate
Beneficiaries; ad
vi. Based on such audit procedures as considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under s-ubause (iv) and (v) above, contain any material mis
statement
3. No dividend has beendeclared or paid during the year by the companherefore no eporting is
required about compliance to Section 23 of the Act.
4 Proviso to Rule 3(1) of the Companies (Accounts) Rules, 204 for maintaining books of
account using accounting software which has a feature of recording audit trail (eflatilog)
is applicable to the Company with effect from April ] 2023, aiaccordingly reporting under
Rule 1(g) of Companies (Audit and Auditors) Rules, 204 is notapplicable for the financial
year ended March 31, 2023.
For M/s. A.T.Jain & Co.
Chartered Accountants
FRN Number: 03 886W
(Sushil T. Jain)
Partner
M ember ship No. 33809
P lace: M umbai
Date: 27.05.202 3
UDIN:
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