(As required by Section 26 of Companies Act, 2013 read with Rule 4 of Companies (Prospectus and Allotment of Securities) Rules, 2014)
To,
The Board of Directors, Khazanchi Jewellers Limited,
(Formerly known as Khazanchi Jewellers Private Limited), No 130, NSC Bose Road, Sowcarpet, Chennai 600079.
Dear Sir /Maam,
We have examined the attached Restated Standalone Financial Information of Khazanchi Jewellers Limited (Formerly known as Khazanchi Jewellers Private Limited) comprising the Restated Standalone Statement of Assets and Liabilities as at 31st March, 2023, 31st March 2022 & 31st March, 2021 the Restated Standalone Statement of Profit & Loss, the Restated Cash Flow Statement for the period ended on 31st March, 2023, March 31, 2022 & March 31, 2021, the Summary statement of Significant Accounting Policies and other explanatory Information (Collectively the Restated Standalone Financial Information) as approved by the Board of Directors in their meeting held on 06th July 2023 for the purpose of inclusion in the Offer Document in connection with its proposed Initial Public Offer ("IPO") on the SME Platform of BSE Ltd ("BSE") and prepared in terms of the requirement of:
i. Section 26 of Part I of Chapter III of the Companies Act, 2013 as amended (the "Act");
ii. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations 2018 ("ICDR Regulations") as amended (ICDR Regulations"); and related amendments / clarifications from time to time issued by the Securities and Exchange Board of India ("SEBI"); iii. The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India as amended from time to time. ("The Guidance Note").
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the preparation of the Restated Standalone Financial
Information for the purpose of inclusion in the offer document to be filed with Stock Exchange, Securities and Exchange Board of India, and Registrar of Companies, Tamil Nadu, in connection with the proposed IPO. The Restated Standalone Financial Information has been prepared by the management of the Company for the period ended on 31st March, 2023, 31st March 2022 & 31st March 2021 on the basis of preparation stated in Note 1 to the Restated Standalone Financial Information. The Board of Directors of the companys responsibility includes designing, implementing, and maintaining adequate internal control relevant to the preparation and presentation of the Restated Standalone Financial Information. The board of directors are also responsible for identifying and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note.
Auditors Responsibility
We have examined such Restated Standalone Financial Information taking into consideration:
1. The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated 27.02.2023 in connection with the proposed IPO of equity shares of the Company.
2. The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
3. Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Standalone Financial Information; and,
4. The requirements of Section 26 of the Act and the ICDR Regulations. Our work was performed solely to assist you in meeting your responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the IPO.
These Restated Standalone Financial Information have been compiled by the management from: a. Audited Standalone Financial statements of company as at and for the period ended on 31st March 2023, 31st March 2022 & 31st March 2021 prepared in accordance with the Accounting Standards as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended, and other accounting principles generally accepted in India. b. In accordance with the requirements of Part I of Chapter III of Act including rules made there under,
ICDR Regulations, Guidance Note and Engagement Letter, we report that:
1. 1.The "Restated Standalone Statement of Assets and Liabilities" as set out in the restated statement of assets and liabilities report, of the Company for the period ended on 31st March, 2023, 31st March 2022 & 31st March 2021 is prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Assets and Liabilities have been arrived at after making such adjustments and regroupings to the individual Standalone Financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in NOTE 1 to this Report.
2. The "Restated Standalone Statement of Profit and Loss" as set out in the restated statement of profit and loss report,of the Company for the period ended on 31st March, 2023, 31st March 2022 & 31st March 2021, is prepared by the Company and approved by the Board of Directors. These Restated Summary Statement of Profit and Loss have been arrived at after making such adjustments and regroupings to the individual Standalone Financial statements of the Company, as in our opinion was appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in NOTE 1 to this Report.
3. The "Restated Standalone Statement of Cash Flow" as set out in the restated statement of cash flow report, of the Company for the period ended on 31st March, 2023, 31st March 2022 & 31st March 2021, is prepared by the Company and approved by the Board of Directors. These Statement of Cash Flow, as restated have been arrived at after making such adjustmentsand regroupings to the individual Standalone Financial statements of the Company, as in our opinion were appropriate and more fully described in Significant Accounting Policies and Notes to Accounts as set out in NOTE 1 to this Report.
4. For the purposes of our examination, we have relied on the Auditors reports issued by M/s. Sidharth
Mehta & Co., Chartered Accountants on the financial statements of the company for the Period ended March 31, 2021 and re-audited report issued by us as for the period ended March 31, 2022 and the audit report issued by us for the period ended on 31st March 2023, as referred in Paragraph 1 above;
Basis of Opinion
In our opinion and to the best of information and explanation provided to us, the Restated Standalone Financial Information of the Company, read with significant accounting policies and notes to accounts as appearing in this report are prepared after providing appropriate adjustments and regroupings as considered appropriate.
We, M/s. PSDY & Associates, Chartered Accountants have been subjected to the peer review process of the Institute of Chartered Accountants of India ("ICAI") and hold a valid peer review certificate issued by the "Peer Review Board" of the ICAI.
The preparation and presentation of the Standalone Financial Statements referred to above are based on the Audited Standalone Financial statements of the Company and are in accordance with the provisions of the Act and ICDR Regulations. The Standalone Financial Statements and information referred to above is the responsibility of the management of the Company.
In our opinion, the above Standalone Financial information contained in NOTE 1 TO NOTE 43 of this report read with the respective Significant Accounting Polices and Notes to Accounts as set out in NOTE 1 are prepared after adjusting and regrouping as considered appropriate and have been prepared in accordance with the Companies Act, ICDR Regulations, Engagement Letter and Guidance Note.
We have also examined the following other Restated Standalone Financial information relating to the Company prepared by the Management and as approved by the Board of Directors of the Company and annexed to this report relating to the Company for the period Ended on 31st March, 2023, 31st March 2022
& 31st March 2021 proposed to be included in the Draft Prospectus / Prospectus ("Offer Document") for the proposed IPO.
Particulars | Annexure |
Statement of Significant Accounting Policies and Notes to the Restated Financial Information | Note 1 |
Restated Standalone Statement of Share Capital | Note 2 |
Restated Standalone Statement of Reserves and Surplus | Note 3 |
Restated Standalone Statement of Long-Term Borrowing | Note 4 |
Restated Standalone Statement of Long Term Provisions | Note 5 |
Restated Standalone Statement of Trade Payables | Note 6 |
Restated Standalone Statement of Short-Term Borrowing | Note 7 |
Restated Standalone Statement of Other Current Liabilities | Note 8 |
Restated Standalone Statement of Short-Term Provisions | Note 9 |
Restated Standalone Statement of Property, Plant and Equipment & Intangible Assets | Note 10 |
Restated Standalone Statement of Non-current Investment | Note 11 |
Restated Standalone Statement of Long-term loans and advances | Note 12 |
Restated Standalone Statement of Deferred Tax Assets / (Liabilities) | Note 13 |
Restated Standalone Statement of Other Non-Current Assets | Note 14 |
Restated Standalone Statement of Inventories | Note 15 |
Restated Standalone Statement of Trade Receivables | Note 16 |
Restated Standalone Statement of Cash & Cash Equivalents | Note 17 |
Restated Standalone Statement of Short-Term Loans & Advances | Note 18 |
Restated Standalone Statement of Other Current assets | Note 19 |
Restated Standalone Statement of Revenue from Operations | Note 20 |
Restated Standalone Statement of Other Income | Note 21 |
Restated Standalone Statement of Purchase of Stock in Trade | Note 22 |
Restated Standalone Statement of Changes in inventories of finished goods, work in progress and stock in trade | Note 23 |
Restated Standalone Statement of Employee Benefit Expenses | Note 24 |
Restated Standalone Statement of Finance Cost | Note 25 |
Restated Standalone Statement of Depreciation & Amortization | Note 26 |
Restated Standalone Statement of Other Expenses | Note 27 |
Restated Standalone Statement of Accounting and other Ratios | Note 29 (XIII) |
Restated Standalone Statement of related party transaction | Note 30 |
Restated Standalone Statement of Tax shelter | Note 42 |
Impact of Restatement Adjustments | Note 43 |
In our opinion and to the best of our information and according to the explanations given to us, the financial statements read with significant accounting policies and notes to accounts as appearing in Notes 1 give a true and fair view of the state of affairs of M/s. Khazanchi Jewellers Limited.(formerly known as
"Khazanchi Jewellers Private Limited") as at March 31,2023, and of its results of operations and its cash flows for the period ended in accordance with the financial reporting provisions.
Other Matter Paragraph
This report should not in any way be construed as a re-issuance or re-dating of any of the previous audit reports issued by us nor should this report be construed as a new opinion on any of the Standalone Financial statements referred to therein.
We have no responsibility to update our report for events and circumstances occurring after the date of the report.
Our report is intended solely for use of the management and for inclusion in the Offer Document in connection with the IPO-SME for Proposed Issue of Equity Shares of the Company and our report should not be used, referredto or distributed for any other purpose without our prior consent in writing.
For M/s PSDY & Associates
Chartered Accountants
FRN 010625S
Kushal Raj N
Partner
M No 234239
UDIN: 23234239BGUDMK1675
Date: 06/07/2023
Place: Puducherry
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