A. We have audited the accompanying Financial Statements of LAXMI
GOLDORNA HOUSE LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2025, 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 a summary of the significant accounting policies and other
explanatory information.
B. In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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,
2025, the profit and total comprehensive income, changes in equity and
its cash flows for the year ended on that date
2. Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the
Standards on Auditing specified under section 143(10) of the Act (SAs). Our
responsibilities under those Standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants of India (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 ICAI's 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 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 Financial Statements of the current
period. These matters were addressed in the context of our audit of the
Financial Statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. We have determined
the matters described below to be the key audit matters to be
communicated in our report.
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The Key Audit matter
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How our audit addressed the key
audit matter
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Existence and Valuation of
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As part of our audit procedures:
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Inventory:
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The Company has an inventory
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1.
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Obtained an understanding
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balance of Rs. 26,51,88,114/- as
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of the management's
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disclosed note 4(Jewellery
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process for physical
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Division)of the accompanying
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verification, recognition and
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financial statements, Refer note 1 for
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measurement of purchase
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the accounting policy adopted by
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cost of gold, diamonds and
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the management with respect to
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cost of manufactured
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inventory balance.
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jewellery items and in case of
Real estate business
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With respect to existence of
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management
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inventory as at year end, there is an
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2.
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Evaluated the design and
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inherent risk of loss from theft or
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tested the operating
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possible mala fide intent, due to the
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effectiveness of control
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high intrinsic value and portable
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implemented by the
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nature of individual inventory items.
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company with respect to
such process including
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In addition to the physical
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control around safeguarding
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verification performed by the
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the high value of inventory
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management with the help of an
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items.
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independent professional
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3.
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Assessed the appropriateness
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gemologist, the lender of company
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of accounting policy and
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also conduct stock counts, on
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management valuation
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regular basis throughout the year.
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methodology adopted by
the management.
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With respect to valuation of the
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4.
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On sample basis, tested
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inventory, the company purchased
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invoice and other underlying
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into the respective cost categories
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records to validate the costs
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purchase into the respective cost
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and characteristics basis
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categories defined by the
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which the inventory is
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management based on price
based and other physical
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categorized for inventory
management and valuation.
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characteristics of the diamonds.
Considering the complexities
involved, portable nature of
diamonds, high inherent risk and
high level of estimation involved in
valuation of inventory, the existence
and valuation of inventory has been
determined as key audit matter for
the current year audit.
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5.
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Consequently, we have
performed alternate
procedures to audit the
existence of inventory as per
the guidance provided in SA
501 "Audit Evidence - Specific
Considerations for Selected
Items" and have obtained
sufficient appropriate audit
evidence to issue our opinion
on these Standalone
Financial Results. Our report
on the Statement is not
modified in respect of the
above matters.
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The Company applies Ind AS 115
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Our audit procedures included:
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"Revenue from contracts with
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customers" for recognition of
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1.
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Read the Company's
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revenue from real estate projects,
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revenue recognition
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which is being recognised at a point
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accounting policies
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and
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in time upon the Company satisfying
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assessed compliance of
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the
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its performance obligation and the
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policies with Ind AS 115
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customer obtaining control of the
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2.
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Obtained and understood
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underlying asset.
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revenue recognition process
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including identification
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of
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Considering application of Ind AS
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performance obligations and
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115 involves significant judgment in
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determination of transfer of
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identifying performance obligations
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control of the asset underlying
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and determining when ‘control' of
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the performance obligation
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the asset underlying the
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to the customer.
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performance obligation is
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3.
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Read the legal opinion
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transferred to the customer, the
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obtained by the Company to
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same has been considered as key
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determine the point in time at
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audit matter.
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which the control
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is
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transferred in accordance
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with the underlying
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agreements.
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4.
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Tested, revenue related
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transactions with
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the
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underlying customer
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contracts, sale deed
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and
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handover documents,
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evidencing the transfer of
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control of the asset to
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the
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customer based on which
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revenue is recognised.
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Assessment of net realisable value
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Our audit procedures to assess the
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(NRV) of inventories:
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net realisable value (NRV) of
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Inventories on construction of
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inventories included the following:
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residential units comprising ongoing
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1. Enquiry with the Company's
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and completed projects, initiated
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personnel to understand the
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but unlaunched projects and land
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basis of computation and
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stock, represents a significant
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justification for the estimated
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portion of the Company's total
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recoverable amounts of the
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assets.
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unsold units ("the NRV
assessment")
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The Company recognises profit on
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2. Assessing the Company's
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the sale of each commercial &
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valuation methodology for
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residential unit with reference to the
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the key estimates, data inputs
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overall profit margin depending
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and assumptions adopted in
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upon the total cost incurred on the
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the valuation. This involved
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project. A project comprises multiple
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comparing expected
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units, the construction of which is
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average selling prices with
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carried out over a number of years.
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published data such as
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The recognition of profit for sale of a
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recently transacted prices for
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unit, is therefore dependent on the
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similar properties located in
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estimate of future selling prices and
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nearby vicinity of each
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construction costs. Further,
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project and the sales budget
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estimation uncertainty and exposure
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maintained by the Company;
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to cyclicality exists within long- term
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3. While analyzing the expected
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projects.
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average selling price, we
have performed a sensitivity
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Forecasts of future sales are
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analysis on the selling price
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dependent on market conditions,
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and compared this to the
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which can be difficult to predict
and be influenced by political and
economic factor
Considering the significance of the
amount of carrying value of
inventories and the involvement of
significant estimation and
judgement in assessment of NRV,
this is considered as a key audit
matter.
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budgeted cost;
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Investment in subsidiaries:
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Our audit procedures to assess the
net realisable value (NRV) of
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The Company has investments in
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inventories included the following:
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subsidiaries. These investments are
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Enquiry with the Company's
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carried at cost less any diminution in
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personnel to understand the basis of
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value of such investments. The
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computation and justification for the
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investments are analyzed for
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estimated recoverable amounts of
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impairment at each reporting date
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the unsold units ("the NRV
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by comparing the carrying value of
investments in the Company's books
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assessment");
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with the net assets of the relevant
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Assessing the Company's valuation
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subsidiaries' balance sheet. Further,
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methodology for the key estimates,
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the Company assesses the
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data inputs and assumptions
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projected cash flows of the real
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adopted in the valuation. This
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estate projects in these underlying
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involved comparing expected
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entities. This involves significant
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average selling prices with published
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estimates and judgment, due to the
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data such as recently transacted
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inherent uncertainty involved in
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prices for similar properties located
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forecasting future cash flows. There
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in the nearby vicinity of each project
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is significant judgment in estimating
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and the sales budget maintained by
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the timing of the cash flows and the
relevant discount rate.
The company has One subsidiaries.
Considering the impairment
assessment involves significant
assumptions and judgment, this is
considered a key audit matter.
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the Company
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4. Information Other than the Financial Statements and Auditor's Report
Thereon
A. The Company's 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, Board's Report
including Annexures to Board's Report, Business Responsibility Report,
Corporate Governance and Shareholder's Information, but does not
include the Financial Statements and our auditor's report thereon. Our
opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion
thereon
B. 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
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. Management's Responsibility for the Financial Statements
A. The Company's Board of Directors is responsible for the matters stated
in section 134(5) of the Act with respect to the preparation of these
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 financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
B. In preparing the Financial 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 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 Company's
financial reporting process.
6. Auditor's Responsibilities for the Audit of the Financial Statements
A. Our objectives are to obtain reasonable assurance about whether the
Financial Statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these Financial
Statements.
B. 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 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 management's 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 Company's ability to
continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the
related disclosures in the Financial Statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor's 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
Financial Statements, including the disclosures, and whether the
Financial Statements represent the underlying transactions and events in
a manner that achieves fair presentation.
C. Materiality is the magnitude of misstatements in the Financial Statements
that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the 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 Financial Statements.
D. 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.
E. 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.
F. From the matters communicated with those charged with governance,
we determine those matters that were of most significance in the audit of
the Financial Statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor's 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 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 31,2025 taken on record by the Board of Directors, none of the
directors is disqualified as on March 31,2025 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
A". Our report expresses an unmodified opinion on the adequacy and
operating effectiveness of the Company's internal financial controls with
reference to financial statements.
G. With respect to the other matters to be included in the Auditor's 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 Auditor's 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:
The Company has disclosed the impact of pending litigations on its
financial position in its Financial Statements
The Company has made provision, as required under the applicable law
or accounting standards, for material foreseeable losses, if any, on long¬
term contracts including derivative contracts
There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
I. Based on our examination carried out in accordance with the
Implementation Guidance on Reporting on Audit Trail under Rule 11 (g) of
the Companies (Audit and Auditors) Rules,2014 (Revised 2024 Edition)
issued by the Institute of Chartered Accountants of India, which included
test checks operations which are companies incorporated in India
whose financial statements have been audited under the Act, we report
that the company have used an tally accounting software for
maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for
all relevant transactions recorded in the software. Further, during the
course of our audit, we did not come across any instance of audit trail
feature being tampered with.”
. As required by the Companies (Auditor's Report) Order, 2020 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in "Annexure B" a statement on the matters specified in
paragraphs 3 and 4 of the Order.
For J S SHAH & CO
Chartered Accountants
Firm Registration Number: 132059W
CA JAIMIN S SHAH
Partner
Membership Number:138488
Date: 18/04/2025
UDIN: 25138488BMIAZC3674
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