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Divya Jyoti Industries Ltd.

BSE: 526285 Sector: Industrials
NSE: N.A. ISIN Code: INE666B01018
BSE LIVE 15:14 | 10 Nov 6.80 0.32
(4.94%)
OPEN

6.80

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6.80

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6.80

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 6.80
PREVIOUS CLOSE 6.48
VOLUME 100
52-Week high 8.95
52-Week low 5.52
P/E 11.33
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.70
Sell Qty 11.00
OPEN 6.80
CLOSE 6.48
VOLUME 100
52-Week high 8.95
52-Week low 5.52
P/E 11.33
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 6.70
Sell Qty 11.00

Divya Jyoti Industries Ltd. (DIVYAJYOTIINDS) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR’S REPORT

To

The Members of Divya Jyoti Industries Limited.

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Divya Jyoti IndustriesLimited(the Company)which comprise Balance Sheet as at 31 st March 2016the statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013(‘the Act’) with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules2014.The responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the company andfor preventing and detecting frauds and other irregularities selection and application ofappropriate accounting policy making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and area free from material misstatementswhether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the Accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder. We conducted our audit in accordancewith standards on auditing specified under Section 143(10) of the Act. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of Material misstatement inthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial controls relevant to the company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the company’s directors as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31 stMarch 2016 and its profit and its cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order 2016 (‘theOrder’) issued by the Central Government of India in terms of sub- section 11 ofSection 143 of the Act we give in the Annexure A a statement in the paragraph 3 and 4 ofthe order.

2. As required by Section 143 (3) of the Act we report that : a. We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit

b. In our opinion proper books of accounts as required by law have been kept by theCompany so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account;

d. In our opinion the aforesaid financial statements comply with the accountingstandards specifies under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules2014.

e. On the basis of the written representation received from the directors as on 31 stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 st March 2016 from being appointed as a director in terms of Section164(2) of the Act;

f. With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate report in ‘Annexure B’ and

g. With respect to the other matters to be include in the Auditor’s report inaccordance with Rule 11 of the Companies(Audit and Auditors) Rules 2014in our opinionand to the best of our information and explanations given to us:

(i) the Company has disclosed the impact of pending litigations on the financialposition in its financial statements.

(ii) the Company has made provision as required under the applicable law or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts.

(iii) there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Dafria & Co. Chartered Accountants
Firm Registration No. 001448C
Rakesh Dafria
Date: May 30 2016 Partner
Place: Indore Membership No.: 081390

ANNEXURE 'A' TO THE AUDITOR'S REPORT

The annexure referred to in Independent Auditor's Report to the members of the companyon the financial st statements for the year ended on 31 March 2016 we report that:

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) As explained to us and on the basis of our examination the company has regularprogramme for verification of its fixed assets which is reasonable with regard to the sizeof the company and nature of its assets and no material discrepancies were noticed on suchverification.

(c) According to the information and explanation given to us and on the basis of ourexamination the title deeds of immovable properties are held in the name of the company.

(ii) According to the information and explanation given to us the physicalverification of inventory has been conducted at reasonable intervals by the management.The procedure of physical verification of inventory followed by the management isreasonable and adequate In relation to the size of the company and nature of its business.The company has maintained proper record of inventories and no material discrepancies werenoticed on such verification of inventories as compared to the book records.

(iii) The company has not granted loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

(iv) The company has not given any loans investments guarantees and security underthe provisions of section 185 and 186 of the Companies Act 2013.

(v) The company has not accepted any deposits from the public.

(vi) According to the information and explanation given to us and verified by usbroadly the company has maintained the cost records as prescribed by the centralgovernment under sub section 1 of section 148 of the Companies Act 2013.

(vii) (a) According to the information and explanation given to us and on the basis ofour examination of records of the company the company is regular in depositing statutorydues including provident fund employees state insurance Income tax Sales Tax ServiceTax Duty of Customs Duty of Excise Value added tax cess and any other statutory duesto the appropriate authorities.

(b) According to the information and explanation given to us following dues of IncomeTax sales tax service tax duty of customs or duty of excise or value added tax have notbeen deposited by the company on account of disputes.

Name of the Statute Nature of dues Amount (in Lacs) Period to which the Amount relates Forum where dispute is pending
M.P. Commercial Commercial 6.5 2004-05 Reference Application filed to Appellate
Tax Act 1994 Tax Tribunal Bhopal
M.P. Commercial Commercial 12.39 2005-06 Reference Application filed to Appellate
Tax Act 1994 Tax Tribunal Bhopal
M.P. Entry Entry .26 2005-06 Reference Application filed in
Tax Act 1976 Tax Jabalpur High Court
M.P. Entry Entry .79 2006-07 Writ Petition filed at Indore
Tax Act 1976 Tax High Court
M.P. Entry Entry 150.41 2007-08 Writ Petition filed at Indore
Tax Act 1976 Tax High Court
M.P. Entry Entry 223.66 2008-09 Writ Petition filed at Indore
Tax Act 1976 Tax High Court
M.P. Central Central Sales 57.85 2003-04 Writ Petition filed at Jabalpur
Tax Act 1956 Tax High Court
M.P. Central Central Sales 181.46 2004-05 Writ Petition filed at Jabalpur
Tax Act 1956 Tax High Court
M.P. Value Added Value Added 52.44 2006-07 Appeal filed at Appellate Authority
Tax 2002 Tax Commercial Tax Indore
Income Tax Income Appeal filed at Commissioner of
19.61 2010-11
Act1961 Tax Income Tax Indore
M.P. Central Central Appeal filed at Appellate Authority
49.49 2008-09
Tax Act 1956 Sales Tax Commercial Tax Indore
M.P. Central Central Appeal filed at Appellate Authority
29.17 2010-11
Tax Act 1956 Sales Tax Commercial Tax Indore
M.P. Central Central Appeal filed at Appellate Authority
388.62 2011-12
Tax Act 1956 Sales Tax Commercial Tax Indore
M.P. Central Central Appeal filed at Appellate Authority
123.69 2012-13
Tax Act 1956 Sales Tax Commercial Tax Indore

Note: The amount due has been shown as net of amounts paid.

(viii) The company has not defaulted in repayments of loans or borrowings to financialinstitutions banks government. The company has not taken any loans from debentureholders.

(ix) The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the order is not applicable.

(x) According to the information and explanations given to us no fraud by the companyor on the company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) According to the information and explanation given to us and based on ourexamination of the records of the company the company has paid/provided for themanagerial remuneration in accordance with the approvals mandated by the provisions ofsection 197 read with Schedule V of the Companies Act2013.

(xii) In our opinion and according to the information and explanation given to us thecompany is not a Nidhi Company Accordingly paragraph 3(xii) of the order is notapplicable.

.

(xiii) According to the information and explanation given to us an based on ourexamination of the records of the company the company has not entered any transactionwith related parties as applicable under section 177 and 188 of the Companies Act 2013.

(xiv) According to the information and explanation given to us and based on ourexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanation given to us and based on ourexamination of records of the company the company has not entered into non cashtransaction with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act

For Dafria & Co. Chartered Accountants
Firm Registration No. 001448C
Rakesh Dafria
Date: May 30 2016 Partner
Place: Indore Membership No.: 081390

Annexure 'B' to the Auditor's Report

Report on Internal Financial Controls under Clause(i)of sub-section 3 of Section 143 ofCompanies Act 2013('the Act').

We have audited the internal financial controls over financial reporting of Divya JyotiIndustries Limited ('the Company') as of 31 March 2016 in conjunction with our audit ofthe financial statements of the company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India('ICAI').These responsibilitiesinclude the design implementation and maintenance of adequate internal controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express opinion on the Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial controls over financial reporting ('theGuidance Note') and the Standards on Auditing issued by ICAI and deemed to be prescribedunder Section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal financial Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting were established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls systems over financial reporting and their operatingeffectiveness. Our audit of internal financial controls system over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing risk that a material weakness exists and testing and evaluating thedesign an operating effectiveness of internal financial controls based on the assessedrisk. The procedures selected depend on the auditor's judgment including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's Internal Financial Controls systemover financial reporting.

Meaning of internal financial controls over financial reporting

A company's internal financial control over financial reporting is a process design toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statement for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial controls over financialreporting include those policies and procedures that:

(i) Pertain to the maintenance of records in reasonable details accurately and fairlyreflects the transactions and disposition of the assets of the company (ii) Providereasonable assurance that transaction are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorization of the managements and the directors of the company and (iii) Providereasonable assurance regarding prevention or timely detection of unauthorized acquisitionuse or disposition of the company's assets that could have a material effect on thefinancial statements.

Inherent limitation of internal financial controls over financial reporting

Because of Inherent limitation of internal financial controls of financial reportingincluding the possibilities of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial controls overfinancial reporting may become inadequate because of changes in condition or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the company has in all material respects and adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the company consideringthe essential component of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Dafria & Co. Chartered Accountants
Firm Registration No. 001448C
Rakesh Dafria
Date: May 30 2016 Partner
Place: Indore Membership No.: 081390