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Jhaveri Credits & Capital Ltd.

BSE: 531550 Sector: Financials
NSE: N.A. ISIN Code: INE865D01012
BSE 09:30 | 19 Jan 4.30 0.20
(4.88%)
OPEN

4.30

HIGH

4.30

LOW

4.30

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.30
PREVIOUS CLOSE 4.10
VOLUME 500
52-Week high 7.90
52-Week low 3.89
P/E
Mkt Cap.(Rs cr) 3
Buy Price 3.95
Buy Qty 1000.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.30
CLOSE 4.10
VOLUME 500
52-Week high 7.90
52-Week low 3.89
P/E
Mkt Cap.(Rs cr) 3
Buy Price 3.95
Buy Qty 1000.00
Sell Price 0.00
Sell Qty 0.00

Jhaveri Credits & Capital Ltd. (JHAVERICREDITS) - Auditors Report

Company auditors report

TO THE MEMBERS OF JHAVERI CREDITS AND CAPITAL LIMITED Report on Financial Statements

We have audited the accompanying financial statements of Jhaveri Credits and CapitalLimited (‘the Company’) which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the significant 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 Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control 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 but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and operating effectiveness of such controls. Anaudit also includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the 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 31stMarch 2017 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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 Companies Act 2013 we give in the Annexure A a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

As required by Section 143 (3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 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 specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 except Employee Benefit Expenses as per AS-15 "EmployeeBenefits" wherein valuation of Employee Benefits is not done as per actuarialvaluation;

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

f) The other points referred in Sec. 143(3) of the Companies Act 2013 are notapplicable to the Company for the year under the review.

g) 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";

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

i) The Company has disclosed the impact of pending litigations as at 31st March 2017on its financial position in its financial statements-Refer Note- 25.1 forming part ofNotes to Financial Statement.

ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

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

iv) The Company had provided requisite disclosures in its financial statements as toholding as well as dealings in Specified Bank Notes during the period from 8thNovember2016 to 30th December2016 and these are in accordance with the books of accountsmaintained by the Company.

For Mukund & Rohit
Chartered Accountants
Registration No. 113375W
Place: Vadodara Mukund Bakshi
Date:30.05.2017 Partner
M. No. 041392

Annexure - A to the Auditor’s Report

The Annexure - A referred to in our report to the members of Jhaveri Credits andCapital Limited for the year ended March 312017 we report that:

I.

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

(b) It is informed to us that the Company has undertaken the physical verificationduring the year. However the formal documentations for the same are not available for ourverification. Thus we are unable to comment for the same.

(c) According to the information and explanation given to us the title deeds ofimmovable properties as disclosed in Note No.-11 are held in the name of the Companyexcept in some cases. Details thereof are as under:

Sr. no. Particulars Gross block as at 31.03.2017 Net block as at 31.03.2017 Remarks
1 Payal Tower No. 208 Vadodara 485354 209484 Title Deed of Property is held in the name of Mr. Rajesh Jhaveri
2 191 Madhav Darshan Bhavnagar 368644 159096 Title Deed of Property is held in the name of Jhaveri Holdings Pvt. Ltd.

II. Since the Company hold inventory of shares in Demat form the question ofcommenting on physical verification of inventory does not arise and no materialdiscrepancies were noticed during the period under review.

III. As informed to us the Company has not granted loans secured or unsecured toCompanies firms LLP or other parties covered in register maintained under section 189 ofthe Companies Act 2013. Hence the questions of reporting whether the receipt of theprincipal amount and interest are regular; and whether reasonable steps for the recoveryof over dues of such loan are taken does not arise.

IV. In our opinion and according to the information and explanations given to us inrespect of

loans investments guarantees and security provisions of section 185 and 186 of the

Companies Act 2013 have been complied with.

V. Based on the our scrutiny of Company’s record and according to the informationand explanation provided by the management in our opinion the Company has not acceptedany loans or deposits which are "Deposits" within the meaning of Rule 2(b) ofthe Companies (Acceptance of Deposit’s) Rules 2014.

VI. According to the information and explanation given to us the Central Governmenthas not

prescribed the maintenance of cost records under sub-section (1) of section 148 of the

Companies Act 2013.

VII.

(a) The Company is regular in depositing undisputed statutory dues including ProvidentFund Employees’ State Insurance Income -Tax Sales -Tax Service tax value addedtax and any other statutory dues to the appropriate authorities and no statutory dues wereoutstanding as at 31st March 2017 for a period of more than six months from the datethey became payable except Income Tax of Rs. 65469 for A.Y. 2009-10.

(b) According to the information and explanation given to us there are no dues ofIncome Tax or Sales Tax or Service Tax or value added tax which have not been depositedon account of any dispute.

VIII. Based on our audit procedures and as per the information and explanations givenby the management the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank Government or dues to debenture holders.

IX. Based on our audit procedures and as per the information and explanations given bythe management Company has not raised money by initial public offer or further publicoffer (including debt instruments) and term loans during the period covered by our auditreport.

X. Based on the audit procedure performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the year.

XI. Based on the our scrutiny of Company’s record and according to the informationand explanation provided by the management in our opinion the managerial remunerationhas been paid or provided in accordance with General Circular No. 07/2015 dated 10thApril 2015 the requisite approvals mandated by the provisions of section 197 read withSchedule V to the Companies Act was not required to be taken.

XII. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of Companies (Auditor’s Report) Order 2016 are not applicable.

XIII. All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards at Note 27 of financialstatements.

XIV. Based on our examination of records and information provided to us by managementwe report that the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

XV. Based on our examination of records and information provided to us by managementthe Company has not entered into any non-cash transactions with directors or personsconnected with him.

XVI. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Therefore the provisions of clause 3(xvi) of Companies(Auditor’s Report) Order 2016 are not applicable.

For Mukund & Rohit
Chartered Accountants
Registration No. 113375W
Mukund Bakshi
Place : Vadodara Partner
Date : 30.05.2017 Membership No. 041392

Annexure - B to the Auditors’ Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of JhaveriCredits and Capital Limited ("the Company") as of 31 March 2017 in conjunctionwith our audit of the 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’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards onAuditing issued by ICAI and deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

1) Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components 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 Mukund & Rohit
Chartered Accountants
Registration No. 113375W
Mukund Bakshi
Place: Vadodara Partner
Date: 30.05.2017 Membership No. 041392