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JIK Industries Ltd.

BSE: 511618 Sector: Industrials
NSE: JIKIND ISIN Code: INE026B01049
BSE 15:01 | 07 Aug JIK Industries Ltd
NSE 13:05 | 05 Feb 0.55 -0.05
(-8.33%)
OPEN

0.55

HIGH

0.55

LOW

0.55

OPEN 0.42
PREVIOUS CLOSE 0.42
VOLUME 3750
52-Week high 0.97
52-Week low 0.42
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.40
Buy Qty 200.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.42
CLOSE 0.42
VOLUME 3750
52-Week high 0.97
52-Week low 0.42
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.40
Buy Qty 200.00
Sell Price 0.00
Sell Qty 0.00

JIK Industries Ltd. (JIKIND) - Auditors Report

Company auditors report

To the Members of

JIK INDUSTRIES LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of JIK INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at March312017 the Statement of Profit and Loss Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone 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 Standalone 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)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone financial statementsbased on our audit.

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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whetherthe Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating 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 Standalone financial statements

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 312017 and its Loss and its Cash Flow 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 ("the Order")as amended issued by the

Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the "Annexure

A" a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143 (3) oftheAct 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 purpose 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 Standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2017 from being appointed as a director in terms of Section 164 (2) oftheAct.

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".

g. 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 on its financialposition in its financial statements - Refer Notes to Accounts to the financialstatements;

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

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv) The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from November 82016 to December 30 2016. Based on audit procedures and relying on the managementrepresentation these are in accordance with the books of accounts maintained by theCompany and as produced to us by the Management. Refer Note 23 to the financialstatements.

For MOTILAL & ASSOCIATES

Chartered Accountants

FRN:106584W

Motilal Jain (Partner)

M. No. 36811

Place: Mumbai

Date =16/05/2017

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT

Issued by the Central Government under sub section 11 of section 143 of the CompaniesAct 2013 (18 of 2013)

i. In respect of Fixed Assets

a. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

b. Certain fixed assets have been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such verification.

c. All the title deeds of immovable properties are held in the name of the company.

ii. In Respect of its Inventories

a. As explained to us the inventories have been physically verified by the managementduring the year at reasonable intervals.

b. On the basis of our examination the Company has maintained proper records ofinventories and no material discrepancies were noticed on physical verification.

iii. In our opinion and according to the information and explanations given to usduring the course of the audit the company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties covered inthe register maintained under section 189 of the Companies Act 2013. Thus paragraph3(iii) is not applicable to the company.

iv. In our opinion and according to information and explanations given to us thecompany has not advanced loans to Directors/to a company in which the director isinterested to which the provisions of Section 185 of the Companies Act 2013 apply andhence not commented upon. In our opinion and according to the information and explanationsgiven to us the company has not made investment and given guarantee/provided securitywhich falls under the purview of section 186 of the Companies Act 2013 and hence notcommented upon.

v. The company has not accepted any deposits from the public. Accordingly paragraph3(v) of the order is not applicable to the company and hence not commented upon.

vi. As per the information and explanation given to us the maintenance of cost recordsspecified by the Central Government under sub-section (1) of section 148(1) of theCompanies Act 2013 is not applicable to the Company and hence not commented upon.

vii. In respect of Statutory Dues

a. According to the information and explanations given to us no undisputed amount ispayable in respect of provident fund employees' state insurance income-tax sales-taxProfession Tax and other material statutory dues which were outstanding at the year endfor the period of more than six months from the date they became payable except thefollowing:

Statement of Arrears of Statutory Dues Outstanding for More than Six Months

Name of the statue Nature of the dues Period to which Amount relates Amount (In Lacs.)
Sales Tax Act 1956 Sales Tax 2002-03 0.86
Sales Tax Act 1956 Sales Tax 2005-06 2.17
Sales Tax Act 1956 Bombay Sales Tax 2003-04 13.62
Central Sales Tax Act 1956 CST 2003-04 1.33
Sales Tax Act 1956 Bombay Sales Tax 2004-05 5.95
Central Sales Tax Act 1956 CST 2004-05 2.50
MVAT Act 2002 Value Added Tax 2009-10 198.93
MVAT Act 2002 Value Added Tax 2010-11 4.66
MVAT Act 2002 Value Added Tax Interest 2010-11 3.32
MVAT Act 2002 Value Added Tax Penalty 2010-11 4.66
MVAT Act 2002 Value Added Tax 2013-14 0.40
MVAT Act 2002 Value Added Tax 2014-15 0.52
MVAT Act 2002 Value Added Tax 2015-16 2.68
ESICAct 1948 ESIC 2010-11 0.28
ESICAct 1948 ESIC 2014-15 0.57
Profession Tax Act 1975 Profession Tax 2014-15 0.75
Profession Tax Act 1975 Profession Tax 2015-16 1.09
Profession Tax Act 1975 Profession Tax 2016-17 0.29
Income Tax Act 1961 TDS 2014-15 0.61
Income Tax Act 1961 TDS 2015-16 0.52
Income Tax Act 1961 Interest on Payment default u/s 201 2007-08 0.024
Income Tax Act 1961 Interest on Payment default u/s 201 2010-11 0.01
Income Tax Act 1961 Interest on Deduction default u/s 201 2016-17 0.0023

b. The Statutory dues that have not been deposited on account of any dispute areindicated below:

Name of the statue Nature of dues Amount (In Lacs) Period which the amount relates Forum where disputes pending
Income Tax Act 1961 Income Tax 39.67 1995-96* Income Tax Appellate Tribunal Mumbai.
Income Tax Act 1961 Income Tax 156.70 2000-01 ## Commissioner of Income Tax Mumbai City II.
Income Tax Act 1961 Income Tax 372.69 2001-02 Commissioner of Income Tax Mumbai City II.
Income Tax Act 1961 Income Tax 2259.15 2005-06 ** Commissioner of Income Tax(Appeal)
Income Tax Act 1961 Income Tax 273.44 2007-08 ** Commissioner of Income Tax(Appeal)
Income Tax Act 1961 Income Tax 768.16 2008-09 Commissioner of Income Tax(Appeal)
Income Tax Act 1961 Income Tax 4005.12 2009-10 Commissioner of Income Tax(Appeal)
Income Tax Act 1961 Income Tax 4156.14 2010-11 Commissioner of Income Tax(Appeal)
MVAT Act 2002 Value Added Tax Interest 236.24 2009-10 @ Appeals Dy. Commissioner of Sales Tax (Appeals)

(*) ITAT (Mumbai) vide its order dated 23.10.2012 has partly allowed the appeal. Ordergiving effect for the same is awaited.

(**)CIT(A)-50 (Mumbai) vide its order dated 29.08.2016 has partly allowed the appeal.Order giving effect for the same is awaited

(##) CIT (Mumbai) vide its order dated 25.05.2016 has partly allowed the appeal. Ordergiving effect for the same is awaited

(@) Appeal has been preferred against the interest levy on 12.04.2017.

viii. Company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders except for the non-payment of5 installments to Government of Maharashtra as per the scheme of Hon'ble BIFR the detailsof which are given below:

Particulars ( Name of Lenders) Amount of Default Date of Default
Development Cor. Of Konkan Ltd
256038 30.06.2012
256038 30.06.2013
256038 30.06.2014
256038 30.06.2015
256038 30.06.2016
Sales Tax Deferment Loan
396910 30.06.2012
396910 30.06.2013
396910 30.06.2014
396910 30.06.2015
396910 30.06.2016

The above defaults are continuing as on the Balance Sheet date.

ix. According to the information and explanations given to us the Company has notraised any money by way of initial public offer or further public offer (including debtinstruments) and term loans during the year. Accordingly paragraph 3(ix) of the Order isnot applicable to the company and hence not commented upon.

x. Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that there were no material fraud by the Company or onthe Company by its officers or employees which have been noticed or reported during theyear under review.

xi. According to the information and explanations given by the management Managerialremuneration has not been paid or provided during the year under review. Therefore theprovisions of Clause 3(xi) of the order are not applicable to the company and hence notcommented upon.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Consequently provisions of clause 3(xii) of the Order arenot applicable to the company and hence not commented upon.

xiii. All transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards;

xiv. According to the information and explanations 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 under review and hence reporting under clause 3 (xiv) are not applicable to thecompany and hence not commented upon.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them as referred to in section 192of Companies Act 2013.

xvi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company is not required to get registeredunder section 45-IA of the Reserve Bank of India Act 1934.

For Motilal & Associates

Chartered Accountants

Registration No.:106584W

(Motilal Jain)

Partner

M. No. 036811

Place: Mumbai

Date : 16/05/2017

ANNEXURE"B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE

FINANCIAL STATEMENTS OF JIK INDUSTRIES LIMITED

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 JIKINDUSTRIES LIMITED ("the Company") as of March 31 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its as sets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditor's 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 on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 controls systemoverfinancial 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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 overfinancialreporting 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 controlsoverfinancial reporting were operating effectively as at March 312017 based on theinternal control overfinancial 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.

ForMotilal & Associates

Chartered Accountants

FRN: 106584W

Motilal Jain

(Partner)

M. No. 036811

Place : Mumbai

Date : 16/05/2017