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JIK Industries Ltd.

BSE: 511618 Sector: Industrials
NSE: JIKIND ISIN Code: INE026B01049
BSE LIVE 15:01 | 07 Aug Stock Is Not Traded.
NSE 13:12 | 31 Jul Stock Is Not Traded.
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 March 31 2016the Statement of Profit and Loss Cash Flow Statement for the year then ended and asummary 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 whether the 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 31 2016 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 we give inthe "Annexure A" a statement on the matters specified in paragraphs 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 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 opinionthe aforesaid Standalone financial statements comply with the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

e. On the basis of written representations received from the directors as on March 312016 taken on record by the

Board of Directors none of the directors is disqualified as on March 31 2016 frombeing appointed as a director in terms of Section 164 (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".

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 opinion and to the best of ourinformation 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.

For MOTILAL & ASSOCIATES
Chartered Accountants
Registration No.:106584W
Place: Mumbai M L JAIN
Date :30/05/2016 Partner
M. No. 036811

ANNEXURE TO THE AUDITORS' REPORT

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

- The auditor's report on the accounts of a company to which this Order applies shallinclude a statement on the following matters namely:-

I. a. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets; b. Certain fixed assets have beenphysically verified by the management at reasonable intervals.

Nomaterial discrepancies were noticed on such verification. c. All the title deeds ofimmovable properties are held in the name of the company.

ii. The physical verification of inventory has been conducted at reasonable intervalsby the management. No material discrepancies were noticed on such 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 the information and explanations given to us duringthe course of the audit the company has not entered in any transaction that attract theprovisions of section 185 and 186 of theCompanies Act 2013.

v. The company has not accepted any deposits from the public; thus paragraph 3(v) isnot applicable to the company.

vi. The maintenance of cost records has not been specified to the company by theCentral Government under subsection (1) of section 148 of the Companies Act 2013.

vii. a. The company is regular in depositing undisputed statutory dues includingprovident fund service tax duty of customs duty of excise cess and any other statutorydues to the appropriate authorities except the dues as stated under:

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
MVAT Act 2002 Value Added Tax 2013-14 0.40
2014-15 0.52
2015-16 0.23
ESIC Act. 1948 ESIC 2010-11 0.28
2014-15 0.57
Profession Tax Act.1975 Profession Tax 2014-15 0.75
2015-16 0.50
Income Tax Act.1961 TDS 2014-15 0.61
TDS 2015-16 0.47

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

Name of the statue Nature of dues Amount Period which the amount relates Forum where disputes pending
(In Lacs)
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 0.10 2004-05 Income Tax Appellate
(#) Tribunal Mumbai.
Income Tax Act.1961 Income Tax 2259.15 2005-06 (#) Commissioner of Income Tax(Appeal)/ITAT Mumbai
Income Tax Act.1961 Income Tax 0.10 2005-06 (#) Income Tax Appellate Tribunal Mumbai.
Income Tax Act.1961 Income Tax 0.10 2006-07 (#) Income Tax Appellate Tribunal Mumbai.
Income Tax Act.1961 Income Tax 273.44 2007-08 (#) Commissioner of Income Tax(Appeal)/ITAT Mumbai
Income Tax Act.1961 Income Tax 0.10 2007-08 (#) Income Tax Appellate Tribunal Mumbai.
Income Tax Act.1961 Income Tax 768.16 2008-09 (#) Commissioner of Income Tax(Appeal)/ITAT Mumbai
Income Tax Act.1961 Income Tax 0.10 2008-09 (#) Income Tax Appellate Tribunal Mumbai.
Income Tax Act.1961 Income Tax 4005.12 2009-10 (#) Commissioner of Income Tax(Appeal)/ITAT Mumbai
Income Tax Act.1961 Income Tax 0.10 2009-10 (#) Income Tax Appellate Tribunal Mumbai.
Income Tax Act.1961 Income Tax 4156.14 2010-11 (#) Commissioner of Income Tax(Appeal)/ITAT Mumbai
Income Tax Act.1961 Income Tax 0.10 2010-11 (#) Income Tax Appellate Tribunal Mumbai.

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

(#) ITAT (Mumbai) vide its order dated 18.02.2016 has allowed the penalty appeal's forthe F.Y's 2004-05 to 2010-11 (each having a demand of Rs 10000/-) . Order giving effectfor the same is awaited. viii. Company has not defaulted in repayment of loans orborrowing to a financial institution bank Government or dues to debenture holdersexcept for the non payment of 4 installments to Government of Maharashtra as per thescheme of Hon'ble BIFR the details of which are given bellow.

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

The above dafaults are continuing as on the Balance sheet date.

ix. The company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) and no term loans were obtained during the yearunder review.

x. During the ordinary course of audit we have not come across any offence involvingfraud that has been or is being committed by the company or any offence involving fraudcommitted that has been or is being committed against the Company by its officers oremployees of the company;

xi. Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the provisions of section 197 read with Schedule V to the Companies Act.

xii. The Company is not a Nidhi Company hence the provisions of the Nidhi Company andthe Nidhi Rules 2014 is not applicable to the company.

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. Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review thus requirement ofsection 42 of the Companies Act 2013 is not applicable to the company.

xv. Company has not entered into any non-cash transactions with directors or personsconnected with him. Thus the provisions of section 192 of Companies Act 2013 are notapplicable to the company;

xvi. Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For Motilal & Associates
Chartered Accountants
Registration No.:106584W
M L Jain
Place : Mumbai Partner
Date : 30th May 2016 M. No. 036811

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS 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 2016 in conjunction with ouraudit 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.

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 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 systemover 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 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 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 March 31 2016 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 Motilal & Associates
Chartered Accountants
(Firm's Registration No. 106584W)
M L Jain
Place: Mumbai Partner
Date: 30th May 2016 Membership No. 036811