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Jindal Poly Films Ltd.

BSE: 500227 Sector: Industrials
NSE: JINDALPOLY ISIN Code: INE197D01010
BSE LIVE 15:53 | 23 Aug 361.00 3.85
(1.08%)
OPEN

360.50

HIGH

366.20

LOW

359.10

NSE 15:40 | 23 Aug 362.75 5.30
(1.48%)
OPEN

358.50

HIGH

366.70

LOW

358.45

OPEN 360.50
PREVIOUS CLOSE 357.15
VOLUME 5359
52-Week high 476.10
52-Week low 300.00
P/E 18.08
Mkt Cap.(Rs cr) 1,581
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 360.50
CLOSE 357.15
VOLUME 5359
52-Week high 476.10
52-Week low 300.00
P/E 18.08
Mkt Cap.(Rs cr) 1,581
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jindal Poly Films Ltd. (JINDALPOLY) - Auditors Report

Company auditors report

To the Members of Jindal Poly Films Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Jindal PolyFilms Limited ("the Company") which comprise the Balance sheet as at March31 2016 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 thereunder and the order under section 143(11)of the Act.

We conducted our audit of standalone Financial statements in accordance with thestandards on Auditing specified under section 143(10) of the Act. Those standards requirethat 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 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. 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 (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 Profit and its Cash Flow for the year ended on that date.

Emphasis of Matter we draw attention to Note No. 31.16 to the standalone Financialstatements in respect of Investment of Rs. 39.29 Crores in the zero percent RedeemablePreference share Capital (Redeemable at a premium of 10% within 15 years from the date ofallotment) and Rs. 249.00 crores as zero percent Optionally Convertible Preference sharesof Jindal India Powertech Limited (JPIL) a group-sPV Company. our opinion is not modifiedin respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") as amended issued by the Central government of India in terms ofsub-section (11) of section 143 of the Act we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order.

2. 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 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 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of section 164 (2) of theAct.

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 standalone Financial statements – Refer Note 28.2 to the standaloneFinancial statements;

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.

For Kanodia Sanyal & Associates
Chartered Accountants
FRN: 008396N
(R.K. Kanodia)
Place : Delhi Partner
Date : 30th May 2016 Membership no.: 016121

"ANNEXURE A" TO THE INDEPENDENT AUDITORS’ REPORT

Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements’ of our report of even date to the financial statements of the Companyfor the year ended March 31 2016:

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

(b) Fixed Assets except discontinued undertaking have been physically verified by themanagement in a phased manner designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the company andnature of its business. In accordance with this programme certain fixed assets werephysically verified during the year and no material discrepancies were noticed on suchverification.

(c) The title deeds of immovable properties are held in the name of the company.

2) (a) The management has conducted the physical verification of inventory atreasonable intervals.

b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

3) In respect of loans secured or unsecured granted by the Company to the partiescovered in the register maintained under section 189 of the Companies Act 2013:

(a) The Company has granted loans to four companies being not prima facie prejudicialto the interest of the Company. The maximum amount involved during the year was Rs 2503lacs the year-end balance of loan granted to such companies was Rs. 973.163 Lacs.

(b) The interest payments are regular and the principal amounts are being received/renewed on the due dates.

(c) There is no overdue amount in respect of the above loans.

4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies Act 2013In respect of grant of loans making investments providing guarantees and security.

5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits are not applicable to the Company.

6) we have broadly reviewed the cost records maintained by the company pursuant to theorder made by the Central government for the maintenance of cost records u/s 148(1) ofthe Companies Act 2013 and are of opinion that prima facie the prescribed records andaccounts have been maintained by the company. However we have not made a detailedexamination of these records to verify whether they are accurate or complete.

7) (a) According to information and explanations given to us and on the basis of ourexamination of the books of account and records the Company has been generally regularin depositing undisputed statutory dues including Provident Fund Employees stateInsurance Income-Tax sales tax service Tax Duty of Customs Duty of Excise Valueadded Tax Cess and any other statutory dues with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amounts payable in respectof the above were in arrears as at March 31 2016 for a period of more than six monthsfrom the date on when they become payable.

(b) According to the information and explanations given to us details of dues ofincome tax sales tax Custom Duty wealth Tax Excise Duty and Cess which have not beendeposited as on 31st March 2016 on account of any dispute are given below:

Nature of the Statute Nature of the dues Amount Disputed Forum where dispute is pending
(Rs/Lacs)
1. Income Tax Act Income Tax demand 14.14 A.O. F.Y 1994-95
Income Tax demand 391.45 CIT(A) gZB F.Y.1998-99
Income Tax demand 78.55 ITAT 2005-2006
Income Tax demand 29.63 ITAT 2009-2010
Income Tax demand 172.55 CIT(A) F.Y 2013-2014
Income Tax demand 17.98 CIT(A) F.Y 2006-07
Income Tax demand 5.06 CIT(A) F.Y 2007-08
Income Tax demand 203.5 CIT(A) F.Y 2008-09
2. Sales Tax Act Sales Tax Demand 1026.96 Sales Tax Tribunal (2002-03 TO 2007-2008)
3. Excise Duty Demand 1920.29 High court
4. Customs Duty Demand 804.80
5. Service Tax Demand 97.16 Tribunal Mumbai year 2008-2011
Demand 78.82 Tribunal Delhi year 2002-2008
Demand 14.21 Commissioner/ JT commissioner year 2006- 2011

8) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of dues to banks. The Company has not taken anyloan either from financial institutions or from the government and has not issued anydebentures.

9) Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11) 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 requisite approvals mandated by the provisions of section 197 readwith schedule V to the Companies Act;

12) The Company is not a Nidhi Company. Therefore the provisions of clause 4 (xii) ofthe Order are not applicable to the Company.

13) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in thestandalone Financial statements as required by the applicable accounting standards.

14) In our opinion and according to information and explanations available to us thecompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year. Accordingly the provisions of clause 3(xiv) of the Order are not applicable to the Company.

15) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or directors of its holding subsidiary or associates company or personsconnected with them. Accordingly the provisions of clause 3 (xv) of the Order are notapplicable to the Company.

16) In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company.

For Kanodia Sanyal & Associates
Chartered Accountants
FRN: 008396N
(R.K. Kanodia)
Place : Delhi Partner
Date : 30th May 2016 Membership no.: 016121

"ANNEXURE B" TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF JINDAL POLY FILMS LIMITED

Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements’ of our report of even date:

We have audited the internal financial controls over financial reporting of Jindal PolyFilms Limited ("the Company") as of March 31 2016 in conjunction with our auditof the standalone 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 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 judgement 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 unauthorized 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"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For Kanodia Sanyal & Associates
Chartered Accountants
FRN: 008396N
(R.K. Kanodia)
Place : Delhi Partner
Date : 30th May 2016 Membership no.: 016121