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Jindal Saw Ltd.

BSE: 500378 Sector: Metals & Mining
NSE: JINDALSAW ISIN Code: INE324A01024
BSE LIVE 15:45 | 22 Aug 90.20 -0.35
(-0.39%)
OPEN

91.50

HIGH

92.70

LOW

89.85

NSE 15:59 | 22 Aug 90.35 -0.40
(-0.44%)
OPEN

91.50

HIGH

92.75

LOW

89.85

OPEN 91.50
PREVIOUS CLOSE 90.55
VOLUME 129801
52-Week high 107.80
52-Week low 45.05
P/E 8.83
Mkt Cap.(Rs cr) 2,884
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 91.50
CLOSE 90.55
VOLUME 129801
52-Week high 107.80
52-Week low 45.05
P/E 8.83
Mkt Cap.(Rs cr) 2,884
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jindal Saw Ltd. (JINDALSAW) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS’ REPORT To The Members of JINDAL SAW LIMITED Report on theStandalone Financial Statements

We have audited the accompanying standalone financial statements of JINDAL SAW LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2015 theStatement of Profit and Loss the 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 of 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.

Auditors’ 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

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 financialcontrol system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as 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 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 31st March 2015 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 2015 ("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 statement on the matters specified inthe paragraph 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 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 Sheetthe Statement of Profit and Loss and the Cash Flow Statement dealt with by this Reportare in agreement with the books of account; (d) In our opinion the aforesaid standalonefinancial statements comply with the Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules 2014; (e) On the basis of thewritten representations received from the directors as on 31st March 2015 taken on recordby the Board of Directors none of the directors is disqualified as on 31st March 2015from being appointed as a director in terms of Section 164 (2) of the Act.

(f) 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. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements – Refer Note-29 to the financial statements; ii. The Company hasmade provision as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts including derivative contracts –Refer Note-44 to the financial statements; iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany other than Rs. 155.09 lacs which is held in abeyance due to pending legal case.

For N.C. Aggarwal & Co.
Chartered Accountants
Firm Registration No. 003273N
N. C. Aggarwal
Place: New Delhi Partner
Dated: 7th May 2015 M. No. 005951

ANNEXURE TO INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph (1) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date for the year ended 31st March2015)

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

(b) A major portion of the fixed assets has been physically verified by the Managementin accordance with a phased programme of verification adopted by the Company. In ouropinion the frequency of verification is reasonable having regard to the size of theCompany and the nature of its assets. To the best of our knowledge no materialdiscrepancies have been noticed on such verification.

2. (a) As explained to us the management during the year has physically verifiedinventories at reasonable intervals and in respect of stores and spares there is aperpetual inventory system and a substantial part of such stock has been verified duringthe year. However stocks in the possession and custody of third parties and stock intransit as at 31st March 2015 have been verified by the Management with reference toconfirmation or statement of account or correspondence of third parties or subsequentreceipt of goods. In our opinion the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories followed by the Management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of inventories. The discrepancies noticed duringphysical verification of inventories as compared to book records were not material and thesame have been properly dealt with in the books of account.

3. The Company has given interest bearing unsecured demand loans to companies coveredin the register maintained under Section 189 of the Companies Act 2013.

(a) In respect of aforesaid loan the amount principal as well as interest accruedthereon is repayable on demand and hence the question of irregularity on payment ofprincipal and interest does not arise.

(b) The aforesaid loan is repayable on demand and therefore the question of overdueamount does not arise.

4. In our opinion and according to information and explanations given to us havingregard to the explanation that some of the items purchased are of special nature andsuitable alternative sources do not exist for obtaining comparable quotations there areadequate internal control system commensurate with the size of the company and the natureof its business with regard to purchases of inventories fixed assets and with regard tothe sale of goods and services. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal controls.

5. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 73 to 76 of the Companies Act 2013and Companies (Acceptance of Deposits) Rules 2014 with regard to the deposits acceptedfrom the public.

6. We have broadly reviewed the books of account and records maintained by the companypursuant to the Rules made by the Central Government for the maintenance of cost recordsunder section 148 (1) of the Companies Act 2013 in respect of the company’s productsand are of the opinion that prima facie the prescribed records have been made andmaintained. We have however not made a detailed examination of records with a view todetermine whether they are accurate or complete.

7. (a) According to the information and explanations given to us the Company isgenerally regular in depositing with the appropriate authorities undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Wealth TaxService Tax Duty of Customs Duty of Excise Value Added Tax Cess and any otherstatutory dues. There are no arrears as at 31st March 2015 for a period of more than sixmonths from the date they become payable.

(b) According to the information and explanation given to us the dues in respect ofsales tax duty of excise Service tax Entry tax and duty of customs that have not beendeposited with the appropriate authorities on account of dispute and the forum where thedisputes are pending are given below:

Nature of Dues and Name of the Statute Year to which the amount relates Forum where matter is pending Amount ( Rs. in lacs)
Custom Duty Customs Act1962 2009-10 CESTAT Mumbai 12.50
Excise Duty Central Excise Act 1944 2004-05 to 2007-08 Commissioner (Appeal) Ahmedabad 32.21
Excise Duty Central Excise Act 1944 2005-06 2007-08 to 2009-10 Commissioner (Appeal) Rajkot 83.04
Excise Duty Central Excise Act 1944 2009-10 CESTAT Mumbai 2.01
Sales Tax Gujarat Sales Tax Act 2002-03 Hon’ble High Court of Gujarat Ahmedabad 141.94
Entry Tax Rajasthan Entry Tax Act 2011-12 to 2014-15 Hon’ble Supreme Court New Delhi 272.71
Service Tax Finance Act 1994 2012-13 & 2013-14 CESTAT Ahmedabad 70.27

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the amount required to be transferred toInvestor Education and Protection Fund in accordance with the relevant provisions of theCompanies Act 1956 (1 of 1956) and rules made there under has been transferred to suchfund within time other than Rs. 155.09 lacs which is held in abeyance due to pendinglegal case.

8. The Company has no accumulated losses at the end of the financial year. The Companyhas not incurred any cash losses during the financial year covered by our audit and in theimmediately preceding financial year.

9. According to the information and explanations given to us the Company has notdefaulted in repayment of dues to the banks and debenture holders. The company has nottaken any other loan from Financial Institution.

10. The company has given guarantees for loans taken by others from banks and financialinstitutions. According to the information and explanations given to us we are of theopinion that the terms and condition thereof are not prima facie prejudicial to theinterest of the company.

11. In our opinion and according to information and explanations given to us the termloans have been applied for the purpose for which they were obtained other than temporarydeployment pending application.

12. During the course of our examination of the books and records of the Company andaccording to the information and explanations given to us by the management we reportthat no fraud on or by the Company has been noticed or reported during the course of ouraudit.

For N.C. Aggarwal & Co.
Chartered Accountants
Firm Registration No. 003273N
N. C. Aggarwal
Place: New Delhi Partner
Dated: 7th May 2015 M. No. 005951