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JMT Auto Ltd.

BSE: 513691 Sector: Auto
NSE: JMTAUTOLTD ISIN Code: INE988E01036
BSE 15:40 | 23 Jan 5.19 -0.06
(-1.14%)
OPEN

5.15

HIGH

5.25

LOW

5.05

NSE 15:31 | 23 Jan 5.15 -0.05
(-0.96%)
OPEN

5.20

HIGH

5.25

LOW

5.00

OPEN 5.15
PREVIOUS CLOSE 5.25
VOLUME 36801
52-Week high 20.45
52-Week low 3.45
P/E 129.75
Mkt Cap.(Rs cr) 261
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.15
CLOSE 5.25
VOLUME 36801
52-Week high 20.45
52-Week low 3.45
P/E 129.75
Mkt Cap.(Rs cr) 261
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JMT Auto Ltd. (JMTAUTOLTD) - Auditors Report

Company auditors report

To the Members of JMT Auto Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of JMT Auto Limited(‘The Company) which comprises the balance sheet as at 31st March 2017 thestatement of profit and loss (including other comprehensive income) the statement of cashflows and the statement of changes in equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The company's board of directors is responsible for the matters specified in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance (including other comprehensive income) cash flows andchanges in equity of the company in accordance with the accounting principles generallyaccepted in India including the accounting standards specified under section Section 133of the Companies Act 2013 (hereinafter referred to as "the Act") read withrelevant Rules of the Companies (Accounts) Rules 2014.

This responsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the companyand for preventing and detecting the 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 control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under 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 standalone financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor'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's preparation ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the company's directors as well as evaluating the overallpresentation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of thecompany as at March 31 2017 and its loss and its cash flows for the year ended on thatdate.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub section (11) of section 143 ofthe act we give in annexure A a statement on the matters specified in paragraph 3 &4 of the Order to the extent applicable.

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 sheet the profit and loss statement (including other comprehensiveincome) the statement of cash flows and the statement of changes in equity dealt with bythis report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe accounting standards specified under section 133 of the Act read with relevant rulesthereunder;

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

(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"; and (g) With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us:

i. the company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements. ii. the company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses. 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 requisitedisclosures in its Ind AS financial statements as regards its holding as well as dealingsin specified Bank notes as defined in the Notification S.O. 3407(E) dated the November 82016 of the Ministry of Finance during the period from 8th November 2016 to 30th December2016. Based on audit procedures performed and the representations provided to us by themanagaement we report that the disclosures are in accordance with the books of accountsmaintained by the company.

For A. C. Gupta & Associates
Chartered Accountants
Firm's registration number: 008079N
A.C.Gupta
[Partner]
Membership number: 08565
New Delhi
June 10 2017

Annexure - A to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31st March 2017.

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

(b) As explained to us fixed assets according to the practice of the company havebeen physically verified by the management at reasonable intervals. In our opinion thefrequency of physical verification of fixed assets is reasonable having regard to the sizeof the Company and nature of its assets. According to the information and explanationsgiven to us no material discrepancies were noticed on such physical verification. (c)According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deeds of immovable properties areheld in the name of the company.

(ii) We have been informed that the inventories are physically verified during theperiod by the management at reasonable intervals. The frequency of physical verificationin our opinion is reasonable having regard to the size of the company and nature of itsbusiness. The discrepancies noticed on verification between the physical inventories andthe book records were not material in relation to the operation of the company and thesame have been properly dealt with in the books of account.

(iii) The company during the year has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act'). Accordinglyparagraph 3(iii) of the Order is not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Act with respectto the loans investments guarantees and security. (v) Since the company has not acceptedany deposit from public the directives issued by the Reserve Bank of India and theprovisions of section 73 to 76 or any other relevant provisions of the Companies Act 2013and the rules framed there under with regard to the deposits accepted from the public arenot applicable.

(vi) According to the information and explanations given to us maintenance of costrecords has not been prescribed by the Central government under sub-section (1) of Section148 of the Companies Act 2013 for any of the activities of the Company.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the company the company has been regular in depositingundisputed statutory dues including provident fund employees state insurance income-taxsales tax service tax duty of customs duty of excise value added tax cess and otherstatutory dues with appropriate authorities during the year ended 31st March 2017.

(b) Dues of Custom Duty and Excise Duty not deposited on account of dispute are asfollows:

Name of Statue Nature of Dues Amount Period Forum where
Dispute is pending
Central Excise Act 1944 Dispute regarding Capital Cenvat availed in EOU units. Non Fulfillment of LOP Condition. Rs. 4.44 Cr. FY. 2012-13 Hon. High Court of Karnataka Dharwad Bench
Customs Act Dispute regarding availment of SHIS license because of policy confusion. Rs. 7 Lacs FY. 2011-12 Hon. High Court of 1962 Kolkata.

(viii) According to the information and explanations given to us and as per ourverification of the records of the company the company is regular in payment ofinstalments and Interest of term loan to the banks during the period under report.

(ix) According to the information and explanations given to us and as per ourverification of the records of the company the company has not raised moneys by way ofinitial public offer or further public offer (Including debt instruments).

The term loans availed by the company have been applied for the purpose for which theloans were obtained. (x) According to the information and explanations given to us nofraud by the company or on the company by its officers or employees has been noticed orreported during the Year ended 31st March 2017.

(xi) According to the information and explanations give to us and based on ourexamination of the records of the company the company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to usthe company is not a Nidhi company.

Therefore the provisions of Clause 3 (xii) of the Order are not applicable to thecompany.

(xiii) According to the information and explanations given to us and as per ourverification of the records of the company all transactions with the related parties arein compliance with the Sections 177 and 188 of the Companies Act 2013 where applicableand the details have been disclosed in the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and as per ourverification 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 period under review. Accordingly the provisions of Clause 3 (xiv) of the order arenot applicable to the company.

(xv) According to the information and explanations given to us and as per ourverification of the records of the company the company has not entered into any non-cashtransactions with directors or persons connected with him.

Accordingly the provisions of Clause 3 (xv) of the order are not applicable to thecompany.

(xvi) In our opinion the company is not required to be registered under section 45-IAof the reserve Bank of India Act 1934. Accordingly the provisions of Clause 3 (xvi) ofthe order are not applicable to the company.

For A.C. Gupta & Associates
Chartered Accountants
Firm's registration number: 008079N
A.C.Gupta
[Partner]
Membership Number: 08565
New Delhi
June 10 2017

Annexure - B to the Independent 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 internalfinancial controls over financial reporting of JMT Auto Limited ("the Company")as of 31st March 2017 in conjunction with our audit of the standalone Ind AS financialstatements 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 safeguarding ofits 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 31st 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 A. C. Gupta & Associates
Chartered Accountants
Firm's registration number: 008079N
A. C. Gupta
[Partner]
Membership Number: 008565

 

Place : New Delhi
Dated : June 10 2017