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Jaiprakash Associates Ltd.

BSE: 532532 Sector: Infrastructure
NSE: JPASSOCIAT ISIN Code: INE455F01025
BSE LIVE 15:59 | 21 Sep 19.30 0.65
(3.49%)
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18.65

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19.50

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18.15

NSE 15:56 | 21 Sep 19.30 0.75
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18.50

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19.50

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OPEN 18.65
PREVIOUS CLOSE 18.65
VOLUME 11944278
52-Week high 30.40
52-Week low 6.71
P/E
Mkt Cap.(Rs cr) 4,695
Buy Price 19.40
Buy Qty 329733.00
Sell Price 0.00
Sell Qty 0.00
OPEN 18.65
CLOSE 18.65
VOLUME 11944278
52-Week high 30.40
52-Week low 6.71
P/E
Mkt Cap.(Rs cr) 4,695
Buy Price 19.40
Buy Qty 329733.00
Sell Price 0.00
Sell Qty 0.00

Jaiprakash Associates Ltd. (JPASSOCIAT) - Auditors Report

Company auditors report

To the Members of Jaiprakash Associates Limited

Report on the Financial Statements

We have audited the accompanying financial statements of JAIPRAKASH ASSOCIATES LIMITED("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.

Management's Responsibility for the 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards prescribedunder section 133 of the Act as applicable. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the 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. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 and its loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. 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 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 financial statements comply with the AccountingStandards prescribed under section 133 of the Act read with Rule 7of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on 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 A". Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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 Note 35 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses -Refer Note 48 to the financialstatements;

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For M. P. SINGH & ASSOCIATES
Chartered Accountants
Firm Registration No. 002183C
(CA. Ravinder Nagpal)
Partner
Place : Noida M.No.081594
Dated : May 28 2016

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of JAIPRAKASHASSOCIATES LIMITED ("the Company") as of March 31 2016 in conjunction with ouraudit of the 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. 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 assets 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For M. P. SINGH & ASSOCIATES
Chartered Accountants
Firm Registration No. 002183C
(CA. Ravinder Nagpal)
Partner
M.No.081594
Place : Noida
Dated : May 28 2016

ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. The situation of the moveable assetsused in the construction activity keeps on changing from works sites depending uponrequirements for a particular contract.

(b) A substantial portion of the Fixed Assets have been physically verified by themanagement during the year and to the best of our knowledge and information given to usno material discrepancies have been noticed on such physical verification.

(c) According to the information and explanations given to us and the records examinedby us we report that other than the immovable properties acquired on amalgamations withthe Company as per schemes approved by the Hon'ble High Courts in earlier years the titledeeds are held in the name of the Company as at the balance sheet date except thefollowing:

Description & Location of Gross Book Value
Property (Rs. lacs)
Land under Consolidation 48842
Land at Dera Mandi Gaon New Delhi & building thereon 153
Freehold land at Rangpuri New Delhi (Compulsorily acquired by the Government) 3

(ii) (a) As explained to us the Inventory has been physically verified by themanagement at reasonable intervals during the year.

(b) In our opinion and according to the information and explanations given to us nomaterial discrepancies were noticed on physical verification.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act. Hence the provisions of Clauses 3(iii)(a) 3(iii)(b)and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion and according to the information and explanations given to us inrespect of loans investments guarantees and security the provisions of section 185 and186 of the Companies Act 2013 have been complied with.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposit during the year. The Company has generally compliedwith the provisions of Sections 73 to 76 or any other relevant provisions of the CompaniesAct 2013 read with the Orders issued by the New Delhi Bench of the Hon'ble Company LawBoard (CLB) from time to time. The CLB has also vide its Order dated 22.12.2015 grantedtime till 30.06.2016 for repayment of fixed deposits which had attained maturity on31.03.2015 and for repayment of fixed deposits which had attained/are attaining maturityafter 31.03.2015.

(vi) We have broadly reviewed the accounts and cost records maintained by the segmentsof the Company where cost records have been prescribed by the Central Government undersection 148(1) of the Companies Act 2013 and are of the opinion that prima-facie theprescribed accounts and records have been maintained. We have however not made adetailed examination of the records.

(vii) (a) As per records produced before us and according to the information andexplanations given to us the Company is generally regular in depositing undisputedstatutory dues including Provident Fund Employees' State Insurance Income- tax Salestax Service tax Customs Duty Excise Duty Value Added Tax Cess and other materialstatutory dues applicable to it to the appropriate authorities and there were no arrearsof such dues at the end of the year which have remained outstanding for a period of morethan six months from the date they became payable except for electricity duty of Rs.2468.65 lacs.

(b) As per records produced before us and according to the information and explanationsgiven to us there are no dues of Income-tax or Sales-tax or Service Tax or duty ofCustoms or duty of Excise or Value Added Tax which have not been deposited on account ofany dispute except for the following:

Name of Statute (Nature of dues)

Period to which amount relates

Forum where dispute is pending

Total

Commissionarate Appellate authorities- Tribunal High Court Supreme Court
Central Excise 1988-2015 4367.56 - - - 4367.56
1996-2016 - 5890.47 - - 5890.47
1997-2009 - - 780.14 - 780.14
Electricity Duty & Cess 1991-2002 & 2006-2016 - 12632.27 - 12632.27
Sales Tax/VAT 2001-2002 & 2006-2015 3959.79 - - 3959.79
Name of Statute Period to

Forum where dispute is pending

Total
(Nature of dues) which amount relates Commissionarate Appellate authorities- Tribunal High Court Supreme Court
1999-2000 & 2004-2013 - 663.75 - - 663.75
1998-2001 2005-2016 - - 6381.71 - 6381.71
2002-2008 - - - 9029.24 9029.24
Entry Tax 2000-2001 2011-2014 187.91 187.91
2006-12 - 240.29 - - 240.29
2001-2002 2010-2016 - - 2759.75 - 2759.75
2007-2016 - - - 20933.99 20933.99
Royalty on limestone Upto June 2014 - - 16211.03 - 16211.03
Rural Infrastructure Tax 2005-2016 - - - 4395.37 4395.37
Tax on transportation of goods in Himachal Pradesh 2010-2016 7382.36 7382.36
Service Tax 2005-2013 - 69529.13 - - 69529.13
Levy on transport of limestone 2007-2011 - - - 582.70 582.70
Cess under Building and other Construction 2008-2012 - - 273.98 - 273.98
Water Cess 2003-2013 - - 1116.56 - 1116.56
Customs - 4487.03 - - 4487.03

(viii) Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that during the year the Company has defaulted inrepayment of loans/borrowings to banks financial institutions and dues to debentureholders wherein the period of delay ranges from 30 days to 180 days which have howeverbeen subsequently made good during the year.

Overdue interest on borrowings amounting to Rs. 83745 lacs included in Note on"Other Current Liabilities" in the financial statements was outstanding as at 31stMarch 2016 wherein the period of delay ranges from 1 day to 269 days.

Overdue principal repayments of loans/borrowings amounting to Rs. 218317 lacs includedin Note on "Other Current Liabilities" under 'Current Maturities of Long-termDebts' in the financial statements was outstanding as at 31st March 2016wherein the period of delay ranges from 1 day to 269 days.

Lender wise details are tabulated below:

Name of Bank Overdue Principal repayments as at 31.3.2016 (' in lacs) Period of default for overdue principal repayments Overdue Interest as at 31.3.2016 (' in lacs) Period of default for overdue interest
Allahabad Bank 500 32 days 78 1 day
Axis Bank 4488 1 - 61 days 1801 1 - 91 days
Bank of India 526 1 day 70 1 day
Bank of Maharashtra 5071 1 - 184 days 5071 1 - 184 days
Canara Bank - 4784 1 - 183 days
Central Bank of India - 54 1 - 31 days
Corporation Bank 1053 21 - 112 days 512 1 - 112 days
Exim Bank 1893 1 - 60 days 310 1 - 60 days
HDFCBank - 987 61 days
ICICI Bank Ltd. 43066 4 - 61 days 19905 4 - 47 days
Name of Bank Overdue Principal repayments as at 31.3.2016 (' in lacs) Period of default for overdue principal repayments Overdue Interest as at 31.3.2016 (' in lacs) Period of default for overdue interest
Karnataka Bank 936 1 - 184 days 1317 1 - 184 days
Karur Vysya Bank - 460 1 - 61 days
Lakshmi Vilas Bank 526 1 - 21 days 370 1 - 61 days
Oriental Bank of Commerce 526 1 - 21 days 192 1 - 32 days
Punjab & Sind Bank 2881 1 - 184 days 693 1 - 153 days
State Bank of Bikaner & Jaipur 375 1 day -
Standard Chartered Bank 5080 5 days 5488 5 - 123 days
State Bank of Hyderabad 1125 1 day 333 1 - 32 days
State Bank of India 111875 1 - 92 days 13168 1 - 92 days
State Bank of Travancore 938 5 days 132 1 - 61 days
Syndicate Bank 832 1 - 92 days 346 1 - 153 days
The South Indian Bank Ltd 1625 1 - 61 days 952 1 - 61 days
The Jammu & Kashmir Bank Ltd 938 1 day 94 1 day
Uco Bank 2916 1 - 92 days 536 1 - 123 days
United Bank of India 1500 1 - 92 days 704 1 - 92 days
Yes Bank Ltd 4930 3 - 32 days 3014 1 - 60 days
IFCI Ltd. 208 77 Days 3206 1 - 140 days
Yes Bank - NCDs 5000 86 days 209 86 days
Axis Bank - NCDs - 2647 31 days
ECB and Buyer's Credit 19509 24 - 269 days 1277 24 - 269 days
Other Including Deferred Payment of Land 15037
Totals 218317 83745

The Company has not defaulted in repayment of dues to the Government.

(ix) The Company has not raised moneys by way of further public offer. Further in ouropinion and according to the information and explanations given to us the moneys raisedby way of debt instruments and term loans have been applied by the Company during the yearfor the purposes for which they were raised.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its officersor employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) The Company is not a Nidhi company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its holding subsidiary or associate company or personsconnected with them and hence provisions of section 192 of the Companies Act 2013 are notapplicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For M. P. SINGH & ASSOCIATES
Chartered Accountants
Firm Registration Number 002183C
(CA. Ravinder Nagpal)
Partner
Place : Noida M.No. 081594
Dated : May 28 2016