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Jaiprakash Power Ventures Ltd.

BSE: 532627 Sector: Infrastructure
NSE: JPPOWER ISIN Code: INE351F01018
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8.60

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NSE 19:43 | 19 Oct 8.35 -0.10
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8.70

HIGH

8.80

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8.10

OPEN 8.60
PREVIOUS CLOSE 8.42
VOLUME 882101
52-Week high 8.80
52-Week low 3.60
P/E
Mkt Cap.(Rs cr) 5,013
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.17
Sell Qty 4477.00
OPEN 8.60
CLOSE 8.42
VOLUME 882101
52-Week high 8.80
52-Week low 3.60
P/E
Mkt Cap.(Rs cr) 5,013
Buy Price 0.00
Buy Qty 0.00
Sell Price 8.17
Sell Qty 4477.00

Jaiprakash Power Ventures Ltd. (JPPOWER) - Auditors Report

Company auditors report

To the Members of

JAIPRAKASH PoWER VENTURES LIMITED

Report on the Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying financial statements of JAIPRAKASHPOWER VENTURES LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of

Profit and Loss (including Other Comprehensive Income) the Cash

Flow Statement and the Statement of Changes in Equity for the year thenended and a summary of significant other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance (including other comprehensive income) cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the

Indian Accounting Standards specified in the Companies (Indian

Accounting Standards) Rules 2015 (as amended) under Section 133 of theAct. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial 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 Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act and the Rules madethereunder including the accounting and auditing standards and matters which are requiredto be included in the audit report under the provisions of the Act and the Rules madethereunder.

We conducted our audit of the Ind AS financial statements in accordancewith the Standards on Auditing specified under

Section 143(10) of the Act and other applicable authoritativepronouncements issued by the Institute of Chartered Accountants of India. Those Standardsand pronouncements require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the Ind AS financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Ind AS financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the Ind ASfinancial statements

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Ind

AS financial statements. opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 (including other comprehensive income) itscashflowsand the changes in equity for the year ended on that date. accounting policiesand other Matter

The financial information of the Company for the year ended March

31 2016 and the transition date opening balance sheet as at April 1

2015 included in these Ind AS financial statements are based on thepreviously issued statutory financial statements for the year ended

March 31 2016 and March 31 2015 prepared in accordance with theCompanies (Accounting Standards) Rules 2006 (as amended) which were audited by us onwhich we expressed an unmodified opinion dated May 27 2016 and May 30 2015 respectively.The adjustments to those financial statements for the differences in accounting principlesadopted by the Company on transition to the Ind AS have been audited by us.

Our opinion is not qualified in respect of this matter.

Report on other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act we report that: a) Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit. b) In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. c) The Balance Sheet the Statement of Profitand Loss

(including Other Comprehensive Income) the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account. d) In our opinion the aforesaid Ind AS financial statements comply withthe Indian Accounting Standards prescribed under section 133 of the Act. e) On the basisof the written representations received from the directors as on March 31 2017 taken onrecord by the Board of Directors none of the directors is disqualified as on March 312017 from being appointed as a director in terms of Section 164 (2) of the Act. f) Withrespect to the adequacy of the internal financial controls over financial reporting of theCompany and the operating effectiveness of such controls refer to our separate Report in"Annexure A". Our report expresses an unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting. g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous: i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements-Refer Note 49 to the financial . statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses. iii. There areno amounts that were due for being transferred to the Investor Education and ProtectionFund by the Company. iv. The Company has provided requisite disclosures in its financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the company - Refer Note

60 to the financial statements.

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 and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in "Annexure B" a statement onthe matters specified in paragraphs 3 and 4 of the Order.

For R. Nagpal Associates
Chartered Accountants
Firm Registration Number
002626N
(CA Ravinder Nagpal)
Place : New Delhi Partner
Date : May 29 2017 Membership No. 081594

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal andRegulatory Requirements' of our report of even date)

Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of JAIPRAKASH POWER VENTURES LIMITED("the Company") as of March 312017 in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the

"Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the

Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

about the adequacy of the internal financial controls system overfinancial reporting and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining an understanding of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial 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 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate. opinion

In our opinion to the best of our information and according to theexplanations given to us 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 2017 based on theinternal control over financial reporting criteria established 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.

For R. Nagpal Associates
Chartered Accountants
Firm Registration Number
002626N
(CA Ravinder Nagpal)
Place : New Delhi Partner
Date : May 29 2017 Membership No. 081594

ANNEXURE ‘B' referred to in paragraph 2 of our report of evendate to the members of

JAIPRAKASH POWER VENTURES LIMITED on the accounts of the Company forthe year ended 31st March 2017.

On the basis of such checks as we considered appropriate and accordingto the information and explanation given to us during the course of our audit we reportthat: (i) (a) The Company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) A substantial portion of the Fixed Assets have been physicallyverified by the management during the year and to the best of our knowledge andinformation given to us no material discrepancies were identified on such verification.c) The title deeds of immovable properties are held in the name of the company except inthe following cases i) Land amounting to Rs 68635161 at Bina power plant where theimmovable properties are in the name of the erstwhile company which has since merged inthe company as per the Hon'ble High Court Order dated 25th July 2011. ii) Landamounting to Rs 11100674 at Amelia Coal Mine which the company has acquired as per thevesting order of the nominated authority of The Government of India Ministry of Coalandis yet to be transferred in the name of the Company.

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year. No material discrepancies were noticed on physicalverification carried out at the end of the year.

(iii) As informed the Company has not granted any loans secured orunsecured to companies firms Limited Liability

Partnerships or other parties covered in the register maintained undersection 189 of the Act.

(iv) In our opinion and according to the information and explanationsgiven to us in respect of loans investments guarantees and security the provisionsof Section 185 and 186 of the Act have been complied with.

(v) The Company has not accepted any deposits from the public.Accordingly the provisions of clause 3(v) of the Companies (Auditor's Report) Order2016 are not applicable to the Company.

70

(vi) According to the information and explanations given to us costrecords as prescribed by the Central Government under section 148(1)of the Act are beingmade and maintained. (vii) (a) As per records produced before us and according to theinformation and explanations given to us the Company is generally regular in depositingundisputed statutory dues applicable to it like Provident Fund Employees' StateInsurance Income-tax Service Tax Sales Tax/ Value Added Tax Wealth Tax Customs DutyExcise Duty Cess and other material statutory dues applicable to it with the appropriateauthorities except the following dues which are outstanding for a period exceeding sixmonths as on the Balance Sheet date

Name of Statute Department Amount in Rs Lacs
(Nature of dues) (Including Interest)
VAT MPVAT 602.59
Interest on Excise Duty Excise Department 31.96
Development Cess/ Chief Electrical 9266.60
Electricity Duty Inspector Govt of MP.

(b) As per records produced before us and according to the informationand explanations given to us there are no dues of Income-tax Sales-tax Wealth taxService Tax Customs duty Excise Duty Value Added Tax or Cess which have not beendeposited on account of any dispute except for the following:

Name of Statute (Nature of dues) Period to which amount relates Dispute is pending Amount in Rs Lacs
Income Tax FY 2004-05 With Commissioner (Appeals) Mumbai 172.00
Diversion Tax and Land Cess Since FY 1998-99 Commissioner Sagar 200.39
Diversion Tax and Land Cess Since FY 1998-99 Board of Revenue Gwalior 28.04
Entry Tax For FY 2012-13 Additional Commissioner of Commercial Tax Bhopal 360.75
Entry Tax For FY 2014-15 Additional Commissioner of Commercial Tax Bhopal 5520.09
Building and Other Construction Workers Welfare Cess Upto FY 16-17 High Court Jabalpur Madhya Pradesh 7614.28

(viii) During the year the company has defaulted in repayment ofPrincipal and interest to Banks and Financial institution/ debenture holders wherein theperiod of delay ranges from 1day to 364 Days which have however been subsequently madegood during the year.

As per Information and records produced before us details of OverdueInterest on borrowings amounting to

Rs 42432.18 Lacs reflected in Note No32to the financial statements"Other Financial liabilities" which was outstanding as at 31st March 2017 isgiven below

Name of Banks/Financial Institution Range Period Amount in
Rs Lacs
ICICI Bank Ltd 15-90 Days 7234.03
IDBI Bank Ltd. 0-364 Days 2342.01
Axis Bank Limited 0-60 Days 1789.86
Central Bank of India 0-364 Days 354.82
Indian Overseas Bank 0-270 Days 1686.27
Oriental Bank Of Commerce 0-364 Days 2619.66
State Bank of Bikaner & Jaipur 0-60 Days 391.76
State Bank of Hyderabad 0-60 Days 319.83
State Bank of Patiala 0-90 Days 903.07
Syndicate Bank 0-270 Days 2634.00
United Bank of India 0-270 Days 4863.97
SREI Equipment Finance Ltd 0-90 Days 125.95
Allahabad Bank 0-60 Days 184.42
Canara Bank 0-90 Days 420.75
Central Bank of India 0-364 Days 8642.11
Jammu &Kasmir Bank 0-30 Days 1.49
Punjab National Bank 0-60 Days 1866.86
Union Bank of India 0-60 Days 339.06
Bank of Baroda 0-30 Days 386.42
Bank of Maharashtra 0-30 Days 101.86
Infrastructure Development Finance 0-30 Days 347.70
Company Limited
LIC of India 0-270 Days 2925.12
UCO Bank 0-60 Days 483.23
ICICI Bank ( ECB Facility) 0-90 Days 1467.95
TOTAL INTEREST DUE 42432.18

As per Information and records produced before usdetails of OverduePrincipal Repayment of borrowings amounting to

Rs 3743.08 Lacs reflected in Note No 32 which was outstanding as at31st March 2017 is given below

Name of Banks/Financial Institution Range Period Amount in
Rs Lacs
ICICI Bank Ltd 0-30 Days 200.00
IDBI Bank Ltd. 0-90 Days 2820.00
Oreintal Bank Of Commerce 0-300 Days 67.98
SREI Equipment Finance Ltd 0-90 Days 380.10
Canara Bank 0-90 Days 275.00
TOTAL PRINCIPAL DUE 3743.08

(ix) Based on information and explanations given to us by themanagement term loans were applied for the purpose for which the loans were obtained. Thecompany has not raised any money by way of initial public offer or further publicoffer(including debt instruments).

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and as per the informationand explanations given by the management we report that no fraud by the company or anyfraud on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) The Company has paid managerial remuneration in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Act. (xii) In our opinion the Company is not a nidhi Company. Accordingly theprovisions of clause 3(xii) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company.

(xiii) Based on information and explanations given to us by themanagement all transactions with the related parties are in compliance with section 177and 188 of the Act where applicable and the details have been disclosed in the financialStatements as required by the applicable accounting standards.

(xiv) Based on information and explanations given to us by themanagement the Company has made preferential allotment of shares under Strategic DebtRestructuring Scheme (SDR)/ circular of RBI during the period under review. Therequirement of section 42 of the Companies Act2013 have been complied with and shareshave been allotted against part of the loan/ interest due to Banks/Financial institutionswith no funds being received by the company.

(xv) In our opinion and according to the information and explanationsgiven to us the company has not entered into any non-cash transaction with directors orperson connected with him which is covered by Section 192 of the Act. Accordingly theprovisions of clause 3(xv) of the Companies (Auditor's Report) Order 2016 are notapplicable to the Company. (xvi) In our opinion and according to the information andexplanations given to us 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) of theCompanies (Auditor's Report) Order 2016 are not applicable to the Company.

For R. Nagpal Associates
Chartered Accountants
Firm Registration Number
002626N
(CA Ravinder Nagpal)
Place : New Delhi Partner
Date : May 29 2017 Membership No. 081594