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Jyoti Ltd.

BSE: 504076 Sector: Engineering
NSE: N.A. ISIN Code: INE511D01012
BSE LIVE 13:42 | 22 Aug 43.00 -2.05
(-4.55%)
OPEN

45.05

HIGH

45.05

LOW

42.80

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 45.05
PREVIOUS CLOSE 45.05
VOLUME 269
52-Week high 63.70
52-Week low 30.20
P/E
Mkt Cap.(Rs cr) 74
Buy Price 43.00
Buy Qty 71.00
Sell Price 47.30
Sell Qty 9.00
OPEN 45.05
CLOSE 45.05
VOLUME 269
52-Week high 63.70
52-Week low 30.20
P/E
Mkt Cap.(Rs cr) 74
Buy Price 43.00
Buy Qty 71.00
Sell Price 47.30
Sell Qty 9.00

Jyoti Ltd. (JYOTI) - Auditors Report

Company auditors report

To the Members of JYOTI LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of JYOTI LIMITED ("theCompany") 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 Financial Statements

The Company’s Board of Directors is responsible for the matters in Section 134(5)of the Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditors’ 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. We conducted our audit in accordancewith the Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that 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 anddisclosures 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 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 financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by Company’s Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion 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 31stMarch 2015 and its loss and its cash flows for the year ended on that date.

Emphasis of Matters

a) Note No.26(16) in the financial statements which indicates that since the Net Worthof the Company had become negative at the end of previous year the Company in compliancewith the provisions of Section 15(1) of Sick Industrial Companies (Special Provisions)Act 1985 made a reference to Board of Industrial and Financial Reconstruction (BIFR).The Company has received the letter dated 17th October 2014 from BIFR for registrationunder Section 15 (1) of SICA Act 1985. The Company has already initiated the process ofdeclaring itself as a Sick Company.

In view of continued losses total erosion of the Net Worth and Liquidity constraintthere is an uncertainty about the Company’s ability to continue as a going concern.However the Management believes that considering the change in overall industrialoutlook current performance and trends of the Company as well as efforts put in for costreduction and collection from receivables and measures initiated by the Company forrehabilitation through BIFR the Management is optimistic of the future and therefore theFinancial Statements have been prepared by the Management on a ‘Going Concern’basis. No adjustment is considered necessary by the Management to the recorded assetsrecorded liabilities contingent liabilities and other commitments for the reasons andperception of the Management.

b) Note No.26(17) and 26(12) (a) & (b) of the financial statements regardingrecoverability of Trade Receivables Advances and Impairment of Assets other than thoseprovided for during the year which has been considered good by the Management in view ofreasons stated therein.

Our opinion is not qualified / modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

In the Annual General Meeting held on 22nd September 2014 the ordinary resolutionsfor adopting the financial statements for the year ended on 31st March 2014 and ourre-appointment as Auditors of the Company for the financial years ending 31st March 2015to 31st March 2017 were not passed as votes cast against were more than votes cast infavour of the resolutions. As per the provisions of Section 139(10) of the Companies Act2013 present statutory auditors would continue to be the auditors of the Company.Accounts of previous year are not adopted in Annual General Meeting which is adjournedsine die. Audited closing balances of the previous year accounts are taken as openingbalance for the current year. Please refer Note no. 26 (21 & 22) of the financialstatements.

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 Companies Act 2013 we give in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of the said Order to the extent applicable to the Company.

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 appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss and Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) The matters described in sub-paragraph (a) & (b) under the Emphasis of Mattersparagraph above in our opinion may have an effect on the functioning of the Company.

f) On the basis of written representations received from the directors as on 31st March2015 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2015 from being appointed as a director in terms of Section164(2) of the Act. g) With respect to the other matters included in the Auditor’sReport in accordance with the rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to 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 as referred to note no 26 (3).

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long term contractsincluding derivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company except dividend under disputeamounting to Rs. 2 lakhs which is subjudice.

iv. Share Application Money of Rs. 1980 lakhs outstanding as at the end of previousaccounting year. We have been given to understand by the Management that such applicationmoney will be allotted subject to approval of shareholders and appropriate authorities.

For V. H. Gandhi & Co.

Chartered Accountants

Firm Reg. No. 103047W
Vijay H. Gandhi
Vadodara

Proprietor

30th May 2015 M.No. 35581

Annexure to Independent Auditors’ Report –Re : Jyoti Limited referred to inParagraph 1 under the heading of "Report on Other Legal and RegulatoryRequirements" of our report of even date We state that :-

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.

(b) Fixed Assets have been physically verified by the Management during the year as perthe phased programme of physical verification of fixed assets. As informed to us theprogramme is such that all the fixed assets will get physically verified in three yearstime. In our opinion the same is reasonable having regard to the size of the Company andthe nature of its business. No material discrepancies were noticed on such verification.

(ii) (a) The inventory (except those lying with contractors and at Sites) has beenphysically verified during the year by the Management at reasonable intervals.

(b) The procedures of physical verification of inventory followed by the Management aregenerally reasonable and adequate in relation to the size of the Company and the nature ofits business.

(c) The Company is maintaining proper records of inventory. No material discrepancieswere noticed on physical verification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under Section 189 of the Companies Act 2013. Therefore therequirements of sub clauses (a) & (b) of (iii) are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usthere is an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of inventory and fixed assets and for thesale of goods and services.

There is no continuing failure to correct major weaknesses in internal control system.(v) In our opinion and as per information and explanations given to us the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under whereapplicable have been duly complied by the Company. We are informed by the Managementthat no order has been passed by the Company Law Board or National Company Law Tribunalor Reserve Bank of India or any Court or any Other Tribunal.

(vi) Central Government has specified the maintenance of cost records under sub-section(1) of Section 148 of the Companies Act 2013. Such accounts and records have been madeand maintained by the Company.

(vii) (a) According to the records of the Company it is generally regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund Employee’ State Insurance Income tax Sales tax Wealth tax Service taxCustom Duty Excise Duty Value Added Tax Cess and any other statutory dues applicable toit. We are informed that there are no undisputed statutory dues as at the year endoutstanding for a period of more than six months from the date they became payable exceptSales Tax payable amounting to Rs.165.57 lakhs.

(b) According to the Records of the Company the following disputed dues of income taxor sales tax or wealth tax or service tax or customs duty or excise duty or value addedtax or cess have not been deposited as under.

Sr. no Name of the Statute & Nature of Dues Total Demand (Rs. lakhs) Period Forum where dispute is pending
1 Income TaxAct 1961 (Income Tax) * 22.18 2000-01 Income Tax Appellate Tribunal
2 Income TaxAct 1961 (Income Tax) * 10.13 2001-02 Income Tax Appellate Tribunal
3 Income TaxAct 1961 (Income Tax) * 4.50 2002-03 Income Tax Appellate Tribunal
4 Income TaxAct 1961 (Income Tax) *7.83 2004-05 Income Tax Appellate Tribunal
5 Income TaxAct 1961 (Income Tax) * 20.96 2006-07 Income Tax Appellate Tribunal
6 Income TaxAct 1961 (Income Tax) * 20.90 2008-09 Income Tax Appellate Tribunal
7 Income TaxAct 1961 (Income Tax ) * 5.21 2010-11 Commissioner of Income Tax (Appeals)
8 The Central Excise Act1944 (Excise Duty) 5.74 2006 To Jan11 Central Excise & Service Tax
Appellate Tribunal - A’Bad.
3.02 Feb11To Dec11 Central Excise & Service Tax
Appellate Tribunal - A’Bad.
9 The Finance Act 1994 (Service Tax) 0.58 May10 To Feb11 Central Excise & Service Tax
Appellate Tribunal - A’Bad.
1.60 Dec04 To Nov09 Central Excise & Service Tax
Appellate Tribunal - A’Bad.
3.09 Apr05 To Mar10 Central Excise & Service Tax
Appellate Tribunal - A’Bad.
0.67 Mar11 To Jan12 Central Excise & Service Tax
Appellate Tribunal - A’Bad.
0.29 Feb12 To Dec12 Central Excise & Service Tax
Appellate Tribunal - A’Bad.
0.09 Jan13 To Sep13 Central Excise & Service Tax
Appellate Tribunal - A’Bad.
0.10 Sept13 To Jun14 The Superintendent Central Excise
Customs & Service Tax – Vadodara.

* Note :- Amount deposited.

(c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company except dividend amounting to Rs.2.00 lakhs which is subjudice.

(viii) The Company’s accumulated losses at the end of the financial year haveeroded its entire net worth. The Company has incurred cash losses during the current andpreceding financial year.

(Refer Note No. 26(16)).

(ix) (a) Based on our audit procedures and as per the information and explanationsgiven by the Management the Company has delayed payment of interest and repayment ofprincipal dues and Letters of Credit to Banks. The following are the details of thedelays:

Particulars Amt during the year (Rs. lakhs) Period of Delays (in days)
Various Bank – Interests on Term Loans 1524.06 upto 90 days
Various Bank – Letters of Credit 478.33 upto 90 days
Various Bank – Installment of Term Loans 525.00 upto 90 days
TOTAL AMOUNT 2527.39

(b) The Company has overdue amount as on 31st March 2015 on account ofinterest on various Term Loans Working Capital Demand Loans Letters of Credit andInstallment of Funded Interest Term Loan of Rs. 1853.48 lakhs (since paid Rs. 1282.46lakhs). The Company has not taken any Loan from a financial institution or debentureholders.

(x) The Company has not given any guarantee for loans taken by others from bank orfinancial institutions.

(xi) In our opinion and based on information and explanations given to us by theManagement the term loans were applied for the purpose for which they were obtained.

(xii) As per information and explanations given to us no fraud on or by the Companyhas been noticed or reported during the year.

For V. H. Gandhi & Co.

Chartered Accountants

Firm Reg. No. 103047W
Vijay H. Gandhi
Vadodara

Proprietor

30th May 2015 M.No. 35581