The Members of
C.J.Gelatine Products Limited
1. We have audited the accompanying Ind AS financial statements of M/s. C. J. GelatineProducts Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2019 the Statement of Profit & Loss Cash Flow Statement the Statement ofChanges in Equity for the year ended on that date and a summary of significant accountingpolicies and other explanatory information. Management's Responsibility for the Ind ASFinancial Statements:
The Company's Board Of Directors is responsible for the matters stated in Section134(5) of the Companies Act2013 ( "the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance cash flows and changes in the equity of the Company inaccordance with accounting principles generally accepted in India including the IndianAccounting Standards ("Ind AS") specified under Section 133 of the Act readwith the Companies (Indian Accounting Standards) Rules2015 as amended ("theRules") .
The responsibility also includes maintenance of adequate accounting records inaccordance 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 judgements and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act.
Those Standards 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 about the amounts anddisclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgement including the assessment of the risk of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on whether the Company has in place an adequate internalfinancial controls system over financial reporting and the effectiveness of such controls.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Ind AS financial statements. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the Ind AS financial statements give the information required by the Act inthe 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 2019 its profit and its cash flows and the changes in the equity for the year endedon that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies ( Auditor's report) Order2015 ( "the Order")issued by the Central Government of India in terms of sub- sectional) of section 143 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 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 purpose 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 Statement of Profit & Loss Cash Flow Statement and Statementof changes in Equity dealt with by this Report are in agreement with the books of account;
d. In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under section 133 of the Act read with the Companies (IndianAccounting Standards)Rules2015 as amended;
e. On the basis of written representations received from the Directors as on March312019 and taken on record by the Board Of Directors none of the Directors isdisqualified as on March 312019 from being appointed as a Director in terms of section164(2) of the Act;
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 dated May 042019 in Annexure-2 to this report;
g. With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies ( Audit and Auditors) Rules2014 in our opinion and to thebest of our information and according to the explanations given to us:
(a ) the Company has disclosed the impact of pending/settled litigations on its Ind ASfinancial position in its financial statements - Refer Note 22 to the Ind financialstatements.
(b) the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
(c ) there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company;
| ||For R. Kini & Associates |
| ||Chartered Accountants |
| ||Firm Regn. No.116134W |
| ||R. Kini |
|Place: Bhopal ||Proprietor |
|Date: May 04 2019 ||M. No.021611 |
TO THE INDEPENDENT AUDITORS' REPORT
(Referred to paragraph 01 of our Report of even date)
1a. The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment / fixed assets.
b. All property plant and equipment/ fixed assets have not been physically verified bythe management during the year but there is a regular programme of verification which inour opinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification.
c. During the year the Company has not disposed off a substantial part of the fixedassets.
2a. The inventories have been physically verified by the Management during the year. Inour opinion the frequency of verification is reasonable.
b. In our opinion the procedures of verification of inventories followed by theManagement are reasonable and adequate in relation to the size of the Company and thenature of its business.
c. In our opinion the Company has maintained proper records of inventories. Thediscrepancies noticed on physical verification of inventories as compared to book recordswere not material and the same have been properly dealt with in the books of account.
3a. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to Companies firms or other parties listed inthe register maintained under Section 189 of the Companies Act 2013. Accordingly theprovisions of clause 3(iii)(a) and (b) of the Order are not applicable to the Company.
b. In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution or bank. The Company did not have any outstanding dues payable tothe Government during the year.
The Company is regular in repaying the principal amounts as stipulated and has beenregular in the payment of interest in respect of secured Business Loan of Rs.685.00 lakhsfrom Reliance Capital Limited and unsecured business loans of Rs.34.50 lakhs and Rs.25.17lakhs taken from Tata Capital Financial Services Limited and Bajaj Financials Ltd respectively.
4. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company andnature of its business for the purchase of inventory and fixed assets and for the sale ofgoods. During the course of the audit we have not observed any major weakness orcontinuing failure to correct any major weakness in internal controls system of theCompany in respect of these areas.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public in accordance with provisions ofsections 73 to 76 of the Act and rules framed there under.
6. We have been informed that the Central Government has not prescribed maintenance ofcost records under Section 148(1) of the Act for any products of the Company.
7. a. According to the information and explanations given to us the Company isgenerally regular in depositing undisputed statutory dues including Provident FundEmployees State Insurance Income Tax Service Tax Sales Tax Wealth Tax etc. withappropriate authorities. However as verified from the books of account the arrears ofIncome Tax of Rs.640465/- ( excluding interest accrued on above) (Previous Year-Rs.640465/-) for Asst. Year 2010-11 is still outstanding in the books of account.
b. According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees State Insurance Income Tax Service TaxSales Tax Wealth Tax and other material statutory dues were outstanding at the year endfor a period of more than six months from the date they became payable.
c. According to the information and explanations given to us there were no amountsrequired to be transferred to investor education and protection fund in accordance withthe relevant provisions of the Companies Act 1956 (1 of 1956) and rules made there underduring the financial year 2018-19.
8. The Company has an accumulated losses to the tune of Rs.141.75 lakhs at the end ofthe current financial year and has not incurred cash losses for the current financialyear. The provisions of Section 15(1) of the Sick Industrial Companies (SpecialProvisions) Act 1985 (SICA) shall not be applicable to the Company as of now.
9. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to its bankers. The Company did not haveany outstanding dues to any financial institution or debentures holders during the year.
10. According to the information and explanations given to us the Company has notgiven any guarantee for loans taken by others from Banks or Financial Institutions.
11. According to the information and explanations given to us and based on ourexamination of the records the Company has paid / provided for managerial remuneration inaccordance with requisite approvals mandated by the provisions of Section 197 read withSchedule V to the Act.
12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company.
Accordingly paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on ourexaminations of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable. The details of suchrelated party transactions have been disclosed in the financial statements as requiredunder Accounting Standard (AS)18 Related Party Disclosures specified under Section 133 ofthe Act read with Rule 7 of the Companies (Accounts) Rules2014.
14. According to the information and explanations given to us and based on ourexamination of the records the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on ourexamination of the records the Company has not entered into non-cash transactions withdirectors or persons connected with him. Accordingly paragraph 3(xv) of the Order is notapplicable.
16. The Company is not required to be registered under Section 45-IA of the ReserveBank Of India Act1934. Accordingly the provisions of Clause 3(xvi) of the Order are notapplicable to the Company.
18. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the year.
| ||For R. Kini & Associates |
| ||Chartered Accountants |
| ||Firm Regn. N0.116134W |
| ||R. Kini Proprietor |
| ||M. No. 021611 |
|Place: Bhopal || |
|Date: May 04 2019 || |
TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2(f) of our Report of even date)
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act2013 ("the Act")
1. We have audited the internal financial controls over financial reporting of CJGelatine Products Limited ( "the Company") as of March 312019 in conjunctionwith our audit of the Ind AS financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
2. 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 controlsstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting ( the "Guidance Note") issued by the Institute of CharteredAccountants of India ( "ICAI") . These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
3. 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 and the Standards on Auditing as specified under section 143(10)ofthe Act to the extent applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material aspects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 procedureselected depend upon the auditor's judgement including the assessment of
the risks of material misstatement of the financial statements whether due to fraud orerror.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
6. A Company's internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial 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 authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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
7. 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.
8. 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 March 312019 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.
| ||For R. Kini & Associates |
| ||Chartered Accountants |
| ||Firm Regn. N0.116134W |
|Place: Bhopal ||R. Kini Proprietor |
|Date: May 04 2019 ||M. No. 021611 |