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Divya Jyoti Industries Ltd.

BSE: 526285 Sector: Industrials
NSE: N.A. ISIN Code: INE666B01018
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NSE 05:30 | 01 Jan Divya Jyoti Industries Ltd
OPEN 4.65
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VOLUME 100
52-Week high 9.92
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P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
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Sell Price 0.00
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OPEN 4.65
CLOSE 4.65
VOLUME 100
52-Week high 9.92
52-Week low 4.29
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Divya Jyoti Industries Ltd. (DIVYAJYOTIINDS) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To

The Members of Divya Jyoti Industries Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Divya Jyoti IndustriesLimited ("the Company"] which comprise the Balance Sheet as at March 31 2018the Statement of Profit and Loss (including Other Comprehensive Income] the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas "Ind AS Financial Statements"].

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5] of Companies Act 2013 ('The Act'] with respect to the preparation of these Ind ASfinancial statements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the company in accordance with theAccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS] prescribed under section 133 of the Act. This responsibility alsoincludes the maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the company and for preventing and detectingfrauds and other irregularities selection and application of appropriate accountingpolicy making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of internal financial control relevant to the preparationand presentation of the Ind AS financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

Auditor's Responsibility

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 and the order issued u/s. 143(11]of the Act. We conducted our audit in accordance with the Standards on Auditing specifiedu/s. 143(10] of the Act. Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the Ind ASfinancial statements are free 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 judgment including the assessment of the risks 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 and fair presentation of the Ind AS financial statements in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide 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 the explanationsgiven to us the aforesaid of the 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 including the Ind AS of thestate of affairs of the Company as at March 31 2018 its profit (including othercomprehensive income] its cash flows and changes in equity for the year ended on thatdate.

Other Matters

The comparative financial information of the company for the year ended March 31 2017and the transition date opening Balance Sheet as at April 1 2016 prepared in accordancewith Ind AS included in these Ind AS Financial Statements have been audited by thepredecessor Auditor who expressed an unmodified opinion on those statements on May 272017.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report ] Order 2016 ('the Order'] issued bythe Central Government of India in terms of Section 143(11] of the Act we give in theAnnexure A a statement in the paragraph 3 and 4 of the order.

2. As required by Section 143 (3] ofthe 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 accounts 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 the Cash Flow Statement and theStatement of Changes in Equity dealt with by this report are in agreement with the booksof account;

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

e. On the basis of the written representation received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in termsof Section 164(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 in 'Annexure B' and

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 explanations given to us:

(I) The Company has disclosed the impact of pending litigations on the financialposition in its Ind AS financial statements.

(ii) The Company has made provision as required under the applicable law or AccountingStandards for material foreseeable losses if any on long term contracts includingderivative contracts.

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

For Anubhav Pradhan and Co.
Chartered Accountants
Firm Registration No. 013822C
Place: Indore sd/- Anubhav Pradhan
Date : May 29th 2018 Partner
Membership No.: 113980

The annexure referred to in Independent Auditor's Report to the members of the companyon the Ind AS financial statements for the year ended on 31st March 2018 wereport that:

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

(b) As explained to us and on the basis of our examination the company has regularprogramme for physical verification of its fixed assets which is reasonable with regard tothe size of the company and nature of its assets and no material discrepancies werenoticed on such verification.

(c) According to the information and explanation given to us and on the basis of ourexamination the title deeds of immovable properties are held in the name of the company.

ii. According to the information and explanation given to us the physical verificationof inventory has been conducted at reasonable intervals by the management. The procedureof physical verification of inventory followed by the management is reasonable andadequate in relation to the size of the company and nature of its business. The companyhas maintained proper record of inventories and no material discrepancies were noticed onsuch verification of inventories as compared to the book records.

iii. The company has not granted loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013.

iv. The company has not given any loans investments guarantees and security under theprovisions of section 185 and 186 of the Companies Act 2013.

v. The company has not accepted any deposits from the public.

vi. According to the information and explanation given to us and verified by us broadlythe company has maintained the cost records as prescribed by the central government undersub section 1 of section 148 of the Companies Act 2013. However we have not made adetailed examination of Cost records with a view to determine whether they are accurate orcomplete.

vii. (a) According to the information and explanation given to us and on the basis ofour examination of records of the

company the company is regular in depositing statutory dues including provident fundemployees state insurance Income tax Sales Tax Service Tax Goods and Service Tax(GST) Duty of Customs Duty of Excise Value added tax cess and any other statutory duesto the appropriate authorities.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income-Tax Sales-TaxService Tax Goods and Services Tax Duty of Customs Duty of Excise Value Added TaxCess and other material statutory dues were in arrears as at 31st March 2018 for a periodof more than six months from the date they became payable.

(c) According to the information and explanation given to us following dues of IncomeTax sales tax service tax duty of customs or duty of excise or value added tax have notbeen deposited by the company on account of disputes.

Name of the Statute Nature of dues Amount (in Lacs) Period to which the Amount relates Forum where dispute is pending
M.P. Commercial Tax Act 1994 Commercial Tax 6.51 2004-05 Reference Application filed to Appellate Tribunal Bhopal
M.P. Commercial Tax Act 1994 Commercial Tax 2.39 2005-06 Reference Application filed to Appellate Tribunal Bhopal
M.P. Entry Tax Act 1976 Entry Tax 0.26 2005-06 Reference Application filed in Jabalpur High Court
M.P. Entry Tax Act 1976 Entry Tax 0.79 2006-07 Writ Petition filed at Indore High Court
M.P. Entry Tax Act 1976 Entry Tax 150.41 2007-08 Writ Petition filed at Indore High Court
M.P. Entry Tax Act 1976 Entry Tax 223.66 2008-09 Writ Petition filed at Indore High Court
M.P. Central Tax Act 1956 Central Sales Tax 57.85 2003-04 Writ Petition filed at Jabalpur High Court
M.P. Central Tax Act 1956 Central Sales Tax 181.46 2004-05 Writ Petition filed at Jabalpur High Court
M.P. Value Added Tax 2002 Value Added Tax 52.44 2006-07 Appeal filed at Appellate Authority Commercial Tax Indore
M.P. Central Tax Act 1956 Central Sales Tax 39.59 2008-09 Appeal filed at Appellate Authority Commercial Tax Indore
M.P. Central Tax Act 1956 Central Sales Tax 29.17 2010-11 Appeal filed at Appellate Authority Commercial Tax Indore
M.P. Central Tax Act 1956 Central Sales Tax 386.62 2011-12 Appeal filed at Appellate Authority Commercial Tax Indore
M.P. Central Tax Act 1956 Central Sales Tax 99.67 2012-13 Appeal filed at Appellate Authority Commercial Tax Indore
M.P. Central Tax Act 1956 Central Sales Tax 25.48 2014-15 Appeal filed at Appellate Authority Commercial Tax Indore

Note: The amount due has been shown as net of amounts paid.

The amount does not include the interest claimed but not yet quantified.

(viii) The company has not defaulted in repayments of loans or borrowings to financialinstitutions banks government. The company has not taken any loans from debentureholders.

(ix) The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the order is not applicable.

(x) According to the information and explanations given to us no fraud by the companyor on the company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) According to the information and explanation given to us and based on ourexamination of the records of the company the company has paid/provided for themanagerial remuneration in accordance with the approvals mandated by the provisions ofsection 197 read with Schedule V of the Companies Act2013.

(xii) In our opinion and according to the information and explanation given to us thecompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the order is notapplicable to the company.

(xiii) According to the information and explanation given to us by the managementtransactions with related parties are in compliance with Section 177 and 188 of theCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements.

(xiv) According to the information and explanation given to us and based on ourexamination 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 year.

(xv) According to the information and explanation given to us and based on ourexamination of records of the company the company has not entered into non cashtransaction with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.

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

For Anubhav Pradhan and Co.
Chartered Accountants
Firm Registration No. 013822C
Place: Indore sd/-
Date : May 29th 2018 Anubhav Pradhan

Partner

Membership No.: 113980

Annexure 'B' to the Auditor's Report

Report on the Internal Financial Controls under Clause (i) of sub- section 3 of Section143 of Companies Act 2013('the Act').

We have audited the internal financial controls over financial reporting of Divya JyotiIndustries Limited ('the Company') as of 31st March 2018 in conjunction withour audit of the Ind AS financial statements of the company for the year ended on thatdate. 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').These responsibilitiesinclude the design implementation and maintenance of adequate internal controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express opinion on the Company's internal financial controlsover financial reporting based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial controls over financial reporting ('theGuidance Note') and the Standards on Auditing issued by ICAI and deemed to be prescribedunder Section 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal financial Controlsand both issued by the Institute of Chartered Accountants of India. 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 were 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 systems over financial reporting and their operatingeffectiveness. Our audit of internal financial controls system over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing risk that a material weakness exists and testing and evaluating thedesign an operating effectiveness of internal financial controls based on the assessedrisk. The procedures selected depend on the auditor's judgment including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror.

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 design toprovide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statement for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial controls over financialreporting include those policies and procedures that:

(i) Pertain to the maintenance of records in reasonable details accurately and fairlyreflects the transactions and dispositions of the assets of the company.

(ii) Provide reasonable assurance that transaction are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorization of the managements and the directors of the company and

(iii) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of Inherent limitations of internal financial controls of financial reportingincluding the possibilities of collusion or improper management override of controlsmaterial misstatements due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial controls overfinancial reporting may become inadequate because of changes in condition or that thedegree 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 2018based on the internal control over financial reporting criteria established by the companyconsidering the essential component of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Anubhav Pradhan and Co.
Place:Indore Chartered Accountants Firm Registration No. 013822C
Date : May 29 2018 sd/-
Anubhav Pradhan
Partner
Membership No.: 113980