J J Exporters Ltd.
|BSE: 530049||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE408B01015|
|BSE 00:00 | 02 Mar||J J Exporters Ltd|
|NSE 05:30 | 01 Jan||J J Exporters Ltd|
|BSE: 530049||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE408B01015|
|BSE 00:00 | 02 Mar||J J Exporters Ltd|
|NSE 05:30 | 01 Jan||J J Exporters Ltd|
To The Members of J J Exporters Ltd
Report on the Audit of the Ind AS Financial Statements Qualified Opinion
We have audited the accompanying Ind AS financial statements of J J Exporters Ltd (''theCompany'') which comprise the Balance Sheet as at 31st March 2021 andthe Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and Statement of Cash Flows for the year then ended and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS Financial Statements give the information required bythe Companies Act2013 in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2021 and Profit total comprehensive incomechanges in equity and its cash flows for the year ended on that date subjected to ourbasis of Qualification.
Basis For Qualified Opinion
A. The Board of Directors had decided in the meeting held on 30th May 2018that a major portion of the Company's assets has been taken over by bank and in theprocess of sale under the SARFASI Act2002 and there is no business operations of thecompany and the Company does not have any commercial existence the continuance ofcorporate existence of the company was no longer feasible. Thus the Board has decidedthat the Company be wound up under the provisions of section 271(a) of the Companies Act2013 subsequently approved by shareholder through Postal Ballot on 02.08.2018 and matteris pending with NCLT Kolkata Bench. In view of same company is not a going concern henceliquidation accounting method applied to the extent possible.
B. As the bank taken over the Secured assets of the company which shown at carryingamount not at Realisable value as company itself applied for the Wounding Up and subjectedto the approval NCLT Kolkata bench.
C. As the company has not provided for interest on the Bank loan and non-confirmationand reconciliation of the bank Loans effect of the same on the financial statement is notascertainable at Present. [Refer Note No. 13(v)].
D. As per the bank Statement secured assets sold by the bank without providing detailsand statutory compliance thereof if any effect of the same on the financial statement isnot ascertainable. [Refer Note No. 13(vii)].
Emphasis of Matters
Note 12(B) of the financial statements which indicate that the company has accumulatedlosses and its net worth has been fully eroded the company has incurred net loss duringthe current and previous years and the company's current liabilities exceeded its totalassets of the company. These conditions along with other matters set forth in Note 25(5)of the financial statement so that financial Statement of the company is prepared onLiquidation basis of accounting.
Responsibilities of Management and Those Charged with Governance for the Ind ASFinancial 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 standalone Ind AS financial statements that give a true and fair view of the stateof affairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone Ind AS financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or errorsave and except basis of our Qualification.
In preparing the Financial Statement the management and the board of directors areresponsible for assessing the company's ability to continue as a going concern disclosingas applicable matters related to going concern and using the going concern basis ofaccounting unless the board of directors either intends to liquidates the company or tocease operations or has no realistic alternative but to do so. The Board of directors arealso responsible for overseeing the company's Financial reporting process.
Auditor's Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue and auditor's report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decision of user taken on the basisof these Ind AS Financial Statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Ind AS FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Ind AS Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern. The Financial statement is prepared on liquidation basis ofaccounting.
Evaluate the overall presentation structure and content of the Ind AS FinancialStatements including the disclosures and whether the Ind AS Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements except basis ofqualified opinion.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act2013 we give in "Annexure-A" a statement on the mattersspecified in paragraphs 3 and 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 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 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 with the IndianAccounting Standards prescribed under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014
(e) On the basis of the written representations received from the directors as on 31stMarch2021 taken on record by the board of director none of the director is disqualified as on31stMarch 2021 from being appointed as a director in terms of 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".
(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 as at 31st March 2021 [Refer Note No.25(1) to the financial statements].
(ii) The company did not have any long term contracts including derivative contract asat 31st March 2021.
(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund. [Refer note 25(12)].
ANNEXURE 'A' TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in Paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section of our Report of even date)
The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31st March 2021 we report that:
i) (a) The Company fixed Assets is taken over by the bank and process of sale underSARFAESI Act 2002 stated in Note No. [13(A)vii] so that unable to comment on this Clause.
ii) As explained to us inventories have been physically verified during the yearby the management save and except inventories possession taken by the bank.
iii. According to the information and explanations given to us the Company has notgranted any loan secured or unsecured to companies firms Limited Liability Partnershipsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013.
iv. According to the information and explanations given to us the Company has notgiven any loans investments guarantees and security and has not invested in any otherbody corporate hence the comment on the said clause of the order is not applicable.
v. According to the information and explanations given to us there is no suchdeposits taken by the Company for which directives issued by the Reserve Bank of Indiaand the provisions of sections 73 to 76 or any other relevant provisions of the CompaniesAct 2013 and the rules framed there under are required to be complied with.
vi. According to the information and explanations given to us the company is notrequired to maintain cost record under sub section (1) of section 148 of Companies Act2013. Hence comment on clause on vi of the said order is not applicable.
vii (a). According to the records of the Company and as per the information andexplanations given to us the company has been regular in depositing undisputed statutorydues including provident fund employees' state insurance goods and services tax incometax service tax duty of customs duty of excise value added tax cess and otherstatutory dues with the appropriate authorities. No arrears of outstanding statutory dueson the last day of the financial year concerned exists for a period of more than sixmonths from the date they became payable.
b) On the basis of our examination of the documents and records the followingdisputed statutory dues which have not been deposited with the appropriate authorities areas under:
The details regarding Income Tax disputed dues pending before Commissioner of IncomeTax (Appeals) is shown below:
(Rs in 'Lakhs)
The details regarding the Sales Tax disputed dues pending before the Appellate andRevisional Board are as follows:
The details regarding the Excise Duty Custom Duty and Service Tax dispute dues are asfollows:
viii. The loans from Banks (including interest thereon) are defaulted inrepayment by the company. The said amounts are subject to confirmation and reconciliationif any. The Company has not provided interest on the said loans as the secured assets'possession was taken by the Bank under the SARFAESI Act 2002 as explained loan has becomeNPA [Refer Note 13(a)v] and subsequently the possessed assets were sold by Bank as per thebank statement and adjusted accordingly by the company. [Refer Note 13(a)vii]. Thedefaulted principle outstanding Rs. 3538.88 Lakhs and Interest accrued and due of Rs.358.94 Lakh.
ix. To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not raised any term loan and it has not raisedany money by way of initial public offer or further public offer during the year. Hencecomment on this clause in not applicable.
x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted audit practices in India andaccording to the information and explanation given to us we have neither come acrossinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of such case by the management.
xi. To the best of our knowledge and belief No managerial remuneration has beenpaid and provided in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Companies Act 2013.
xii. According to the information and explanation given to us clause (xii) inrespect of Nidhi Company is not applicable to the company. Hence the comment on the saidclause does not arise.
xiii. All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 and have been disclosed in Notes to Accounts as required byInd AS 24. [Refer Note 25(4)].
xiv. The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year; hence comment on thesaid clause of the order is not applicable.
xv. To the best of our knowledge and belief and as per the information andexplanations given to us the Company has not entered into any non-cash transaction withdirectors or persons connected with him.
xvi. The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.
ANNEXURE B' TO THE INDEPENDENT AUDITOR'S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section143 of the Companies Act 2013 ("the Act")
(Referred to Paragraph 2(g) of Report on Other Legal and Regulatory Requirements of ourReport of even date)
We have audited the internal financial controls over financial reporting of J JExporters Ltd ("the Company") as of 31st March 2021 inconjunction with our audit of the Ind AS 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 and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Unit considering the essential components of internal control stated inthe Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to Unit'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.
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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 judgment including the assessment of the risks ofmaterial misstatement of the Ind AS 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions 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 authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 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.
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 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India. However subjected to our basis of Qualified Opinion inthe auditor's report.