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J J Finance Corporation Ltd.

BSE: 523062 Sector: Financials
NSE: N.A. ISIN Code: INE584C01011
BSE 00:00 | 24 Sep 9.49 0.45
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NSE 05:30 | 01 Jan J J Finance Corporation Ltd
OPEN 9.49
PREVIOUS CLOSE 9.04
VOLUME 300
52-Week high 9.49
52-Week low 4.40
P/E 8.04
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.49
CLOSE 9.04
VOLUME 300
52-Week high 9.49
52-Week low 4.40
P/E 8.04
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

J J Finance Corporation Ltd. (JJFINANCECORP) - Auditors Report

Company auditors report

To the Members of J. J. Finance Corporation Limited

REPORT ON THE AUDIT OF STANDALONE IND AS FINANCIAL STATEMENTS OPINION

We have audited the accompanying standalone Ind AS financial statements of J.J. FinanceCorporation Limited("the Company") which comprise the Balance Sheet as at 31stMarch 2021 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year ended on thatdate and Notes to the standalone Ind AS financial statements (including a summary of thesignificant accounting policies and other explanatory information (herein after referredto as "the Standalone financial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 (the 'Act') in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India andthe Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act readtogether with Companies (Indian Accounting Standards) Rules 2015 of the state ofaffairs of the Company as at 31st March 2021 and its Profit total comprehensive incomeits cash flows and the changes in equity for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

EMPHASIS OF MATTER

(1) We draw your attention to note no17which explains the management'sassessment/evaluation of the financial impact due to lockdown arising with the advent ofCOVID 19.

(2) The Company has disposed of windmill in 4th quarter of the current year which wasdiscarded in the previous quarter; accordingly no electricity income arisen in the 4thquarter. [Refer Note-12(b) of Notes to Financial Statements.]

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements of the currentperiod. These matters were addressed in the context of our audit of the standalone Ind ASfinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined that there are no key auditmatters to be communicated in our report.

INFORMATION OTHER THAN THE STANDALONE IND AS FINANCIAL STATEMENTS AND AUDITOR'S REPORTTHEREON

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Annual reportcomprising Management Discussion and Analysis Board's Report including Annexures toBoard's Report Business Responsibility Report Corporate Governance and Shareholder'sInformation among others; but does not include the standalone financial statements andour auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIAL 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 thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder.

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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

AUDITOR'S RESPONSIBILITY FOR THE AUDIT OF THE IND AS FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith Standards on Auditing (SAs)will always detect material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone 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 standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany 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 standalone 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.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the Ind AS standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

(1) As required by Section 143(3) of the Act based on our audit we report to theextent applicable 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 including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under Section 133 of the Act& Rules madethereunder.

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 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 in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) No remuneration to director has been paid by the Company during the year underaudit; hence reporting under section 197(16) of the Act as to whether director'sremuneration paid is in accordance with the provisions of Section 197 is not applicableto the Company.

h) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company did not have any pending litigations which would impact its financialposition in its financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There is no amount which was required to be transferred to the InvestorsEducation and Protection Fund by the Company during the year.

(2) As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For A. K. DUBEY & CO.
Chartered Accountants
(Firm Reg. No. 329518E)
Arun Kumar Dubey
Partner
Place : Kolkata Mem. No. 057141
Date : 30th June 2021 UDIN : 21057141AAAABU4861

ANNEXURE "A" to the independent auditors' report

[Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' Section of our report of even date to the Members of J.J. FinanceCorporation Limited]

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of J.J.Finance Corporation Limited ("the Company") as of 31st March 2021 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management represented by the Board of directors is responsible forestablishing and maintaining internal financial controls based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over the Financial Reporting issued by the Institute of Chartered Accountants ofIndia ("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany'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 Companies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial 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 requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting was established and maintained and ifsuch 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 auditors' judgment including the assessment of the risks ofmaterial misstatement of the 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 controls 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 controls over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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

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 controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on' Audit of Internal FinancialControls Over Financial Reporting' issued by the Institute of Chartered Accountants ofIndia.

For A. K. DUBEY & CO.
Chartered Accountants
(Firm Reg. No. 329518E)
Arun Kumar Dubey
Partner
Place : Kolkata Mem. No. 057141
Date : 30th June 2021 UDIN : 21057141AAAABU4861

ANNEXURE "B" to the independent auditors' report

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date to the Members of J. J. Finance Corporation Ltd)

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

property plant and equipment.

(b) The Company has a regular programme /policy of physical verification of its fixedassets included in Property Plant & Equipments (PPE) by which all fixed assets areverified in a phased manner. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets.According to the information and explanations given to us no material discrepancies werenoticed on such verification.

(c) According to the information and explanations given to us and the records examinedby us on test basis we report that the title deeds in respect of freehold immovableproperties of land and buildings are held in the name of the Company as at the BalanceSheet date. In respect of leasehold immovable properties the lease agreements are in thename of the Company

ii. The Company did not have any inventory and as such matters specified Para 3 (ii)is not applicable.

iii. The company has granted unsecured loan to a Company covered in the registermaintained under section 189 of the Companies Act 2013. The terms and conditions of thegrant of such loans are not prejudicial to the company's interest. As per information andexplanation given to us the loan is repayable on demand and there is no overdue amount;hence Para 3(iii) (b) & (c ) are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us thereare no guarantees and securities granted in respect of which provisions of Section 185 and186 of the Companies Act 2013 are applicable. Based on our audit procedures performed andaccording to information and explanations given by the management the Company hascomplied with provisions of Section 186 of the Act in respect of loans granted andinvestments made during the year.

v. The Company has not accepted any deposit; and hence Para 3(v) of the Order is notapplicable.

vi. As informed maintenance of cost records has not been specified by the CentralGovernment u/s 148(1) of the Companies Act; hence Para 3(vi) of the Order is notapplicable.

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

Company amounts deducted / accrued in the books of account in respect of undisputedstatutory dues including provident fund employees' state insurance income tax salestax service tax duty of customs duty of excise value added tax cess and othermaterial statutory dues as applicable have been regularly deposited during the year bythe Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of aforesaid statutory dues were in arrears as at 31 March 2021 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no materialdues of income tax or sales tax or wealth tax or service tax or duty of customs or duty ofexcise or value added tax which have not been deposited with the appropriate authoritieson account of any dispute.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted during the year in repayment of dues to its financialinstitutions bankers and government of the to the standalone Ind AS financial statements.The Company did not have any outstanding debentures during the year.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loan; hence Para 3(ix) of the Order isnot applicable.

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or on the Company by theofficers and employees of the Company has been noticed or reported during the year.

xi. No managerial remuneration has been paid / provided by the Company during the yearunder review; hence Para 3(xi) of the Order is not applicable.

xii. The Company is not a Nidhi Company & accordingly reporting under Clause (xii)of the Order is not applicable to the Company.

xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with Section 177 and 188 of Act where applicable;and the details have been disclosed in the Financial Statements as required by theapplicable Indian Accounting Standards.

xiv. The company has not made any preferential allotment / private placement of sharesor fully or partly convertible debentures during the year under review; hence Para 3( xiv)of the Order is not applicable.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with its directors or persons connected with them; hence provisions ofSection 192 of the Companies Act 2013 & Clause (xv) of the Order are not applicable.

xvi. The company is required to be registered under section 45-IA of the Reserve Bankof India Act 1934 and registration has been obtained.

For A. K. DUBEY & CO.
Chartered Accountants
(Firm Reg. No. 329518E)
Arun Kumar Dubey
Partner
Place : Kolkata Mem. No. 057141
Date : 30th June 2021 UDIN : 21057141AAAABU4861

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