You are here » Home » Companies » Company Overview » J L Morison (India) Ltd

J L Morison (India) Ltd.

BSE: 506522 Sector: Others
NSE: N.A. ISIN Code: INE430D01015
BSE 16:00 | 27 Sep 1865.00 -7.05
(-0.38%)
OPEN

1870.00

HIGH

1910.00

LOW

1820.10

NSE 05:30 | 01 Jan J L Morison (India) Ltd
OPEN 1870.00
PREVIOUS CLOSE 1872.05
VOLUME 62
52-Week high 2250.00
52-Week low 1701.00
P/E 39.62
Mkt Cap.(Rs cr) 256
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1870.00
CLOSE 1872.05
VOLUME 62
52-Week high 2250.00
52-Week low 1701.00
P/E 39.62
Mkt Cap.(Rs cr) 256
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

J L Morison (India) Ltd. (JLMORISONI) - Auditors Report

Company auditors report

To the Members of

J. L. MORISON (INDIA) LIMITED

Opinion

We have audited the financial statements of J. L. MORISON (INDIA) LIMITED ("theCompany") which comprise of Balance Sheet as at 31st March 2020 the Statement ofProfit and Loss (including Other Comprehensive Income) the Statement of Changes in Equityand the Statement of Cash Flows for the year then ended and notes to the financialstatements including a summary of significant accounting policies and other explanatoryinformation.

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 theCompanies Act 2013 (the Act) in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2020 its profits other comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of financial statements in accordance with the Standards onAuditing (SAs) specified under Section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Emphasis of Matter

We draw your attention to Note 39 of the financial statements with regard tomanagement's assessment about the impact on company's operations due to COVID 19 pandemicoutbreak and lockdown. The management apart from considering the internal and externalinformation up to the date of approval of these financial statements the Company has alsoperformed sensitivity analysis on the assumptions used interalia including in respect ofrealisability of investments and inventories and based on current indicators of futureeconomic conditions the Company expects to recover the carrying amount of these assets.

The impact of the global health pandemic may be different from that estimated as at thedate of approval of these financial statements. Considering the continuing uncertaintiesthe management will continue to closely monitor any material changes in future economicconditions as may pan out in future.

Our report is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Sr. No Key Audit Matters Auditor's response
1. Valuation of unquoted equity instruments: Audit procedures performed:
We focused on the valuation of unquoted equity instruments due to the materiality of the instruments and the subjective nature of their valuation which involve the use of judgemental assumptions. As disclosed in Note no. 41 to the financial statements as at 31st March 2020 the Company has unquoted equity instruments of Rs. 5521.40 Lakhs. These instruments are classified and measured at fair value through other comprehensive income. We assessed and tested the design and the operating effectiveness of the key controls that management has established to support the review and approval of the model design key model inputs and valuation. We assessed the appropriateness of the valuation method used by management by verifying the assumptions as also corroborating information mainly report by the independent valuer.
2. Inventory - existence and valuation: Audit procedures performed:
As at 31st March 2020 the Company held inventories of Rs. 1569.50 Lakhs. [Also refer Note no. 8 of the financial statements] We have performed following alternative audit procedures over inventory existence and valuations.
Inventories existence and valuation was an audit focus area because of nationwide lockdown imposed by the Government of India in view of pandemic coronavirus (COVID 19). (a) Ensuring the effectiveness of the design implementation and maintenance of controls over changes in inventory to determine whether the conduct of physical inventory verification at a date other than the date of the financial statement is appropriate and testing of those controls whether those have operated effectively.
Sr. No Key Audit Matters Auditor's response
As explained by the Management due to COVID 19 related restriction on account of nationwide lockdown physical verification of inventories lying at one location (holding 41.93% of total inventory) as on the Balance sheet date couldn't be carried out but Company has verified the inventories subsequently after easing out of lockdown. (b) Performing procedures to ensure that the changes in inventory between the subsequent verification date and date of the Balance sheet are properly recorded (Roll back procedures)
(c) Performing substantive analytical procedures to test the correctness of inventory existence and valuation.
In view of the above the matter has been determined to be a key audit matter. (d) testing of accuracy of inventory reconciliations with the general ledgers at period end including test of reconciling items
The procedures performed gave us a sufficient evidence to conclude about the inventory existence and valuation.

Information Other than the Financial Statements and Auditor's report thereon

The Company's Board of Directors is responsible for the preparation of otherinformation. The Other information comprises the information included in the Managementdiscussion and Analysis Board's Report including Annexures to the Board report CorporateGovernance report and Shareholder's information but does not include the financialstatement and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

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

Management responsibilities for the Financial Statements

The Company's Board of directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance (including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the accounting Standardsspecified under Section 133 of the Act.

This 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 judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements the Management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these 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 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 Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the 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 entity'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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of a reasonablyknowledgeable user of the financial statements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating the results of our work and (ii) to evaluate the effect of any identifiedmisstatements 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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 Act we give in the Annexure "A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 and records.

(c) The Balance sheet the Statement of Profit & Loss (including othercomprehensive income) Statement of Changes in Equity and the Statement of Cash Flowsdealt with 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(Account) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on records by the Board of Directors none of the directors aredisqualified as on 31st March 2020 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 "B".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of Sec 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of Section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor's report inaccordance with the Rule 11 of the Companies (Audit and Auditors) Rules 2014 in ouropinion and 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. Refer Note No.-35 to the financial statements.

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

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

For LODHA & COMPANY
Chartered Accountants
Firm registration No. - 301051E
R. P. Baradiya
Partner
Place: Mumbai Membership No. 44101
date: 30th June 2020 UDIN: 20044101AAAADX4332

Annexure ‘A' referred to in paragraph "Report on Other Legal and RegulatoryRequirements" of our report to the members of "The Company" of even date:

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we state that:

1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant & equipment.

b) All the property plant & equipment has been physically verified by themanagement during the year which is considered reasonable having regard to the size of theCompany and nature of its business. As per the information and explanations given to usno material discrepancies were noticed on such verification.

c) Based on the information and explanations given to us the title deeds of immovableproperties are held in the name of the Company.

2. The inventory has been physically verified by the management at reasonable intervalsduring the year. As per the information and explanations given to us discrepanciesnoticed on physical verification between the physical stocks and book records were notmaterial. Due to COVID 19 related nationwide lockdown the Management was not able toperform year end physical verification of inventory at one location (holding 41.93% oftotal inventory) but the Company has subsequently verified inventory after easing out oflockdown and no material discrepancy was noticed on such verification.

3. The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly the provisions of clause 3(iii) of the Order are notapplicable to the Company.

4. the Company has not granted any loans or provided guarantees or security to theparties covered under Section 185 of the Act. In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofSection 186 of the Act with respect to the loans given and investments made.

5. No deposits have been accepted by the Company within the meaning of directivesissued by RBI (Reserve Bank of India) and Sections 73 to 76 or any other relevantprovisions of the Act and Rules framed there under.

6. the Central Government has not prescribed the maintenance of cost records for any ofthe products of the Company under subsection (1) of Section 148 of the Act and rulesframed there under.

7. a) According to the information and explanations given to us and on the basis of ourexamination of the records the Company is generally regular in depositing undisputedstatutory dues including provident fund employees' state insurance income- taxsales-tax goods and service tax service tax duty of customs duty of excise valueadded tax and other statutory dues applicable to the Company with appropriateauthorities. No undisputed amounts payable in respect of the aforesaid statutory dues wereoutstanding as at the last day of the financial year for a period of more than six monthsfrom the date they became payable.

b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no dues of income tax sales taxgoods and service tax service tax duty of customs duty of excise value added tax whichhave not been deposited on account of any dispute except those mentioned in the tablebelow:

Name of the statute Nature of dues Rs. in Lakhs Period to which the amount relates Forum where dispute is pending
The Sales tax Act Sales tax 3.29 1995-96 1998-1999 2004-05 to 2006-07 Assistant Commissioner / deputy Commissioner of Commercial taxes
The Income tax Act 1961 Income tax 188.84 AY 2018-19 & 2009-10 Commissioner of Income tax (Appeals)
The Income tax Act 1961 Income tax 173.67 AY 2003-04 2005-06 & 2008-09 High Court of Kolkata

8. The Company has not defaulted in repayment of borrowings from a bank during theyear. the Company has not taken any loans & borrowings from any financial institutionor Government nor has it issued any debentures during the year.

9. The Company has not raised any money by way of initial public offer further publicoffer (including debt instruments) or term loans during the year. Accordingly paragraph 3(ix) of the Order is not applicable to the Company.

10. During the course of our examination of the books of accounts and other records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud by or on the Company by its officers or employees noticed orreported during the year nor have we been informed of such case by the management.

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 the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore the provisions of clause 3(xii) of the Orderare not applicable to the Company.

13. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us all transactions with therelated party are in compliance with Section 177 and 188 of the Act and the details havebeen disclosed as required by the applicable Accounting Standard (Refer Note no 36 to theFinancial Statements).

14. The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year. therefore the provisions ofclause 3(xiv) of the Order are not applicable to the Company.

15. Based on the information and explanations given to us the Company has not enteredinto any non-cash transactions prescribed under Section 192 of the Act with directors orpersons connected with them during the year.

16. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For LODHA & COMPANY
Chartered Accountants
Firm registration No. - 301051E
R. P. Baradiya
Partner
Place: Mumbai Membership No. 44101
date: 30th June 2020 UDIN: 20044101AAAADX4332

"ANNEXURE B"

Annexure ‘B' referred to in paragraph "Report on Other Legal and RegulatoryRequirements" of our report to the members of "The Company" of even date:

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

We have audited the internal financial controls over financial reporting of J. L.MORISON (INDIA) LIMITED ("the Company") as of 31st March 2020 in conjunctionwith our audit of the Financial Statements of the Company for the year ended 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 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 financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to 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 Act.

Auditors' Responsibility

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 deemed tobe prescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 judgement 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 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 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 controlover 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 the Company has broadly 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 2020 based 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.

For LODHA & COMPANY
Chartered Accountants
Firm registration No. - 301051E
R. P. Baradiya
Partner
Place: Mumbai Membership No. 44101
Date: 30th June 2020 UDIN: 20044101AAAADX4332

.