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J R Foods Ltd.

BSE: 530915 Sector: Industrials
NSE: N.A. ISIN Code: INE989E01018
BSE 00:00 | 12 Aug 5.45 0.24
(4.61%)
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NSE 05:30 | 01 Jan J R Foods Ltd
OPEN 5.47
PREVIOUS CLOSE 5.21
VOLUME 5196
52-Week high 12.03
52-Week low 3.00
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.47
CLOSE 5.21
VOLUME 5196
52-Week high 12.03
52-Week low 3.00
P/E
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

J R Foods Ltd. (JRFOODS) - Auditors Report

Company auditors report

To The Members J R FOODS LIMITED

Opinion

We have audited the standalone financial statements of J R FoodsLimited (“the company”) which comprise the Balance Sheet as at 31 March 2021the Statement of Profit and Loss (including Other Comprehensive Income) statement ofchanges in equity the Statement of Cash Flow for the year then ended and notes to thefinancial statement including a summary of significant accounting policies and otherexplanatory information.(Hereinafter referred to as “the standalone financialstatements”).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (“the Act”) in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended (“Ind AS”) and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified U/s. 143(10) of the CompaniesAct 2013. Our responsibilities under those standards are further described in theauditor's responsibilities for the Audit of the 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 together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the standalone financial statements.

Key audit matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matters
a) Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 “Revenue from Contracts with Customers”
The application of the new revenue accounting standard involves certain key judgments relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. Additionally new revenue accounting standard contains disclosures which involve collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.
Auditor's Response
Principal Audit Procedures
We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
Evaluated the design of internal controls relating to implementation of the new revenue accounting standard and tested the operating effectiveness of such internal controls;
Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation re-performance and inspection of evidence in respect of operation of these controls.
Selected a sample of continuing and new contracts and performed the following procedures:
Read the agreements with the customers to identify the distinct performance obligations the transaction price and its allocation to the performance obligations in the contract and the classification of the contract for the basis of revenue recognition in accordance with Ind AS 115.
Compared these performance obligations with that identified and recorded by the Company.
Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.
Samples in respect of revenue recorded for time and material contracts were tested using a combination of approved time sheets including customer acceptances subsequent invoicing and historical trend of collections and disputes.
Sample of revenues disaggregated by type and service offerings was tested with the performance obligations specified in the underlying contracts.
Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
b) Recognition measurement presentation and disclosures of revenues arising from lease arrangements has been recognized as per Ind AS 116
As prescribed in Note 37 to the Standalone Financial Statements the Company has adopted Ind-AS 116 “Leases” in the current year. The application and transition to this accounting standard is complex and is an area of focus in our audit.
Ind AS 116 introduces a new lease accounting model wherein lessees are required to recognize a right-of-use (ROU) asset and a lease liability arising from a lease on the balance sheet. The lease liabilities are initially measured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard involves significant judgments and estimates including determination of the discount rates and the lease term. Refer Note 37 to the standalone financial statement.
Auditor's Response
Principal Audit Procedures
-Assessed the Company's evaluation on the identification of leases based on the contractual agreements and our knowledge of the business;
Upon transition as at 1st April 2020:
-Evaluated the method of transition and related adjustments;
-Tested completeness of the lease data by reconciling the Company's operating lease commitments to data used in computing right-of-use asset and the lease liability.
Assessed and tested the presentation and disclosures relating to Ind-AS 116 including disclosures relating to transition.
2.Evaluation of tax positions
The Company has uncertain tax positions matters under dispute which involves significant judgment to determine the possible outcome of these disputes.
Refer notes to accounts no 33 of the Standalone Financial Statements
Auditor's Response
Principal Audit Procedures
Obtained details of completed tax assessments and demands for the year ended March 31 2021 from management. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.

Other Information

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report including Annexureto Board's Report Business Responsibility Report Corporate Governance andShareholder's Information but does not include the standalone financial statementsand our auditor's report thereon.

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

In connection with our audit of the standalone financial statementsour responsibility 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 amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management's and those charged with Governancefor the standalone Financial Statements

The Company's Board of Directors are responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial 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 Accounting Standardsspecified u/s 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing thecompany's financial reporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. 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 the standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone 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 financial controls relevant to the audit in orderto 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 reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit. We also provide those charged with governance with a statement that we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may reasonably be thought to bear onour independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Sec. 143(3) of the Act we report that: a. We havesought and obtained all the information and explanations which to the best of ourknowledge 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 proper returnsadequate for the purposes of our audit have been received from the branches not visited byus;

c. The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account ;

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified u/s. 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

e. On the basis of the written representations received from the directors as on 31stMarch2020 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2021 from being appointed as a director in terms of Sec. 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 - A';

g. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended : In ouropinion and to the best of our information and according to the explanations given to usthe remuneration paid by the Company to its directors during the year is in accordancewith 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 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;

ii. The Company has no material foreseeable losses on long-term contracts includingderivative contracts to the financial statements hence no provision has been made ;

iii. There has been no amount required to be transferred to the Investor Education andProtection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 (“theOrder”) issued by the Central Government in terms of Section 143(11) of the Act wegive in ‘Annexure B' a statement on the matters specified in paragraphs 3 and 4of the Order.

Place: Pondicherry For CHANDRASEKAR& Co.
Date: 29.06.2021 Chartered Accountants
FRN- 582S
PerK. RAJARAM
Partner
M.No: 020392

Annexure - A to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financialreporting of J R Foods Limited (“the Company”) as of 31 March 2021in conjunctionwith our audit of the standalone 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘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 offrauds and 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 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 aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to theexplanations given to us 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 31 March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India

Place: Pondicherry For R. CHANDRASEKAR& Co.
Date: 29.06.2021 Chartered Accountants
FRN- 582S
For K.RAJARAM
Partner
M.No: 020392

ANNEXURE- B REFERRED TO IN PARAGRAPH ‘2'UNDER THE HEADING“REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS” OF OUR AUDIT REPORT OF EVENDATETO THE MEMBERS OF J R FOODS LIMITED

1. In respect of the Company's fixed assets

(a) According to the information and explanations given to us the company ismaintaining proper records of fixed assets including the quantitative details and itssituations;

(b) Physical verification of fixed assets has been made by the management during theyear and no material discrepancies were noticed on such verification;

(c) According to the information and explanations given to us and on the basis ofrecords maintained by the company the title deeds of immovable properties are held in thename of the company;

2. The management has conducted physical verification of inventory at reasonableinterval during the period and no material discrepancies were noticed on physicalverification;

3. The Company has not granted any loans secured or unsecured to Companies FirmLimited Liability Partnership or parties covered in register maintained u/s 189 ofCompanies Act 2013;

4. According to the information and explanations given to us the company has compliedwith the provision of section 185& 186 of Companies Act 2013 with respect to loans& investment made;

5. According to the information and explanations given to us the company has notaccepted any deposits in terms of directives issued by Reserve Bank of India and theprovisions of section 73 to 76 or any other provisions of the Companies Act and the rulesframed there under hence clause v of paragraph 3of the Companies (Auditor's Report)Order 2016 is not applicable;

6. According to the information and explanations given to us maintenance of costrecords have not been specified by the Central Government under sub- section (1) ofSection 148 of Companies Act2013 hence clause vi of paragraph 3of the Companies(Auditor's Report) Order2016 is not applicable;

7. (a)According to the information and explanations given to us the company isgenerally regular in depositing with appropriate authorities undisputed statutory dues asapplicable to the company;

According to the information and explanations given to us undisputed statutory duesincluding amounts payable in respect of Provident Fund Employees State Insurance exceptIncome Tax. The Company has not paid Rs. 40.10 lakhs towards Income Tax for the assessmentyear 2018-19.

8. According to the information and explanations give to us the company has a TermLoan from Bank of Baroda but there was default in repayment of principal and interestduring earlier years. The company has default in repayment of loan to the extent of Rs.45.53 crores including interest as on 31.03.2021.

9. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit;

10. According to information and explanations given to us and on the basis of recordsmaintained by the company the company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provision of section 197 read withschedule V to the Companies Act 2013;

11. In our opinion and according information and explanations given to us the Companyis not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is not applicable tothe Company;

12. According to information or explanations given to us transactions with relatedparties arein compliance with sections 177 & 188 of the Companies Act2013 and detailsof which have been disclosed in the financial statements;

13. According to information and explanations given to us and based on our examinationsof the records maintained by the Company the Company has not made any preferentialallotment/ private placement of share or fully or partly convertible debentures during theyear. Hence clause 3 (xiv) is not applicable on the Company;

14. According to information and explanations given to us the Company has not enteredinto non-cash transactions with directors or persons connected with him. Accordinglyparagraph 3 (xv) is not applicable on the Company;

15. According to information and explanations given to us the Companyis not required to be registered under section 45-IA of Reserve Bank of India Act 1934Hence clause 3 (xvi) is not applicable on the Company;

Place: Pondicherry For R. CHANDRASEKAR& Co.
Date:29.06.2021 Chartered Accountants
FRN- 582S
K.RAJARAM
Partner
M.No: 020392

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