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Jagan Lamps Ltd.

BSE: 530711 Sector: Auto
NSE: N.A. ISIN Code: INE144C01014
BSE 00:00 | 18 Feb 28.15 -0.55
(-1.92%)
OPEN

28.15

HIGH

28.15

LOW

28.15

NSE 05:30 | 01 Jan Jagan Lamps Ltd
OPEN 28.15
PREVIOUS CLOSE 28.70
VOLUME 821
52-Week high 30.40
52-Week low 9.27
P/E 13.60
Mkt Cap.(Rs cr) 19
Buy Price 28.15
Buy Qty 110.00
Sell Price 28.15
Sell Qty 34890.00
OPEN 28.15
CLOSE 28.70
VOLUME 821
52-Week high 30.40
52-Week low 9.27
P/E 13.60
Mkt Cap.(Rs cr) 19
Buy Price 28.15
Buy Qty 110.00
Sell Price 28.15
Sell Qty 34890.00

Jagan Lamps Ltd. (JAGANLAMPS) - Auditors Report

Company auditors report

To The Members of M/s Jagan Lamps Limited Report on the Audit of theStandalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of M/s Jagan LampsLimited ("the Company") which comprise the Balance Sheet as at March 312019 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to 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 financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2019 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

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.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

A. The company has unilaterally written back an advance received amounting to Rs.100.71Lacs during the financial year under consideration being unclaimed balance as disclosedin Note 17 of the Financial Statements. B. That the audited financial statement for theperiod ended 31st March 2018 had been presented as per the Indian GAAP as against theprescribed format for presentation of financials under Ind AS. Accordingly the previousfinancial numbers have been reported as per audited asset liability statement and theaudited financial results filed for the quarterly result ended 31st March 2018 publishedin Ind AS format. Further based on the test check performed no difference was observed inthe financial position between IGAAP Audited Financials and the Audited Ind AS Financialresults reported by the company.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our 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 financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course 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 are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone 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 standalone financial statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone 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 Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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 SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 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 controls.Obtain an understanding of internal financial controls 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 thereasonableness of accounting 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 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 However future events or conditions may cause the Company to cease to continueas a going concern. Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the 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 financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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

1. As required by Section 143(3) of the Act based on our audit we report that : a. Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit except for confirmationspertaining to receivables & payable third party balances and payments adjusted throughgroup companies. b. In our opinion proper books of account as required by law have beenkept by the  Company so far as it appears from our examination of those books. c. TheBalance Sheet the Statement of Profit and Loss including Other Comprehensive

Income Statement of Changes in Equity and the Statement of Cash Flow dealt with bythis Report are in agreement with the relevant books of account. d. In our opinion theaforesaid standalone financial statements comply with the Ind AS specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. except that:

i. That with regard to the accounting for employee benefits under IND AS 19 we have tostate that as per the accounting policy presently being followed the provision forgratuity entitlement as well as earned leave encashment are accounted for on cash basis.e. On the basis of the written representations received from the directors as on March 31  2019 taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2019 from being appointed as a director in terms of Section164 (2) of the Act. f. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the  Central Government in terms of Section 143(11)of the Act we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the order. g. With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial. h. With respect to the other matters to be included inthe Auditor's Report in accordance with the requirements of section 197(16) of the Act asamended: i. In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act. j. With respect tothe other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules 2014 as amended in our opinion and to the best ofour information and according to the explanations given to us :

i. The Company has represented that there are no pending litigations against thecompany or which may have an impact on the company.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-termcontracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe

Investor Education and Protection Fund by the company.

Place: Delhi For Serva Associates
Date: May 30 2019 Chartered Accountants
Firm Registration No.000272N
Sd/-
C.A.Nitin Jain
Partner
Membership No. 506898

Annexure ‘A' to the Auditors' Report

The Annexure referred to in Independent Auditors' Report of even date to the members ofM/s Jagan Lamps Limited on the standalone financial statements for the year endedMarch 31 2019 we report that:

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

(b) All the assets have been physically verified by the management during the year atregular intervals according to a regular program of verification which in our opinion isreasonable having regard to the size of the company and nature of its assets. No materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the company except land at Kundli valued at Rs.26.05 Lacs isregistered in the name of one of the Director of the Company.

(ii) According to the information and explanations given to us & as representedthe management has conducted Physical verification of inventory at reasonable intervalsduring the year & no material discrepancies have been stated to be noticed on suchphysical verification. The Inventory has been taken as quantified valued and certified bythe management.

(iii) The company has not granted any loan secured or unsecured to companies firmsLimited liability partnerships (LLP) or other parties covered in the register maintainedunder section 189 of the Companies Act and hence provisions of para (iii) are notapplicable to the company.

(iv) The company has not given any loans & advances to directors and partiescovered under section 185 or loans and advances under section 186 of the Companies Act2013 and hence the provisions of paragraph (iv) are not applicable to the company.

(v) The company has not accepted any deposits and hence paragraph (v) of the order isnot applicable to the company.

(vi) According to the information and explanations given to us in our opinion themaintenance of cost records have not been prescribed for the company by the CentralGovernment under subsection (1) of section 148 of the Companies Act.

(vii) (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including Income Tax Service Tax Cess and other statutory dues applicableto it. According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income tax duty ofcustoms Goods & Services Tax (GST) cess and other statutory dues were in arrears asat 31st March'2019 for a period of more than six months from the date they become payable.

(b) According to the information and explanation given to us there are no dues ofservice tax income tax cess and other statutory dues which have not been deposited onaccount of any dispute.

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to a financial institution or bank. Inthe absence of any debentures the reporting on the debenture dues is not applicable onthe company.

(ix) The company has not raised any money by way of Initial Public Offer (IPO) orfurther public offer (including debt instruments). The term loans were applied for thepurpose for which they were obtained.

(x) 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 we have neither come across anyinstance of material fraud on or by the company noticed or reported during the year norhave we been informed of such case by the management.

(xi) Based on audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to the information and explanations givenby the management we report that the managerial remuneration has been paid/provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

(xii) The company is not a nidhi company & hence paragraph (xii) of the order isnot applicable to the company.

(xiii) Based on 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 transactions with the related parties are in compliance withsection 177 and 188 of  Companies Act 2013 where applicable and the details havebeen disclosed in the notes to financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence reporting requirements under clause (xiv) are not applicable tothe company.

(xv) Based on our 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 the Company has not entered into non-cash transactions withdirectors or persons connected with them.

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

Place: Delhi For Serva Associates
Date: May 30 2019 Chartered Accountants
Firm Registration No.000272N
Sd/-
C.A.Nitin Jain
Partner
Membership No. 506898

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/sJagan Lamps Limited ("the Company") as of 31st March 2019 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely reparation of reliable financialinformation 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 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 financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained subject to our comments reported ininherent limitations below are sufficient and appropriate to provide a basis for our auditopinion on the Company's internal financial controls system over 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.

We have considered the limitation reported above in determining the nature timing& extent of audit test applied in our audit of financial statements of the company.Though we observe that the documentation for internal financial controls need to beformalized such limitation does not affect our opinion on the financial statements of theCompany.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019 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: Delhi For Serva Associates
Date: May 30 2019 Chartered Accountants
Firm Registration No.000272N
Sd/-
C.A.Nitin Jain
Partner
Membership No. 506898