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Jagjanani Textiles Ltd.

BSE: 532825 Sector: Industrials
NSE: N.A. ISIN Code: INE702H01018
BSE 00:00 | 31 Jan 3.26 -0.17
(-4.96%)
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3.59

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3.59

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NSE 05:30 | 01 Jan Jagjanani Textiles Ltd
OPEN 3.59
PREVIOUS CLOSE 3.43
VOLUME 9973
52-Week high 5.19
52-Week low 1.40
P/E 326.00
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 3.59
CLOSE 3.43
VOLUME 9973
52-Week high 5.19
52-Week low 1.40
P/E 326.00
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jagjanani Textiles Ltd. (JAGJANANITEXT) - Auditors Report

Company auditors report

To the Members of JAGJANANI TEXTILES LIMITED CIN: L17124RJ1997PLC013498

Report on the Financial Statements

We have audited the accompanying financial statements of JAGJANANI TEXTILES LIMITEDwhich comprise of the balance sheet as at 31 March 2022 the statement of profit and lossfor the year then ended Cash Flow Statement for the year ended including summary ofsignificant accounting policies and other explanatory information.

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 ('Act') in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2022 its profit or Loss and cash flows for theyear ended on that date.

Basis for opinion

We conducted our audit in accordance with the standards on auditing specified undersection 143 (10) of the Companies Act 2013. Our responsibilities under those Standardsare further described in the auditor's responsibilities for the audit of the financialstatements section of our report. We are independent of the Company in accordance with thecode of ethics issued by the Institute of Chartered Accountants of India together with theethical requirements 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.

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.

Other Information

The Company's Board of Directors is responsible for the preparation of otherinformation. The other information comprises the information included in the in theManagement Discussion and Analysis Board's Report including Annexure to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we will 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 on the other information obtained prior to thedate of this auditor's report we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard since; the other information comprising the above documents is expected to beissued by the management after the date of our audit report.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation and presentation ofthese financial statements that give a true and fair view of the financial positionfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements 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 is responsible for overseeing the Company's financial reportingprocess. 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 fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis 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 collusion forgery intentional omissionsmisrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 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 planning the scope of our audit workand 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 withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

i. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure "A" statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.

ii. As required by Section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) the balance sheet the statement of profit and Loss and Cash Flow Statement dealtwith 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(Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 from being appointed as a director in terms of Section164 (2) of the Act; and

(f) 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 we report thatcompany has not paid any remuneration to any Director during the year under reference.

(g) with respect to the adequacy of the internal financial control over financialreporting of the company and the operating effectiveness of such controls refers to ourseparate report in " Annexure B" and

(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 did not have any long-term contracts including derivative contractshence the question of any material foreseeable losses does not arise and

iii. During the year no amount has accrued for transfer to Investor Education andProtection Fund thus there is no delay in transferring amount to the Investor Educationand Protection Fund by the Company except the amount o/s at the year- end underconsideration which was supposed to be transferred to Investor Education and ProtectionFund in the year 20017-18. We were informed that the amount in relation to the refund ofapplication money was o/s as on 31.03.2008 on account of IPO in the year 2007-08 thecompany was not able to transfer the same to the Investor Education and Protection Fund inthe year 2017-18 on account of bank accounts being frozen by the Income Tax Department.

(i) The Company has provided requisite disclosures in the financial statements on thebasis of information available with the Company. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with booksof accounts maintained by the Company and as produced to us by the Management.

For A O MITTAL & ASSOCIATES
Chartered Accountants
Firm's registration number: 014640C
ARPIT MITTAL
Partner
Membership number: 404415
UDIN: 21404415AAAACY
Jaipur
30.05.2022

ANNEXURE - A REFERRED TO IN THE AUDITOR'S REPORT ON THE ACCOUNTS OF JAGJANANI TEXTILESLIMITED FOR THE YEAR ENDING 31st MARCH 2022

As required by the Companies (Auditor's report) Order 2016 issued by the CentralGovernment of India in terms of section 143(11)of the Companies Act 2013 we report that:

1) In respect of fixed assets:

(a) According to information and explanation given to us company is not having anyfixed asset during the year under consideration.

(b) As per the information and explanation given to us all the fixed assets have beenphysically verified by the management during the year at reasonable intervals and onexamination done by us no material discrepancies were noticed on such verification whichin our opinion is reasonable.

(c) Also according to information and explanation given to us no immovable propertiesare held in the name of the Company during the year under consideration.

2) In respect of its inventories:

(a) As explained to us company is not having any stock during the year underconsideration.

(b) In our opinion and according to the information and explanations given to us theprocedures followed by the management for physical verification of inventory arereasonable and adequate in relation to size of the Company and nature of its business.

(c) According to information and explanation given to us all discrepancies have beenrectified by the Company and accordingly considered in books of accounts.

3) In respect of loans:

According to the information and explanations given to us the Company has not grantedany loans secured and unsecured to companies firms and other parties covered in theregister maintained under section 189 of Companies Act 2013.

4) As per information and explanations provided to us in respect of loans investmentsand guarantees provisions of Section 185 and 186 of the Companies Act 2013 have beencomplied with.

5) According to the information and explanations given to us the Company has notaccepted any deposits from the public within the meaning of the directives issued by theReserve Bank of India and the provisions of section 73 to 76 or any relevant provisions ofthe Companies Act 2013 and the rules made there under.

6) In respect of cost records:

We have been explained that the maintenance of cost records has not been prescribed bythe Central Government under Section 148(1) of the Companies Act2013 for the period underreview for any of the products.

7) In respect of statutory dues:

(a) The Company is generally regular in depositing with the appropriate authoritiesundisputed statutory dues including Provident Fund Investor Education Protection FundEmployees' State Insurance Income Tax Sales Tax Value Added Tax Wealth Tax ServiceTax Custom Duty Excise Duty Cess and other material statutory dues as recorded inbooks of accounts applicable to it but a liability of sales tax dues is pending fordisposal since 2014 and also liability towards refund of share application is o/s from thefinancial year 2007-08 and pending for transfer to Investor Education Protection Fund from2017-18 on account of bank accounts being frozen by the Income Tax Department.

Further no other undisputed amounts payable in respect thereof were outstanding at theyear end for a period more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofIncome T ax Wealth tax Sales T ax Value Added T ax Service T ax Custom duty andExcise Duty and Goods and Service Tax which have not been deposited on account of anydispute.

8) In respect of repayment of dues:

As per information and explanation given to us the company has not defaulted inrepayment of any amount to a financial institution or bank or debenture holders.

9) In our opinion and according to the information and explanation given to us termloans have been applied for the purposes for which they were obtained.

10) According to the information and explanations provided to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

11) In respect of manegerial remuneration:

The company is a listed limited company and in our opinion and according to theinformation and explanations given to us the Company has paid managerial remuneration inrelation to the dues upto 2018-19 in accordance with the requisite approvals mandated bythe provisions of section 197 read with Schedule V to the Act.

12) In respect of Nidhi Company:

The Company is not a Nidhi Company. Therefore this clause is not applicable to theCompany.

13) In respect of related parties:

All transactions with the related parties are in compliance with Section 188 and 177 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements under Annexure 1 as required by the accounting standards and Companies Act2013.

14) In respect of preferential allotment / private placement of shares:

The company has not made any preferential allotment / private placement of shares orfully or partly convertible debentures during the year under review.

15) In respect of Non-cash transactions with directors:

The Company has not entered into any non-cash transactions with directors or personsconnected with him.

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

For A O MITTAL & ASSOCIATES
Chartered Accountants
Firm's registration number: 014640C
ARPIT MITTAL
Partner
Membership number: 404415
UDIN: 21404415AAAACY1098
Place: Jaipur
Date: 30.05.2022

ANNEXURE - B TO THE INDEPENDENT AUDITOR S REPORT OF EVEN DATE ON THE STANDALONEFINANCIAL STATEMENTS OF JAGJANANI TEXTILES LIMITED

Report on the Internal Financial Controls under (i) of Sub Section 3 of Section 143 ofthe Companies Act 2013

We have audited the internal financial control over financial reporting of JAGJANANITEXTILES LIMITED as of 31st March 2022 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management Responsibility for internal financial controls

The Company's management is responsible for establishing & maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India (ICAI). These responsibilities includethe design implementation & maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly & efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention & detection of frauds & errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's 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 Reportingand the standards on auditing issued by ICAI & deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by ICAI. Those standards and Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtain thereasonable assurance about whether adequate internal controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialsrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ifthe Internal Financial Controls system over Financial Reporting & 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 a evaluating thedesign & operating effectiveness of internal control based on the assessed risk. Theprocedure selected depends on the auditor's judgment including the assessment of the riskof material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient & 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 & thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial controls over financialreporting includes those policies & procedures that (1) pertain to maintenance ofrecords that in reasonable details; 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 &expenditure of the company are being only in accordance with authorizations of management& directors of the company; and (3) provide reasonable assurance regarding preventionor timely detection of unauthorized acquisition use or disposition of the company'sassets that could have a material on the financial statements.

Inherent Limitations of Internal Financial 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 to 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 condition or thatthe degree of compliances with the policies or procedures may deteriorate.

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 2021 based on theInternal Controls 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.

Other Matter

Broadly the Company is having most of the system in place as required for thecompliance of Internal Financial Control on Financial Reporting. However those systems orcontrols are having scope of further improvement. Also Company has not documentedadequately the internal financial controls based on Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India. Based on our audit

procedures we are of the opinion that Company has rectified all material observationsof our audit on internal financial controls over financial reporting to ensure that theydo not significantly affect financial reporting on Internal Financial Control as onBalance Sheet date

For A O MITTAL & ASSOCIATES
Chartered Accountants
Firm's registration number: 014640C
ARPIT MITTAL
Partner
Membership number: 404415
UDIN: 21404415AAAACY1098
Place: Jaipur
Date: 30.05.2022

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