To the Members of Jagjanani Textiles Limited
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Jagjanani Textiles Ltd. (the Company) which comprises the Balance Sheet as at 31 March 2019 the Statement of Profit and Loss the Statement of Changes in Equity and the Statement of Cash Flows for the year ended and summary of the significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Ind AS Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs profit/loss and other comprehensive income changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Indian Accounting Standards (IndAS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities ; selection and application of appropriate accounting policies ; making judgments and estimates that are reasonable and prudent ; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the standalone Ind AS financial statements whether due to fraud or error. In making those risk assessments the auditor considers internal financial control relevant to the Company's preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We are also responsible to conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in the auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor's report. However future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31 March 2019 its loss and other comprehensive income changes in equity and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. 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 in paragraphs 3 and 4 of the Order to the extent applicable.
2. 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 best of 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 the Company so far as it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e. The going concern matter described under the Material Uncertainty Related to Going Concern paragraph above in our opinion may have an adverse effect on the functioning of the Company.
f. On the basis of the written representations received from the directors as on 31 March 2019 taken on record by the Board of Directors none of the directors is disqualified as on 31 March 2019 from being appointed as a director in terms of Section 164(2) of the Act.
g. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls refer to our separate Report.
h. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company does not have any pending litigations which would impact its financial position.
(ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
For A .O. Mittal & Associates
Firm Regn. No. - 014640C
|(Arpit Mittal) |
|Date: 29.05.2019.||M. No. 404415|
Annexure to Independent Auditors' Report
Referred to in paragraph 1 under the heading of Report on Other Legal and Regulatory Requirements of our report of even date:
1. The Company has maintained proper records showing full particulars including quantitative details and situation of the fixed assets. All the fixed assets have been physically verified during the year by the Management. Further we are informed that no material discrepancies were noted during such verification.
a) The Company has maintained records pertaining to finished goods stores spares raw material purchases sale of goods by-products scrap and book debts.
b) Inventories have been physically verified by the management during the year and in our opinion the frequency of verification is reasonable to the extent clarified to us.
c) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.
d) The discrepancies noticed on physical verification of stocks as compared to book records which were not material have been properly dealt with in the books of accounts.
e) In our opinion the valuation of stock is fair and proper and in accordance with generally accepted accounting principles.
3. The Company has not granted any loan to companies firms and other parties listed in the register maintained under section 189 of the Companies Act 2013. According to the information and explanation given to us no loans and advances in the nature of loans have been given to the parties including the employees.
4. In our opinion and according to the information and explanations given to us there is an adequate internal control system commensurate with the size of the company and the nature of its business with regards to purchases of stores raw material including components plant and machinery equipment and other assets and for the sale of goods.
5. According to the information and explanations given to us the Company has not accepted any deposits from the public under directives issued by Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act and rules framed there under during the year. Accordingly the clause is not applicable.
6. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act of the Companies Act2013 read with the companies (cost records and audit) Rules 2014 for any of the products manufactured/services rendered by the Company
7. According to the books and records examined by us and the information and explanation given to us no undisputed amount payable in respect of income tax wealth tax sales tax VAT custom duty service tax excise duty Cess & other material statutory dues applicable to it were in arrears as at 31st March 2019 for a period of more than six months from the date they became payable.
8. The Company has Rs.2440.89 Lacs accumulated losses as at 31st March 2019.
9. The company has been regular in repayment of dues to financial institutions and have not defaulted in repayment of such dues.
10. According to the information and explanations given to us the Company has not given any guarantee for loans taken by others from banks or financial institutions. Accordingly this clause is not applicable.
11. On the basis of information and explanation given to us term loan raised during the year has been applied for the purpose for which they were raised.
12. To the best of our knowledge and belief and according to the information and explanations given to us no fraud on or by the Company was noticed or reported during the year that causes the financial statements to be materially misstated.
|For A .O. Mittal & Associates|
|Firm Regn. No. -014640C|
|( Arpit Mittal) |
|Jaipur||M. No. 404415|