To the Members of
Jai Corp Limited
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Financial Statements of JAI CORP LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2018and the Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe policies and other explanatory significant information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of state of affairs(financial position) profit (financial performance including other comprehensive income)cash flows and changes in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the rules made there under.
We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Financial Statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Financial Statements. The procedures selected depend onthe auditors judgment including the assessment of the risks of materialmisstatement of the Standalone Financial Statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Companys preparation of the Standalone Financial Statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompanys Directors as well as evaluating the overall presentation of the StandaloneFinancial Statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on 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 Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2018 and its profit including total comprehensive income its cashflows and the statement of changes in equity for the year ended on that date.
The comparative financial information of the Company for the year ended 31st March2017 prepared in accordance with Indian Accounting Standards included in these StandaloneFinancial Statements have been audited by the predecessor auditors. The report of thepredecessor auditors on the comparative financial information dated 30th May 2017expressed an unmodified opinion.
Report on Other Legal and Regulatory Requirements
1. 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 (including other comprehensiveincome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the Indian AccountingStandards prescribed under section 133 of the Act read with relevant rules issuedthereunder.
e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A";
g) With respect to the other matters to be included in the Auditors 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:
(a) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements as referred to in Note no. 40 to thefinancial statements.
(b) The Company does not have long term contracts including derivative contracts forwhich there were any material foreseeable losses
(c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
2. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in "Annexure B" hereto a statement onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
For D T S & Associates
Firm Registration No: 142412W
Date: 25th May 2018
"ANNEXURE A" TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 (f) under Report on Other Legal and RegulatoryRequirements of our report of even date to the members of Jai Corp Limited on theStandalone financial statements for the year ended 31st March 2018)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting ofJai CorpLimited ("the Company") as of 31st March 2018 in conjunction with our auditof the Standalone financial year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial on the internal control over financial reporting criteria components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Companyspolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required underthe . Act
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 and the Standards on Auditing prescribed under Section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Companys internal financial controlssystem 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 accuratelyandfairlyreflectthe 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 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 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.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlsover financial reporting and such internal financial controls over financial reportingwere operating effectively as at 31st March 2018 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note.
For D T S & Associates
Firm Registration No: 142412W
Date: 25th May 2018
"ANNEXURE B" TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of Jai CorpLimited on the Standalone financial statements for the year ended 31st March 2018)
i. In respect of its fixed assets:
a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.
b. As explained to us the Companyhasphysicallyverifiedfixed assets in accordance witha phased program of verification which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such physical verification as compared with the available records.
c. As per the information and explanation provided to us and the records examined by usand based on the examination of the registered sale deed/ conveyance deed we report thatthe title deeds comprising all the immovable properties of land and building which arefreehold are held in the name of the Company as at the balance sheet date and which areleasehold the lease agreements are in the name of the Company where the Company is thelessee in the agreement except the following:-
|Particulars ||Actual Cost as at 31st March 2018 ||Net Block as at 31st March 2018 ||Remarks |
| ||(Rs. In lacs) ||(Rs. In lacs) || |
|Freehold/ Leasehold land (No of Lands: 7) ||44.86 ||41.79 ||The title deeds are in the names of erstwhile Companies that merged with the Company under Section 391 to 394 of the Companies Act 1956 pursuant to Schemes of Amalgamation and Arrangement as approved by the Honorable High Court. |
|Buildings (No of Buildings: 4) ||8.85 ||5.27 ||Out of Rs. 8.85 Lacs the title deeds of Rs. 4.45 Lacs are in the names of erstwhile Companies that merged with the Company under Section 391 to 394 of the Companies Act 1956 pursuant to Schemes of Amalgamation and Arrangement as approved by the Honorable High Court. |
ii. In respect of its inventories:
As explained to us inventories except goods in transit have been physically verifiedduring the year by the management. In our opinion the frequency of verification isreasonable. Discrepancies noticed on physical verification of the inventories between thephysical inventories and book records were not material having regard to the size of theoperations of the Company and the same have been properly dealt with.
iii. In respect of loans secured or unsecured granted by the Company to companiesfirms Limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Act. According to the information and explanation given to us:
a. In our opinion and according to the information given to us the terms andconditions of the loans given by the Company are prima facie not prejudicial to theinterest of the Company.
b. The schedule of repayment of principal and payment of interest has been stipulatedand repayments of principal amounts and /or receipts of interest have been regular as perstipulations.
c. There are no overdue amounts as at the year-end in respect of both principal andinterest.
iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 & 186 of the Act asapplicable in respect of grant of loans and making investments.
v. According to the information and explanations given to us the Company has notaccepted any deposit from the public. Therefore the provisions of clause (v) of paragraph3 of the Order are not applicable to the Company.
vi. We have broadly reviewed the cost records maintained by the Company pursuant toCompanies ( Cost Records & Audit ) Rules 2014 prescribed by Central Government undersection 148 (1) (d) of the Act as applicable and are of the opinion that prima-facie theprescribed accounts and records have been made and maintained. We have not however made adetailed examination of the records with a view to determine whether they are accurate andcomplete.
vii. According to the information and explanations given to us in respect of statutorydues:
a. The Company has been generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income tax sales-tax service taxduty of customs duty of excise value added tax goods & service tax cess and anyother statutory dues to the appropriate authorities as applicable during the year.According to the information and explanations given to us no undisputed amounts payablein respect of such statutory dues were outstanding as at 31st March 2018 for a period ofmore than six months from the date they became payable
b. Details of dues of Income tax and sales tax / Value added tax aggregating to Rs.2022.15 Lacs that have not been deposited on account of disputed matters pending beforeappropriate authorities are as under:
|Name of the Statute ||Nature of the Dues ||Amount (Rs. in Lacs)* ||Period to which the amount relates ||Forum where dispute is pending |
|Income-tax Act1961 ||Income Tax ||170.45 ||AY 2003-04 to AY 2006-07 ||Commissioner of Income Tax (Appeal) |
| || ||1305.22 ||AY 2008-09 AY 2009-10 & AY 2015-16 ||Commissioner of Income Tax (Appeal) |
| || ||419.96 ||AY 2011-12 & AY 2013-14 ||ITAT |
|Central Excise Act 1944 ||Excise Duty ||3.43 ||2004-05 ||Commissioner (Appeal) |
|Bombay Sales Tax Act ||Sales Tax ||26.28 ||2000-01 & 2002-03 ||Maharashtra Sales Tax Tribunal |
| || ||96.81 ||2013-14 ||Joint Commissioner of Sales Tax (Appeal) |
|Total ||2022.15 || || |
(*) Net of amount deposited under protest
viii. Based on our audit procedures and according to the information and explanationsgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to banks. During the year the Company did not have any loans fromfinancialinstitutions . or by way of debentures
ix. According to the information and explanations given to us during the year theCompany has not raised any money by way of initial public offer further public offer(including debt instruments) and no term loans raised during the year. Thereforeprovisions of clause (ix) of paragraph 3 of the Order are not applicable to the Company.
x. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and on the basis of information and explanationsgiven by the management no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.
xii. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii. According to the information and explanations given to us Companystransactions with the related parties are in compliance with section 177 and 188 of theAct as applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable Indian accounting standards.
xiv. According to the information and explanations given to us and based on ourexamination of the records of the Company during the year the Company has not raised anymoney by preferential allotment or private placement of share or debentures. Thereforethe provisions of clause (xiv) of paragraph 3 of the Order are not applicable to theCompany.
xv. According to the information and explanations given to us during the year theCompany has not entered into any non-cash transactions with directors or persons connectedwith him Therefore the provisions of clause (xv) of paragraph 3 of the Order are notapplicable to the Company.
xvi. In our opinion and according to information and explanations provided to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
For D T S & Associates
Firm Registration No: 142412W
Membership No. 122179
Date : 25th May 2018