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Jai Mata Glass Ltd.

BSE: 523467 Sector: Industrials
NSE: N.A. ISIN Code: INE250C01027
BSE 00:00 | 20 Jan Jai Mata Glass Ltd
NSE 05:30 | 01 Jan Jai Mata Glass Ltd
OPEN 0.19
PREVIOUS CLOSE 0.19
VOLUME 10356
52-Week high 0.19
52-Week low 0.00
P/E 6.33
Mkt Cap.(Rs cr) 2
Buy Price 0.19
Buy Qty 392.00
Sell Price 0.19
Sell Qty 11662.00
OPEN 0.19
CLOSE 0.19
VOLUME 10356
52-Week high 0.19
52-Week low 0.00
P/E 6.33
Mkt Cap.(Rs cr) 2
Buy Price 0.19
Buy Qty 392.00
Sell Price 0.19
Sell Qty 11662.00

Jai Mata Glass Ltd. (JAIMATAGLASS) - Auditors Report

Company auditors report

TO THE MEMBERS OF

M/s JAI MATA GLASS LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of JAI MATA GLASS LIMITED(“the Company”) which comprise the Balance Sheetas at March 31 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and a summaryof the significant accounting policies and other explanatory information (hereinafterreferred to as “the financial statements”).

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 (“the Act”) in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended(“Ind AS”) and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2020 the loss and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Companies Act 2013 and the Rules madethereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe financial statements.

Emphasis of Matter

We draw attention to Note 38 of the financial statements which describes that thecompany has received advance from customers amounting to Rs. 105.09 Lakhs prior to1.04.2014 and are still payable in books of accounts and are outstanding for more than 365days. The said advance falls under the ambit of deemed deposits as per provisions ofsection 73 to 76 of the companies act 2013. Our opinion is not modified in respect of thismatter

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 cur- rent period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined the matters described below to be the key audit matters to becommunicated in our report.

Key Audit Matter Auditor's Response
1. Assessment of contingent liabilities relating to litigations and claims Principal Audit Procedures
1 We tested the effectiveness of controls around the recording and reassessment of contingent liabilities.
See note no. 25 to the financial state- ments 2 We used our subject matter experts to assess the value of material provisions in light of the nature of the exposures applicable regulations and related correspondence with the authorities
3. We challenged the assumptions and critical judgements made by management which impacted their estimate of the provisions required considering judgements previously made by the authorities in the relevant jurisdictions or any relevant opinions given by the Company's advisors and assessing whether there was an indication of management bias.
4 We discussed the status in respect of significant provisions with the Company's internal tax and legal team.
5. We performed retrospective review of management judgements relating to accounting estimate included in the financial statement of prior year and compared with the out come.
2. SEBI Enquiry Principal Audit Procedures
See note no. 37 to the financial statements 1. We have pursued the subject matter by analyzing the SEBI order and the other relevant documents and replies to the questionnaire submitted by the company to the forensic auditor.
2. We have discussed the status in respect of the forensic audit with the company's management.
3. The forensic audit as on the reporting date is continuing and is in conclusive.

Information Other than the 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 financial statements and our auditor's report thereon.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse 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 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 ofthese financial statements that give a true and fair view of the financial positionfinancial performance total comprehensive income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 are 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 collusionforgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to 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 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 financial statements thatindividually 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 safe guards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 the Companies (Auditor's Report) Order 2016 (“the Order”)issued by the Central Government of India in terms of Section 143(11) of the Act we givein “Annexure A” a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

2. (A) As required by Section 143(3) of the Act based on our audit 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164(2) of theAct.

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 B”.

(B) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations as at 31stMarch 2020 on its financial position in its financial statements refer note no. 25.

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

iii. The disclosures in the financial statements regarding holdings as well as dealingsin specified bank notes during the period from 8 November 2016 to 30 December 2016 havenot been made in these financial statements since they do not pertain to the financialyear ended 31stMarch 2020.

(C) 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 our opinion and according to the explanations given to us the remuneration paid bythe Company to its directors during the year is in accordance with the provisions ofsection 197 of the Act. The remuneration paid to any director is not in excess of thelimit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has notprescribed other details under Section 197(16) which are required to be commented upon byus.

For V Sachdeva& Associates
Chartered Accountants
Firm Registration No. 004417N
V. Sachdev
Date: 30th June 2020 Proprietor
Place: New Delhi Membership no. 083435
UDIN : 20083435AAAAEJ6082

“ANNEXURE A” TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Jai Mata Glass Limited of even date)

i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) As explained to us all the property plant and equipment have been physicallyverified by the management during the year. No material discrepancies were noticed on suchverification.

(c) The Company does not own any immovable property and hence the said clause is notapplicable to the company.

ii) The Company does not own any inventory and hence the said clause is not applicableto the company.

iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered under section 189 of the Act.Accordingly the said clause is not applicable to the company.

iv) The Company has complied with the provisions of section 185 to 189 of the Act inrespect of loans investments guarantees and security to the extent applicable.

v) The Company has not accepted any deposits within the meaning of sections 73 to 76 orany other relevant provisions of the Act. However the company had received advancefrom customers prior to the commencement of companies act 2013 amounting to Rs. 105.09Lakhs which are outstanding for more than 365 days and hence in our opinion fall under thedefinition of deemed deposits as per section 73 to 76 of the Companies Act 2013.

vi) The Central Government has not prescribed the maintenance of cost records undersection 148(1) of the Act in respect of activities carried out by the Company.

vii) (a) According to the information and explanations given to us the Company hasnot been regular in depositing undisputed statutory dues including provident fundinvestor education and protection fund employees' state insurance income-tax sales taxservice tax customs duty cess and other statutory dues applicable with the appropriateauthorities and there were following undisputed amounts payable by the Company in respectof statutory dues outstanding as at March312020 for a period of more than six thanmonths from the date they become payable:

Nature of Dues Amount (Rs. lakhs)
Barrier tax 10.36
Sales tax 7.28
Mandi tax 1.88

b) According to the information and explanations given to us the particulars of thedues of excise duty sales tax and provident fund as at March 31 2020 which has not beendeposited on account of disputes are as follows:

Name of the Statute Nature of the Due Period to which it pertains Form where dispute is pending Amount (Rs. in lakhs)
1 Income Tax 1961 Tax on regular interest & interest AY.2017-18 CIT(Appeals) 68.18 (Net of deposit of Rs.17.05 lacs)
2. Employees Provident Fund Act 1952 Interest and damage charges 2006-2010 Employees Provident Fund Appellate Tribunal New Delhi 46.67

viii) The Company does not have any loans or borrowings from any financialinstitutions banks Government or debenture holders during the year.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer and term loans during the year.

x) To the best of our knowledge and according to the information and explanations givento us no material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the year.

xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the managerial remuneration has been paid /provided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Act.

xii) The Company is not a nidhi company and hence the said clause is not applicable onthe company.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties areincompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv) The Company has not made any preferential allotment or private placement of sharesduring the year under review.

xv) According to the information and explanation given to us and based on ourexaminations of the records of the company the Company has not entered into any non-cashtransactions with directors or persons connected with him accordingly the said clause isnot applicable to the company.

xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 according the said clause is not applicable to the company.

For V Sachdeva& Associates
Chartered Accountants
Firm Registration No. 004417N
V. Sachdev
Date: 30th June 2020 Proprietor
Place: New Delhi Membership no. 083435
UDIN : 20083435AAAAEJ6082

“ANNEXURE B” TO INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Jai Mata Glass Limited of even date)

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

We have audited the internal financial controls over financial reporting of Jai MataGlass Limited (“the Company”) as of March 31 2020 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31st March 2020 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India (the “Guidance Note”).

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on ‘the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance note on Audit of Internal Financial Controls Over FinancialReporting (Guidance Note) issued by the Institute Chartered Accountants of India. 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 preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial controls over Financialreporting (the “Guidance note”) issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial control. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain the 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 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 is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial 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 (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (ii) 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 (iii) 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 its inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management over ride 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

For V Sachdeva& Associates
Chartered Accountants
Firm Registration No. 004417N
V. Sachdev
Date: 30th June 2020 Proprietor
Place: New Delhi Membership no. 083435
UDIN : 20083435AAAAEJ6082

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