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Jaihind Projects Ltd.

BSE: 531339 Sector: Engineering
NSE: JAIHINDPRO ISIN Code: INE343D01010
BSE 00:00 | 28 Jan Jaihind Projects Ltd
NSE 00:00 | 28 Feb 0.80 0
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0.80

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0.80

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0.80

OPEN 0.78
PREVIOUS CLOSE 0.78
VOLUME 10
52-Week high 2.33
52-Week low 0.76
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.73
Buy Qty 25.00
Sell Price 0.78
Sell Qty 2000.00
OPEN 0.78
CLOSE 0.78
VOLUME 10
52-Week high 2.33
52-Week low 0.76
P/E
Mkt Cap.(Rs cr) 1
Buy Price 0.73
Buy Qty 25.00
Sell Price 0.78
Sell Qty 2000.00

Jaihind Projects Ltd. (JAIHINDPRO) - Auditors Report

Company auditors report

TO THE MEMBERS OF JAIHIND PROJECTS LIMITED REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Jaihind Projects Limited("the Company") which comprise the Balance Sheet as at 31st March 2018 and theStatement of Profit and Loss and the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Management & Board of Directors of the company are responsible for the mattersstated in Section 134(5) of the Companies act 2013 ("the Act") with respect tothe preparation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with rule 7 of the Companies (Accounts)Rules 2014. This responsibility 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 ofthe appropriate accounting policies; making judgments and estimates that are reasonableand prudent; and the 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on ouraudit.

While conducting the audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit in accordance with the Standards on Auditing issued by the Institute ofChartered Accountants of India as specified under Section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financial statements are free frommaterial misstatement. An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. The procedures selecteddepend on auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation and presentation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the Company has in place anadequate internal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's management and Board of Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence obtained by us and the audit evidence obtained bythe other auditors in terms of their reports referred to in the Other Matters issufficient and appropriate to provide a basis for our qualified opinion on the financialstatements.

Basis for Qualified Opinion

Attention is invited to Note no.36 of the Standalone financial statements that Tradereceivable of Rs. 22729.86 lacs outstanding as at March 31 2018 representing variousclaims raised in earlier years based on the terms and conditions implicit in thecontracts and receivables in respect of closed/suspended projects. These claims are mainlyin respect of fixed extended stay charges AHR items refund of liquidity damage/PRS dueto cost over-run deviation in design and change in scope of work equipment rental etcfor which the Company is at various stage of negotiation/discussion with clients or underarbitration. The Company has been legally advised that it has good case on merit inrespect of these matte Rs. Considering the contractual tenability progress ofnegotiation/discussion with the clients the management is confident of recovery of thesereceivables.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified Opinion paragraph above the 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 Company asat March 31 2018 of their Profit & loss and their cash flows for the year ended onthat date.

Emphasis of Matter

1. Attention is invited to Note no. 34 of the Standalone financial statement regardingThe litigation which was filied by the company against "Arabian Pipeline ProjectsCompany" (APPCO) in front of honorable london court of International Arbitration hasbeen decided against the company by the order dated 19th February 2018 and Court hasawarded the sum amounting to Rs. 10250.00 Lacs against which BG from IDBI Bank amountingto Rs. 6587.23 lacs had been already invoked and for the balance sum amounting to Rs.3662.77 lacs company has made provision in the books of accounts in the current financialyear and the suit which was filed by the company before Honorable Civil Court Ahmedabadis also vacated. Further the amount of Rs. 5046.30 Lacs Recoverable from "ArabianPipeline Projects Company" (APPCO) has also been written off during the currentfinancial Year which is included in baddebts written off under the head of Other Expenses.

2. Attention is invited to Note no.35 of the Standalone financial statement regardingThe Company's had made investments in its subsidiaries aggregating to Rs. 660.00 Lacsreported under "Non-Current Investments" there is erosion in the net worthcurrent year losses legal cases by lenders and creditors against the said subsidiariesbased on the management's internal assessment regarding survival of the said subsidiariesassessment regarding recovery of claims and dues from the customers and legal opinionobtained by the management the diminution in value is permanent and the company is notmore going concern and no amount is therefore recoverable . Hence the investments arewritten off completely from the books of accounts. Further company had granted advancedloan to the subsidiary in earlier years amounting to Rs. 300.75 lacs which is also now notrecoverable any more and therefore loan advanced to the subsidiary is also written offcompletely from the books of accounts. Further Company has granted advanced to theSubsidiary in earlier years amounting to Rs. 300.75 lacs which is also not recoverable anymore and therefore loan advanced to the subsidary is written Off Completely from the booksof accounts. Further as per the order of Honorable NCLT dated 16th January 2018 on theApplication of lender PNB the Subsidiary Jaihind Infratech Projects Private Limitedapplication for resolution has been Admitted.

3. Attention is invited to Note no.37 of Standalone Financial Statement that during theCurrent Financial Year Company has written Off Bad Debts amounting to Rs. 14416.29 out ofwhich the major bad debts written off are: GSPL-DJPL amounting to

Rs. 1669.34 Lacs GSPL-MMPL amounting to Rs. 1756.20 Lacs GAIL-GOA amounting to Rs.1004.92 Lacs GAIL-KKBMPL amounting to Rs. 1713.63 Lacs GAIL-CHINSA amounting to Rs.1235.86 Lacs and APPCO amounting to Rs. 5046.30 lacs.

During the year ended on March 312018 company has incurred net loss of Rs. 29945.01Lacs out of which the operating loss is Rs. 1215.42 Lacs. The reason behind increase inhuge loss this year is that during the year ended March 31 2018 company has written offdebtors and which are not any more recoverable.

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 sub-section (11) of section 143 ofthe Act based on the comments in the auditor's report of the company we give inAnnexures a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by the section 143(3) of the Act to the extent applicable we furtherreport that;

2.1 We have sought and except for the matters described in the Basis for QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit of the aforesaidfinancial statements; 2.2 Except for the possible effects of the matters described in theBasis for Qualified Opinion paragraph in our opinion proper books of account as requiredby law have been kept by the Company so far as appears from our examination of thosebooks; 2.3 The Balance Sheet the Statement of Profit and Loss and Cash Flow Statementdealt with by this Report are in agreement with the books of account ; 2.4 Except for thepossible effects of the matter described in the Basis for Qualified Opinion paragraphabove in our opinion the aforesaid Standalone financial statements comply with theapplicable Accounting Standards specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014; 2.5 The matters described in Basis for QualifiedOpinion paragraph paragraph of Emphasis of Matter and paragraph ix to statement on thematters specified in paragraphs 3 and 4 of the Order above in our opinion may haveadverse effect on the functioning of the Company; 2.6 On the basis of writtenrepresentations received from the directors as on March 31 2018 and taken on record bythe Board of Directors none of the directors is disqualified as on March 31 2018 frombeing appointed as a director in terms of Section 164(2) of the Act.

2.7 The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion paragraph above; and2.8 With respect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to explanations given to us: I. The Company hasdisclosed the impact of pending litigations on its financial position in its financialstatements.

II. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-term contractsincluding derivative contracts.

III. There are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.

For N.K.Aswani & Co.
Chartered Accountants
Regn. No. 100738W
Narain K. Aswani
30th May 2018 Proprietor
Ahmedabad M. No. 033278

Annexure -A to Auditors' Report

Annexure to Independent Auditors' Report

Jaihind Projects Limited ('The Company') incorporated in India and to whom theprovisions of the Order apply. Our reporting hereunder in so far as it relates to theaforesaid Company is based on the reports of audited financial statements. i. a) TheCompany wherever applicable has maintained the fixed assets registers however the recordsmaintained by the Company in respect of its fixed assets are not verified and fullparticulars of situation of assets and location of assets have been certified bymanagement. b) Physical verification of the fixed assets is not done; the same have beencertified by management. ii. a) As explained to us the management of the Company whereverapplicable the Company has conducted physical verification of inventory. b) According toinformation and explanations provided to us inventories at different sites have beenvisually quantified and the value estimated by respective site in charge. We are unable tocomment on the correctness of the procedure of physical verification of inventoriesfollowed by the management. iii. a) The Company has not granted any loans secured orunsecured to companies firms or other parties covered in the register maintained undersection 189 of the Companies Act 2013. b) The terms of the arrangements do not stipulateany repayment schedule and the loan and Interest is repayable on demand. Accordinglyparagraph 3 (iii) (b) of the Order is not applicable to the Company in respect ofrepayment of the principal amount. c) There were no overdue amounts of more than rupeesone lakh in respect of the loans granted to the party covered in the register maintainedunder section 189 of the Act. iv. In our opinion and according to the information andexplanations given to us the Company has not given guarantees for loans taken by othersfrom banks or financial institutions except guarantee given for loan taken by itssubsidiary i.e. Jaihind Infratech Projects Private Limited and the terms and conditions isnot prima facie prejudicial to the interests of the Company.

The Company has not accepted any deposits from the public covered under Section 73 to76 of the Companies Act 2013. vi We have broadly reviewed the books of account relatingto materials labour and other items of costs maintained by the Company pursuant to theRules made by the Central Government for the maintenance of cost records under section 148(1) of the Act and we are of the opinion that prima facie the prescribed accounts andrecords wherever applicable have been made and maintained. We have however not madedetailed examinations of the records with a view to determine whether they are accurate orcomplete. vii. a) According to information and explanations provided to us and on thebasis of examination of records the Company generally regular in deposit of undisputedstatutory dues including Provident Fund Investor Education and Protection FundEmployees' State Insurance Income-tax Sales-tax Wealth Tax Service Tax Custom DutyExcise Duty Cess and any other statutory dues applicable to it. As explained by themanagement during the year under consideration all the statutory payments are paid out ofescrow account with bank only. b) According to the information and explanation provided bythe management to us there were no undisputed amount payable in respect of the aforesaiddue which were outstanding as at 31st March 2018 for a period of more than six monthsfrom the date they became payable during the year c) According to the information andexplanations given to us and the records of the Company the statutory dues which have notbeen deposited on account of any dispute are as under: (a) Jaihind Projects Ltd:

Name of the statute Nature of the dues Amount in Rs. Lacs Period to which it relates Forum where dispute is pending
Finance Act 1994 Service Tax 223.58 June 16 2005 to Sep 2006 Supreme Court
Finance Act 1994 Service Tax 212.79 Oct 2006 to Sep 2007 CESTAT Ahmedabad
Finance Act 1994 Service Tax 177.37 Oct 2007 to March 2008 CESTAT Ahmedabad
Gujarat Commercial Tax Commercial Tax 327.41 Year 2009-10 Deputy Commissioner of Commercial Tax (Appeals) Ahmedabad
Gujarat Commercial Tax Commercial Tax 416.95 Year 2010-11 Deputy Commissioner of Commercial Tax (Appeals) Ahmedabad
Gujarat Commercial Tax Commercial Tax 426.12 Year 2011-12 Deputy Commissioner of Commercial Tax (Appeals) Ahmedabad

d) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company in accordance with the relevant provisions ofthe Act.

viii The Company's all lenders account slip in Non-Performing Assets. And all lendersare in the process of recovering there debts from the assets mortgaged and assets pledged.

ix Based on our audit procedures and according to the information given by themanagement the company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year.

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management which we have relied upon we report that no fraud on or by the Companyhave been noticed or reported during the year.

xi According to the information and explanations given to us we report that managerialremuneration has been paid in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Companies Act.

xii The company is not a Nidhi Company. Therefore clause xii) of the order is notapplicable to the company.

xiii. According to the information and explanations given to us all transactions withthe related parties are in compliance with sections 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.

xiv. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

xv. The company has not entered into non-cash transactions with directors or personsconnected with him.

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

For N. K. Aswani & Co.
Chartered Accountants
Regn. No. 100738W
Narain K. Aswani
30th May 2018 Proprietor
Ahmedabad M. No. 033278

Annexure-B Report on Internal Financial Controls over Financial Reporting

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 JAIHINDPROJECTS LTD. as of March 31 2018 in conjunction with our audit of the financialstatements of the Company for the year ended on that 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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 GuidanceNote 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 judgement 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 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.

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 ineffectively as at March 31 2018 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.

For N. K. Aswani & Co.
Chartered Accountants
Regn. No. 100738W
Narain K. Aswani
30th May 2018 Proprietor
Ahmedabad M. No. 033278