Jaihind Projects Ltd.
|BSE: 531339||Sector: Engineering|
|NSE: JAIHINDPRO||ISIN Code: INE343D01010|
|BSE 00:00 | 25 Jan||Jaihind Projects Ltd|
|NSE 05:30 | 01 Jan||Jaihind Projects Ltd|
|BSE: 531339||Sector: Engineering|
|NSE: JAIHINDPRO||ISIN Code: INE343D01010|
|BSE 00:00 | 25 Jan||Jaihind Projects Ltd|
|NSE 05:30 | 01 Jan||Jaihind Projects Ltd|
The Members of
JAIHIND PROJECTS LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the financial statements of JAIHIND PROJECTS LIMITED ("theCompany") which comprise the balance sheet as at 31st March2019 and the statementof Profit and Loss and statement of cash flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory 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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch2019 its profit/loss and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditors 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 together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Information other than the financial statements and auditors report thereon
The Companys board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the BoardsReport including Annexures to Boards Report but does not include the financialstatements and our auditors 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.
Responsibilities of Erstwhile management and Those Charged with Governance for theStandalone 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the financial statements erstwhile management is responsible forassessing the Companys ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless erstwhile management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Companysfinancial reporting process.
Auditors 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 auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud 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 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 erstwhile management.
Conclude on the appropriateness of erstwhile managements use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompanys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors report. However future events or conditions may cause theCompany to cease to continue as a 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.
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 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 ourauditors report unless law or regulation precludes public disclosure about thematter or when 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.
We are independent of the Group in accordance with the ethical requirements that arerelevant to our audit of the financial statements and we have fulfilled our other ethicalresponsibilities in accordance with these requirements.
Report on Other Legal and Regulatory Requirements
1. 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 Companies Act 2013 we give in the Annexure A a statementonthe 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:
i. 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.
ii. In our opinion proper books of account as required by law have been kept bythe Company so far as it appears from our examination of those books.
iii. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
iv. 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.
v. On the basis of the written representations received from the directors as on 31stMarch2019taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March2019from being appointed as a director in terms of Section 164 (2) of theAct.
vi. 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.
vii. With respect to the matter to be included in the Auditors Report undersection 197(16) In our opinion and according to the information and explanations given tous the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of section 197 of the Act.
The remuneration paid to any director is not in excess of the limit laid down undersection 197 of the Act. The Ministry of Corporate Affairs has not prescribed other detailsunder section 197(16) which are required to be commented upon by us.
viii. 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:
i) The Company has disclosed pending litigations and the impact on its financialposition-refer note 26 to the Standalone Financial Statements.
ii) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
Annexure to Independent Auditors Report
Jaihind Projects Limited (The Company) incorporated in India and to whomthe provisions of the Order apply. Our reporting hereunder in so far as it relates tothe aforesaid Company is based on the reports of audited financial statements.
i. a) The Company wherever applicable has maintained the fixed assets registers howeverthe records maintained by the Company in respect of its fixed assets are not verified andfull particulars of situation of assets and location of assets have been certified byerstwhile management.
b) Physical verification of the fixed assets is not done; the same have been certifiedby erstwhile management.
ii. a) As explained to us the erstwhile management of the Company wherever applicablethe Company has conducted physical verification of inventory.
b) According to information and explanations provided to us inventories at differentsites have been visually quantified and the value estimated by respective site in charge.We are unable to comment on the correctness of the procedure of physical verification ofinventories followed by the erstwhile management.
iii. a) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013.
The terms of the arrangements do not stipulate any repayment schedule and the loan andInterest is
b) repayable on demand. Accordingly paragraph 3 (iii) (b) of the Order is notapplicable to the Company in respect of repayment of the principal amount.
c) There were no overdue amounts of more than rupees one lakh in respect of the loansgranted to the party covered in the register maintained under section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us theCompany has not given guarantees for loans taken by others from banks or financialinstitutions except guarantee given for loan taken by its subsidiary i.e. JaihindInfratech Projects Private Limited and the terms and conditions is not prima facieprejudicial to the interests of the Company.
v. The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013.
vi We have broadly reviewed the books of account relating to materials labour andother items of costs maintained by the Company pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under section 148 (1) of the Act and we areof the opinion that prima facie the prescribed accounts and records wherever applicablehave beenmade and maintained. We have however not made detailed examinations of therecords with a view to determine whether they are accurate or complete.
vii. a) According to information and explanations provided to us and on the basis ofexamination of records the Company generally regular in deposit of undisputed statutorydues including Provident Fund Investor Education and Protection Fund Employees' StateInsurance Income-tax Sales-tax Wealth Tax Service Tax Custom Duty Excise Duty CessGoods and Services Tax and any other statutory dues applicable to it. As explained by theerstwhile management during the year under consideration all the statutory payments arepaid out of escrow account with bank only.
b) According to the information andexplanation provided by the erstwhile managementtous there were no undisputed amount payable in respect of the aforesaid due which wereoutstanding as at 31st March 2019 for a period of more than six months fromthe date they became payable during the year
c) According to the information and explanations given to us and the records of theCompany the statutory dues which have not been deposited on account of any dispute are asunder:
(a) Jaihind Projects Ltd:
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 Companys all lenders account slip in Non-Performing Assets. And alllenders are in the process of recovering there debts from the assets mortgaged and assetspledged.
ix Based on our audit procedures and according to the information given by theerstwhile management the company has not raised any money by way of initial public offeror further public offer (including debt instruments) or taken any term loan during theyear.
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 erstwhile management which we have relied upon we report that no fraud on or by theCompany have 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.
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 ofMarch 31 2019 in conjunction with our audit of the financialstatements of the Company for the year ended on that date.
Erstwhile managements Responsibility for Internal Financial Controls
The Companys erstwhile management 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 issued by the Institute of 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 companys policies the safeguardingof its 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.
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 tothe extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and 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 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 auditors 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 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 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 erstwhile 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 erstwhile managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
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 March 31 2019 based on theinternal control over financial reportingcriteria 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.