ON AUDIT OF STANDALONE FINANCIAL RESULTS
The Members of
Jain Marmo Industries Limited
We have audited the accompanying Standalone Ind AS Financial Statements of JainMarmo Industries Limited ("the Company") which comprise the Balance Sheetas at March 31 2021 and the Statement of Profit and Loss including the statement ofOther Comprehensive Income the Cash Flow Statement and the Statement of changes in equityfor the year then ended and notes to the Standalone Ind AS financial statements includinga summary of significant accounting policies and other explanatory information(hereinafter referred to as "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 Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2021 and loss (including othercomprehensive income) changes in equity and its cash flows for the year ended on thatdate.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
Key audit matters (KAM') are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we^dS^rtqf xprovide a separate opinion on these matters. We have determined thfi^raen\described below to be the key audit matters to be communicated in our report - ''T'~
|The Key Audit Matter ||How was the matter addressed in our audit |
|Revenue Recognition: - || |
|Revenue is one of the key profit drivers and. Cut-off is the key assertion in so far as revenue recognition is concerned since an inappropriate cut-off can result in material misstatement of result for the year. ||Our audit procedures with regard to revenue recognition included testing controls around dispatches / deliveries inventory reconciliations and substantive testing for cut-offs and analytical review procedures. |
Emphasis of Matter Paragraph
We invite attention to Note No-39 to the financial statements regarding uncertaintiesassociated with the COVID-19 pandemic and impact assessment made by the company on itsbusiness and financial statements for the year ended 31st March 2021 the said assessmentmade by the management is highly dependent upon how the circumstances evolve in subsequentperiods.
Our Opinion is not modified on the above matters.
Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included ip the Management Discussion and AnalysisBoard's Report including Annexures to the Board's Report Business Responsibility ReportCorporate Governance and Shareholder's information but does not include the standalonefinancial statements and our auditors' report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements-our responsibilityis tg read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.
Management's Responsibility for the standalone Ind AS Financial Statements
The Company's management and Board of Directors are responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Standalone Financial Statements that give a true and fair view of thefinancial position state of affairs profit / loss (including other comprehensiveincome) changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards (Ind AS)specified under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules2015 as amended. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Company's financial reportingprocess.
Auditor's Responsibility for the Audit of Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone 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 standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override ofinternal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing a opinion whether the company has adequate internal financial control withreference to the financial statement in place and operating effectiveness of suchcontrols.
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 basis ofaccounting 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone 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 safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' 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.
In our opinion and according to the information and explanations given to us theremuneration paid by the Company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 1)7 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.
i. With respect to the other matters to be included in the Auditor's Report inaccordance with the Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amendedin our opinion and to the best of our information and according to the explanations givento us:
ii. The Company has disclosed the impact of the pending litigations as at 31 March 2021on its financial position of its standalone financial statements
iii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contacts;
iv. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
Annexure I to the Independent Auditors' Report of Jain Marmo
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the standalone Ind AS Financial Statements for the year ended 31 March 2021 wereport that:
(i) (a) The company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.
(b) All the assets have been physically verified by the management during the year andthere is a regular program of verification which in our opinion is reasonable havingregard to the size of the company and the nature of its assets No material discrepancieswere noticed on such verification.
(c) The title deeds of immovable properties are held in the name of the company.
(ii) (a) The inventory has been physically verified during the year by themanagement. In our opinion the frequency of verification is reasonable.
(b) The discrepancies noticed on physical verification of inventory as compared to bookrecords were not material and have been properly dealt with in the books of accounts.
(c) In our opinion and according to the information and explanation given to us and onthe basis of our examination of the records of inventory the company is maintainingproper records of inventory. The discrepancies noticed on physical verification ofinventory as cqmpared to book records were not material and have been properly dealt within the books of accounts.
(iii) The Company has not granted loans to companies firms or other partiescovered in the register maintained under section 189 of the Companies Act 2013 (theAct') hence clause(iii)(a) (b) &(c) of the order are not applicable.
(iv) In our opinion and according to the information and explanations given to usthe company has complied with the provisions of section 185 and I86 of the Companies Act2013 In respect of loans investments guarantees and security
(v) The Company has not accepted any deposits from the Public and hence thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 orany other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules2015 with regard to the deposits accepted from the public are not applicable
(vi) According to the information & explanation given to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148(1) of the CompaniesAct 2013 in respect of manufacture of its products by the company.
(vii) In respect of statutory dues:
a) According to the records of the company undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax Duty ofCustoms Value Added Tax Cess Goods and Service Tax and other material statutory dueshave been regularly deposited during the year by the Company with the appropriateauthorities except for a few delays. According to the information and explanations givento us no undisputed amount payable in respect of the aforesaid due were outstanding as atMarch 312021 for a period of more than six months from the date of becoming payable.
b) According to the information and explanation given to us there are no pending duesof Income Tax Sales Tax Service Tax Duty of Custom Duty of Excise Value Added TaxGoods and Service Tax br Cess which are not deposited on account of dispute.
(viii) According to information and explanation given to us by the management ason balance sheet date the company is not in default w.r.t. repayment of loans andborrowings to a financial institution^ banks or government further the company has notissued any debentures.
(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management during the year under review the company has not raised moneys byway of initial public offer or further public offer including debt instruments. To thebest of our knowledge and belief and according to the Information and Explanation given tous term loans availed by the company were prima facie applied by the company during theyear for the purpose for which the loan were Obtained.
(x) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.
(xi) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.
(xii) In our opinion the Company is not a Nidhi Company. Therefore the provisionsof clause 4 (xii) of the Order are not applicable to the Company.
(xiii) In our opinion all transactions with the related parties are in compliancewith section 177 and 188 of Companies Act 2013 and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.
(xiv) Based upon the audit procedures performed and the information andexplanations given by the management the company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder review. Accordingly the provisions of clause 3 (xiv) of the Order are notapplicable to the Company and hence not commented upon.
(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.
(xvi) In our opinion the company is not required to be registered under section 45IA of the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3(xvi) of the Order are not applicable to the Comp'any and hence not commented upon
Annexure II to the Independent Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference to Standalone FinancialStatements of Jain Marmo Industries Ltd (hereinafter referred to as "theCompany") as of March 31 2021 in conjunction with our audit of the StandaloneFinancial Statements of the Company for the year ended on that.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the company are responsible for establishing and maintaininginternal financial controls based on the "the internal controls over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to the respective company'spolicies 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 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 Standards on Auditing issued by the ICAI and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls and both issued by Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were 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 evaluatmgjifcfe designand operating effectiveness of internal control based on the assessed riskrXheprocedures selected depend on the auditor's judgement including the assest 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 authorizations 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 . thedegree of compliance with the policies or procedures may deteriorate.
In our opinion and to the best of our information and according to the explanationgiven to us the Company has maintained in all material aspects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as of March 312021 based on "theinternal controls 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".