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Jainco Projects (India) Ltd.

BSE: 526865 Sector: Infrastructure
NSE: N.A. ISIN Code: INE966C01010
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NSE 05:30 | 01 Jan Jainco Projects (India) Ltd
OPEN 4.20
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VOLUME 2031
52-Week high 7.15
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Buy Price 0.00
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Sell Price 0.00
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OPEN 4.20
CLOSE 4.22
VOLUME 2031
52-Week high 7.15
52-Week low 0.45
P/E
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jainco Projects (India) Ltd. (JAINCOPROJECTS) - Auditors Report

Company auditors report

To The Members of Jainco Projects (India) Limited Report on the Standalone Ind ASFinancial Statements

We have audited the accompanying standalone Ind AS financial statements of JaincoProjects (India) Limited (“the Company”) which comprise the Balance Sheet as at31st March 2020 and the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement the Statement of Changes in Equity for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 (“the Act”) in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rules2015 as amended (“Ind AS”) and other accounting principles generally acceptedin India of the state of affairs (financial position) of the Company as at 31stMarch 2020 and its profit/loss (financial performance including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement. We are independent of the Company in accordance with the Codeof Ethics issued by the Institute of Chartered Accountants of India (“ICAI”)together with the ethical requirements that are relevant to our audit of the standalonefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the ICAI's Code of Ethics.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors/ consideredofficers as well as evaluating the overall presentation of the standalone financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

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 in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance Report and Shareholder Information but does not include thestandalone financial statements and our auditor's 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 to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information; we are required to report that fact. We have nothing to reportin this regard.

Management's Responsibility for the Standalone 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 standalone financial statements that give a true and fair view of the state ofaffairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) prescribed under section 133 of the Act read with relevant rules issuedthereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Other Matters

1. Audit transition adjustments

The comparative financial information of the Company for the year ended 31st March 2019and the transition date opening balance sheet as at 1st April 2018 included inthese standalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 for the year ended 31st March 2019 and 31st March 2018dated 30th May 2019 and 30th May 2018 respectively expressed anunmodified opinion on those standalone financial statements as adjusted for thedifferences in the accounting principles adopted by the Company on transition to the IndAS which have been audited by us.

Our opinion is not modified in respect of these matters.

2. Attention is drawn to :

a. Note 2.17 and 26.10 of the financial results relating to advances unsecured loantrade payable and receivable are subject to confirmation from respective parties as atMarch 31 2020 and consequential effect upon reconciliation/adjustment arising there fromif any. Hence financial impact if any is not currently ascertainable. Receivables andadvances include the amount due from customers and parties which are sub-judice or assetswhich are not presently in possession of the company and matter is sub-judice.

b. Note 2.11 Borrowing Cost and dues to financial creditor of the company it has notrecognised isputed interest and other charges payable to all financial creditors inpreparation of the financial results as its being disputed by the company and the matteris sub-judice.

c. Note no. 26.10 effect of total non-recognition of various financial figures i.e.total contingent liability of the company which has been unascertainable includedifferences of claims by financial / operational creditors / statutory dues / effect ofguarantees extended by the company and brought to our notice during our audit.

d. Note no. 26.10 wherein companies some assets current and fixed are not inpossession of company due to reason briefed therein.

e. Note no. 26.10 wherein the company has not made any provision for gratuity paymentfor the year and the same is also not ascertainable by us.

f. Note 2.20 to the standalone financial statements which explain the uncertainties andmanagement's assessment of the financial impact due to lockdown / restrictions related tothe COVID-19 pandemic imposed by the Governments for which a definitive assessment of theimpact is dependent upon future economic conditions.

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 in terms of Section 143(11) of the Act we give in“Annexure A” a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit of the aforesaidfinancial statements.

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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

c) The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement andStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account and with the returns received from the branches not visited by us.

d) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors/authorisedperson as on 31st March 2020 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2020 from being appointed as a director interms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure B”.

g) 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 to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h) 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 in our opinion and to the best ofour information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements;

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. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Kumar Roybarman Prasanta and Associates
Chartered Accountants
FRN 330634E
Place: Kolkata (Prasanta Roybarman)
Date: 31/07/2020 (Proprietor)
(M.No. 013905)

Annexure ‘A' to the Auditor's Report

(Referred to in paragraph 1 under the heading ‘Report on Other Legal andRegulatory Requirements' of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) The fixed assets have been physically verified by the management at reasonableintervals and in our opinion it is reasonable considering the size of company and natureof asset no such material discrepancies were noticed on such verification and if so thesame have been properly dealt with in the books of account;

(c) The title deed of immovable properties is held in the name of the Company.

(ii) As explained to us the inventories of Stock in trade were maintained in demataccount & physical and has been conducted at reasonable intervals by the managementand if any material discrepancies were noticed on physical verification the same havebeen properly dealt with in the books of account attention is drawn towards note no.26.10 of financial statement;

(iii) According to the information and explanation given to us during the year thecompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly provisions of clauses (iii) (a) (b) and (c) of paragraph 3of the aforesaid Order are not applicable to the Company.

(iv) According to the information and explanation given to us during the year theCompany has not given loans made investments given guarantees and provided securitiescovered by provisions of section 185 and 186 of the Act.

(v) The company has not accepted deposits from the public within the meaning ofsections 73 and 74 or any other relevant provisions of the Companies Act and the rulesframed there under.

(vi) The Company is not required to maintain cost records as specified underSub-Section (1) of Section 148 of the Companies Act 2013.

(vii) (a) According to the information and explanations given to us and on the basis ofchecking the records of the Company we are of the opinion that the Company is generallyregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax cess GST and any other statutory dues with appropriate authorities.

(b) According to the information and explanations given to us the following dues ofsales tax value added tax duty of custom and duty of excise have not been deposited bythe Company on account of any dispute:

Name of Statue Nature of Dues Amount Involved Forum where demand is pending
Income Tax Act 1961 Income Tax/Interest/ Penalty AY 2005-06 Demand Raised Rs. 371/- Appeal not yet filed
Income Tax Act 1961 Income Tax/Interest/ Penalty AY 2005-06 Demand Raised Rs. 385/- Appeal not yet filed
Income Tax Act 1961 Income Tax/Interest/ Penalty AY 2011-12 Demand Raised Rs. 127105/- Appeal decided effect yet to be given by A.O.
Income Tax Act 1961 Income Tax/Interest/ Penalty AY 2012-13 Demand Raised Rs. 347654/- Appeal decided effect yet to be given by A.O.
Income Tax Act 1961 Income Tax/Interest/ Penalty AY 2013-14 Demand raised Rs. 120465 /- Appeal decided effect yet to be given by A.O.
Income Tax Act 1961 Income Tax/Interest/ Penalty AY 2017-18 Demand raised Rs. 153080/- Rectification u/s 154
Income Tax Act 1961 TDS - Short Payment/ Interest / Late Filing/ Demand o/s for 26202.50 Appeal not yet filed
VAT Act 2003 Vat/ Interest/ Penalty for the year 2013-14 and 2014-15 Demand Raised Rs.88 Lacs & 44 Lacs Appeal at High court/DCCT Sales Tax
Gratuity Yearly payment Not ascertained LIC has been requested for sending quote

(A mere representation to/by the concerned Department is not considered as a dispute)

(viii) According to information and explanation given to us and based on the records ofthe company examined by us the company has not made repayment of short term loans orborrowings to financial institutions/Banks as at Balance Sheet date as there has beendispute between the company and the institution/Bank with regards to amount payableinterest etc. for which cases has been instituted/ will be instituted before appropriatecourt for adjudication of the matter hence being subjudice matter we reserve our opinionin the matter which will be shared after fate of the cases though the company has beenregular in repayment of Long Term Loan which is undisputed.

(ix) The company did not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. Hence this clause is not applicable tothe company.

(x) No fraud by the company or on the company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) In our opinion managerial remuneration has been paid or provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with scheduleV to the Companies Act.

(xii) The Company is not a Nidhi Company. Accordingly clause (xii) of paragraph 3 ofthe aforesaid Order is not applicable to the Company.

(xiii) On the basis of our examination of the books of account of the Company andaccording to the information and explanations given to us the transactions entered intowith the related parties are in compliance with section 177 and 188 of the Act and thesame has been disclosed in the Notes to the Ind AS financial statements as required by theapplicable Accounting Standards (Ind AS).

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.

(xv) On the basis of our examination of the records of the Company and according to theinformation and explanations given to us the Company has not entered into any non-cashtransactions with directors or persons connected with him.

(xvi) The Company is duly registered with Reserve Bank of India (RBI) as a NBFC companyas per Section 45 IA of the RBI Act 1934. The company has registration certificatebearing registration no. 05.02398 issued by the Reserve Bank of India.

For Kumar Roybarman Prasanta and Associates
Chartered Accountants
FRN 330634E
Place: Kolkata (Prasanta Roybarman)
Date: 31/07/2020 (Proprietor)
(M.No. 013905)

Annexure ‘B' to the Auditor's Report

(Referred to in paragraph 2(f) under the heading “Report on Other Legal andRegulatory Requirements” of our report of even date)

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 JaincoProjects (India) Limited (“the Company”) as of 31st March 2020 in conjunctionwith our audit of the Ind AS financial statements of the Company for the year ended onthat 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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013. In preparing the Standalone Ind AS financialstatements management is responsible for assessing the ability of the company to continueas a going concern disclosing as applicable matters related to going concern and usingthe going concern basis of accounting unless management either intends to liquidate or tocease operations or has no realistic alternative but to do so.

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 Guidance 168 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 was established andmaintained and if such controls operated effectively in all material respects.

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 ability ofthe company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the consolidated Ind AS financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the company to cease to continue as a going concern.

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 Ind AS 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 Ind AS financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting 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 Ind AS financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the Ind AS 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 effectively as at March 31 2020 based on“the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India”.

For Kumar Roybarman Prasanta and Associates
Chartered Accountants
FRN 330634E
Place: Kolkata (Prasanta Roybarman)
Date: 31/07/2020 (Proprietor)
(M.No. 013905)

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