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Jasch Industries Ltd.

BSE: 500220 Sector: Industrials
NSE: JASCHIND ISIN Code: INE711C01010
BSE 12:49 | 18 Feb 30.00 -1.30
(-4.15%)
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30.75

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32.40

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NSE 05:30 | 01 Jan Jasch Industries Ltd
OPEN 30.75
PREVIOUS CLOSE 31.30
VOLUME 1710
52-Week high 59.85
52-Week low 28.50
P/E 5.87
Mkt Cap.(Rs cr) 34
Buy Price 29.60
Buy Qty 180.00
Sell Price 31.75
Sell Qty 25.00
OPEN 30.75
CLOSE 31.30
VOLUME 1710
52-Week high 59.85
52-Week low 28.50
P/E 5.87
Mkt Cap.(Rs cr) 34
Buy Price 29.60
Buy Qty 180.00
Sell Price 31.75
Sell Qty 25.00

Jasch Industries Ltd. (JASCHIND) - Auditors Report

Company auditors report

To THE MEMBERS

JASCH INDUSTRIES LIMITED

(CIN : L24302HR1985PLC022758)

43/5 Bahalgarh Road

Sonipat -131 021

Report on the Audit of the Standalone financial statements Opinion

We have audited the accompanying standalone financial statements ofJASCH INDUSTRIES LIMITED ("the Company") which comprise the Balance Sheet as at31st March 2019 and the Statement of Profit and Loss the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe Standalone financial statements including a summary of the significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 "the Act" in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2019 and its PROFIT changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under sectionl43 (10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone financial statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Companies Act 2013 andthe Rules there under and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

Key Audit Matters

Key audit matters 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 do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matter Auditor's Response
1 Refer to Note 2A (related to Capital-work-in-progress) Principal Audit Procedures
An amount of Rs. 284.98 lakh had been incurred as Capital-work- in-progress till 31-03-2019 on purchase of three CNC Machines for Rs. 226.40 lakh and an under-construction factory building for Rs. 58.58 lakh. However the CNC Machines and building had not been not put to use till 31-03-2019. Our Audit approach was a combination of test of internal controls and substantive procedures which included (1) evaluation of the design of internal controls relating to recording of efforts incurred and estimation of efforts required to complete the performance obligations and (2) performing analytical procedures and test of details for reasonableness of incurred and estimated efforts.
2 Refer Note 6 (Other non-current assets) Principal Audit Procedure
Out of a book loss of Rs. 135 lakhs incurred by the Company in the year 2001-02 on account of destruction of a part of factory buildings plant 8i machinery and inventory in a fire accident the Company had received an insurance claim of only Rs. ? 86.03 lakh during 2003-2004 and had shown the remaining amount of ? 48.97 lakh as recoverable from the insurance company and had shown it as a non-current asset till the year 2017-18. On rejection of Company claim for the balance amount by District Court as well as by the Delhi High Court in the year 2018-19 and keeping in view the reasons of rejection given by the Courts the Board has decided not to pursue the matter any further. Hence this amount has been charged to Profit 8i Loss account in current year as an exceptional item. Details of the court case were ascertained from management. We involved our internal experts to challenge the management's underlying assumptions in estimating the possible outcome of the dispute. Our internal experts also considered legal precedence and other rulings and evaluating management's position on this issue. Additionally we evaluate where any change was required to management's position on this issue.

Responsibility of the Management and those charged with Governance forthe Standalone financial statements

The Company's Board of Directors is 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 financial performance changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the Standalone financial statements the Board ofDirectors are responsible for assessing the company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of Directors either intends to liquidate thecompany or to cease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing thecompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone financialstatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's 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 theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone 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.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) ofthe Act we reportthat:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required bylaw have beenkept by the Company so far as it appears from our examination o those books.

c) The Balance Sheet the Statement of Profit and Loss the Statementof Changes in Equity and the Statement of Cash Flow dealt with bi this Report are inagreement with the books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Indian Accounting Standards specified under Section 13: of the Act read withRule 7 ofthe Companies (Accounts) Rules 2014.

e) On the basis ofthe written representations received from thedirectors as on 31st March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2019 from being appointed as a director interms of Section 164(2) of the Act.

f) With respect to the adequacy ofthe internal financial controls overfinancial reporting ofthe Company and the operating effectiveness o such controls referto our separate Report in "Annexure A".

g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 ofthe Companies (Audit and Auditors Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Ind AS financial statements - Refer Note 30 to thestandalone Ind AS financial statements.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. During the year company has deposited an amount of Rs. 9.03 lakhto the Investor Education and Protection Fund under Section 12! ofthe Companies Act 2013this is the only amount which required payment during the year.

2. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government in terms of Section 143(11) o theAct we give in "Annexure B" a statement on the matters specified in paragraphs3 and 4 of the Order.

For Mukesh A Mittal &Co.
Chartered Accountants
(ICAI Firm Registration No. 016910N)
CA. Shikha Gupta
(Partner)
Membership No. 520509
Place: New Delhi
Date : 29-05-2019

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF JASCH INDUSTRIES LIMITED.

Reports on the internal Financial Controls under clause (i) ofsubsection 3 of section 143 of the companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of JASCH INDUSTRIES LIMITED ("the Company") as of March 31 2019 inconjunction with our audit of the standalone financial statements of the company for theyear ended on that date.

Management Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial control based on the internal control 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. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors. The accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing to the extentapplicable to an audit of internal financial controls both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. Acompany's internal financial controloverfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper 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.

Opinion

In our opinion the company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2019 based on the internal control over financial reporting criteria established by thecompany considering the essential component of internal controls stated in the Guidancenote issued by the Institute of Chartered Accountant of India.

For Mukesh A Mittal & Co.
Chartered Accountants
(ICAI Firm Registration No. 016910N)
CA. Shikha Gupta
(Partner)
Membership No. 520509
Place: New Delhi Date : 29-05-2019

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT OF JASCH INDUSTRIESLIMITED FOR THE FINANCIAL YEAR ENDED 31" MARCH 2019

(Referred to in paragraph 1 under "Report on Other Legal andRegulatory Requirements" section of our report of even date)

i. In respect of its fixed assets:

a. The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b. As per information and explanations given to us the fixed assetswere physically verified at reasonable intervals during the year by the management inaccordance with a regular programme of verification. No material discrepancies werenoticed on such verification.

c. According to the information and explanations given to us the titledeeds of immovable properties as disclosed in Note 10 to the standalone financialstatements are held in the name of the Company.

ii. The inventory except goods-in-transit has been physicallyverified by the management at reasonable intervals during the year. In our opinion thefrequency of such verification is reasonable. In respect of inventory lying with thirdparties these have been confirmed by them. The discrepancies noticed on verificationbetween the physical stocks and book record were not material.

iii. The Company has not granted any loans secured or unsecured tocompanies firms LLP or other parties covered in the Register maintained under Section189 of the Companies Act 2013. Accordingly paragraph 3(iii) (a) (b) 8< (c) of theOrder is not applicable to the Company.

iv. The company has neither directly or indirectly advanced any loanincluding any loan represented by a book debt to any of its directors or to any otherperson in whom the director is interested nor has give any guarantee nor has provided anysecurity in connection with any loan taken by him or such other person as covered underthe provisions of section 185 of the Companies Act 2013. The Company has also not madeany investment through investment companies as covered under the provisions of section186(1) of the Companies Act 2013. The Company has neither directly or indirectly givenany loan to any person or other body corporate nor has given any guarantee nor hasprovided security in connection with a loan to any other body corporate or person and hasalso not acquired by way of subscription purchase or otherwise the securities of anyother body corporate exceeding sixty per cent of its paid-up share capital free reservesand securities premium account or one hundred per cent of its free reserves and securitiespremium account whichever is more as covered under the provisions of section 186(2) ofthe Companies Act 2013.

v. According to the information and explanations given to us thecompany has not accepted any deposits within the meaning of sections 73 to 76 of the Actand the Rules framed thereunder. No order has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any court or any other tribu nal in thecase of the company.

vi. We have broadly reviewed the records maintained by the Companypursuant to the rules prescribed by the Central Government for maintenance of cost recordsunder sub-section 1 of Section 148 of the Act and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records.

vii. (a) The company is generally regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-

tax sales-tax service tax duty of customs duty of excise valueadded tax cess gst and other statutory dues with the appropriate authorities whereverapplicable.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees state insurance incometax sales tax service tax duty of customs duty of excise value added tax cess gstand other material statutory dues were in arrears as at 31 March 2019.

(b) According to the information and explanations given to us thereare no dues of Income Tax Sales tax Value added tax Service Tax duty of customs dutyof excise gst which have not been deposited with the appropriate authorities on accountof any dispute other than those mentioned in "Annexure C"to this report.

viii. According to the information and explanations given to us and asper the books and records examined by us the Company does not have any dues payable toany financial institution bank and Government.

ix. The company has not raised any money by way of initial public offeror further public offer (including debt instruments) during the year but the Company hasraised new term loans during the year. The term loans outstanding at the beginning of theyear and those raised during the year have been applied for the purpose for which theywere raised.

x. During the course of our examination of the books and records of theCompany carried out in accordance with the generally accepted auditing practices in Indiawe have neither come across any instances of fraud by the company or any fraud on thecompany by its officers or employees noticed or reported during the year nor have we beeninformed of such case by the management.

xi. According to the information and explanations given to us and basedon our examination of the records the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly paragraph 3 (xii) of theOrder is not applicable.

xiii. According to the information and explanations given to us and asper the books and records examined by us all transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Standalone financial statements etc. as required bythe applicable accounting standards. Related Party Disclosures specified under Section 133of the Act read with Rule 7 of the Companies (accounts) Rules 2014.

xiv. The company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under reviewaccordingly paragraph 3(xiv) of the order is not applicable to the Company.

xv. The company has not entered into any non-cash transactions withdirectors or persons connected with him accordingly paragraph 3(xv) of the order is notapplicable to the Company.

xvi. The company is not required to be registered under section 45-IAofthe Reserve Bank of India Act 1934 accordingly paragraph 3(xvi) of the order is notapplicable to the Company.

For Mukesh A Mittal & Co.
Chartered Accountants
(ICAI Firm Registration No. 016910N)
CA. Shikha Gupta
(Partner)
Membership No. 520509
Place: New Delhi
Date : 29-05-2019

ANNEXURE-C TO THE INDEPENDENT AUDITOR'S REPORT OF JASCH INDUSTRIESLIMITED FOR THE FINANCIAL YEAR ENDED 31st MARCH 2019

(Amount Rs. In Lakh)

Name of Status Nature of dues Amount Demanded Amount Paid Period to which the amount relates Forum where dispute is pending
The Haryana Value Added Tax Act 2003 VAT Tax including interest if applicable 100.32 73.79 2011-2012 Jt. Excise and Taxation Commissioner (Appeals) / Excise & Taxation Commissioner Haryana
The Central Sales Tax Act 1956 Central Sales Tax including interest if applicable 196.52 141.51 2011-2012 Jt. Excise and Taxation Commissioner (Appeals) / Excise 8i Taxation Commissioner Haryana
The Haryana Value Added Tax Act 2003 VAT Tax including interest if applicable 80.06 63.47 2012-2013 Jt. Excise and Taxation Commissioner (Appeals) / Excise & Taxation Commissioner Haryana
The Central Sales Tax Act 1956 Central Sales Tax including interest if applicable 174.21 139.25 2012-2013 Jt. Excise and Taxation Commissioner (Appeals) / Excise 8i Taxation Commissioner Haryana
For Mukesh A Mittal & Co.

Chartered Accountants

(ICAI Firm Registration No. 016910N)
CA. Shikha Gupta

(Partner)

Membership No. 520509
Place: New Delhi
Date : 29-05-2019