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Jauss Polymers Ltd.

BSE: 526001 Sector: Industrials
NSE: N.A. ISIN Code: INE593O01017
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NSE 05:30 | 01 Jan Jauss Polymers Ltd
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VOLUME 51
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OPEN 4.37
CLOSE 4.37
VOLUME 51
52-Week high 8.80
52-Week low 3.42
P/E
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jauss Polymers Ltd. (JAUSSPOLYMERS) - Auditors Report

Company auditors report

To the members of JAUSS POLYMERS LIMITED Report

On the Audit of Standalone Financial Statements Adverse Opinion

We have audited the accompanying standalone financial statements of Jauss PolymersLimited (“the Company”) which comprise the standalone Balance Sheet as at March312020 the standalone Statement of Profit and Loss (including Other ComprehensiveIncome) for the year ended on that date the standalone Statement of Changes in Equity andthe standalone Statement of Cash Flows for the year ended on that date and a summary ofthe significant accounting policies and other explanatory information (hereinafterreferred to as “the standalone financial statements”).

In our opinion and to the best of our information and according to the explanationsgiven to us because of the significance of the matter discussed in the Basis for AdverseOpinion section of our report the accompanying standalone financial statements do notgive a true and fair view in conformity with Indian Accounting Standards prescribed undersection 133 of the Companies Act 2013 (‘the Act') and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312020the profit and total comprehensive income for the year ended on that date changes inequity and its cash flows for the year ended on that date.

Basis for Adverse Opinion

A) Trade receivables amounting to Rs. 128.47 lakhs and loans and advances amounting toRs. 355.29 lakhs given include balances which are outstanding for substantial period oftime from the usual credit period/due date. We have not received confirmations for thesebalances and were unable to perform alternate audit procedures in respect of such balancesand accordingly we are unable to comment on the recoverability of such balances.

B) Trade payables amounting to Rs. 32.96 lakhs and advances received amounting to Rs.3.05 lakhs received include balances which are outstanding for substantial period of timefrom the usual credit period/due date. We have not received confirmations for thesebalances and were unable to perform alternate audit procedures in respect of the same andaccordingly we are unable to comment on such balances.

C) We have not been provided with the sufficient and appropriate evidences to supportthe reasonableness of the power and fuel expenses amounting Rs. 150.49 lakhs.

D) We have not been provided with the sufficient and appropriate evidences to supportthe carrying value of inventories held at March 312020 which are stated in the BalanceSheet at Rs. 59.20 lakhs. The impact of deviation from Indian Accounting Standard 2“Valuation of Inventories” if any is unascertainable.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (sas) issued by the Institute of Chartered Accountants of India(ICAI). Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

Except for the matter described in the Basis for Adverse Opinion section we havedetermined that there are no key audit matters to communicate in our report.

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 annexure to Board's Report Business Responsibility ReportCorporate Governance and Shareholder's Information but does not include the financialstatements and our auditor's 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.

Emphasis of Matter

Without qualifying our opinion we draw attention to Note 1.2 of the standalonefinancial statements that even though there has been significant decrease in turnover ofthe company the management is confident of revival and future profitability. Our opinionis not modified in respect of this matter.

Responsibilities of the Management and Those Charged with Governance for the AnnualFinancial 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance total comprehensive income changes inequity and cash flows of the Company in accordance with Indian Accounting Standards andother accounting principles generally accepted in India. The Board of Directors of theCompany is responsible for maintenance of the adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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.

In preparing the standalone financial statements the Board of Directors of the Companyis responsible for assessing the ability of the Company 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. The Board of Directors of theCompany is also responsible for overseeing the financial reporting process of the Company.

Auditor's Responsibilities for the Audit of the 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 scepticism 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 of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances for thepurpose of expressing an opinion on effectiveness of the Company's internal financialcontrols.

• 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 basisof accounting 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 standalone financial statements or if such disclosures are inadequateto modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Group tocease to continue 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 financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the 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.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditors' Report) Order 2016 (“the Order”)issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in “Annexure 1” a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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

A. We have sought and except for the matters described in the Basis for Adverse Opinionparagraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit;

B. Except for the possible effects of the matters described in the Basis for AdverseOpinion paragraph above in our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

C. The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

D. Except for the matters described in the Basis for Adverse Opinion paragraph abovein our opinion the aforesaid standalone financial statements read with notes theretocomply with the Indian Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014;

E. The matters described in the Basis for Adverse Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company;

F. On the basis of written representations received from the directors as on March312020 and taken on record by the Board of Directors none of the directors isdisqualified as on March 312020 from being appointed as a director in terms of Section164 (2) of the Act;

G. The adverse remarks relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Adverse Opinion paragraph above;

H. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls we give ourseparate Report in “Annexure 2”;

I. 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 read with schedule V;

J. 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 opinionand 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 its financialposition in its financial statements - Refer Note 27 on Contingent Liabilities to thestandalone financial statements;

Ii. The Company did not have any long-term contracts including derivative contracts.Hence the question of any material foreseeable losses does not arise;

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

For BGJC & Associates LLP
Chartered Accountants
Firm's Registration No.: 003304N/N500056
Pranav Jain
Partner
Place: New Delhi Membership Number: 098308
Date: July 312020 UDIN: 20098308AAAADC1166

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of JaussPolymers Limited on the standalone financial statements for the year ended March 312020]

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

(b) During the year the fixed assets of the Company have not been physically verifiedby the management. Hence discrepancies if any cannot be ascertained.

(c) The Company does not have any immovable property. Accordingly paragraph 3(i)(c) ofthe Order is not applicable to the Company.

(ii) The inventory has not been physically verified by the management during the year.Hence discrepancies if any cannot be ascertained.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under Section 189 of theAct. Accordingly paragraph 3 (iii)(a) 3 (iii)(b) and 3 (iii)(c) of the Order are notapplicable to the Company.

(iv) According to the information and explanation given to us in respect of loansinvestments guarantees and securities the Company has complied with the provisions ofSection 185 and 186 of the Act.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the provisions of Sections 73to 76 of the Act and the rules framed there under. Further as informed no Order has beenpassed by the Company Law Board or National Company Law Tribunal or Reserve Bank of Indiaor any Court or any other Tribunal on the Company in this regard.

(vi) The Central Government of India has not prescribed the maintenance of cost recordsfor any of the products/ activities of the Company under sub-section (1) of Section 148 ofthe Act and the rules framed there under.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax sales tax service tax value added tax goods and services tax customs duty exciseduty cess and any other material statutory dues applicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income tax sales taxservice tax value added tax goods and services tax customs duty excise duty cess andany other material statutory dues applicable to it were outstanding at the year end fora period of more than six months from the date they became payable.

(b) According to the information and explanation given to us the dues outstanding withrespect to income tax sales tax service tax value added tax goods and services taxcustoms duty excise duty on account of any dispute are as follows:

Name of the statute Nature of dues Amount Disputed (in Rs. Lakhs) Amount paid under protest Period to which the amount relates Forum where dispute is pending Re marks
Income Tax Act 1961 Income Tax 6.58 2011-12 Jurisdictional Assessing Officer -
Income Tax Act 1961 Income Tax 0.22 2012-13 Jurisdictional Assessing Officer -
Income Tax Act 1961 Income Tax 6.67 2013-14 Jurisdictional Assessing Officer -
Income Tax Act 1961 Income Tax 0.01 2014-15 Jurisdictional Assessing Officer -
Income Tax Act 1961 Income Tax 1.94 2016-17 Centralized Processing Cell -

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institution. Further there areno loans or borrowings from bank or Government and there are no debenture holders.

(ix) The Company has neither raised money by way of public issue offer nor has obtainedany term loans. Accordingly paragraph 3(ix) of the Order is not applicable to theCompany.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by the Company or any fraud on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such instance by themanagement.

(xi) According to the information and explanations given to us managerial remunerationhas been paid / provided in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) According to the information and explanation given to us all transactionsentered into by the Company with the related parties are in compliance with Sections 177and 188 of Act where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards.

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review.Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him.

(xvi) According to the information and explanation given to us the Company is notrequired to be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For BGJC & Associates LLP
Chartered Accountants
Firm's Registration No.: 003304N/N500056
Pranav Jain
Partner
Place: New Delhi Membership Number: 098308
Date: July 312020 UDIN: 20098308AAAADC1166

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

[Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of JaussPolymers Limited on the standalone financial statements for the year ended March 312020]

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of JaussPolymers Limited (“the Company”) as of March 312020 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 (“ICAI”). 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 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 specified under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk.

The procedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 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 theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the ICAI.

For BGJC & Associates LLP
Chartered Accountants
Firm's Registration No.: 003304N/N500056
Pranav Jain
Partner
Place: New Delhi Membership Number: 098308
Date: July 312020 UDIN: 20098308AAAADC1166

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