To the members of JAUSS POLYMERS limited
Report on the Audit of Standalone Financial Statements
We have audited the accompanying standalone financial statements of Jauss PolymersLimited ("the Company") which comprise the standalone Balance Sheet as at march312019the standalone statement Profit and Loss (including Other Comprehensive Income)for the year ended on that date the standalone Statement of Changes in Equity and thestandalone Statement of Cash Flows for the year ended on that date and a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas "the standalone financial statements").
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid annual financial statements give a true and fair view inconformity with Indian Accounting Standards prescribed under section 133 of the CompaniesAct 2013 (the Act') and other accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2019 the profit and totalcomprehensive income for the year ended on that date changes in equity and its cash flowsfor the year ended on that date.
Basis for Opinion
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 Formingan Opinion and Reporting on Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together with the independence requirementsthat are relevant to our audit of the standalone financial statements under theprovisionsoftheactandtherulesmadethereunderandwehavefulfilled 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.
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 financialstatements 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 workwe have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.
Key Audit Matters
We have determined that there are no key audit matters to communicate in our report.
Responsibilities of the Management and those Charged with Governance for the AnnualFinancial Statements
Company's Board of Directors is responsible for the preparation and presentation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with Indian Accounting Standards and other accountingprinciples generally accepted in India. The Board of Directors of the Company isresponsible for maintenance of the adequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of the Company and for preventing anddetecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the annual financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error which have been used for the purpose of preparation of the annualfinancial statements by the Board of Directors of the Company as aforesaid.
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 Annual 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 disclosures and whether the annual financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial informationof the entity or business activities within the Company to express an opinion on thestandalone financial statements. Materiality is the magnitude of misstatements in thestandalone financial statements that individually or in aggregate makes it probable thatthe economic decisions of a reasonably knowledgeable user of the financial statements maybe influenced. We consider quantitative materiality and qualitative factors in (i)planning the scope of our audit work and in evaluating the results of our work; and (ii)to evaluate the effect of any identified misstatements in the
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 our audit. We also provide those chargedwith governance with a statement that we have complied with relevant ethical requirementsregarding independence and to communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence and where applicable relatedsafeguards.
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 obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;
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;
c. The Balance Sheet the Statement of Profit and Loss Cash Flow Statement and theStatement of Changes in Equity dealt with by this Report are in agreement with the booksof account;
d. In our opinion the aforesaid standalone Ind AS financial statements read with Note1 to 35 thereto comply with the Indian Accounting Standards specified under Section 133 ofthe Act read with Rule 7 of the Companies(Accounts) Rules 2014;
e. On the basis of written representations received from the directors as on March 312019 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct;
f. 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";
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 opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act read with schedule V;
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 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 Ind AS financial statements Refer Note no. 26 on Contingent Liabilities tothe Ind AS 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 noamounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.
| ||For BGJC & Associates LLP |
| ||Chartered Accountants |
| ||Firm's Registration No. 003304N |
| ||Sd/- |
| ||Pranav Jain |
| ||Partner |
| ||Membership Number: 098308 |
|Date: May 30 2019 || |
|Place: New Delhi || |
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 31 2019]
(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 been physically verified bythe management and as informed no material discrepancies were noticed on suchverification. In our opinion the frequency of verification is reasonable having regard tothe size of the Company and the nature of its assets.
(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 except goods in transit has been physically verified by themanagement during the year. In our opinion the frequency of verification is reasonable.As informed material discrepancies noticed in stores & spares on physicalverification carried out during the year have been properly dealt with in the books of ac-count.
(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 regular in depositingwith appropriate authorities undisputed statutory dues including provident fundemployees' state insurance income tax sales tax service tax value added tax goods andservices tax customs duty excise duty cess and any other material statutory duesapplicable 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 there are no dues inrespect of sales tax service tax value added tax customs duty or excise duty that havenot been deposited on account of any dispute but the dues outstanding with respect toincome tax 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 ||Remarks |
|Income Tax Act 1961 ||Income Tax ||6.58 ||- ||2011-12 ||Jurisdictional As- Sessing Officer ||- |
|Income Tax Act 1961 ||Income Tax ||0.22 ||- ||2012-13 ||Jurisdictional As- Sessing Officer ||- |
|Income Tax Act 1961 ||Income Tax ||6.67 ||- ||2013-14 ||Jurisdictional As- Sessing Officer ||- |
|Income Tax Act 1961 ||Income Tax ||0.01 ||- ||2014-15 ||Jurisdictional As- Sessing Officer ||- |
|Income Tax Act 1961 ||Income Tax ||1.94 ||- ||2016-17 ||Centralized Pro- Cessing 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 not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934.
| ||For BGJC and Associates LLP |
| ||Chartered Accountants |
| ||ICAI Firm Registration No. 003304N |
| ||Pranav Jain |
| ||Partner |
| ||Membership No.: 098308 |
|Date: May 30 2019 || |
|Place: New Delhi || |
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 Ind AS financial statements for the year ended March31 2019]
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 financialreporting of JaussPolymers Limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the standalone 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 financialcontrols based on theand maintaining internal established by the Company considering the essential componentsof internalcontroloverfinancial internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing specified under section143(10) of the Actto 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 toobtain reasonable assurance aboutwhether adequate internal financial controls over financialreporting 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. Controls over Ourauditofinternalfinancial 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 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 ac -cordance 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 preparationof 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 collu -sion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of theinternalfinancialcontrols 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.
In our opinion the Company has in all material respects an adequate internalfinancialcontrols system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2019 based on theinternal control over financial 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 and Associates LLP |
| ||Chartered Accountants |
| ||ICAI Firm Registration No.: 003304N |
| ||Sd/- |
| ||Pranav Jain |
|Date: May 30 2019 ||Partner |
|Place: New Delhi ||Membership No.: 098308 |