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Jayatma Industries Ltd.

BSE: 531323 Sector: Industrials
NSE: N.A. ISIN Code: INE250D01017
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NSE 05:30 | 01 Jan Jayatma Industries Ltd
OPEN 5.25
PREVIOUS CLOSE 5.25
VOLUME 4
52-Week high 9.18
52-Week low 5.02
P/E 25.00
Mkt Cap.(Rs cr) 3
Buy Price 5.27
Buy Qty 2500.00
Sell Price 5.25
Sell Qty 5714.00
OPEN 5.25
CLOSE 5.25
VOLUME 4
52-Week high 9.18
52-Week low 5.02
P/E 25.00
Mkt Cap.(Rs cr) 3
Buy Price 5.27
Buy Qty 2500.00
Sell Price 5.25
Sell Qty 5714.00

Jayatma Industries Ltd. (JAYATMAINDUSTRI) - Auditors Report

Company auditors report

TO

THE MEMBERS OF JAYATMA INDUSTRIES LIMITED (FORMERLY KNOWN: SANTARAM SPINNERS LTD)

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the standalone financial statements of Jayatma Industries Limited(Formerly Known as Santaram Spinners Limited) ("the Company") which comprisethe Balance Sheet as at 31st March 2019 the statement of Profit and Loss (including othercomprehensive income) Cash Flow Statement for the year then ended and notes to thestandalone financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31/03/2019and its Profit and other comprehensive income changes in equity and its cash flowsfor the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on standalone financialstatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.For each matter below our description of how our audit addressed the matter is providedin that context.

The Key Audit Matter How our audit addressed the key audit matter
A. Valuation of Inventories. Refer to note 7 to the financial statements. As described in the accounting policies in note 2.6 to the financial statements inventories are carried at the lower of cost and net realizable value. As a result the management applies judgment in determining the appropriate provisions for obsolete stock based upon a detailed analysis of old inventory net realizable value below cost based upon future plans for sale of inventory. We obtained assurance over the appropriateness of the management's assumptions applied in calculating the value of the inventories and related provisions by:-
1. Completing a walkthrough of the inventory valuation process and assessed the design and implementation of the key controls addressing the risk.
2. Verifying the effectiveness of key inventory controls operating over inventories; including sample based physical verification.
3. Verifying for a sample of individual products that costs have been correctly recorded.
4. Comparing the net realizable value to the cost price of inventories to check for completeness of the associated provision.
B. Valuation and existence of Current Investments Valuation and existence of Current Investments designated at fair value through profit or loss are valued at 21.05 lakh and classified as level 1 financial instruments in the fair value hierarchy. Further disclosures on the Investments are included in note 8 to the financial statements. This was an area of focus for our audit and the area where significant audit effort was directed. As at March 31 2019 the Investments are in mutual funds and are majorly actively traded with readily available quoted market prices/net assets value. Our audit procedures included updating our understanding of the business processes employed by the Company for accounting for and valuing their investment portfolio. We obtained accounts confirmation from the mutual funds and verified that the company was the recorded owner of all investments. Our audit procedures over the valuation of the Investments included agreeing the fair valuation of all Investments held at March 31 2019 to the Net Assets Value provided by the respective Mutual funds. Our Observation: Based on the audit procedures performed we are satisfied with valuation and existence of current investment.

Other Information (or another title if appropriate such as "Information Otherthan the Standalone Financial Statements and Auditors' Report Thereon")

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financial statements and our auditors' reportthereon.

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 in the audit or otherwise appears to be materially misstated. If based on thework we 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.

Responsibility of Management for Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of 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 financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements

as a whole are free from material misstatement whether due to fraud or error and toissue an auditor's report that includes our opinion. Reasonable assurance is a high levelof assurance but is not a guarantee that an audit conducted in accordance with SAs willalways detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if individually or in the aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• 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 Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. This report doesn't include a statement on the matters specified in paragraph 3 and4 of the Companies (Auditor's Report) Order 2016 issued by the Central Government ofIndia in terms of sub section 11 of section 143 of the companies Act 2013 since in Ouropinion and according to the information and explanation given to us the details of thesaid Order are given in Annexure A to this Report.

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 (including Other ComprehensiveIncome the Statement of Cash Flows and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31/03/2019taken on record by the Board of Directors none of the directors is disqualified as 31/03/2019from being appointed as a director in terms 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 we give reportof the same in Annexure B to this Report.

(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 ouropinion and to the best of our information and according to the explanations given to usno remuneration has been paid by the Company to its directors during the year.

(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 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 KEYUR BAVISHI & CO.
(Chartered Accountants)
Reg No. :131191W
Keyur Bavishi
Date : 4th May 2019 Proprietor
Place : Ahmedabad M.No. : 136571

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 8 of the Auditors' Report of even date to the members ofJayatma Industries Limited (formerly known as Santaram Spinners Limited) on the financialstatements for the year ended 31st March 2019.)

1. (a) The Company has maintained records showing full particulars includingquantitative details and situation of its property plant and equipment.

(b) As explained to us a substantial portion of the property plant and equipment havebeen physically verified by the management during the year and no material discrepancieshave been noticed on such verification.

(c) Based on audit procedures performed for the purpose of reporting the true and fairview of the financial statements and according to information and explanations given bythe management the title deeds of immovable properties included in property plant andequipment are held the name of the Company.

2. (a) As per information and explanation given to us inventory of rawmaterials/finished goods/traded goods/ spares and consumables has been physically verifiedby the management at regular intervals. In our opinion the frequency of verification isreasonable.

(b) On the basis of our examination of the inventory records produced before us and inour opinion the Company is maintaining proper records of inventory. The discrepancies ifany on physical verification of inventory as compared to book records have been properlydealt with in books of accounts.

3. (a) The company has not granted loans secured or unsecured to firms Companies orother parties covered in the register maintained under Section 189 of the Companies Act2013. Hence paragraph 3(b) and 3(c) of the Order is not applicable.

4. As explained to us there is no transaction of loans investments guarantees andsecurity prescribed in the provision of Section 185 and 186 of the Companies Act2013during the year under audit. Consequently requirement of clause (iv) of paragraph of theOrder is not applicable.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted Deposits during the year and consequently directives issued byReserve Bank of India and the provisions of Section 73 to 76 or any other relevantprovision of the CompaniesAct andrules framed there under are not applicable to theCompany.

6. We have broadly reviewed the accounts and records maintained by the company pursuantto order made by the Central Government of India for maintenance of cost records undersubsection (1) of Section 148 of the Companies Act2013.We are of opinion thatprime-facie the prescribed accounts and records have been made and maintained. Howeverwe have not carried out a detailed examination of the same.

7. (a.) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund investor education and protectionfund employees' state insurance income tax sales tax wealth tax service tax customduty excise duty cess and other material statutory dues to the extent applicable withthe appropriate authorities in India.

(b.) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of income tax sales tax as on 31stMarch2019 which have not been deposited on account of dispute are as under:

Name of the Statue Nature of Dues Amount (') Period to which the amount relates Forum where the dispute is pending
Central Sales Tax Act Sales Tax Including Interest 956900/- F.Y. 2006-07 Sales Tax Tribunal (VAT)
and Local Sales Tax Act and Penalty as applicable 914477/- F.Y. 2006-07 Sales Tax Tribunal (VAT)

8. In our opinion and according to the information and explanations given to us theCompany has not defaulted in repayment of dues to financial institution/bank/debentureholders during the year under audit. Hence the provisions of Clause (viii) of paragraph 3of the Order are not applicable to the Company.

9. According to the information and explanation given to us the Company has not raisedmoney by way of initial public offer or further public offer (including debt instruments)or term loans during the year under audit. Hence the provisions of Clause (ix) ofparagraph 3 of the Order are not applicable to the Company.

10. According to information and explanation given to us and the records of the Companyexamined by us neither fraud on or by the Company has been noticed or reported during theyear.

11. According to information and explanation given to us and the records of the Companyexamined by us the Company has not paid or provided managerial remuneration in the booksof account. Hence the provisions of Clause (xi) of paragraph 3 of the Order are notapplicable to the Company.

12. According to the information and explanation given to us the Company is not aNidhi Company. Hence the provisions of Clause (xii) of paragraph 3 of the Order are notapplicable to the Company.

13. According to information and explanation given to us transaction with the relatedparties are in compliance with sections 177 and 188 of Companies Act 2013 and detailshave been disclosed in the Financial Statements. As required by the applicable accountingstandards.

14. According to information and explanation given to us and the records of the Companyexamined by us the Company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review.Consequently clause (xiv) of paragraph 3 of the Order is not applicable to the Company.

15. According to information and explanation given to us and the records of the Companyexamined by us the Company has not entered into any non-cash transaction with directorsor persons connected with him. Consequently requirement of clause (xv) of paragraph 3 ofthe Order is not applicable to the Company.

16. According to information and explanation given to us and the records of the Companyexamined by us the Company is not undertaking any activity which requires registrationunder Section 45-IA of the Reserve Bank of India Act 1934. Consequently requirement ofclause (xvi) of paragraph 3 of the Order is not applicable to the Company.

FOR KEYUR BAVISHI & CO.
(Chartered Accountants)
Reg No. :131191W
Keyur Bavishi
Date : 4th May 2019 Proprietor
Place : Ahmedabad M.No. : 136571

ANNEXURE - 'B' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to clause (f) of Paragraph 9 to the Independent Auditor's Report of even dateto the members of Jayatma Industries Limited (formerly known as Santaram Spinners Limited)on the Ind AS financial statements for the year ended 31st March2019)

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 JayatmaIndustries Limited ("the Company") as at 31st March 2019 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 ('ICAI'). 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 Act2013.

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 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.

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 judgment 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 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 authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 31st March 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 Institute of CharteredAccountants of India.

FOR KEYUR BAVISHI & CO.
(Chartered Accountants)
Reg No. :131191W
Keyur Bavishi
Date : 4th May 2019 Proprietor
Place : Ahmedabad M.No. : 136571

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