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Jaysynth Dyestuff (India) Ltd.

BSE: 506910 Sector: Industrials
NSE: JAYDYSTUF ISIN Code: INE703C01025
BSE 00:00 | 17 Aug 77.50 1.50
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NSE 05:30 | 01 Jan Jaysynth Dyestuff (India) Ltd
OPEN 76.00
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VOLUME 1081
52-Week high 96.00
52-Week low 60.00
P/E 9.57
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 76.00
CLOSE 76.00
VOLUME 1081
52-Week high 96.00
52-Week low 60.00
P/E 9.57
Mkt Cap.(Rs cr) 67
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jaysynth Dyestuff (India) Ltd. (JAYDYSTUF) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

JAYSYNTH DYESTUFF (INDIA) LIMITED

Opinion

We have audited the accompanying standalone financial statements of JAYSYNTHDYESTuFF (INDIA) UMITED ("the Company") which comprise the Balance Sheet asat 31st March 2021 the Statement of Profit and Loss (including othercomprehensive income) the Statement of Changes in Equity and the Cash Flow Statement forthe year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 andamended and other accounting principles generally accepted in India of the state ofaffairs (financial position) of the Company as at 31st March 2021 and itsprofit (financial performance including other comprehensive income) the changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. 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 (ICAI) together with the ethical requirements that are relevant toour audit of the Standalone financial statements under the provisions of the Act and theRules there under and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the ICAI's Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Standalone financial statements.

Emphasis of matter

We draw attention to note 1 (XXIV) to the accompanying standalone financial statementswhich describes the effects of uncertainties relating to Covid-19 pandemic outbreak on theCompany's operations and management's evaluation of its impact on the accompanyingstandalone financial statements as at 31st March 2021 the impact of which isdependent on future developments. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone financial statements of the current period.These matters were addressed in the context of our audit of the Standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

Key Audit Matters How the matter was addressed in our audit
1) Carrying value of investment in wholly owned subsidiary company i.e. Jaysynth (Europe) Ltd. (hereinafter referred to as JEL) i) Obtained and read audited financial statements and report of JEL to identify any disclosure for impairment of assets.
Management regularly reviews whether there are any adverse indicators in respect of investment in JEL ii) Reliance was placed on audited financial statements prepared in functional currency (INR) audited by the Indian auditor.
The accounts of JEL are prepared by the Chartered Accountant a practicing member firm of the Institute of Chartered Accountants of England and Wales (ICAEW) who is subject to ethical and other professional requirements detailed in ICAEW's regulations and guidance. Accounts are prepared for approval of Board of Directors of JEL. iii) Assessing the appropriateness of the company's valuation methodology applied in determining recoverable amount and key underlying assumptions.
Financial Statements prepared in functional currency (INR) were audited by the Indian auditor.

Information Other than the Standalone financial statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to the Board report CorporateGovernance report and Shareholder's information but does not include the standalonefinancial statement and our auditor's report thereon.

Our opinion on the Standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information; we are required to report that fact. We have nothing to reportin this regard.

Responsibilities of the Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingOther Comprehensive Income changes in equity and cash flows of the Company in accordancewith the Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting 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 Standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the Standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibility 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 skepticism 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 controls relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system in place and the operating effectiveness ofsuch 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 standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue 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.

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 standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when 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.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of section 143 (11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

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

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

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 standalone balance sheet the standalone statement of profit and loss (includingother comprehensive income) the standalone statement of changes in equity and thestandalone statement of cash flows dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under section 133 of the Act.

e) On the basis of the written representations received from the Directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure B".

g) In our opinion the managerial remuneration for the year ended 31stMarch 2021 has been paid/provided by the Company to its Directors in accordance with theprovisions of section 197 read with Schedule V to the Act;

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company does not have pending litigations as at 31st March 2021 thathave a material impact on its financial position in its standalone financial statements;

ii. The Company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivatives contracts;

i ii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March2021;

For Chhogmal & Co.
Chartered Accountants
Chintan N. Shah
Partner
Place : Mumbai Membership No. - 107490
Date : 25th June 2021 Firm Registration No.-101826W
UDIN: 21107490AAAAKK4379

ANNEXURE-A TO INDEPENDENT AUDITOR'S REPORT

ANNEXURE "A" REFERRED TO IN "REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS" SECTION OF OUR REPORT TO THE MEMBERS OF JAYSYNTH DYESTUFF (INDIA)LIMITED OF EVEN DATE:

1) In respect of its Fixed Assets:

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

b) The fixed assets are physically verified by the Management according to a phasedprograms designed to cover all the items over period of 3 (three) years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programmed a portion of the fixed assets has been physicallyverified by the Management during the year and no material discrepancies have been noticedon such verification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties asdisclosed in Note 3 to the financial statements are held in the name of the Company.

2) The physical verification of inventory excluding stocks with third parties has beenconducted at reasonable intervals by the Management during the year. In respect ofinventory lying with third parties these have substantially been confirmed by them. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been appropriately dealt with in the books of accounts.

3) The Company has not granted any loans secured or unsecured to Companies FirmLimited Liability Partnership or other parties listed in the register maintained underSection 189 of the Companies Act 2013. Consequently the provisions of clauses (iii) (a)(iii) (b) and (iii) (c) of Paragraph 3 of the order are not applicable to the Company.

4) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013in respect of the loans and Investments made and guarantees and security provided by it.

5) The Company has not accepted any deposits from the Public within the meaning ofsections 73 to 76 of the Companies Act 2013 and the rules framed there under to theextent notified.

6) The Central Government has not prescribed the maintenance of Cost Records undersection 148(1) of the Act for any of the products of the company.

7) a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income- taxGST duty of customs cess and other material statutory dues have been regularly depositedduring the year by the Company with the appropriate authorities. As explained to us theCompany did not have any dues on account of employees' state insurance and duty of excise.According to the information and explanations given to us no undisputed amounts payablein respect of provident fund income tax GST duty of customs cess and other materialstatutory dues were in arrears as at 31st March 2021 for a period of more thansix months from the date they became payable.

b) According to the information and explanations given to us there are no dues ofincome tax sales tax service tax goods and service tax duty of customs duty of exciseand value added tax as at 31st March 2021 which have not been deposited withthe appropriate authorities on account of any dispute.

8) According to the record of the Company examined by us and the information andexplanations given by the management the Company has not defaulted in repayment of loanor borrowings to a financial institution bank or Government. The Company does not haveany borrowings by way of debentures.

9) The Company has not raised any moneys by way of initial public offer or furtherPublic offer (including debts instrument) and term loans during the year.

10) 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 material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement.

11) The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

12) As the Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it; the provisions of Clause 3 (xii) of the Order are not applicable to the Company.

13) On the basis of our examination and according to the information and explanationsgiven to us we report that all the transaction with the related parties are in compliancewith Section 177 and 188 of the Act and the details have been disclosed in the Financialstatements in Refer Note 33 as required by the applicable accounting standards.

14) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review. Accordingly the provisions of Clause 3 (xiv) of the Order are notapplicable to the Company.

15) According to the information and explanations given to us and based on ourexamination of the records of the company the Company has not entered into any non-cashtransactions with Directors or persons connected with the Directors. Accordinglyprovisions of clause (xv) of Para 3 of the Order are not applicable to the company.

16) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and accordingly provisions clause (xvi) of Para 3 of the Orderare not applicable to the Company.

For Chhogmal & Co.
Chartered Accountants
Chintan N. Shah
Partner
Place : Mumbai Membership No. - 107490
Date : 25th June 2021 Firm Registration No.-101826W
UDIN: 21107490AAAAKK4379

ANNEXURE-B TO INDEPENDENT AUDITOR'S REPORT

ANNEXURE "B" REFERRED TO IN "REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS" SECTION OF OUR REPORT TO THE MEMBERS OF JAYSYNTH DYESTUFF (INDIA)LIMITED OF EVEN DATE:

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 JAYSYNTHDYESTUFF (INDIA) LIMITED ("the Company") as of 31st March 2021 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.

1. Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

2. 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") issued by Institute of Chartered accountants of India andthe Standards on Auditing prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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 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.

3. 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 there liability of financial reporting and thepreparation of Standalone Financial Statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to 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 unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

4. 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.

5. 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 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by the Institute of Chartered Accountants of India.

For Chhogmal & Co.
Chartered Accountants
Chintan N. Shah
Partner
Place : Mumbai Membership No. - 107490
Date : 25th June 2021 Firm Registration No.-101826W
UDIN: 21107490AAAAKK4379

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