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Jaysynth Dyestuff (India) Ltd.

BSE: 506910 Sector: Industrials
NSE: JAYDYSTUF ISIN Code: INE703C01025
BSE 00:00 | 24 Sep 80.60 -0.90
(-1.10%)
OPEN

82.85

HIGH

82.85

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80.55

NSE 05:30 | 01 Jan Jaysynth Dyestuff (India) Ltd
OPEN 82.85
PREVIOUS CLOSE 81.50
VOLUME 3961
52-Week high 102.00
52-Week low 36.35
P/E 14.22
Mkt Cap.(Rs cr) 70
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 82.85
CLOSE 81.50
VOLUME 3961
52-Week high 102.00
52-Week low 36.35
P/E 14.22
Mkt Cap.(Rs cr) 70
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) LIMITED ("the Company") which comprise the Balance Sheetas at 31st March 2020 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 theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standards(Ind AS) prescribed under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 and amended and other accounting principles generally accepted inIndia of the state of affairs (financial position) of the Company as at 31st March2020 and its profit (financial performance including other comprehensive income) thechanges in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under Section 143(10) of the Act. Ourresponsibilities 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 (ICAI) together with the ethicalrequirements that are relevant to our audit of the Standalone financial statements underthe provisions of the Act and the Rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone financial statements.

Emphasis of matter

We draw attention to note 1 (XXIII) to the accompanying standalonefinancial statements which describes the effects of uncertainties relating to Covid-19pandemic outbreak on the Company's operations and management's evaluation of itsimpact on the accompanying standalone financial statements as at 31st March2020 the impact of which is dependent on future developments. Our opinion is not modifiedin respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the Standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Sr. No. 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. Financial Statements prepared in functional currency (INR) were audited by the Indian auditor. iii) Assessing the appropriateness of the company's valuation methodology applied in determining recoverable amount and key underlying assumptions.

Information Other than the Standalone Financial Statements andAuditor's Report thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to the Board report Corporate Governance report and Shareholder'sinformation but does not include the standalone financial statement and ourauditor's report thereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of the Management and those Charged with Governancefor the Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the financial position financialperformance including Other Comprehensive Income changes in equity and cash flows of theCompany in accordance with the Ind AS and other accounting principles generally acceptedin India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the Standalone financial statements management isresponsible for assessing the Company's ability 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 are responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility for the audit of the Standalone FinancialStatements

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

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

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

Obtain an understanding of internal controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the dateof our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

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

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

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

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

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 mattersspecified in paragraphs 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

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

c) The standalone balance sheet the standalone statement of profit andloss (including other comprehensive income) the standalone statement of changes in equityand the standalone statement of cash flows dealt with by this Report are in agreement withthe books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31st March 2020 taken on record by the Board of Directorsnone of the directors is disqualified as on 31st March 2020 from beingappointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

g) In our opinion the managerial remuneration for the year ended 31stMarch 2020 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 theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and accordingto the explanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31stMarch 2020 on its financial position in its standalone financial statements - ReferNote 35 to the standalone financial statements;

ii. The Company has made provisions as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivatives contracts;.

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the company during the year ended 31st March2020;

> For Hiren C. Sanghavi & Associates
Chartered Accountants
Hiren C.Sanghavi
Proprietor
Place : Mumbai Membership No. - 045472
Date : 15th July 2020 Firm Registration No. - 112057W
UDIN: 20045472AAAABT3477

ANNEXURE-A TO INDEPENDENT AUDITOR'S REPORT

Of Even Date on the Standalone Financial Statements of Jaysynth Dyestu_(India) Limited.

1) In respect of its Fixed Assets:

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

b) The fixed assets are physically verified by the Management accordingto a phased programs designed to cover all the items over a period of three years whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets. 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) The title deeds of immovable properties as disclosed in Note 3 tothe financial statements are held in the name of the Company.

2) The physical verification of inventory excluding stocks with thirdparties has been conducted at reasonable intervals by the Management during the year. Inrespect of inventory lying with third parties these have substantially been confirmed bythem. The discrepancies noticed on physical verification of inventory as compared to bookrecords were not material and have been appropriately dealt with in the books of accounts.

3) The Company has not granted any loans secured or unsecured tocompanies firm limited liability partnership or other parties listed in the registermaintained under Section 189 of the Companies Act 2013. Consequently the provisions ofclauses (iii) (a) (iii) (b) and (iii) (c) of Paragraph 3 of the order are not applicableto the Company.

4) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theCompanies Act 2013 in respect of the loans and Investments made and guarantees andsecurity provided by it.

5) The Company has not accepted any deposits from the Public within themeaning of Sections 73 to 76 of the Companies Act 2013 and the rules framed there underto the extent notified.

6) The Central Government has not prescribed the maintenance of CostRecords under Section 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 onthe basis of our examination of the records of the Company amounts deducted/ accrued inthe books of account in respect of undisputed statutory dues including provident fundincome- tax sales tax value added tax GST duty of customs service tax cess and othermaterial statutory dues have been regularly deposited during the year by the Company withthe appropriate authorities. As explained to us the Company did not have any dues onaccount of employees' state insurance and duty of excise.

According to the information and explanations given to us noundisputed amounts payable in respect of provident fund income tax sales tax valueadded tax GST duty of customs service tax cess and other material statutory dues werein arrears as at 31st March 2020 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us thereare no dues of duty of customs which have not been deposited with the appropriateauthorities on account of any dispute. However according to information and explanationsgiven to us the following dues of income tax sales tax duty of excise service tax andvalue added tax have not been deposited by the Company on account of disputes:

Name of the Statute Nature of dues Amount ` ( in Lakhs) Period to which the amount relates Forum where the dispute is pending
Central Excise & Service Tax Act Service Tax 14.56 FY 2005 -06 to 2009-10 Central Excise & Service Tax Appellate Tribunal Mumbai West Zone

8) According to the record of the Company examined by us and theinformation and explanations given by the management the Company has not defaulted inrepayment of loan or borrowings to a financial institution bank or Government.

The company does not have any borrowings by way of debentures.

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

10) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any such caseby the Management.

11) The Company has paid / provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 readwith Schedule V to the Act.

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

13) On the basis of our examination and according to the informationand explanations given to us we report that all the transaction with the related partiesare in compliance with Section 177 and 188 of the Act and the details have been disclosedin the Financial statements in Refer Note 33 as required by the applicable accountingstandards.

14) According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review. Accordingly the provisions of Clause 3 (xiv) ofthe Order are not applicable to the Company. 15) According to the information andexplanations given to us and based on our examination of the records of the company thecompany has not entered into any non-cash transactions with directors or persons connectedwith the directors. Accordingly provisions of clause (xv) of Para 3 of the Order are notapplicable to the company.

16) The company is not required to be registered under section 45-IA ofthe Reserve Bank of India Act 1934 and accordingly provisions clause (xvi) of Para 3 ofthe Order are not applicable to the Company.

For Hiren C. Sanghavi & Associates
Chartered Accountants
Hiren C.Sanghavi
Proprietor
Place : Mumbai Membership No. - 045472
Date : 15th July 2020 Firm Registration No. - 112057W
UDIN: 20045472AAAABT3477

ANNEXURE-B TO INDEPENDENT AUDITOR'S REPORT

Report of Even Date on The Standalone Financial Statements of JaysynthDyestu_ (India) Limited.

Report on the Internal Financial Controls over Financial Reportingunder Clause (I) of Sub-Section 3 of Section 143 of The Companies Act 2013 ("TheAct")

We have audited the internal financial controls over financialreporting of JAYSYNTH DYESTUFF (INDIA) LIMITED ("the Company") as of 31st March2020 in conjunction with our audit of the standalone financial statements of the Companyfor the year ended on that date.

1. Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March2020 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the Institute of Chartered Accountants of India.

2. Management's Responsibility for Internal FinancialControls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguardingof its 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 Act.

3. Auditors'Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by The Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's 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 andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

4. Meaning of Internal Financial Controls Over FinancialReporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding there liability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial 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.

5. Inherent Limitations of Internal Financial Controls overFinancial Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected.

Also projections of any evaluation of the internal financial controlsover financial reporting to future periods are subject to the risk that the internalfinancial control over financial reporting may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

For Hiren C. Sanghavi & Associates
Chartered Accountants
Hiren C.Sanghavi
Proprietor
Place : Mumbai Membership No. - 045472
Date : 15th July 2020 Firm Registration No. - 112057W
UDIN: 20045472AAAABT3477

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