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JBM Auto Ltd.

BSE: 532605 Sector: Auto
NSE: JBMA ISIN Code: INE927D01028
BSE 00:00 | 12 May 428.55 4.75
(1.12%)
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430.70

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433.00

LOW

423.15

NSE 00:00 | 12 May 428.40 4.25
(1.00%)
OPEN

430.00

HIGH

434.85

LOW

422.05

OPEN 430.70
PREVIOUS CLOSE 423.80
VOLUME 1608
52-Week high
52-Week low
P/E 55.37
Mkt Cap.(Rs cr) 2,027
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 430.70
CLOSE 423.80
VOLUME 1608
52-Week high
52-Week low
P/E 55.37
Mkt Cap.(Rs cr) 2,027
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JBM Auto Ltd. (JBMA) - Auditors Report

Company auditors report

TO THE MEMBERS OF JBM AUTO LIMITED

Report on the Audit of Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying Standalone Ind AS Financial Statementsof JBM AUTO LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2019 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and the notes to the Standalone Ind AS Financial Statements including a summary ofthe significant accounting policies and other explanatory information (hereinafterreferred to as the "Standalone Ind AS Financial Statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Ind AS 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 Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended (the Ind AS) and other accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2019 and itsprofit and total comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit of the Standalone Ind AS Financial Statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act 2013. Our responsibilities under those Standards are further described inthe Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theethical requirements that are relevant to our audit of the Standalone Ind AS FinancialStatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the ICAI'sCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone Ind AS FinancialStatements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Ind AS Financial Statements ofthe current period. These matters were addressed in the context of our audit of theStandalone Ind AS Financial Statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. We have determined the mattersdescribed below to be the key audit matters to be communicated in our report.

Key Audit Matter Auditor's Response
Revenue recognition in terms of ind As 115 "revenue from Contracts with Customers" this is a newly applicable Accounting Standard on Revenue which prescribes five steps revenue recognition model which involves identifying the contract with the customer identifying the separate performance obligations in the contract determining the transaction price allocating the transaction price to the separate performance obligations and recognizing revenue over the period of time / at a point in time depeanding upon how the entity satisfies its performance obligations. our audit procedures included considering the appropriateness of the Company's revenue recognition accounting policies and assessing compliance with the policies in terms of the applicable accounting standards. Evaluated the design of internal controls relating to implementation of the new revenue accounting standard. Selected a sample of contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and satisfaction of performance obligations.
Refer Note No. 27 to the Standalone ind AS Financial Statements. We performed following substantive procedures over revenue recognition with specific focus on whether there is single performance obligation or multiple performance obligations in the contract and whether the performance obligation is being satisfied over the period of time or at a point in time:
Read analysed and identified the distinct performance obligations in these contracts.
Compared these performance obligations with that identified and recorded by the Company.
Considered the terms of the contracts to verify the transaction price used to allocate to separate performance obligations.
Checked whether the performance obligation is being satisfied over the period of time or at a point in time.
Performed analytical procedures for reasonableness of revenues disclosed.

Information Other than the Standalone Ind AS Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the Standalone Ind AS Financial Statements and our Auditor's Reportthereon.

our opinion on the Standalone ind AS Financial Statements does notcover the other information and we do not express any form of assurance conclusionthereon.

in connection with our audit of the Standalone ind AS FinancialStatements our responsibility is to read the other information and in doing so considerwhether the other information is materially inconsistent with the Standalone ind ASFinancial Statements or our knowledge obtained during the course of our audit or otherwiseappears to be materially 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 Management and Those Charged with Governance forthe Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Standalone Ind ASFinancial Statements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 Ind AS FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

in preparing the Standalone ind AS Financial Statements the Board ofdirectors is responsible for assessing the Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless the Board of directors either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process. auditor's responsibilities for the audit of theStandalone ind As Financial Statements

our objectives are to obtain reasonable assurance about whether theStandalone ind AS Financial Statements as a whole are free from material misstatementwhether due 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 ind AS 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 Ind AS Financial Statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate 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 financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. under section 143(3)(i) of the Companies Act 2013 we are also responsiblefor expressing our opinion on whether the Company has adequate internal financial controlssystem over financial reporting in place and the operating effectiveness 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 ind AS Financial Statements or if such disclosuresare inadequate to modify our opinion. our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Ind AS Financial Statements including the disclosures and whether theStandalone ind AS Financial Statements represent the underlying transactions and events ina manner that achieves 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 Standalone IndAS Financial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 of india in terms of Sub Section(11) of Section 143 of the Companies Act 2013 and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanation given to us we give in "Annexure-A" a statement onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act based on our audit wereport 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 Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income the Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

d. In our opinion the aforesaid Standalone Ind AS Financial Statementscomply with the Indian Accounting Standards ("Ind AS") prescribed under Section133 of the Act.

e. On the basis of the written representations received from thedirectors as on 31st March 2019 taken on record by the Board of Directors none of thedirectors is disqualified as on 31stMarch 2019 from being appointed as a director interms of Section 164

(2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in "Annexure-B".

g. With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:

In our opinion and according to the information and explanations givento us the Company has not paid any managerial remuneration during the year.

h. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Ind AS Financial Statements- Refer Note No. 36 of theStandalone Ind AS Financial Statements.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For Sahni Natarajan and Bahl Chartered Accountants Firm RegistrationNo. : 002816N

Sudhir Chhabra Partner

Membership No. 083762

Place: Gurugram Date: May 28 2019

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ONSTANDALONE IND AS FINANCIAL STATEMENTS OF JBM AUTO LIMITED

(This is the annexure referred to in Para 1 of 'Report on Other Legaland Regulatory Requirements' of our Report of even date)

(i) In respect of the Fixed Assets:

(a) The Company has maintained proper records showing the fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets covering significant value were physicallyverified during the year by the management at such intervals which in our opinionprovides for the physical verification of all the Fixed Assets at reasonable intervalhaving regard to the size of the Company and nature of its business. in our opinion andaccording to the information and explanations given to us by the management no materialdiscrepancies have been noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of examination of records of the Company the title deeds of immovableproperties are held in the name of the Company except as given below:

ACING=0 BORDER=0 WIDTH=100% CELLPADDING=2>
S. No. Total No. of Cases Nature Gross Block (Rs. in Lakhs) Net Block (Rs. in Lakhs) Remarks
1 One Leasehold land 10.18 7.77 Land situated at Sector 24 Faridabad Haryana

(ii) Inventories except goods-in-transit and stock lying with thethird parties have been physically verified by the management during the year. In ouropinion the frequency of such verification is reasonable. There were no materialdiscrepancies noticed on physical verification of inventories as compared to the bookrecords.

(iii) In respect of loans secured or unsecured granted by the Companyto the companies firms limited liability partnerships or other parties covered in theregister maintained under section 189 of the Companies Act 2013 ("the Act"):

(a) In our opinion and according to the information and explanationsgiven to us the terms and conditions of grant of such loans are not prejudicial to theCompany's interest.

(b) The schedule for repayment of principal and payment of interest hasbeen stipulated and repayments of principal amounts and/or receipts of interest have beenregular as per stipulations.

(c) There is no overdue amount remaining outstanding as at theyear-end.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of grant of loans making investments and providingguarantees and securities as applicable.

(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits as defined under the provisions ofSections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed thereunder. Accordingly the provisions of clause 3(v) of the Order are notapplicable to the Company.

(vi) In our opinion and according to the information and explanationsgiven to us the maintenance of the cost records has not been specified by the CentralGovernment under section 148(1) of the Companies Act 2013 for the business activitiescarried out by the Company. Accordingly the provisions of clause 3(vi) of the Order arenot applicable to the Company.

(vii) In respect of the statutory and other dues:

(a) In our opinion and according to the information and explanationsgiven to us the Company has generally been regular in depositing undisputed statutorydues including Provident Fund Employees' State Insurance Income Tax Sales Tax ServiceTax Duty of Customs Duty of Excise Value Added Tax Goods and Services Tax Cess andany other material statutory dues as applicable with the appropriate authorities. In ouropinion and according to the information and explanations given to us no undisputedamounts payable in respect of the aforesaid dues were in arrears as at March 31 2019 fora period of more than six months from the date they became payable.

(b) In our opinion and according to the information and explanationsgiven to us disputed demand for Income Tax Sales Tax Service tax Duty of Customs Dutyof Excise Value Added tax Goods and Services tax which have not been deposited withrelevant authorities as on March 31 2019 are given as under:

S.No. Name of Statue Nature of dues Amount due (Rs. in Lakhs)* Year to which amount relates Forum where dispute is pending
1 uttar Pradesh Value Added tax Act 2008 Sales tax interest 6.70 2009-10 High Court West Bengal
Service tax Penalty/ interest 5.06 1999-2000 CESTAT Chandigarh
Service tax Penalty/ interest 9.34 2001-02 Commissioner (A) Faridabad
2 Finance Act 1994 (Service tax) Service tax Penalty/ interest 8.30 2001-02 CCE- delhi-iV Faridabad
Service tax 79.32 2013-14 Commissioner (A) Noida
Service tax Penalty/ interest 2.50 2015-17 Commissioner (A) Ahmedabad
Service tax Penalty/ interest 0.46 2017-18 Commissioner (A) Ahmedabad
excise demand 7.72 2000-01 CESTAT Chandigarh
excise duty & Penalty 226.56 2007-08 CESTAT Chandigarh
excise duty & Penalty 86.26 2008-09 Commissioner (A) Faridabad
excise duty & Penalty 22.82 2011-15 CESTAT Allahabad
excise duty & Penalty 66.08 2011-12 Add. Comm. C.E Ahmedabad
excise duty 17.52 2013-16 Superintendent Excise Pithampur
3 the Central excise Act 1944 excise duty & Penalty 106.26 2010-11 CESTAT West Zonal Bench Ahmedabad
interest on excise duty 4.99 2012-13 AC CE Faridabad - ii
interest on excise duty 3.10 2012-13 CESTAT Ahmedabad
excise duty 28.60 2015-16 AC CE D-111 Bhiwadi
4 Custom Act 1962 Custom duty Penalty & interest 278.36 2011-14 CESTAT delhi
income tax 202.85 AY 2013-14 itat
5 income tax Act 1961 income tax 176.29 AY 2014-15 itat

*Total amount deposited in respect of disputed demands is Rs. 64.96Lakhs.

(viii) in our opinion and according to the information and explanationsgiven to us the Company has not defaulted in the repayment of dues to financialinstitutions & banks. The Company has not borrowed from Government or by way ofdebentures.

(ix) According to the information and explanations given to us and tothe best of our knowledge and belief the Company has not raised any money by way ofinitial public offer or further public offer (including debt instruments) during the year.the term loans have been applied for the purpose for which those are raised.

(x) According to the information and explanations given to us and tothe best of our knowledge and belief no fraud by the Company or any fraud on the Companyby its officers and employees has been noticed or reported by the Company during the year.

(xi) According to the information and explanations given to us and tothe best of our knowledge and belief the Company has not paid/provided managerialremuneration during the year. Accordingly the provisions of clause 3(xi) of the order arenot applicable to the Company.

(xii) According to the information and explanations given to us and tothe best of our knowledge and belief the Company is not a Nidhi Company. Accordingly theprovisions of clause 3(xii) of the order are not applicable to the Company.

(xiii) In our opinion and according to the information and explanationsgiven to us all transactions entered into with the Related Parties are in compliance withsection 177 and 188 of the Companies Act 2013 wherever applicable and details have beendisclosed in the Standalone ind AS Financial Statements as required by the applicableaccounting standards.

(xiv) According to the information and explanations given to us and tothe best of our knowledge and belief the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the year.Accordingly the provisions of clause 3(xiv) of the order are not applicable to theCompany.

(xv) According to the information and explanations given to us and tothe best of our knowledge and belief the Company has not entered into any non-cashtransactions with directors or persons connected with them. Accordingly the provisions ofclause 3(xv) of the order are not applicable to the Company.

(xvi) According to the information and explanations given to us and tothe best of our knowledge and belief the Company is not required to be registered underSection 45-iA of the Reserve Bank of india Act 1934. Accordingly the provisions ofclause 3(xvi) of the order are not applicable to the Company.

For Sahni Natarajan and Bahl
Chartered Accountants
Firm Registration No.: 002816N
Sudhir Chhabra
Partner
Membership No. 083762
Place: Gurugram
Date: May 28 2019

ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ONSTANDALONE IND AS FINANCIAL STATEMENTS OF JBM AUTO LIMITED

(This is the annexure referred to in Para 2(f) of 'Report on OtherLegal and Regulatory Requirements' of our Report of even date)

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 JBM AUTO UMITED ("the Company") as of March 31 2019 in conjunctionwith our audit of the Standalone Ind AS Financial Statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors 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 (ICAI).These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by iCAiand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the institute of Chartered Accountantsof india. 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 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 judgment including the assessment of therisks of material misstatement of the Standalone ind AS Financial Statements whether dueto fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Ind AS Financial Statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that:

1. pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

2. provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Standalone ind AS Financial Statements in accordancewith generally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and

3. provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the Standalone ind AS Financial Statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

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 controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and according to the best of our information andaccording to explanations given to us the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at March 312019 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of internal Financial Controls over Financial Reporting issued by theinstitute of Chartered Accountants of india.

For Sahni Natarajan and Bahl Chartered Accountants Firm RegistrationNo. : 002816N

Sudhir Chhabra Partner

Membership No. 083762

Place: Gurugram

Date: May 28 2019

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