You are here » Home » Companies » Company Overview » JBM Auto Ltd

JBM Auto Ltd.

BSE: 532605 Sector: Auto
NSE: JBMA ISIN Code: INE927D01028
BSE 00:00 | 20 Feb 230.85 2.40
(1.05%)
OPEN

229.35

HIGH

236.25

LOW

229.25

NSE 00:00 | 20 Feb 230.80 1.15
(0.50%)
OPEN

228.70

HIGH

235.90

LOW

228.05

OPEN 229.35
PREVIOUS CLOSE 228.45
VOLUME 520
52-Week high 306.90
52-Week low 135.00
P/E 24.64
Mkt Cap.(Rs cr) 1,092
Buy Price 230.85
Buy Qty 64.00
Sell Price 236.00
Sell Qty 1.00
OPEN 229.35
CLOSE 228.45
VOLUME 520
52-Week high 306.90
52-Week low 135.00
P/E 24.64
Mkt Cap.(Rs cr) 1,092
Buy Price 230.85
Buy Qty 64.00
Sell Price 236.00
Sell Qty 1.00

JBM Auto Ltd. (JBMA) - Auditors Report

Company auditors report

TO THE MEMBERS OF JBM AUTO LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of JBM AUTOLIMITED ("the Company") which comprise the Balance Sheet as at 31st March2018 the Statement of Profit and Loss (including Other Comprehensive Income) the CashFlow Statement the Statement of Changes in Equity for the year then ended and a summaryof the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Ind AS Financial Statements that give a true and fair view of the stateof affairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards ("Ind AS") prescribed under Section 133 of the Act. 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 Ind AS FinancialStatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit of the Standalone Ind AS Financial Statements in accordance withthe Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Standalone Ind AS Financial Statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS Financial Statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone Ind AS Financial Statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlsrelevant to the Company's preparation of the Standalone Ind AS Financial Statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the Standalone Ind ASFinancial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Standalone Ind AS Financial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Ind AS Financial Statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including the Ind AS of thestate of affairs (financial position) of the Company as at 31st March 2018 and itsprofit (financial performance including other comprehensive income) its cash flows andthe changes in equity for the year ended on that date.

Other Matter

The comparative financial information of the Company for the year ended March 31 2017and the transition date opening balance sheet as at April 1 2016 included in theseStandalone Ind AS Financial Statements are based on the previously issued statutoryfinancial statements for the years ended March 31 2017 and March 31 2016 prepared inaccordance with the Companies (Accounting Standards) Rules 2006 (as amended) which wereaudited by the predecessor auditor who expressed an unmodified opinion vide reports datedMay 30 2017 and May 30 2016 respectively. The adjustments to those financial statementsfor the differences in accounting principles adopted by the Company on transition to theind AS have been audited by us.

Our opinion is not qualified 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 of india in terms of Section 143(11) of the CompaniesAct 2013 and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in "Annexure-A" a statement on the matters specified in paragraphs 3 and 4of the Order to the extent applicable.

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

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

b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d. In our opinion the aforesaid Standalone Ind AS Financial Statements comply with theIndian Accounting Standards ("Ind AS") prescribed under Section 133 of the Act.

e. On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (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 refer to ourseparate report in "Annexure-B".

g. 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 Standalone Ind AS Financial Statements Refer Note No. 36 of the StandaloneInd AS 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.

iv. The reporting on disclosure relating to Specified Bank Notes is not applicable tothe Company for the year ended March 31 2018.

For Sahni Natarajan and Bahl Chartered Accountants Firm Registration No. : 002816N

Sudhir Chhabra Partner

Membership No. 083762

Place: Gurugram Date: May 15 2018

ANNEXURE-A

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON STANDALONE IND AS FINANCIALSTATEMENTS

OF JBM AUTO LIMITED

(This is the annexure referred to in Para 1 of 'Report on Other Legal and RegulatoryRequirements' of our Report of even date)

(i) In respect of the Fixed Assets:

(a) The Company has maintained proper records showing the full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets covering significant value were physically verified during theyear by the management at such intervals which in our opinion provides for the physicalverification of all the fixed assets at reasonable interval having regard to the size ofthe Company and nature of its business. in our opinion and according to the informationand explanations given to us by the management no material discrepancies have beennoticed on such verification.

(c) The title deeds of immovable properties are held in the name of the Company exceptas given below:-

S. No. Total No. of Cases Nature Gross Block (Rs. in Lakhs) Net Block (Rs. in Lakhs) Remarks
1

Two

Leasehold land 156.11 156.11 Land situated at Singur west Bengal(Refer Note No. 42)
2 Cases Leasehold land 10.18 8.78 Land situated at Sector 24 Faridabad Haryana

(ii) inventories except goods-in-transit and stock lying with the third parties havebeen physically verified by the management

during the year. In our opinion the frequency of such verification is reasonable.There were no material discrepancies noticed on physical verification of inventories ascompared to the book records.

(iii) in our opinion and according to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013.

(iv) in our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

(v) in our opinion and according to the information and explanations given to us theCompany has not accepted any deposit as defined under the provisions of Sections 73 to 76or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder. Accordingly the provisions of clause 3(v) of the Order are not applicable tothe Company.

(vi) To the best of our knowledge and according to information and explanations givento us the Central Government has not prescribed the maintenance of cost records under subsection (1) of section 148 of the Companies Act 2013.

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

(a) in our opinion and according to the information and explanations given to us theCompany has generally been regular in depositing undisputed statutory dues includingProvident Fund Employees' State insurance income Tax Sales Tax Service Tax Duty ofCustoms Duty of Excise value Added Tax Cess Goods and Services Tax and any othermaterial statutory dues as applicable with the appropriate authorities. in our opinion andaccording to the information and explanations given to us no undisputed amounts payablein respect of the aforesaid dues were in arrears as at March 31 2018 for a period ofmore than six months from the date they became payable.

(b) in our opinion and according to the information and explanations given to usdisputed demand for income Tax Sales Tax Service Tax Duty of Customs Duty of Excisevalue Added Tax Goods and Services Tax which have not been deposited with relevantauthorities as on March 31 2018 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 1999-20 CESTAT Chandigarh
Service Tax Penalty/ interest 10.34 2001-02 CCE (A) Faridabad
2 Finance Act 1994 Service Tax Penalty/ interest 8.30 2001-02 CCE- Delhi-iv Faridabad
(Service Tax) Service tax 79.32 2013-14 Commissioner (A) Noida
Service tax 1.43 2015-17 Superintendent. C.ED 111 Ahmedabad
Service tax 0.32 2017-18 Superintendent. C.ED 111 Ahmedabad
Excise Demand 7.72 2000-01 CESTAT Chandigarh
Excise Duty & Penalty 226.56 2007-08 CCE- Delhi-iv Faridabad
Excise Duty & Penalty 86.26 2008-09 CCE- Delhi-iv Faridabad
Excise Duty & Penalty 22.82 2011-12 CESTAT Allahabad
Excise Duty & Penalty 66.08 2011-12 Add. Comm. C.E Ahmedabad
Excise Duty 74.50 2014-15 Commissioner Appeals Jaipur
3 The Central Excise Act 1944 Excise Duty & Penalty 110.40 2010-11 CESTAT West Zonal Bench Ahmedabad
interest on Excise Duty 10.01 2010-12 CESTAT 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 A.C CED-111 Bhiwadi
4 Custom Act 1962 Custom Duty Penalty & interest 316.74 2011-14 Principal Commissioner of Customs (import) iCD TKD New Delhi
income Tax 403.36 AY 2008-09 to AY 2012-13 itat
5 income Tax Act 1961 income Tax 379.15 AY 2013-14 to AY 2014-15 CiT (Appeals)
Penalty 18.57 AY 2011-12 to AY 2012-13 CiT (Appeals)

*Total amount deposited in respect of disputed Income Tax demands is Rs. 57.42 Lakhs.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of dues to financial institutions andbanks. The Company has not borrowed from Government or by way of debentures.

(ix) According to the information and explanations given to us and to the best of ourknowledge and belief the Company has not raised any money by way of initial public offeror further public offer (including debt instruments) during the year. The term loans havebeen applied for the purpose for which those are raised.

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

(xi) According to the information and explanations given to us and to the best of ourknowledge and belief the Company has not paid/provided managerial remuneration during theyear. Accordingly the provisions of clause 3(xi) of the Order are not applicable to theCompany.

(xii) According to the information and explanations given to us and to the best of ourknowledge and belief the Company is not a Nidhi Company. Accordingly the provisions ofclause 3(xii) of the Order are not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to usall transactions entered into with the Related Parties are in compliance with section 177and 188 of the Companies Act 2013 wherever applicable and details have been disclosed inthe Standalone ind AS Financial Statements as required by the applicable accountingstandards.

(xiv) According to the information and explanations given to us and to the best of ourknowledge and belief the Company has not made any preferential allotment or privateplacement 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 to the best of ourknowledge and belief the Company has not entered into any non-cash transactions withdirectors or persons connected with them. Accordingly the provisions of clause 3(xv) ofthe Order are not applicable to the Company.

(xvi) According to the information and explanations given to us and to the best of ourknowledge and belief the Company is not required to be registered under Section 45-iA ofthe Reserve Bank of india Act 1934. Accordingly the provisions of clause 3(xvi) of theOrder 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 15 2018

ANNEXURE-B

TO THE INDEPENDENT AUDITOR'S REPORT

(This is the annexure referred to in Para 2(f) of 'Report on Other Legal and RegulatoryRequirements' of our Report of even date)

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 JBM AUTOLIMITED ("the Company") as of March 31 2018 in conjunction with our audit ofthe Standalone Ind AS Financial Statements of the Company for the year ended on that 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 Act 2013.

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 Standalone ind AS Financial Statements whether due to fraudor 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 Standalone Ind AS Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that:

a. pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b. provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Standalone ind AS Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and

c. provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the Standalone Ind AS 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 March 31 2018 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 Sahni Natarajan and Bahl Chartered Accountants Firm Registration No. : 002816N

Sudhir Chhabra Partner

Membership No. 083762

Place: Gurugram Date: May 15 2018