To the members of the jenson & nicholson (india) limited
Report on the standalone financial statements
We have audited the accompanying standalone financial statements ofjenson & nicholson (india) limited ("the company") which comprise thebalance sheet as at march 31 2017 and the
Statement of profit and loss and cash flow statement for the accountingyearthen ended and a summary of the significant policies and other explanatoryinformation.
Management's responsibility for the standalone financialstatements
The company's board of directors is responsible for the mattersstated in section 134 (5) of the companies act 2013 ("the act") with respect tothe preparation and presentation of these standalone financial statements that give a trueand fair view of the financial position financial performance and cash flows of the
Company in accordance with the accounting principles generally acceptedin india including the accounting standards specified under section 133 of the act readwith rule7 of the companies (accounts) rules 2014.this responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the actfor safeguarding the assets of the company and for preventing and detecting frauds andother irregularities selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial control that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.
We have taken into account the provisions of the act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the act and the rules made there under.
We conducted our audit in accordance with the standards on auditingspecified under section 143(10) of the act. Those
Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.
An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financialstatements.
The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the company's directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence we have obtained is and appropriateto provide a basis for our audit opinion on the standalone financial statements.
Basis for qualified opinion
Attention is drawn to: i. The banks financial institutions andother lenders have filed legal cases against the company for recovery of outstanding loansand interest thereon. No provision has been made in these accounts for additionalinterest penal interest liquidated damages etc. Amounting to inr 739.67 lacs as claimedby the above lenders at various legal forums the same has been shown as contingentliability in notes to accounts attached to the said accounts. Company however had beenproviding interest on the above loans on a basis as considered appropriate by themanagement but up to 31st march2006. However the company has stopped providing intereston all loans from banks and financial institutions whether secured or unsecured w.e.f.01.04.2006 on the ground that these loans would have been declared npa by them. Interestamounting to inr 219193.40 lacs up to the current year ended 31st march 2017 has not beenprovided but the same has also been included in contingent liability. Ii. These financialstatements have been prepared on a going concern basis. The company has incurred anoperating profit during the year. The company is passing through a severe liquidity crisisand is unable to honour its commitment to lenders preference shareholders suppliers andemployees. The bankers financial institutions and other lenders have taken legal actionfor recovery of their dues. Several petitions for winding up of the company have beenfiled by the creditors and lenders. The company is contesting these petitions or issettling such petitions out of courts. The company is in the process of restructuring itsbusiness and also trying to identify alternative source of finance. In the absence ofadequate financial support this basis would be invalid. Provision would then have to bemade for any loss that might arise when the company's assets are realised.
Because of the significance of the matters described in the basis forqualified opinion paragraph we have not been able to obtain sufficient appropriate auditevidence to provide a basis for an audit opinion. Accordingly we do not express anopinion on the financial statements.
In our opinion and to the best of our information and according to theexplanations given to us except for the possible effects of the matters described in basisof qualified opinion the aforesaid standalone 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 of the state of affairs of the company as at march 31 2017 andits profit and its cash flows for the year ended on the date:
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 act we givein the "annexure-i" a statement on the matters specified in paragraphs 3and 4 of the order to the extent applicable.
2. As required by section 143 (3) of the act we report that:sufficient a. We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purpose of our audit; b. Inour opinion proper books of account as required by law have been kept by the company sofar as appears from our examination of those books c. The balance sheet statement ofprofit and loss and
Cash flow statement dealt with by this report are in agreement with thebooks of account; d. In our opinion the aforesaid standalone financial statements complywith the accounting standards specified under section 133 of the act read with rule
7 of the companies (accounts) rules 2014. E. On the basis of thewritten representations received from the directors as on march 31 2017 taken on recordby the board of directors none of the directors is disqualified as on march 31 2017from being appointed as a director in terms of section 164(2) of the act. F. With respectto the adequacy of the financial controls over financial reporting of the company and theoperating effectiveness of such controls refer to our separate report in"annexure-ii" and g. 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 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 litigationson its financial position in its financial statements with the exception of the paragraphbasis of qualified opinion. Ii) the company did not have any long-term contracts includingderivative contracts; as such the question of commenting on any material foreseeablelosses thereon does not arise. Iii) there has not been an occasion in case of the companyduring the year under report to transfer any sums to the investor education and protectionfund. Iv) the company has provided requisite disclosures in the financial statements as toholdings as well as dealings in specified bank
Notes during the period from 8th november 2016 to 30th december 2016.Based on audit procedures and relying on the management representation we report that thedisclosures are in accordance with books of account maintained by the company and asproduced to us by the management.
| || ||M. Mukerjee & co. |
| || ||Chartered accountants |
| || ||Frn: 303013e |
| || ||24 netaji subhas road |
| || ||Kolkata-700 001 |
| || ||Sd/- |
| || ||Spandan sengupta |
|Place : patna ||Partner |
|Date ||: june 8th 2017 ||Membership no: 135833 |