Jet Freight Logistics Ltd.
|BSE: 543420||Sector: Others|
|NSE: JETFREIGHT||ISIN Code: INE982V01025|
|BSE 00:00 | 08 Aug||25.00||
|NSE 00:00 | 08 Aug||24.60||
|Mkt Cap.(Rs cr)||58|
|Mkt Cap.(Rs cr)||58.00|
Jet Freight Logistics Ltd. (JETFREIGHT) - Auditors Report
Company auditors report
To the Members of
Jet Freight Logistics Limited
Report on the Audit of
Standalone Financial Statements
We have audited the Standalone financial statements of Jet FreightLogistics Limited ("the Company") which comprise the Standalone BalanceSheet as at March 312022 the Standalone Statement of Profit and Loss StandaloneStatement of Cash Flows and Standalone Statement of Changes in Equity for the year thenended and notes to the financial statements including a summary of significantaccounting 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 ("thefinancial statements") give the information required by the Companies Act 2013 ('theAct') in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards ('Ind AS') specified under Section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules 2015 and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022and its profit (including other comprehensive income) its cash flows and the changes inequity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules there under and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
We have determined that there are no key audit matters to becommunicated in our report.
Information Other than the Financial Statements and Auditor?sReport Thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the managementdiscussion and analysis report on corporate governance directors' report etc. but doesnot include the standalone financial statements and our auditors 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 in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information; we are required to report that fact. We have nothing to report inthis regard.
Responsibilities of management and those charged with governance forthe standalone financial statements.
The accompanying standalone financial statements have been approved bythe Company's Board of Directors. The Company's Board of Directors is responsible for thematters stated in section 134(5) of the Act with respect to the preparation of thesefinancial 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 specified under section 133 of the Act and otheraccounting principles generally accepted in India. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of 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 controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statement that give a true and fair view andare free from material misstatement whether due to fraud or error.
In preparing the financial statements the board of directors areresponsible 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 the board of directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor's responsibilities for the audit of the standalone financialstatements Our objectives are to obtain reasonable assurance about whether thefinancial 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 financial statements.
As part of an audit in accordance with standards on auditing specifiedunder Section 143(10) of the Act we exercise professional judgment and maintainprofessional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thefinancial 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 financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under Section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the company has adequate internal financial controls systems inplace 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 Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate 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 thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
Materiality is the magnitude of misstatement in the standaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the Financial Statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatement in the Financial Statements.
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 financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements.
As required by Section 197(16) of the Act based on our audit we reportthat the Company has paid remuneration to its directors during the year in accordance withthe provisions of and limits laid down under Section 197 read with Schedule V to the Act.
As required by the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
Further to our comments in Annexure A as required by Section 143(3) ofthe Act we report to the extent applicable 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 our auditof the accompanying standalone financial statements.
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 financial statements dealt with by this report are inagreement with the 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 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 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 withreference to financial statements of the Company as on 31 March 2022 and the operatingeffectiveness of such controls refer to our separate Report in Annexure B wherein we haveexpressed an unmodified opinion; and
g) 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 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on itsfinancial position as at 31st March 2022 in the standalone financialstatements;
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
iv. The management has represented that to the best of its knowledgeand belief other than as disclosed in the notes to the accounts
a. No funds have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the company toor in any other person(s) or entity(ies) including foreign entities 'Intermediaries'with the understanding whether recorded in writing or otherwise that the Intermediaryshall whether directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever by or on behalf of the company 'UltimateBeneficiaries' or provide any guarantee security or the like on behalf of the UltimateBeneficiaries; and
b. no funds have been received by the company from any person(s) orentity(ies) including foreign entities 'Funding Parties' with the understanding whetherrecorded in writing or otherwise that the company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party 'Ultimate Beneficiaries' or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries and
c. Based on audit procedures carried out by us that we have consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us believe that the representations under sub-clause (a) and (b) contain anymaterial misstatement.
v. In our opinion and according to the information and explanationsgiven to us the dividend declared or paid during the year by the company is in compliancewith section 123 of the Companies Act 2013.
ANNEXURE A TO INDEPENDENT AUDITORS' REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF JET FREIGHT
LOGISTICS LIMITED FOR THE YEAR ENDED MARCH 31 2022
[Referred to in paragraph under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditors' Report]
i. (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of
Property Plant and Equipment and right of use assets.
(B) The Company has maintained proper records showing full particularsof intangible assets.
(b) The Company has a regular programme of physical verification of itsProperty Plant and Equipment (PPE) right of use assets (ROU) under which the assets arephysically verified in a phased manner over a period of three years which in ouropinion is reasonable having regards to the size of the Company and nature of its assets.In accordance with this programme certain PPE and ROU were verified during the year andno material discrepancies were noticed on such physical verification.
(c) The title deeds of all the immovable properties classified as PPEare held by the Company (other than properties where the Company is the lessee and thelease agreements are duly executed in favour of the lessee) are held in the name of theCompany.
(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not revaluedany of its property plant and equipment (including Right-of-use assets) or Intangibleassets or both during the year.
(e) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are no proceedingsinitiated or pending against the Company for holding any benami property under theProhibition of Benami Property Transactions Act 1988 and rules made thereunder.
ii. (a) The Company is a service company primarily rendering logisticsservices. Accordingly it does not hold any physical
inventories. Accordingly paragraph 3(ii)(a) of the Order is notapplicable.
(b) The Company has a working capital limit in excess of Rs 5 croressanctioned by banks based on the security of current assets. The quarterly statements inrespect of the working capital limits have been filed by the Company with such banks andsuch statements are in agreement with the books of account of the Company for therespective periods which were not subject to audit.
iii. (a) The company has provided loans to 1 subsidiary as per thedetails provided below
(b) In our opinion and according to information and explanation givento us the investments made guarantees provided security given and the terms andconditions of the grant of all loans and advances in the nature of loans and guaranteesprovided are not prejudicial to the company's interest.
(c) In our opinion and according to information and explanation givento us in respect of loans and advances in the nature of loans the schedule of repaymentof principal and payment of interest has been stipulated and the repayments or receiptsare regular
(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company there are no amount overduefor more than ninety days.
(e) In our opinion and according to information and explanation givento us there are no loans or advances in the nature of loan granted which has fallen dueduring the year has been renewed or extended or fresh loans granted to settle theoverdues of existing loans given to the same parties.
(f) The Company has not granted any loans or advances in the nature ofloans which are repayable on demand or without specifying any terms or period ofrepayment.
iv. In our opinion and according to information and explanation givento us the company has not granted any loans or provided any guarantees or given anysecurity or made any investments to which the provision of section 185 and 186 of theCompanies Act 2013. Accordingly paragraph 3 (iv) of the order is not applicable.
v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within the meaningof the directives issued by the Reserve Bank of India provisions of section 73 to 76 ofthe Act any other relevant provisions of the Act and the relevant rules framedthereunder.
vi. The Central Government of India has not prescribed the maintenanceof cost records under sub-section (1) of section 148 of the Act for any of the activitiesof the company and accordingly paragraph 3 (vi) of the order is not applicable.
vii. (a) According to the information and explanations given to us andon the basis of our examination of the records of the
Company amounts deducted/ accrued in the books of account in respectof undisputed statutory dues including Goods and Services Tax ('GST') Provident fundEmployees' State Insurance Income-tax Duty of Customs Cess and other material statutorydues have generally been regularly deposited with the appropriate authorities. Further noundisputed amounts payable in respect thereof were outstanding at the year-end for aperiod of more than six months from the date they became payable.
(b) According to the information and explanations given to us thereare no statutory dues referred in sub-clause (a) which have not been deposited with theappropriate authorities on account of any dispute except for the following:
viii. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has notsurrendered or disclosed any transactions previously unrecorded as income in the books ofaccount in the tax assessments under the Income-tax Act 1961 as income during the year.
ix. (a) According to the information and explanations given to us theCompany has not defaulted in repayment of its loans or borrowings or in the payment ofinterest thereon to any lender.
(b) According to the information and explanations given to us includingrepresentations received from the management of the Company and on the basis of our auditprocedures we report that the Company has not been declared a willful defaulter by anybank or financials institution or other lender.
(c) In our opinion and according to the information and explanationsgiven to us the term loans obtained during the year were applied for the purpose forwhich they were availed.
(d) In our opinion and according to the information and explanationsgiven to us and on overall examination of the financial statements of the Company fundsraised by the Company on short term basis have not been utilised for long term purposes.
(e) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company the Company has not takenany funds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.
(f) According to the information and explanations given to us theCompany has not raised any loans during the year on the pledge of securities held in itssubsidiaries associates or joint ventures.
x. (a) The Company has not raised any moneys by way of initial publicoffer further public offer (including debt instruments) during the year. Accordinglyparagraph 3(x)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations given to us and onthe basis of 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. Accordingly clause 3(x)(b) of the Order is not applicable.
xi. (a) To the best of our knowledge and according to the informationand explanations given to us no fraud by the Company or on the Company has been noticedor reported during the period covered by our audit.
(b) No report under Section 143(12) of the Act has been filed with theCentral Government for the period covered by our audit.
(c) According to the information and explanations given to us includingthe representation made to us by the management of the Company there are no whistleblowercomplaints received by the Company during the year.
xii. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.
xiii. In our opinion and according to the information and explanationsgiven to us all transactions entered into by the Company with the related parties are incompliance with Sections 177 and 188 of the Act where applicable. Further the details ofsuch related party transactions have been disclosed in the standalone financialstatements as required under Indian Accounting Standard (Ind AS) 24 Related PartyDisclosures specified in Companies (Indian Accounting Standards) Rules 2015 as prescribedunder Section 133 of the Act.
xiv. (a) Based on information and explanations provided to us and ouraudit procedures in our opinion the Company has an internal audit system asrequired under Section 138 of the Act which is commensurate with the size and nature ofits business.
(b) We have considered the internal audit reports of the Company issuedtill date for the period under audit.
xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly paragraph 3(xvi) of the Order is notapplicable to the Company.
xvii. The Company has not incurred cash losses in current and previousyear. Accordingly there are no cash losses to be reported under paragraph 3(xvii) of theOrder.
xviii. There has been no resignation of the statutory auditors duringthe year. Accordingly clause 3
(xviii) of the Order is not applicable.
xix. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the standalonefinancial statements our knowledge of the plans of the Board of Directors and managementand based on our examination of the evidence supporting the assumptions nothing has cometo our attention which causes us to believe that any material uncertainty exists as onthe date of the audit report that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.
xx. (a) In our opinion and according to the information andexplanations given to us in respect of other than ongoing projects there are nounspent amounts to be transferred to a fund specified in Schedule VII to the Act.
(b) In our opinion and according to the information and explanationsgiven to us there are no amount remaining unspent under sub-section (5) of section 135 ofthe Act pursuant to any ongoing project to be transferred to special account incompliance with the provision of sub-section (6) of section 135 of the said Act.
xxi. The reporting under clause (xxi) is not applicable in respect ofaudit of standalone financial statements of the Company. Accordingly no comment has beenincluded in respect of said clause under this report.
ANNEXURE B TO THE INDEPENDENT AUDITOR?S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL
STATEMENTS OF JET FREIGHT LOGISTICS LIMITED
[Referred to in paragraph 1(f) under 'Report on Other Legal andRegulatory Requirements' in the Independent Auditors' Report]
Independent Auditor's Report on the internal financial controls withreference to the standalone financial statements under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 (the Act?)
In conjunction with our audit of the standalone financial statements ofJet Freight Logistics Limited ("the Company") as at and for the year ended 31stMarch 2022 we have audited the internal financial controls with reference to thestandalone financial statements of the Company
Management?s Responsibility for Internal Financial Controls
The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control with reference tofinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (ICAI) (the "Guidance Note"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note and the Standards on Auditing issued byICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether internal financial controls with reference tofinancial statements was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to 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 with reference to financial statements.
Meaning of Internal Financial Controls With Reference to FinancialStatements
A Company's internal financial control with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A Company's internalfinancial control with reference to financial statements includes those policies andprocedures 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 as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.
Inherent Limitations of Internal Financial Controls With Reference toFinancial Statements
Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial control with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.
In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financial statements and suchcontrols were operating effectively as at 31st March 2022 based on theinternal financial controls with reference to standalone financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by the ICAI.