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Jetking Infotrain Ltd.

BSE: 517063 Sector: Services
NSE: N.A. ISIN Code: INE919C01019
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NSE 05:30 | 01 Jan Jetking Infotrain Ltd
OPEN 39.95
PREVIOUS CLOSE 39.95
VOLUME 9395
52-Week high 80.60
52-Week low 32.00
P/E 12.48
Mkt Cap.(Rs cr) 24
Buy Price 39.50
Buy Qty 2.00
Sell Price 39.95
Sell Qty 3.00
OPEN 39.95
CLOSE 39.95
VOLUME 9395
52-Week high 80.60
52-Week low 32.00
P/E 12.48
Mkt Cap.(Rs cr) 24
Buy Price 39.50
Buy Qty 2.00
Sell Price 39.95
Sell Qty 3.00

Jetking Infotrain Ltd. (JETKINGINFOTRAI) - Auditors Report

Company auditors report

To

The Members of

Jetking Infotrain Limited

Report on the audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Jetking InfotrainLimited (“the Company”) which comprise the balance sheet as at 31 March 2021the statement of profit and loss (including other comprehensive income) the statement ofchanges in equity and the statement of cash flows for the year then ended and notes tothe standalone financial statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as “the standalonefinancial statements”).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (“the Act”) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standard prescribed under Section133 of the Act read with the Companies (Indian Accounting Standard) Rules 2015 as amended(“Ind AS”) and the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2021 the loss and other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode 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 financialstatements.

Emphasis of Matter

We draw attention to

a) Note 7 to the standalone financial statements regarding capital advances of Rs.107.81 Lakhs given for purchase of property in earlier years for which construction is yetto be commenced. The Management of the Company is confident to get possession of the saidproperty in due course as per the revised schedule committed by the builder.

b) Note 27 (b) to the standalone financial statements regarding an amount of Rs. 36.77Lakhs recoverable from a Broker/Sub-broker for an unauthorised trade taken place in NSEF&O segment in earlier years which is in appeal with the Hon'ble High Court.

c) Note 41 of the standalone financial statements which describe the management'sassessment of the impact of the COVID-19 pandemic on the financial results of the Companyand estimates related to impairment of assets which are dependent on future developmentsregarding the severity and duration of the pandemic.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone financial statements section ofour report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the standalone financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying standalone financial statements.

Key Audit Matters How our audit addressed the key audit matters
Measurement of investments in accordance with Ind AS 109 “Financial Instruments” (Refer note 2.10 6(a) and 34 to the Standalone Financial Statements) Principal Audit Procedures
On initial recognition investments are recognized at fair value in case of Investments which are recognised at fair value through profit and loss (FVTPL) its transaction cost is recognised in the statement of profit and loss. In other cases the transaction costs are attributed to the acquisition value of the investments. • Obtained an understanding of Company's business model assessed in accordance with Ind AS 109;
The Company's investments are subsequently classified into following categories based on the objective of its business model to manage the cash flows and options available in the standard: • Evaluated the Company's assessment of business model;
• Equity instruments investments in mutual funds real estate funds and other funds at fair value through profit or loss (FVTPL) • Obtained an understanding of the determination of the measurement of the investments and tested the reasonableness of the significant judgments applied by the management;
• Debt instruments at amortised cost • Evaluated the design of internal controls relating to the measurement and also tested the operating effectiveness of the aforesaid controls;
The Company has assessed the following two business model: • Ensured that the Company has used valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value maximising the use of relevant observable inputs and minimising the use of unobservable inputs including consideration of the current economic and market conditions due to COVID-19 pandemic;
- Realising cash flows through the sale of investments. The Company makes decisions based on the assets' fair values and manages the assets to realise those fair values. • Assessed the appropriateness of the disclosure in the standalone financial statements in accordance with the applicable financial reporting framework.
- Held to collect contractual cash flows
Since valuation of investments at fair value involves critical assumptions significant risk in valuation and complexity in assessment of business model the valuation of investments as per Ind AS 109 is determined to be a key audit matter in our audit of the standalone financial statements.

 

Key Audit Matters How our audit addressed the key audit matters
Related party transactions and disclosures (Refer note 30 of the Standalone Financial Statements) Principal Audit Procedures
The Company has undertaken transactions with its related parties in the normal course of business. - Obtained read and assessed the Company's policies processes and procedures in respect of identifying related parties evaluation of arm's length obtaining necessary approvals recording and disclosure of related party transactions including compliance of transactions and disclosures in accordance with the regulations.
We have identified the accuracy and completeness of related party transactions and its disclosure as set out in respective notes to the standalone financial statements as a key audit matter to verify whether the transactions are recorded at arm length basis disclosure of such transactions in the financial statements and regulatory compliance thereon during the year ended 31 March 2021. - We have tested on a sample basis related party transactions with the underlying contracts and other supporting documents for appropriate authorization and approval for such transactions.
- We have read minutes of meeting of the Board and its relevant committee meetings and minutes of meetings of those charged with governance in connection with transactions with related parties affected during the year and Company's assessment of related party transactions being in the ordinary course of business at arm's length and in accordance with the regulations.
- Assessed and tested the disclosures made in accordance with the requirements of Ind AS and the applicable regulations.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in Board's Reportincluding Annexures to Board's Report and Shareholder's Information but does not includethe standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance (includingother Comprehensive Income) changes in equity and cash flows of the Company in accordancewith the Indian Accounting Standards (Ind AS) and other accounting principles generallyaccepted in India. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for the safeguarding the assets ofthe Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditors' Responsibility for the audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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 standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial 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 control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(I)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matters

The comparative financial information of the Company for the year ended 31 March 2020included in these financial statements have been audited by the predecessor auditors. Thereport of the predecessor auditors dated 31 July 2020 on the comparative financialinformation expressed an unmodified opinion Our opinion is not modified in respect of thismatter.

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 ofthe Act we give in the Annexure “A” a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit 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 changes in equity and thestatement of cash flows dealt with by this Report are in agreement with the books ofaccount;

d) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended;

e) On the basis of the written representations received from the directors as on 31March 2021 and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 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 the requirements of Section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid or provided to its directors during the year is inaccordance with the provision of Section 197 of the Act;

h) 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 as amended 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 its financialposition in its standalone financial statements. Refer Note 27 (a) to the standalonefinancial statements;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses; and

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

For PYS & CO. LLP
Chartered Accountants
Firm's Registration No. 012388S/S200048
G.D. Joglekar
Partner
Membership No.: 39407
UDIN: 21039407AAAAJE1788
Place: Mumbai
Date: 08 June 2021

ANNEXURE ‘A' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under the heading ‘Report on Other Legal andRegulatory Requirements' of our report of even date)

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

(b) The Company has regular programme of physical verification of its fixed assets bywhich all the fixed assets are verified in a phased manner which is reasonable havingregard to size of the Company and the nature of its fixed assets. However during theyear the management of the Company has not conducted physical verification of fixedassets. The discrepancy if any between fixed assets register and physical verificationwill be dealt with in the books of account as and when ascertained.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) In our opinion and according to the information and explanations given to usphysical verification of inventory (i.e courseware and other materials) has been conductedby the management at reasonable intervals during the year and no discrepancies werenoticed on such physical verification. In our opinion the frequency of verification isreasonable.

(iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained underSection 189 of the Act. Accordingly the Paragraph 3 (iii) (a) 3 (iii) (b) and 3 (iii)(c) of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations provided to usthe Company has complied with the provisions of Section 185 and 186 of the Act withrespect to loans/advances and investments.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits during the year from the public to which thedirectives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 andany other relevant provisions of the Act and the rules framed thereunder apply.

(vi) In our opinion and according to the information and explanations given to us theCentral Government has not prescribed maintenance of cost records under Sub-section (1) ofSection 148 of the Act.

(vii) (a) According to the information and explanations given to us the Company hasbeen generally regular in depositing undisputed statutory dues including provident fundincome tax goods and service tax cess and any other statutory dues with the appropriateauthorities. There are no arrears of outstanding statutory dues as at 31 March 2021 for aperiod of more than six months from the date they became payable. As informed during theyear statutory dues in the nature of duty of excise duty of customs value added tax andsales tax are not applicable to the Company.

b) According to information and explanations given to us there are no dues on accountof sales tax goods and service tax duty of customs duty of excise value added tax andcess which have not been deposited with the appropriate authorities on account of anydispute except following dues of Service Tax:

Name of the Statue Nature of dues Amount (Rs. in Lakhs) Period to which the amount relates Forum where the dispute is pending
Finance Act 1994 Service Tax 292.45 F.Y. 2005 - 06 to F.Y. 2009 - 10 CESTAT Delhi
Finance Act 1994 Service Tax 72.43 F.Y. 2012 - 13 to F.Y. 2013 - 14 Commissioner of Service Tax (Appeals) Mumbai
Finance Act 1994 Service Tax 17.94 F. Y. 2014 - 15 Commissioner of Service Tax (Appeals) Mumbai
Total 382.82

(viii) The Company does not have any loans or borrowings from financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not applicable to the Company.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable to the Company.

(x) To the best of knowledge and according to the information and explanations given tous no fraud by the Company or any fraud on the Company by its officers or employees havebeen noticed or reported during the year.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the Company.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him as referred to in section 192 ofthe Act. Accordingly paragraph 3(xv) of the Order is not applicable to the Company.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For PYS & CO. LLP
Chartered Accountants
Firm's Registration No. 012388S/S200048
G.D. Joglekar
Partner
Membership No.: 39407
UDIN: 21039407AAAAJE1788
Place: Mumbai
Date: 08 June 2021

ANNEXURE ‘B' TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2(f) under the heading ‘Report on Other Legal andRegulatory Requirements' 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 JetkingInfotrain Limited as of 31 March 2021 in conjunction with our audit of the standalonefinancial 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'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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 Reportingand the Standards on Auditing prescribed under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 Ind AS financial statements whether due to fraud or 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 financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company's internal financial control overfinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the standalone 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 further 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

According to the information and explanations given to us and based on our audit theCompany has policies and procedures in place for major financial reporting areas andprepared preliminary risk control matrices. However as per the size of the Company andnature of its operations the Company needs to further elaborated their processes anddocumented the processes of establishing its internal financial control system overfinancial reporting criteria considering the essential components of internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by Institute of Chartered Accountants of India.

We have considered the matters identified and reported above in determining the naturetiming and extent of audit tests applied in our audit of the standalone financialstatements of the Company and these matters does not affect our opinion on the standalonefinancial statements of the Company.

For PYS & CO. LLP
Chartered Accountants
Firm's Registration No. 012388S/S200048
G.D. Joglekar
Partner
Membership No.: 39407
UDIN: 21039407AAAAJE1788
Place: Mumbai
Date: 08 June 2021

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