To the Members of
Jigar Cables Ltd Gondal.
Report on the Financial Statements
We have audited the accompanying financial statements of Jigar Cables Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and Cash Flow Statement for the period February 07 2017 toMarch 31 2017 and a summary of significant accounting policies and other explanatoryinformation.
Managements Responsibility for the Financial Statements
The companys board of directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to preparation andpresentation of these financial statement that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting principles generally accepted in India including the Accounting Standardsspecified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 there under.
We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditors judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Companys preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the company hasin place an adequate internal financial controls system over financial reporting andoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by companys directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
Emphasis of matter
We draw your attention to 5th point to Note no. 20- Notes on Accounts and SignificantAccounting policies of Financial Statements regarding the investment in the subsidiary andreasons for non consolidation of accounts. However we do not modify our opinion in thisregard.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified Opinion section of our report the 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:
a. in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017;
b. in the case of the Statement of Profit and Loss of the profit for February 07 2017to March 31 2017; and
c. in the case of the Cash Flow Statement of the cash flows for February 07 2017 toMarch 31 2017.
Basis of Qualified Opinion
We draw attention to Paragraph 3 of Note 1 Accounting Policies and Notes to theFinancial Information regarding accounting policy for valuation of inventories and itsdeviation from (AS)-2 "Valuation of Inventories". In absence of adequate detailseffect of deviation from AS 2 Valuation of Inventories cannot be determined
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("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.
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 purpose of our audit;
b. in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books c. the Balance SheetStatement of Profit and Loss and Cash Flow Statement dealt with in the Report are inagreement with the books of account;
d. in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;
e. On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.
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" and
g. With respect to the other matters to be included in the Auditors 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 explanation given to us;
i. The company does not have any pending litigations which would impact its financialposition;
ii. The company does not have any long-term contracts including derivative contractshence the question of any material foreseeable losses does not arise;
iii. No amounts were required to be transferred to the Investor Education andProtection fund by the company.
iv. The Company is not required to provide disclosures as to holdings as well asdealings in Specified Bank Notes during the period from 8 November 2016 to 30 December2016 in financial statements since the company was incorporated as on 07th February 2017.Refer to Note 6 to the standalone financial statements.
For Maharishi & Co.
ICAI Firm Registration No.124872W
Signed at Jamnagar on 02/06/2017
ANNEXURE TO INDEPENDENT AUDITORS REPORT
[Referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements in the Independent Auditors Report of even date to the membersof JIGAR CABLES LIMITED on the financial statements for the year ended 31ST March 2017]
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) All the fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. As informed nomaterial discrepancies were noticed on such verification.
(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 are inthe name of the company.
(ii) The inventory (excluding stocks with third parties and work in progress) has beenphysically verified by the management during the year. In respect of inventory lying withthird parties these have substantially been confirmed by them. In our opinion thefrequency of verification is reasonable. Discrepancies noticed during physicalverification were not material and the same has been dealt with in the books of account.
(iii) As informed the Company has not granted any loans secured or unsecured tocompanies firms Limited liability Partnerships or other parties covered under theregister maintained under Section 189 of the Act. Accordingly the provisions stated inparagraph 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and section 186 of the act withrespect to investments made.
(v) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.
(vi) The Central Government has prescribed the maintenance of cost under subsection (1)of Section 148 of the Act for the products of the company. But the company is notrequired to maintain the cost records.
(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund income tax sales tax service tax duty ofexcise value added tax cess and any other material statutory dues to the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of the above were in arrears as at March 31 2017 for a periodof more than six months from the date on when they become payable.
(b) According to the records of the Company the dues outstanding of income-taxsales-tax wealth-tax service tax customs duty excise duty and cess on account of anydispute are as follows:
|Name of the statute ||Nature of dues ||Amount In Rs. ||Period to which the amount relates ||Forum where dispute is pending |
|The Central Excise Act 1944 ||Excise Duty ||8565315 ||2009 to 2011 ||CESTAT |
(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of dues to financial institution bank or debenture holders.
(ix) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not raised moneys by way of initial public offeror further public offer. According to the information and explanations given to us theterm loans have been applied for the purpose for which the loans were obtained.
(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud on or by the Company noticed or reported during the year nor have webeen informed of any such instance by the management.
(xi) In our opinion the provisions of section 197 read with Schedule V to the CompaniesAct relating to payment of managerial remuneration are not applicable since for thereporting period no managerial remuneration has been paid. Therefore the provisions ofclause 3 (xi) of the Order are not applicable to the Company.
(xii) In our opinion the Company is not a Nidhi Company. Therefore 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 ussection 177 of the companies Act 2013 does not apply to the company. Further alltransactions with the related parties are in compliance with section 188 of the CompaniesAct 2013 and the details have been disclosed in the Financial Statements as required bythe applicable accounting standards.
(xiv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are not applicable tothe Company and hence not commented upon.
(xv) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence not commented upon.
(xvi) In our opinion the company is not required to be registered under section 45 IAof the Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi)of the Order are not applicable to the Company and hence not commented upon.
For Maharishi & Co.
Firm Registration No. 124872W
Membership No. 146144
Signed at Gondal on 02/06/2017
Annexure B to the Auditors report
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 control over financial reporting of JIGAR CABLESLTD. (the company) as of 31st March 2017 in conjunction with our audit of thefinancial statement of the company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 the Companys policies thesafeguarding of its assets the prevention and detection of frauds and errors andaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the companys 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 deemed tobe prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols 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 auditors judgment including the assessment of the risks ofmaterial misstatement of the 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 Companys internal financial controlssystem over financial reporting.
Meaning of Internal Financial Control over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purpose in accordance withgenerally accepted accounting principles.
A companys internal financial control over financial reporting includes thosepolicies 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorization of the management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the companys assets that could havea material effect on the 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 misstatement due to error or fraud may occur and not be detected. Alsoprojections of any evaluation of the internal financial controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.
In our opinion the company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 except for theinventory valuation which is mentioned in Paragraph No. 3 in Notes 3 to Financialstatements i.e. Significant Accounting policies & notes to financial statements basedon the internal control over financial reporting criteria established by the companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India. For Maharishi & Co. Chartered Accountants FirmRegistration No.124872W
Signed at Jamnagar on 02nd June 2016