JINDAL WORLDWIDE LIMITED
REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying Standalone financial statements of JINDAL WORLDWIDELIMITED CIN:L17110GJ1986PLC008942 ("the Company") which comprises the BalanceSheet as at 31st March 2021 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year ended on that date and notes to the Standalone financial statementsincluding a summary of the significant accounting policies and other explanatoryinformation. The Financial Statements of five divisions of the Company i.e. Jindal DenimsInc. Jindal Creations Inc. Jindal Fabric Inc. Jindal Fashion Inc. and Jindal SpinningInc. have been audited and signed by M/s. B.A.BEDAWALA & CO. Chartered Accountantsand relied upon by us for the preparations of the standalone financial 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 Standards prescribed under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (Ind AS") and accounting principles generally accepted in India of the stateof affairs of the Company as at 31st March 2021 and the profit changes inequity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone financial statements in accordance with theStandards on Auditing (SAs) specified under Section 143(10) of the Companies Act 2013.Our responsibilities under those Standards are further described in the Auditor'sResponsibility for the Audit of the Standalone financial statements Section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ndependencerequirements that are relevant for audit of financial statement under the provisions ofthe Act and the Rules made thereunder and we have fulfilled our ethical requirements thatare relevant to our audit of the Standalone financial statements under the provisions ofthe Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities n accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.
Key audit matters
Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the Standalone Financial Statements of the current year.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.
|Key Audit Matter ||Auditor's Response |
|Assessment of carrying value of equity investments in subsidiaries and associates and fair value of other investments ||Our audit procedures included the following: |
|The Company has equity investments in various subsidiaries associates and other companies. The accounting for investments is a Key Audit Matter as the determination of recoverable value for impairment assessment/fair valuation involves significant management judgement. || We obtained an understanding from the management assessed and tested the design and operating effectiveness of the Company's key controls over the impairment assessment and fair valuation of material investments. |
|The Company accounts for equity investments in subsidiaries and associates at cost(subject to impairment assessment) || We assessed the carrying value/fair value calculations of all individually material investments where applicable to determine whether the valuations performed by the Company were within an acceptable range determined by us and the auditor's valuation experts. |
| || We evaluated the cash flow forecasts (with underlying economic growth rate) by comparing them to the approved budgets and our understanding of the internal and external factors. |
| || We had discussions with management to obtain an understanding of the relevant factors in respect of certain investments carried at fair value where a wide range of fair values were possible due to various factors such as absence of recent observable transactions restrictions on transfer of shares existence of multiple valuation techniques investee's varied nature of portfolio of investments for which significant estimates/ judgements are required to arrive at fair value. |
| || We evaluated the adequacy of the disclosures made in the Standalone Financial Statements. |
| ||Based on the above procedures performed we did not identify any significant exceptions in the management's assessment in relation to the carrying value of equity investments in subsidiaries associates and other investments. |
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 Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone financial statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statement 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 responsible for overseeing the Company's financial reportingprocess.
Auditor's 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such 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.
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 Ind AS financialstatements for the financial year ended 31st March 2021 and are therefore thekey audit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by Section 143(3) of the Companies Act2013 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 Statement of Changes in Equity and the Statement of cash flows dealt with by thisReport are in agreement with the books of account.
d) In our opinion the aforesaid Standalone financial statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Companies Act read withRule 7 of the Companies (Accounts) Rules 2014.
e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in termsof Section 1 64 (2) of the Companies Act 2013.
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 A".
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 Company has paid the remuneration to its Directors during the year whichis within the limits prescribed under 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 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 financial statements - Refer Note 42 to the standalonefinancial statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. All the unpaid/unclaimed amounts under Section 125 of the Companies Act2013 asrequired to be transferred to the Investor Education and Protection Fund by the Companywere duly transferred.
2. 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 Companies Act 2013 we give in the "Annexure-B" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.
Annexure -A to the Independent Auditors' Report
(Referred to in paragraph 1 (f) under 'Report on Other Legal and RegulatoryRequirements' Section of our Report of even date)
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (I) OFSUBSECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of JINDALWORLDWIDE LIMITED ("the Company")as on 31st March 2021 inconjunction with our audit of Standalone financial statements of the Company for the yearended on that date.
MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued 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.
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") issued by the Institute of Chartered Accountants of Indiaand 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 Standalone financial statements whether due to fraud orerror.
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 authorizations of management and directors of the Company; and
3) 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 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31st March 2021 based onthe internal control over financial reporting criteria established by the Companyconsidering the essential components of internal financial control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.
Annexure -B to the Independent Auditors' Report
(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'Section of our Report of even date)
(i) In respect of Fixed Assets which have been derecognized pursuant to Appendix-C ofInd AS-115 and recognized as financial asset:
a) The Company has maintained proper records showing full particulars includingquantitative details and its situation.
b) Fixed assets have been physically verified by the management at reasonable intervalswhich in our opinion is reasonable having regard to size of the Company and nature of itsassets. No material discrepancies were noticed on such verification.
c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds/ registered sale deed provided tous we report that the title deeds of the immovable property are held in the name of theCompany.
(ii) As explained to us the management of the Company has conducted physicalverification of inventory at reasonable intervals during the year and no materialdiscrepancies were noticed on such physical verification.
(iii) According to information and explanation given to us the Company has grantedloans (secured or unsecured) to companies/ firms/ Limited Liability Partnerships or suchother parties as covered in the register maintained under Section 189 of the CompaniesAct 2013 and the has complied with the provisions of the said Section.
(iv) In our opinion and according to information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act2013in respect of loans investments guarantees and security.
(v) According to information and explanation given to us the Company has not acceptedany deposits as defined in The Companies (Acceptance of Deposits) Rules 2014. Accordinglythe provision of Clause 3(v) of the order is not applicable to the Company.
(vi) The Central Government has prescribed maintenance of cost records undersub-section (1) of Section 148 of the Companies Act 2013 and necessary cost records wereduly maintained by the Company as applicable.
(vii) According to the information and explanations given to us in respect ofstatutory dues:
(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Goods and Service TaxCustoms Duty Cess and other material statutory dues applicable to it with the appropriateauthorities.
(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Goods and Service Tax Customs Duty Cess and other materialstatutory dues in arrears as at 31sl March 2021 for a period of more than sixmonths from the date they became payable.
(viii) In our opinion and according to information and explanations given to us theCompany has not defaulted in the repayment of loans and borrowings to financialinstitutions and banks.
(ix) In our opinion and according to information and explanations given to us theCompany has not raised moneys by way of initial public offer or further public offer(including debt instruments) during the year. The term loans have been utilized for thepurpose for which the same has been obtained during the year.
(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its officersor employees has been noticed or reported during the course of our audit.
(xi) In our opinion and according to the information and explanations give to us andbased on our examination of the records of the Company the Company has paid/providedmanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V of the Companies Act 2013.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi Company. Accordingly reporting under clause 3(xii) of the Order isnot applicable.
(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Sections 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with related parties and details of such transactions havebeen disclosed in the Standalone financial statements as required by the applicableaccounting standards.
(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and therefore the reportingunder clause 3 (xiv) of the Order is not applicable to the Company
(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into non-cash transactions with directors orpersons connected with them and hence provisions of Section 192 of the Companies Act 2013are not applicable to the Company.
(xvi) The Company as legally advised is not required to be registered under Section45-IA of the Reserve Bank of India Act 1934. Therefore the reporting under clause (xvi)of the Order is not applicable to the Company.