You are here » Home » Companies » Company Overview » JMC Projects (India) Ltd

JMC Projects (India) Ltd.

BSE: 522263 Sector: Infrastructure
NSE: JMCPROJECT ISIN Code: INE890A01024
BSE 12:36 | 11 Dec 82.00 2.50
(3.14%)
OPEN

76.00

HIGH

82.55

LOW

76.00

NSE 12:18 | 11 Dec 81.35 1.80
(2.26%)
OPEN

77.00

HIGH

82.50

LOW

75.65

OPEN 76.00
PREVIOUS CLOSE 79.50
VOLUME 4230
52-Week high 142.00
52-Week low 67.00
P/E 11.87
Mkt Cap.(Rs cr) 1,377
Buy Price 81.20
Buy Qty 16.00
Sell Price 81.80
Sell Qty 148.00
OPEN 76.00
CLOSE 79.50
VOLUME 4230
52-Week high 142.00
52-Week low 67.00
P/E 11.87
Mkt Cap.(Rs cr) 1,377
Buy Price 81.20
Buy Qty 16.00
Sell Price 81.80
Sell Qty 148.00

JMC Projects (India) Ltd. (JMCPROJECT) - Auditors Report

Company auditors report

To the Members of

JMC Projects (India) Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of JMC Projects(India) Limited ("the Company") which comprise the standalone balance sheet asat 31 March 2018 the standalone statement of profit and loss (including othercomprehensive income) the standalone statement of changes in equity and the standalonestatement of cash flows for the year then ended and a summary of the significantaccounting policies and other explanatory information in which are incorporated theReturns for the year ended on that date audited by the branch auditors of the Company'sbranches at Ethiopia and Sri Lanka and other auditors of the Company's four unincorporatedjoint ventures in India (hereinafter referred to as ‘Standalone Ind AS financialstatements')

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of the stateof affairs profit (including other comprehensive income) changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) prescribed under Section 133 ofthe Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing 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 financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone Ind AS 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.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

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 thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section 143 (10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the Auditors' judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We are also responsible to conclude on the appropriateness of management's 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 entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the standalone Ind AS financial statements or if suchdisclosures are inadequate to modify the opinion. Our conclusions are based on the auditevidence obtained up to the date of the auditor's report. However future events orconditions may cause an entity to cease to continue as a going concern.

We believe that the audit evidence obtained by us and the audit evidence obtained bythe auditors of branches and unincorporated joint ventures in terms of their reportsreferred to in the Other matters paragraph below is sufficient and appropriate to providea basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 its profit (including other comprehensive income) changes inequity and its cash flows for the year ended on that date.

Other matters

We did not audit the Ind AS financial statements of two branches and fourunincorporated joint ventures included in the standalone Ind AS financial statements ofthe Company whose financial statements reflect total assets of INR 44704 lakhs as at 31March 2018 and total revenue of INR 24326 lakhs for the year ended on that date asconsidered in the standalone Ind AS financial statements. The standalone Ind AS financialstatements of these branches and unincorporated joint ventures have been audited by thebranch and unincorporated joint venture auditors whose reports have been furnished to usand our opinion in so far as it relates to the amounts and disclosures included in respectof these branches and unincorporated joint ventures is based solely on the report ofauditors of such branches and unincorporated joint ventures. Our opinion is not modifiedin respect of this matter.

The two branches located outside India whose financial statements and other financialinformation have been prepared in accordance with accounting principles generally acceptedin their respective countries and which have been audited by other auditors undergenerally accepted auditing standards applicable in their respective countries. TheCompany's management has converted the financial statements of such branches locatedoutside India from accounting principles generally accepted in their respective countriesto accounting principles generally accepted in India. We have audited these conversionadjustments made by the Company's management. Our opinion in so far as it relates to thebalances and affairs of such branches located outside India is based on the report ofother auditors and the conversion adjustments prepared by the management of the Companyand audited by us.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' 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 in the paragraphs3 and 4 of the Order.

2. As required by sub-section (3) of Section 143 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 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 and proper returnsadequate for the purposes of our audit have been received from the branch not visited byus;

(c) the reports on the accounts of the branch offices and unincorporated joint venturesof the Company audited under Section 143(8) of the Act by branch auditors andunincorporated joint venture auditors have been sent to us and have been properly dealtwith by us in preparing this report;

(d) the standalone balance sheet the standalone statement of profit and loss(including other comprehensive income) the standalone statement of cash flows and thestandalone statement of changes in equity dealt with by this Report are in agreement withthe books of account;

(e) in our opinion the aforesaid standalone Ind AS financial statements comply withthe Indian Accounting Standards prescribed under Section 133 of the Act;

(f) on the basis of the written representations received from the directors as on 31March 2018 taken on record by the board of directors none of the directors isdisqualified as on 31 March 2018 from being appointed as a director in terms of Section164(2) of the Act;

(g) 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 (h) with respect to the other matters to be included inthe Auditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. the Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements – Refer Note 24 to thestandalone Ind AS financial statements;

ii. the Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long-term contracts. The Company did nothave any material foreseeable losses on derivative contracts - Refer Note 29 to thestandalone Ind AS financial statements;

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31 March2018; and

iv. the disclosures in the standalone Ind AS financial statements regarding holdings aswell as dealings in Specified Bank Notes during the period from 8 November 2016 to 30December 2016 have not been made since they do not pertain to the financial year ended 31March 2018. However amounts as appearing in the audited standalone Ind AS financialstatements for the period ended 31 March 2017 have been disclosed. Refer Note 39 of thestandalone Ind AS financial statements.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Vikas R Kasat
Mumbai Partner
24 May 2018 Membership No: 105317

Annexure A to the Independent Auditors' Report – 31 March 2018

With reference to the Annexure A referred to in the Independent Auditors' Report to themembers of the Company on the standalone Ind AS financial statements for the year ended 31March 2018 we report the following:

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

(b) The Company has a regular programme of physical verification of its fixed assetsand investment properties by which the fixed assets and investment properties are verifiedannually. In our opinion this periodicity of physical verification is reasonable havingregard to the size of the Company and the nature of its assets. In accordance with thepolicy the Company has physically verified its fixed assets and investment propertiesduring the year and we are informed that no material discrepancies were noticed on suchverification and the same have been dealt with in the books of account.

(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 asdisclosed in Note 3 and Note 4 to the standalone Ind AS financial statements are held inthe name of the Company.

(ii) The inventory of building material components and spares has been physicallyverified by the management during the year. In our opinion the frequency of suchverification is reasonable. The discrepancies noticed on verification between the physicalstocks and the book records were not material and have been dealt with in books ofaccount.

(iii) The Company has granted interest free unsecured loans to five companies coveredin the register maintained under Section 189 of the Companies Act 2013 (‘the Act').The Company has not granted any loans secured or unsecured to firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct.

i) According to the information and explanations given to us in our opinion the termsand conditions on which the unsecured loans have been granted to the companies listed inthe register maintained under Section 189 of the Act were not prima facie prejudicial tothe interest of the Company.

ii) According to the information and explanations given to us the unsecured loansgranted to companies are repayable on demand. The borrowers have been regular in paymentof principal and interest (if any) as demanded.

iii) There are no overdue amounts of more than 90 days in respect of the loans grantedby the Company.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loans or provided any guarantees or security to the partiescovered under Section 185 of the Act. Accordingly compliance under Section 185 of the Actis not applicable to the Company. According to the information and explanations given tous the provisions of Section 186 of the Act in respect of the loans given guaranteesgiven or securities provided are not applicable to the Company since it is covered as acompany engaged in business of providing infrastructural facilities. The Company has notmade any investments during the year. Accordingly compliance under Section 186 of the Actin respect of investment made during the year is not applicable to the Company.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted deposits as per the directives issued by the Reserve Bank ofIndia and the provisions of Sections 73 to 76 or any other relevant provisions of the Actand the rules framed thereunder. Accordingly paragraph 3 (v) of the Order is notapplicable to the Company.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuantto the rules prescribed by the Central Government for the maintenance of cost recordsunder Section 148(1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we have not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Income-tax Dutyof customs Duty of excise Goods and Service tax Value added tax Sales-tax Servicetax Local body tax Property tax Cess and other material statutory dues have beenregularly deposited during the year with the appropriate authorities. The amountsdeducted/accrued in the books of account in respect of undisputed statutory dues includingEntry tax have generally been regularly deposited during the year with the appropriateauthorities though there have been slight delays in a few cases. The amountsdeducted/accrued in the books of account in respect of undisputed statutory dues includingEmployees' State Insurance Profession tax Works contract tax have not been regularlydeposited during the year with the appropriate authorities though the delays in deposithave not been serious. As explained to us the Company did not have any dues on account ofWealth tax.

According to the information and explanations given to us no material undisputedamounts payable in respect of Provident fund Employees' State Insurance Profession taxIncome-tax Duty of customs Duty of excise Goods and Service tax Value added taxSales-tax Service tax Works contract tax Entry tax Local body tax Property tax Cessand other material statutory dues were in arrears as at 31 March 2018 for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofGoods and Service tax Duty of customs and Duty of excise which have not been depositedwith the appropriate authorities on account of any dispute. According to the informationand explanations given to us there are no dues of Income-tax Sales tax Service tax andValue added tax as at 31 March 2018 which have not been deposited with the appropriateauthorities on account of any dispute except as stated below:

(INR in lakhs)
Name of the Statute Nature of the Dues Amount Demanded Amount Deposited Under Disputes Period to which amount relates Forum where dispute is pending
Finance Act 1994 Tax Penalty and Interest 1154.44 - 2007-08 to 2009-10 Customs Excise and Service tax Appellate Tribunal Ahmedabad
2505.73 - 2008-09 to 2012-13 Customs Excise and Service tax Appellate Tribunal Ahmedabad
551.40 - 2015-16 Commissioner Ahmedabad
93.59 - 2015-16 Commissioner Ahmedabad
710.60 - 2014-15 Commissioner Ahmedabad
98.19 - 2012-13 to 2015-16 Commissioner Ahmedabad
176.23 - 2011-12 to 2015-16 Commissioner Ahmedabad
The West Bengal VAT Act 2003 Tax Penalty and Interest 57.10 - 2008-09 West Bengal Commercial Taxes Appellate and Revisional Board
105.80 - 2009-10 West Bengal Commercial Taxes Appellate and Revisional Board
430.01 - 2011-12 Dept. Commissioner Kolkata
Madhya Pradesh VAT Act 2002 Tax Penalty and Interest 15.60 - 2009-10 Additional Commissioner Appeals
171.43 - 2013-14 Additional Commissioner Appeals
0.82 - 2014-15 Additional Commissioner Appeals
15.30 - 2015-16 Additional Commissioner Appeals
Gujarat VAT Act 2003 261.72 - 2006-07 Gujarat VAT Tribunal
Maharashtra VAT Act 2002 2.75 - 2013-14 Additional Commissioner Appeals
New Delhi VAT matter 489.10 - 2012-13 & 2013-14 Objection Hearing Authority Sales Tax department Delhi
Income Tax Act 1961 778.47 778.47 2006-07 to 2011-12 Income Tax Appellate Tribunal
124.19 124.19 2009-10 Income Tax Appellate Tribunal
19.70 19.70 2010-11 Income Tax Appellate Tribunal
18.58 18.58 2004-05 Supreme Court

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans and borrowings to the banks andfinancial institutions. The Company did not have any outstanding loans and borrowings toGovernment and outstanding dues to debenture holders during the year.

(ix) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not raised any moneys by way ofinitial public offer or further public offer (including debt instruments) during the year.In our opinion and according to the information and explanations given to us the termloans taken by the Company have been applied for the purpose for which they are raised.

(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 material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

(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 and the Nidhi Rules 2014 are not applicable to it.Accordingly paragraph 3 (xii) of the Order is not applicable 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 Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the standalone Ind AS financial statements as requiredby applicable 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. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.

(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 any non-cashtransactions with directors or persons connected with them. Accordingly paragraph 3 (xv)of the Order is not applicable to the Company.

(xvi) In our opinion and according to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934. Accordingly paragraph 3 (xvi) of the Order is not applicable to the Company.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Vikas R Kasat
Mumbai Partner
24 May 2018 Membership No: 105317

Annexure B to the Independent Auditors' Report – 31 March 2018

(Referred to in 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 JMCProjects (India) Limited ("the Company") as of 31 March 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor 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 (‘the Act').

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 Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under Section 143(10) of the Act to the extent applicable to an auditof internal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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' judgement including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.

We believe that the audit evidence we have obtained and the audit evidence obtained bythe auditors of branches and unincorporated joint ventures in terms of their reportsreferred to in the Other matters paragraph below is sufficient and appropriate to providea basis for our audit opinion on the Company's internal financial controls system overfinancial 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 the standalone Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of thestandalone Ind AS financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone Ind AS 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the ICAI.

Other matters

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operatingeffectiveness of the internal financial controls over financial reporting in so far as itrelates to overseas branches and unincorporated joint ventures is based on thecorresponding reports of the auditors of branches and unincorporated joint ventures. Ouropinion is not modified in respect of this matter.

For B S R & Co. LLP
Chartered Accountants
Firm's Registration No: 101248W/W-100022
Vikas R Kasat
Mumbai Partner
24 May 2018 Membership No: 105317