TO THE MEMBERS OF JOCIL LIMITED
Report on the financial statements
We have audited the accompanying financial statements of Jocil Limited (theCompany') which comprise the Balance Sheet as at 31 March 2018 the Statement of Profitand Loss (including Other Comprehensive Income) the statement of Cash flows and theStatement of changes in equity for the year then ended and a summary of significantaccounting policies and other explanatory information.
Management's responsibility for the 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 andpresentation of these financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income changes in equityand cash flows of the Company in accordance with the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.
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 of frauds and other irregularities; selection and applicationof appropriate accounting policies; making judgements and estimates that are reasonableand prudent; design implementation and maintenance of adequate internal financialcontrols that are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and Rules made thereunder and the Orderissued under section 143(11) of the Act.
We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's board of directors as well as evaluating the overallpresentation of the financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2018 its profit total comprehensive income the changes in equity and its cash flowsfor the year ended on that date.
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 section 143(11) of the Act we givein the Annexure- A a statement on the matters specified in paragraphs 3 and 4 of theOrder.
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 purposes 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 and proper returns adequatefor the purposes of the audit have been received from the branches to the extent notvisited by us;
c) The Balance Sheet Statement of Profit and Loss Cash Flow Statement and Statementof changes in equity dealt with by this report are in agreement 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 relevant rule issuedthereunder;
e) On the basis of written representations received from the directors as on 31 March2018 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2018 from being appointed as a director in terms of sub-section (2) ofsection 164 of the Act; f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate report in Annexure-B. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the company's internal financial controls overfinancial reporting.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amendedin our opinion and to the best of our information and according to the explanations givento us:
i) The company does not have any pending litigations which would impact its financialposition except those which are disclosed in the notes to the financial statements andpara no.7(b) in Annexure-A to our Audit report.
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 intransferring amounts required to be transferred to the Investor Education Protection Fundby the company.
ANNEXURE-A TO THE INDEPENDENT AUDITORS' REPORT
The Annexure referred to in paragraph 1 under "Report on other legal andregulatory requirements" section of our report to the members of Jocil Limited("Company") for the year ended 31 March 2018.
We report that:
1. In respect of its fixed assets: a) The Company has maintained proper records showingfull particulars including quantitative details and situation of fixed assets. b) Thecompany has a programme of physical verification to cover all items of fixed assets in aphased manner which in our opinion is reasonable having regard to the size of thecompany and nature of its business. Pursuant to the programme certain fixed assets werephysically verified by the management during the year and according to the information andexplanations given to us no material discrepancies have been noticed on suchverification. c) According to the information and explanations given to us and on thebasis of our examination of the records of the company the title deeds of immovableproperties are held in the name of the company.
2. In respect of its inventories: a) According to the information and explanationsfurnished to us the Company has physically verified its inventories during the year andno material discrepancies were noticed on such verification. In our opinion the frequencyof verification is reasonable.
3. The Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the Act.Consequently clauses (iii)(a)(b) and (c) of paragraph 3 of the Order are not applicable.
4. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Act with respect tothe loans and investments made.
5. In respect of deposits accepted by the company it has complied with the directivesissued by Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed there under. According to theinformation furnished to us no order has been passed on the Company by the Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal for non-compliance with the provisions of sections 73 to 76 of the Act.
6. We have broadly reviewed the books of account and records maintained by the Companypursuant to the rules made by the Central Government for the maintenance of cost recordsunder section 148(1) of the Act and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. However we have not carried out adetailed audit of the same.
7. a) According to the information furnished to us the Company is regular indepositing with appropriate authorities the undisputed statutory dues including ProvidentFund Employees' State Insurance Income-tax GST Value added tax Service tax Customsduty Excise duty Cess and any other statutory dues wherever applicable to it during theyear. There were no undisputed statutory dues in arrears as at the date of the BalanceSheet under report for a period of more than six months from the date they becamepayable. b) According to the information furnished to us the following amounts of Valueadded tax Excise duty and Customs duty have been disputed by the Company and hence werenot remitted to the authorities concerned at the date of the Balance Sheet under report.
|Name of the Statute ||Nature of Dues ||Amount (Rs.) (net of amounts paid under protest) ||Period to which it relates ||Forum where dispute is pending |
|Central Excise Act1944 ||Duty on valuation of FA Soap ||8897229 ||2008 ||CESTAT Bangalore |
|AP VAT ||Availment of Input tax credit ||1040037 ||2005-06 ||STAT Vizag |
| || ||224341 ||2006-07 || |
| || ||43650 ||2007-08 || |
|Customs Act 1962 ||Classification of goods imported ||3203124 ||2012-13 ||CESTAT Chennai |
8. In our opinion and according to the information and explanations furnished to us bythe Company there were no defaults in repayment of dues to banks. However the companyhas not borrowed any loans from financial institutions government or raised any funds byway of issue of debentures.
9. The company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) during the year. During the year the company has notborrowed any term loans from the banks or from any other financial institutions.
10. According to the information and explanations given to us no fraud by the companyor any fraud on the company by its officers or employees has been noticed or reportedduring the course of our audit. 11. According to the information and explanation given tous and based on examination of the records of the company the company has paid/providedremuneration for managerial personnel in accordance with the requisite approvals mandatedby the provisions of section 197 read with schedule V of the Act.
12. The company is not a nidhi company. Accordingly reporting under provisions of para3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on examinationof records of the company transactions with the related parties are in compliance withthe provisions of section 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
14. 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.
15. 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 them. Accordingly paragraph 3(xv) ofthe Order is not applicable.
16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of JocilLimited ("the Company") as of 31 March 2018 in conjunction with our audit of thefinancial statements of the Company for the year ended 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 internal financial controls overfinancial reporting of the company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by ICAI and the Standards on Auditingprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material 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 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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31 March 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
| ||For Chevuturi Associates |
| ||Chartered Accountants |
| ||Firm Registration No.000632S |
| ||(RAGHUNADHA RAO BALINENI) |
|Place: Vijayawada ||Partner |
|Date : 29 May 2018 ||(Membership No: 028105) |