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JSL Industries Ltd.

BSE: 504080 Sector: Engineering
NSE: N.A. ISIN Code: INE581L01018
BSE 00:00 | 27 Oct 193.55 -0.45
(-0.23%)
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193.50

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194.00

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NSE 05:30 | 01 Jan JSL Industries Ltd
OPEN 193.50
PREVIOUS CLOSE 194.00
VOLUME 731
52-Week high 272.15
52-Week low 67.00
P/E 9.51
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 193.50
CLOSE 194.00
VOLUME 731
52-Week high 272.15
52-Week low 67.00
P/E 9.51
Mkt Cap.(Rs cr) 23
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JSL Industries Ltd. (JSLINDUSTRIES) - Auditors Report

Company auditors report

To

The Members of

JSL INDUSTRIES LIMITED

Report on the Audit of the Financial statements

Opinion

We have audited the financial statements of JSL Industries Limited ("thecompany") which comprise the Balance Sheet as at 31st March 2020 the Statement ofProfit and Loss (including Other Comprehensive Income) the statement of changes in equityand the statement of cash flows and for the year ended on that date and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information.

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 theCompanies Act 2013("the act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended("Ind AS") and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2020 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Emphasis of Matter

1. We draw your attention to Note 42 to the financial statements Quarter ended 31stMarch 2020 was adversely impacted due to Lock downs. Company's management has madeinternal assessment of the probable impact of business and believes that the impact islikely to be short term in nature and does not foresee any medium to long term risk incompany's ability to Continue as a Going Concern.

2. Our attendance at the physical verification done by the management was impracticableunder the current lock down restrictions imposed by the Government and we have thereforerelied on the related alternate audit procedures to obtain comfort over the existence andcondition of inventory at year end.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgement were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

Sr.No. Key Audit Matter Auditor's Response
1 Recoverability of Indirect tax receivables Principal Audit Procedures
As at March 31 2020 Non-current & Current assets in respect of Excise Duty Sales Tax and Service Tax recoverable amounting to Rs.4991159/- which are pending adjudication. We have obtained an understanding of Management's processes and controls with regards to the nature of the amounts recoverable the sustainability and the likelihood of recoverability upon final resolution.

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 the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon. These reports areexpected to be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto 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 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 financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity 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 of the assets of the Companyand for preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

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

Auditor's Responsibility for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable Assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in aggregate they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

As a part of audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also: l Identify and assess therisks of material misstatement of the financial statements whether due to fraud or errordesign and perform audit procedures responsive to those risks and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resultingfrom error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. l Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 weare also responsible for expressing our opinion on whether the company has adequateinternal financial controls system in place and the operating effectiveness of suchcontrols. l Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management. lConclude on the appropriateness of management's use of the going concern basis ofaccounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern. l Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charge 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 financial statements of the currentperiod and are therefore the key audit matters. We describe these matters in our auditor'sreport unless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

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 in terms of Section 143(11) of the Act we give in"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

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.

(c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid financial statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms ofSection 164(2) of the Act. (f) With respect to the adequacy of the internal financialcontrols over financial reporting of the Company and the operating effectiveness of suchcontrols refer to our separate 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 opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

(h) 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 in ouropinion and 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 financial positionin its financial statements - Refer Note No. 32 to the Financial Statements. ii. TheCompany did not have any long-term contracts including derivatives contracts for whichthere were any material foreseeable losses. iii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany. iv. Share Application Money with Jyoti Limited amounting to Rs.55000000/-which Jyoti Limited has assured to Refund the full amount vide their letter dated 10thApril 2018.

For V. H. Gandhi & Co.
Chartered Accountants
FRN : 103047W
CA Vijay H Gandhi
Proprietor
M. No. : 035581
UDIN : 20035581AAAADZ8525
Place : Vadodara
Date : 23/06/2020

Annexure "A" to the Independent Auditor's Report

Referred to in Paragraph 1 on Report on Other Legal and Regulatory Requirements of ourreport

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of Fixed Assets.

(b) These fixed assets have been physically verified by the Management during the yearas per the phased programme of physical verification of fixed assets. As informed to usthe programme is such that all the fixed assets will get physically verified in three yeartime.

In our opinion the is reasonable having regards to the size of the Company and thenature of its fixed assets. No material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the Company.

(ii) Our attendance at the physical verification done by the management wasimpracticable under the current lock down restrictions imposed by the Government and wehave therefore relied on the related alternate audit procedures to obtain comfort overthe existence and condition of inventory at year end. As informed to us there was nomaterial discrepancies were noticed on such physical verification of inventory as comparedto the book records.

(iii) The Company has not granted unsecured loans to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. Therefore the requirements of sub-clause (a) (b) and (c)of clause (iii) are not applicable to the Company.

(iv) In respects of loans investments guarantees and security provision of section185 and 186 of the Companies Act 2013 have been complied with.

(v) The Company has not accepted any deposits during the year. Therefore the questionof complying with directives issued by the Reserve Bank of India and the provisions ofsection 73 to 76 or any other relevant provisions of the Companies Act 2013 and the rulesframed thereunder do not arise.

(vi) The maintenance of cost records under sub section (1) of section 148 of theCompanies Act 2013 is not applicable in view of rule 3 of the Companies (Cost Records andAudit) Amendment Rules 2014 and therefore the provisions of clause (vi) of the Order arenot applicable to the Company.

(vii) (a) The company is generally regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-Tax Goods and Service TaxCustoms Duty Cess and other material dues applicable to it with the appropriateauthority.

(b) Details of dues of Sales Tax Service Tax and Excise Duty which have not beendeposited as at 31st March 2020 on account of dispute are given below :

Sr. Name of Dues No. Period to which the Amount Relates Amount not deposited Rs Forum where Dispute is Pending
1 Non Payment of Service Tax on services provided by Individual or film or advocate July - 2012 to November - 2015 2932436 CESTAT Ahmedabad
2 Non Payment of Service Tax on services provided by Individual or film or advocate December - 2015 to June - 2017 394686 CESTAT Ahmedabad
3 Abatement is not admissible on GTA in case of goods cleared without consignment notes November - 2014 to October - 2015 743143 Commissioner Anand Appeal
4 Abatement is not admissible on GTA in case of goods cleared without consignment notes November - 2015 to June - 2017 987106 Commissioner Anand Appeal
5 Non - Payment of Service Tax on reverse charge basis on Director Remuneration July - 2012 to Sept - 2015 1857080 CESTAT Ahmedabad
6 Non - Payment of Service Tax on reverse charge basis on Director Remuneration Oct - 2015 to June 2017 1230713 Commissioner Vadodara Appeal
7 Wrong Availment of CENVAT on Services providing by Advocates June -2016 to Dec - 16 135074 Dispute Resolved order received in company's favour.
8 RELATED PERSON (Civil Appeal No. 6466/2005 in respect of Jyoti Electric Motor Ltd. "OLD") 01/04/1987 to 30/06/2000 27000719 CESTAT Ahmedabad

(viii) The Company has not defaulted in repayment of dues to banks. The Company did nothave any loans or borrowings from any financial institution government or by way ofdebentures. (ix) The Company has raised moneys by way of term loans which were applied forthe purposes for which those are raised during the year. The Company did not raise anymoney by way of initial public offer or further public offer (including debt instruments)during the year.

(x) Any fraud by the Company or any fraud on the Company by its officers or employeeshas not been noticed or reported during the year.

(xi) Managerial remuneration has been paid or provided in accordance with the requisiteapproval mandated by the provision of section 197 read with schedule V to the CompaniesAct2013. (xii) The Company is not a Nidhi Company and therefore the compliancerequirement relevant to a Nidhi Company are not applicable.

(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards; (xiv)During the year the company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the period under review.

(xv) Pursuant to the provision of section 192 of the Companies Act 2013 the companyhas not entered into any non-cash transactions with directors or persons connected withhim or her. (xvi) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For V. H. Gandhi & Co.
Chartered Accountants
FRN : 103047W
CA Vijay H Gandhi
Proprietor
M. No. : 035581
UDIN : 20035581AAAADZ8525
Place : Vadodara
Date : 23/06/2020

Annexure "B"

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND AS FINANCIAL STATEMENTS OFJSL INDUSTRIES LTD.

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 JSLIndustries Limited ("the Company") as of March 31 2020 in conjunction with ouraudit of the Ind AS financial 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 Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls 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 auditor's 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 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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 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) 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 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 March 31 2020 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 Institute of CharteredAccountants of India.

For V. H. Gandhi & Co.
Chartered Accountants
FRN : 103047W
CA Vijay H Gandhi
Proprietor
M. No. : 035581
UDIN : 20035581AAAADZ8525
Place : Vadodara
Date : 23/06/2020

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