To the members of JUBILANT INDUSTRIES LIMITED Report on theAudit of Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of JubilantIndustries Limited ("the Company") which comprise the Balance Sheet as atMarch 312020 the Statement of Profit and Loss (including Other Comprehensive Income) forthe year ended on that date the Statement of Changes in Equity and the Statement of CashFlows for the year ended on that date and a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "thestandalone financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give a true andfair view in conformity with Indian Accounting Standards prescribed under section 133 ofthe Companies Act 2013 ('the Act') and other accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 the loss and totalcomprehensive income for the year ended on that date changes in equity and its cash flowsfor the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) issued by the Institute of CharteredAccountants of India (ICAI). Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules made there under and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.
Information other than the financial statements and auditor's reportthereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.
If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Key Audit Matters
We have determined that there are no key audit matters to communicatein our report.
Responsibilities of the Management and Those Charged with Governancefor the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance total comprehensive incomechanges in equity and cash flows of the Company in accordance with Indian AccountingStandards and other accounting principles generally accepted in India. The Board ofDirectors of the Company is responsible for maintenance of the adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting 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 controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the standalone financial statements the Board ofDirectors of the Company is responsible for assessing the ability of the Company tocontinue as a going concern disclosing as applicable matters related to going concernand using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso. The Board of Directors of the Company is also responsible for overseeing the financialreporting process of the Company.
Auditor's Responsibilities for the Audit of the Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances for the purpose of expressing an opinion on effectiveness of the Company'sinternal financial controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theability of the Company to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Obtain sufficient appropriate audit evidence regarding thefinancial information of the entity or business activities within the Company to expressan opinion on the standalone financial statements.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
The comparative financial information of the Company for the year endedMarch 31 2019 included in the financial statements are based on the previously issuedstatutory financial statements audited by the predecessor auditor whose report for theyear ended March 31 2019 dated May 16 2019 expressed an unmodified opinion on thosefinancial statements.
Our opinion is not modified in respect of this matter.
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 of the Act we give in "Annexure 1" a statement onthe matters specified in paragraphs 3 and 4 of the Order 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;
b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books;
c. The Balance Sheet the Statement of Profit and Loss Cash FlowStatement and the Statement of Changes in Equity dealt with by this Report are inagreement with the books of account;
d. In our opinion the aforesaid standalone financial statements readwith notes thereto comply with the Indian Accounting Standards specified under Section 133of the Act read with Rule 7 of the Companies (Accounts) Rules 2014;
e. On the basis of written representations received from the directorsas on March 31 2020 and taken on record by the Board of Directors none of the directorsis disqualified as on March 31 2020 from being appointed as a director in terms ofSection 164 (2) of the Act;
f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls wegive our separate Report in "Annexure 2";
g. With respect to the other matters to be included in the Auditor'sReport in accordance 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 theexplanations given to us the Company has not paid / provided any remuneration to itsdirectors during the year; and
h. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:
(i) The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements - Refer Note 34 on ContingentLiabilities to the standalone financial statements;
(ii) The Company did not have any long-term contracts includingderivative contracts. Hence the question of any material foreseeable losses does notarise; and
(iii) There were no amounts which were required to be transferred tothe Investor Education and Protection Fund by the Company.
ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of JubilantIndustries Limited on the standalone financial statements for the year ended March312020]
(i) (a) The Company has maintained proper records
showing full particulars including quantitative details and situationof fixed assets.
(b) The fixed assets are physically verified by the managementaccording to a phased programme designed to cover all the items over a period of threeyears which in our opinion is reasonable having regard to the size of the Company andthe nature of its assets. The fixed assets have not been physically verified by theCompany during the year. However no material discrepancies were noticed in physicalverification conducted in earlier years in accordance with the programme.
(c) The title deeds of immovable properties recorded in the books ofaccount of the Company are held in the name of the Company.
(ii) The inventory except goods in transit has been physicallyverified by the management during the year. In our opinion the frequency of verificationis reasonable. As informed no material discrepancies were noticed on physicalverification carried out during the year.
(iii) The Company has granted loans secured or unsecured tocompanies firms Limited Liability Partnerships or other parties covered in the registermaintained under Section 189 of the Act.
(a) According to the information and explanations given to us and basedon the audit procedures conducted by us we are of the opinion that the terms andconditions of the aforesaid loans granted by the Company are not prejudicial to theinterest of the Company.
(b) The schedule of repayment of principal and payment of interest inrespect of such loans has been stipulated and the repayments or receipts are regular.
(c) In respect of the aforesaid loans there is no overdue amount ofloans granted to companies firms Limited Liability Partnerships or other parties listedin the register maintained under Section 189 of the Act.
(iv) According to the information and explanation given to us inrespect of loans investments guarantees and securities the Company has complied withthe provisions of Section 185 and 186 of the Act.
(v) In our opinion and according to the information and explanationsgiven to us the Company has not accepted any deposits from the public within theprovisions of Sections 73 to 76 of the Act and the rules framed there under. Further asinformed no Order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any Court or any other Tribunal on the Company inthis regard.
(vi) The Central Government of India has not prescribed the maintenanceof cost records for any of the products/activities of the Company under subsection (1) ofSection 148 of the Act and the rules framed there under.
(vii) (a) The Company is regular in depositing with appropriateauthorities undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax value added tax goods and services taxcustoms duty excise duty cess and any other material statutory dues applicable to it.
According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome tax sales tax service tax value added tax goods and services tax customs dutyexcise duty cess and any other material statutory dues applicable to it wereoutstanding at the year end for a period of more than six months from the date theybecame payable.
(b) According to the information and explanation given to us the duesoutstanding with respect to income tax sales tax service tax value added tax customsduty excise duty on account of any dispute are as follows:
|Name of the statute ||Nature of dues ||Amount Disputed (' in millions) ||Amount paid under protest ||Period to which the amount relates ||Forum where dispute is pending ||Remarks |
|VAT / Sales Tax laws ||VAT / Sales Tax ||15.23 ||- ||2013-14 ||DC Sales Tax LTU 4 Mumbai ||- |
(viii) According to the information and explanations given to us theCompany has not taken any loans or borrowings from any financial institution or bank orgovernment. There are no debenture holders. Accordingly paragraph 3 (viii) of the Orderis not applicable to the Company.
(ix) The Company has neither raised money by way of public issue offernor has obtained any term loans. Accordingly paragraph 3(ix) of the Order is notapplicable to the Company.
(x) During the course of our examination of the books and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of fraud by the Company or any fraud on the Company by its officers oremployees noticed or reported during the year nor have we been informed of any suchinstance by the management.
(xi) According to the information and explanations given to us theCompany has not paid / provided for any managerial remuneration. Accordingly paragraph3(xi) of the Order is not applicable to the Company.
(xii) In our opinion and according to the information and explanationsgiven to us the Company is not a Nidh Company. Accordingly paragraph 3(xii) of the Orderis not applicable to the Company.
(xiii) According to the information and explanation given to us alltransactions entered into by the Company with the related parties are in compliance withSections 177 and 188 of Act where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.
(xiv) The Company has made preferential allotment or private placementof equity shares during the year under review and in our opinion and according to theinformation and explanations given to us the requirement of Section 42 of the Act havebeen complied with and the amount raised have been used for the purposes for which thefunds were raised.
(xv) According to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him.
(xvi) According to the information and explanation given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.
ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT
[Referred to in paragraph 2 under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of JubilantIndustries Limited on the standalone financial statements for the year ended March 312020]
Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of Jubilant Industries Limited ("the Company") as of March 31 2020 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing specified undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both issued by the ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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 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.
The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonableassurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally 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.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2020 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the ICAI.
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|Place: New DelhDate: May 212020 ||Pranav Jain Partner Membership Number: 098308 UDIN: 20098308AAAABX2058 |