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Jupiter Industries & Leasing Ltd.

BSE: 507987 Sector: Financials
NSE: N.A. ISIN Code: INE990E01016
BSE 05:30 | 01 Jan Jupiter Industries & Leasing Ltd
NSE 05:30 | 01 Jan Jupiter Industries & Leasing Ltd

Jupiter Industries & Leasing Ltd. (JUPITERINDS) - Auditors Report

Company auditors report

TO THE MEMBERS

Report on the Ind AS Financial Statements

1. We have audited the accompanying Ind AS financial statements of Jupiter Industries& Leasing Limited ("the Company") which comprise the Balance Sheet as at31st March 2018 the Statement of Profit and Loss (Including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

2. 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 Ind As financial statements that give a true and fair view of the financialposition financial performance (Including Other Comprehensive Income) cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015 (asamended). 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 frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Ind AS financial statement that give a true and fairview and are free from material misstatement whether due to fraud or error

Auditor's Responsibility

3. Our responsibility is to express an opinion on these Ind AS financial statementsbased on our audit.

4. 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 the provisions of the Act and the Rules madethere under. '

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe Ind AS financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsthe disclosures in the Ind AS financial statements. The procedure selected depends on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on

this Ind AS financial statement. .

Basis for Qualified Opinion

8. We draw your attention to Note no 2(b) in respect of going concern and Note No.15 tothe financial statements that the Company has accumulated losses of Rs.26407527/-(Previous Year Rs.25937751/-) resulting into negative net worth of Rs. 16407527/-(Previous Year Rs.15937751/-). The Company's current liabilities exceed its currentassets by Rs. 16445767/- (Previous Year Rs. 12618408/-) as on date. Further there isinterest liability of Rs.490658863/- on the outstanding amount payable to Canara Bankand or its assignee for which provision is not made in the account from 1997 till date.The turnover during the period ended 31st March 2018 is Rs. Nil (Previous Year Rs.Nil).These factors along with other matters as set forth in the said notes raise doubts thatthe Company will be able to continue as a going concern. The accounts of the Company havebeen prepared on the basis that the Company is a going concern although the ability of theCompany to continue its operation in the near foreseeable future is dependent on thefinancial position of the Company. In view of the above uncertainties we are unable tocomment on the ability of the Company to continue as 'going concern' and the consequentialadjustments to the accompanying financial statements if any that might have beennecessary had the financial statements been prepared under liquidation basis.

Qualified Opinion

9. In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion section of our report the aforesaid Ind AS financial statements give the

information required by the Act in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India including the IndAS of the state of affairs of the Company as at 31st March 2018 its loss (includingother comprehensive loss) cash flows and changes in equity for the year ended on thatdate.

Report on other Legal and Regulatory Requirements

10 As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us wegive in the Annexure "A" a statement on the matters specified in paragraphs 3and 4 of the Order.

11. As required by Section 143(3) of the Act we report that:

(a) We have sought and except for the matters described in the Basis of QualifiedOpinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

(b) Except for the possible effects of paragraph of the matters described in the Basisof Qualified Opinion paragraph above in our opinion proper books of account as requiredby law have been kept by the Company so far as it appears from our examination of thosebooks;

(c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

(d) Except for the possible effects of paragraph of the matters described in the Basisof Qualified Opinion paragraph above in our opinion the aforesaid Ind AS Financialstatements comply with the Indian Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act;.

(f) With respect to the adequacy of the internal financial controls over the financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure "B".

(g) The matter described in the Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the Company.

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations as at 31st March 2018on its financial position in its Ind AS financial statements -Refer Note 11 to thefinancial statements

(ii) The Company did not have any long term contracts including derivative contractsfor which there were material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company

For A. B. Modi & Associates
Chartered Accountants
Firm's Registration No.:106473W
Rajesh S. Shah
Partner
Membership No.: 017844
Place; Mumbai
Date : 30th May 2018

Annexure -A to the Auditors' Report

Annexure referred to an Independent Auditors' Report of even date to the members ofJupiter Industries & Leasing

Limited on the Ind AS financial statements for the year ended 31st March 2018.

We report that:

(i) The Company is not having any fixed assets hence provisions of clauses 3(i)(a)3(i)(b) and 3(i)(c) of the Companies (Auditors' Report) Order 2016 are not applicable tothe Company for current year.

(ii) There was no inventory during the year hence provisions of clause 3(ii) of theCompanies (Auditors' Report) Order 2016 are not applicable to the Company for currentyear.

(iii) The Company has not granted any loans secured/ unsecured loans to any partieswhich is covered in the register maintained under Section 189 of the Act. henceprovisions of clauses 3(iii)(a) 3(iii)(b) and 3(iii)(c) of the Companies (Auditors'Report) Order 2016 are not applicable.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of S.185 and S.186 of the Companies Act 2013 inrespect of the loan and investments. We are informed that the Company has not provided anyguarantee or securities during the year.

(v) The company has not accepted any deposit from the public within the meaning ofsections 73 to 76 of the Act and the Rules framed there to the extent notified.

(vi) We have been informed that the Company is not covered under the rules made by theCentral Government of India in respect of the maintenance of cost records as has beenspecified under sub-section (1) of Section 148 of the Act. We have therefore notexamined the records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and the records ofthe Company examined by us in our

opinion the Company is regular in depositing the undisputed statutory dues includingincome tax and other material statutory dues as applicable with the appropriateauthorities.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues outstanding in respect of income tax sales-taxincluding value added tax duty of customs and duty of excise as at 31st March 2018 whichhave not been deposited on account of a dispute.

(viii) In our opinion and according to the information and explanations given to usthe Company has defaulted in repayments of dues to bank and or assignee. The details ofperiod and amount of default as ascertained by management is as follows:

Name of Bank Principal

Amount

Interest Accured and due Period to which it relates
Canara Bank 13607135/- 490658863/- 10/09/1997
New Marine Lines to
Mumbai 31/3/2018

(ix) According to the information and explanations given to us and based on our auditprocedures the Company has not raised any initial public offer or further public offer(including debt instruments) and term loan during the year hence the provision of clause3 (ix) of the Companies (Auditors' Report) Order 2016 are not applicable to the Company.

(x) On our examination of the books and records of the Company carried out inaccordance with generally accepted auditing practices in India and according to theinformation and explanations given to us we have neither come accorss any instances offraud by the Company or on the Company by its officers or employees noticed or reportedduring the year nor have we been informed of any such case by the Management.

(xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not paid/ provided managerialremuneration during the year. Accordingly provisions of Clause 3(xi) of the Companies(Auditors' Report) Order 2016 are not applicable to the Company.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a nidhi Company. Accordingly provisions of Clause 3(xii) of the Companies(Auditors Report) Order 2016 are 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 disclose in the Ind AS financial statements as required by theapplicable 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 under review. Accordingly provisions of Clause 3(xiv) of the Companies(Auditors' Report) Order 2016 are 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 non-cashtransactions with directors or person connected with them. Accordingly provisions ofClause 3(xv) of the Companies (Auditors' Report) Order 2016 are not applicable to theCompany.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For A. B. Modi & Associates
Chartered Accountants
Firm's Registration No.:106473W
Rajesh S. Shah
Partner
Membership No.: 017844
Place: Mumbai
Date : 30lh May 2018

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

Annexure - B to the Auditors' Report

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 JupiterIndustries & Leasing Limited ("the Company") as of 31st March2018 in conjunction with our audit of the Ind AS financial statements of the Company forthe 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 ari 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 Auditors' judgement 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 the Internal Financial Controls over Financial Reporting

A Company's Internal Financial Controls 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 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. Alsoprojections of any evaluation of the Internal Financial Controls over financial reportingto future periods are subject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree 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 31st March 2018 baseon 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 Institute ofChartered Accountants of India.

For A. B. Modi & Associates
Chartered Accountants
Firm's Registration No.:106473W
Rajesh S. Shah
Partner
Membership No.: 017844
Place: Mumbai
Date :30th May 2018