Auditor Report of Jaihind Projects Ltd.
Mar 31, 2015
We have audited the accompanying financial statements of Jaihind
Projects Limited ("the Company"), which comprise the Balance Sheet as
at 31st March 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year ended, and a summary of significant accounting
policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Management and Board of Directors of the Company are responsible
for the matters stated in Section 134(5) of the Companies Act, 2013
('the act') with respect to the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in india, including the
Accounting Standards specified under section 133 of the Act, read with
rule 7 of Companies (Accounts) Rules, 2014. This responsibility
includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Company
and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; design,
implementation and maintenance of adequate internal financial controls,
that are operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of financial statements that give a true and fair view and
are free from material misstatement, whether due to fraud or error.
AUDITORS' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provision of the Act and Rules made thereunder. We conducted our audit
in accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments; the auditor considers internal financial control relevant
to the Company's preparation of the financial statements, that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's management and Board of
Directors, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion and
except to these standards could not be applied in their entirety for
want of adequacy of appropriate internal control system and accounting
procedures followed by the Company.
Basis for Qualified Opinion:
1) Attention is invited to Note no. 36 of the standalone financial
statements; the Company has recognized revenue of Rs. 16,415.59 lacs on
certain projects arising out of deviation in designs and/or scope of
work, liquidity damage/PRS for which acceptance by the clients are
awaited. The amount of such certification cannot therefore be measured
reliably. In the absence of sufficient appropriate audit evidence
regarding the extent to which such claims/scope variations will be
accepted by the clients, we are unable to comment on the
appropriateness of such revenue as recorded in the financial
statements, the amounts that will be ultimately realised and the
consequent impact, if any, on the reported loss for the year ended
March 31, 2015 and corresponding assets and liabilities as at that
time.
2) Attention is invited to Note no. 37 of the standalone financial
statements, regarding bank guarantee invoked by "Arabian Pipeline
Projects Company" (APPCO) of Rs. 6,051.04 lacs. The Company has not made
any provision in its financial statements in respect of bank guarantee
invoked. The Company has filed the suit before Hon'ble City Civil
Court, Ahmedabad against the invocation of bank guarantee and the
Hon'ble Court has granted stay. The Company has also referred the
dispute to "The London Court of International Arbitration" for
arbitration. In view of the pending litigation and uncertainty of
outcome of such pending litigation, we are unable to quantify and
comment upon the liability that may devolve on the Company on account
of such invoked bank guarantee. Our audit opinion on the financial
statement for the year ended March 31, 2015 is qualified in respect of
above matter.
3) Attention is invited to Note no. 38 of the standalone financial
statements regarding invocation of bank guarantee of Rs. 4,738 lacs by
"Brahmaputra Cracker and Polymer Limited" (BCPL) on April 17, 2015. The
Company has not made any adjustment in respect of bank guarantee
invoked, which constitutes departure from the Accounting Standard
(AS)-4 on "Contingencies and Events Occurring After the Balance Sheet
Date", issued by the ICAI, which requires adjustment to be made in
assets and liabilities for events occurring between the balance sheet
date and the date on which financial statements have been approved.
4) Attention is invited to Note no. 39 of the standalone financial
statements; The Company has made investments in its subsidiaries
aggregating to Rs. 665.0 lacs reported under "Non-Current Investments".
There is erosion of net worth, current year losses, legal cases by
lenders and creditors against the said subsidiaries, which may result
into the permanent diminution in the value of investments. In spite of
this, the Company has reported these investments at cost. This
constitutes departure from Accounting Standard (AS)-13 "Accounting for
Investment" issued by the ICAI, which requires ascertainment and
provision for diminution, other than temporary, in the carrying amount
of investment
5) Attention is invited to Note no. 40 of the standalone financial
statements, The Company has reversed Interest expense of Rs. 754.11 lacs
on loans from banks by way of credit to "Interest Expenses" in
statement of profit and loss account for which confirmations from the
bank are not made available, resulting into the understatement of loss
and liabilities by Rs. 754.11 lacs.
6) Attention is invited to Note no. 41 of the standalone financial
statements; The Company has not provided interest on amounts borrowed
from the NBFCs aggregating to Rs. 2215.02 lacs as on March 31, 2015
(Previous year Rs. 3033.10 lacs). As balance confirmation and / or
statement of loan accounts from NBFCs are not made available to us, we
are unable to ascertain the impact of non-provision of interest on
amounts borrowed from NBFCs on financial statements. The amount due to
NBFCs is disclosed based on the information available with the
management and subject to reconciliation.
7) As stated in Note no. 42 of the standalone financial statements
regarding pending confirmation of balances in respect of Trade
Payables, Other Current Liabilities, Long Term Loans & Advances, Trade
Receivables, Short Term Loans & Advances and Other Current Assets, we
are unable to comment on the impact of arising out of reconciliation/
adjustments, if any, required upon such confirmation.
8) In absence of adequate working papers on physical verification of
Inventories, discrepancies, if any, between book and physical
inventories could not be ascertained including effect of the same in
financial statements of the Company.
9) As stated in note no. 43 of the standalone financial statements
regarding write back of old liabilities of Rs. 1,353.21 lacs and write
off of old receivables of Rs. 397.28 lacs. In absence of adequate
supporting documents, we are unable to comment on effect of the same in
financial statements of the Company.
10) Attention is invited to Note no. 44 of the standalone financial
statements regarding uncertainties relating to recoverability of trade
receivable aggregating to Rs. 12,013.96 lacs recognized in the earlier
years in respect of project which are suspended or substantially closed
and where the claims are currently under
negotiations/arbitration/litigation. Pending the ultimate outcome of
these matters, which is presently unascertainable, no adjustments have
been made in the accompanying standalone financial statements. Our
opinion is qualified in respect of this matter.
11) We draw attention to Note no. 45 of the standalone financial
statements regarding the assets, liabilities, revenue and expenditure
of project at "Kingdom of Saudi Arabia" (KSA) accounted for in the
financial statements on the basis of unaudited financial information of
project at "Kingdom of Saudi Arabia" (KSA) available with the Company
because of the reasons stated therein. We have not carried out audit
procedures to verify the financial figures of this shared project
accounted for in the financial statements of the Company. The financial
statements of project at "Kingdom of Saudi Arabia" (KSA) are reported
on the basis of management's internal assessment and legal opinion
obtained by the Company, and we are unable to comment and give any
opinion on the transactions/balances accounted for in the books of
accounts of the Company.
OPINION
In our opinion and to the best of our information and according to the
explanations given to us except for the effects of the matter described
in the basis for qualified opinion paragraph, the aforesaid standalone
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affair of the Company as at March 31, 2015 and its loss and its cash
flows for the year ended on that date.
Emphasis of Matter
Attention is invited to Note no. 46 of the standalone financial
statements, regarding the Company's ability to meet its financial
obligations including loans, overdue loans, unpaid interest, and
ability to fund obligations pertaining to operations including unpaid
creditors and investment in ongoing projects for ensuring normal
operations. During the year the Company incurred the net loss of Rs.
1,792.43 lacs and has loan aggregating to Rs. 2,470.97 lacs falling due
over next twelve months period which also includes unpaid dues of
Company as at March 31, 2015. These matters require the Company to
raise such additional cash flows to the fund the operations as well as
the investment obligations towards on- going projects. However the
financial statements have been prepared under the assumption,
considering the management's assessment to recover the dues from the
customers, divestment of existing assets and management plan to get
requisite funding from various other sources. Based on its assessment
management is reasonably confident that the Company has the ability to
raise the required cash flow, which has not been independently assessed
by us. Relying on the above, no adjustments have been made in these
financial statements.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by the section 143(3) of the Act, we further report
that;
a. We have sought and except for the matters described in the Basis
for Qualified Opinion paragraph, obtained all the information and
explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit;
b. Except for the possible effects of the matters described in the
Basis for Qualified Opinion paragraph, in our opinion, proper books of
account as required by law have been kept by the Company so far as
appears from our examination of those books;
c. The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. Except for the effects of the matter described in the Basis for
Qualified Opinion paragraph above, in our opinion, the aforesaid
standalone financial statements comply with the applicable Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of
the Companies (Accounts) Rules 2014;
e. The matters described in Basis of qualified opinion paragraph,
paragraph of Emphasis of Matter and paragraph ix to statement on the
matters specified in paragraphs 3 and 4 of the Order above, in our
opinion, may have adverse effect on the functioning of the Company.
f. On the basis of written representations received from the
directors, as on March 31, 2015 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164(2) of the
Act.
g. The qualification relating to the maintenance of accounts and other
matters connected therewith are as stated in the Basis for Qualified
Opinion paragraph above; and
h. With respect to the other matters to be included in the Auditor's
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 explanations given to us:
I. The company has disclosed the impact of pending litigations on its
financial position in its financial statements- Refer Note 27 to the
financial statements.
II. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
and as required on long-term contracts including derivative contracts.
III. There are no amounts which are required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to Auditors' Report (Referred to in paragraph 3 of our report
of even date) (Contd...)
Annexure referred to in our report of even date to the members of
Jaihind Projects Limited on the accounts of the Company for the year
ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that:
i. a) The Company has maintained the fixed assets register however the
records maintained by the Company in respect of its fixed assets are
not considered to be proper in so far as these does not give full
particulars of situation of assets, and location of assets.
b) In absence of the working papers of physical verification,
methodology adopted by the Company for the verification of the fixed
assets could not be ascertained.
ii. a) As explained to us, inventories have been physically verified by
the management. However, in absence of working papers of physical
verification, we are unable to comment on the adequacy of frequency of
such verification/estimation.
b) According to information and explanations provided to us,
inventories at different sites have been visually quantified and the
value estimated by respective site in charge. However in absence of
working papers as mentioned above, we are unable to comment on the
correctness of the procedure of physical verification of inventories
followed by the management.
c) In absence of working papers for the physical verification of
inventories conducted by the management, we are unable to comment on
the discrepancies between physical stock and book records, if any and
adjustment thereof in the books of accounts.
iii. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Act.
iv. In our opinion and according to the information and explanations
given to us, the internal control procedures are not adequate and
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods and services. During the course of our audit we have observed
some instances of continuing failure to correct weaknesses in internal
controls.
v. The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the Companies Act, 2013.
vi We have broadly reviewed the books of account relating to materials,
labour and other items of costs maintained by the Company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under section 148 (1) of the Act and we are of the opinion that
prima facie the prescribed accounts and records have been made and
maintained. We have, however not made detailed examinations of the
records with a view to determine whether they are accurate or complete.
vii. a) According to information and explanations provided to us and on
the basis of examination of records, the Company is not generally
regular in deposit of undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty,
Excise Duty, Cess (except Cess under section 441A of the Act since the
aforesaid section has not yet been made effective by the Central
Government) and any other statutory dues applicable to it.
b) According to the information and explanation provided to us, in our
opinion, no undisputed amount payable in respect of the aforesaid due
were outstanding as at 31st March, 2015 for a period of more than six
months from the date they became payable except Professional Tax
amounting to Rs. 4.97 lacs ESIC Rs. 0.45 lacs, TCS Rs. 0.18 lacs and TDS
amounting to Rs. 51.52 lacs.
c) According to the information and explanations given to us, the
statutory dues which have not been deposited on account of any dispute
are as under:
Name of the statute Nature of the Amount in Period to which
dues Rs. Lacs it relates
Finance Act 1994 Service Tax 223.58 June 16, 2005 to
Sep 2006
Finance Act 1994 Service Tax 212.79 Oct 2006 to Sep 2007
Finance Act 1994 Service Tax 177.37 Oct 2007 to March
2008
Gujarat Commercial
Tax Commercial Tax 327.41 Year 2009-10
Gujarat Commercial
Tax Commercial Tax 416.95 Year 2010-11
Name of the Status Forum where dispute is pending
Supreme Court
CESTAT, Ahmedabad
CESTAT, Ahmedabad
Deputy Commissioner of Commercial Tax (Appeals) Ahmedabad
Deputy Commissioner of Commercial Tax (Appeals), Ahmedabad
d) There has not been an occasion in case of the Company during the
year under report to transfer any sums to the investor Education and
Protection Fund. The question of reporting delay in transferring such
sums does not arise.
viii The Company does not have accumulated losses at the end of the
current financial year subject to our qualifications in Independent
Auditors' Report. It has incurred cash losses during the year and the
immediately preceding financial year.
ix Based on our audit procedures and as per the information and
explanations given by the management, the Company had executed
Corporate Debt Restructuring agreement with its principal lenders. As
per terms of the Corporate Debt Restructuring package, the Company was
required to pay during the year under report amounting to Rs. 479.05 lacs
and interest of Rs. 754.11 lacs which it has failed to pay. The Company
has also defaulted in repayment of loans due to financial institutions
of Rs. 2,215.02 lacs as on March 31, 2015 and interest thereon.
x. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interests of the Company since
these guarantees are given for a subsidiary Company promoted by the
Company.
xi In our opinion, and according to information and explanations given
to us, the Company has not raised any term loans during the year.
xii During the course of our examination of the books and records of
the Company, carried in accordance with the auditing standards
generally accepted in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the course of
our audit nor have been informed of any such instance by the
Management.
For R. K. DOSHI & COMPANY
Chartered Accountants
Regn. No. 102745W
Shailesh A. Gathani
30th May 2015 Partner
Ahmedabad M. No. 049973
Mar 31, 2014
We have audited the accompanying financial statements of Jaihind
Projects Limited ("the Company"), which comprise the Balance Sheet as
at 31st March 2014, and the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
the Accounting Standards notified under the Companies Act, 1956 (the
Act) read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013 and in accordance with the accounting principles
generally accepted in India. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of financial statements that give a true
and fair view and are free from material misstatement, whether due to
fraud or error.
AUDITORS'' RESPONSIBILITY
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entities internal control. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of the accounting estimates made by management,
as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
a) Revenue includes rs 128.77 Cr against claims raised on different
clients, which are neither acknowledged/approved/certified by the
clients nor recoverability of which is ascertainable.
b) Against sundry debtors amounting to Rs 80.00 crores disputed by the
parties, an amount of Rs 15.36 Crores has been written off in the
financial year 2012-13. No provision has been made against balance
disputed debtors of Rs 64.64 crores.
c) Interest on delayed deposit of statutory dues of Service Tax and
Commercial Tax has neither been quantified nor the effect of the same
on the financial statements been ascertained.
d) In absence of audited accounts of JPL Morpol Consortium and Tehran
Jonoob Jaihind Consortium, discrepancies, if any, between the said
accounts with that of the company is not ascertainable.
e) In absence of adequate supporting of revenue and expenses incurred
for APPCO-JPL project at Kingdom of Saudi Arabia, the same is recorded
on the basis of reporting made by APPCO -JPL Project Office at Kingdom
of Saudi Arabia. (Summarized in Note No. 37 in notes on accounts)
OPINION
In our opinion and to the best of our information and according to the
explanations given to us except for the effects of the matter
described in the basis for qualified opinion paragraph, the financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2014;
(b) In the case of Statement of Profit and Loss, of the loss for the
year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by the section 227 (3) of the Act, we report that;
a. We have obtained all the information and explanations, which to the
best of 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 the Company so far as appears from our examination of
those books and proper returns adequate for the purposes of our audit
have been received from the branches not visited by us except for the
effects of the matter described in the basis for qualified opinion
paragraph
c. The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from the branches not visited by
us.
d. Except for the effects of the matter described in the basis for
qualified opinion paragraph, in our opinion, the Balance Sheet, the
Statement of Profit and Loss, and Cash Flow Statement comply with the
Accounting Standards notified under the Act read with the General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act,
2013;
e. On the basis of written representations received from the
directors, as on 31st March 2014 and taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the Act
nor has it issued any Rules under the said section, prescribing the
manner in which such cess is to be paid, no cess is due and payable by
the Company.
Annexure to Auditors'' Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal
and Regulatory Requirements" of our Report of even date on the
financial statements for the year ended on 31st March, 2014 of Jaihind
Projects Limited
i.
a) The company has maintained fixed assets register which however is
not complete.
b) In absence of the working papers of physical verification,
methodology adopted by the company for the verification of the fixed
assets could not be ascertained.
c) During the year, the Company has disposed off some plant and
machinery. According to the information and explanations given to us,
we are of the opinion that said disposal has not affected the going
concerns status of the Company.
ii. a) As explained to us, inventories have been physically verified
by the management. However, in absence of working papers of physical
verification, we are unable to comment on the adequacy of frequency of
such verification/estimation.
b) According to information and explanations provided to us,
inventories at different sites have been visually quantified and the
value estimated by respective site in charge. However in absence of
working papers as mentioned above, we are unable to comment on the
correctness of the procedure of physical verification of inventories
followed by the management.
c) In absence of working papers for the physical verification of
inventories conducted by the management, we are unable to comment on
the discrepancies between physical stock and book records, if any and
adjustment thereof in the books of accounts.
iii.
a) The company has not granted secured / unsecured loans to Companies
covered in the Register maintained under Section 301 of the Act. Hence
the provisions of clause
(iii)
(b), (c), (d), of paragraph 4 are not applicable to the company.
e) The Company has taken secured / unsecured loans from three parties
covered in the register maintained under section 301 of the Act.
Total amount of loans taken during the year Rs 484.27 Lacs Amount
outstanding at year end Rs 2,915.37 Lacs Maximum amount outstanding at
any point of time Rs 3025.47 Lacs
f) Based on the information and explanations given to us, we are of
the opinion that the rate of interest and other terms and conditions
of loans taken from such parties covered in the Register maintained
under Section 301 are not prima facie prejudicial to the interest of
the company.
g) According to the information and explanations given to us,
repayments of the principal and interest have been regularly made as
stipulated. iv. In our opinion and according to the information and
explanations given to us, the internal control procedures are not
adequate and commensurate with the size of the Company and the nature
of its business with regard to purchases of inventory, fixed assets
and sale of goods and services. During the course of our audit we have
observed some instances of continuing failure to correct weaknesses in
internal controls.
v.
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be entered in the register required to be
maintained in pursuance of section 301 of the Act, have been so
entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the Register Maintained under Section 301 of
the Act, and exceeding the value of five lacs rupees in respect of
each party during the year have been made at prices which appear
reasonable as per information available with the Company.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year. Therefore, the provisions of Clause (vi) of paragraph
4 of the order are not applicable to the Company.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the books of account relating to
materials, labour and other items of costs maintained by the Company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Act and
we are of the opinion that prima facie the prescribed accounts and
records have been made and maintained. We have, however not made
detailed examinations of the records with a view to determine whether
they are accurate or complete.
ix.
a) According to information and explanations provided to us and on the
basis of examination of records, the company is not generally regular
in deposit of undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess (except Cess under section 441A of the Act since the
aforesaid section has not yet been made effective by the Central
Government) and any other statutory dues applicable to it.
b) According to the information and explanation provided to us, in our
opinion, no undisputed amount payable in respect of the aforesaid due
were outstanding as at 31st March, 2014 for a period of more than six
months from the date they became payable except Professional Tax
amounting to '' 2.89 Lacs and TDS amounting to '' 56.04 Lacs.
c) According to the information and explanations given to us, the
statutory dues which have not been deposited oi account of any dispute
are as under:
Name of the Nature of the Amount in Period to which Forum where
statue dues Rs Lacs it relates dispute is
pending
Income
Tax Act Income Tax 3.02 Assessment Year Commissioner
2010-11 of Income-Tax
(Appeals),
Ahmedabad
Income
Tax Act Income Tax 46.03 Assessment Year Commissioner
of Income-Tax
(Appeals),
Ahmedabad
Finance June 16, 2005 to
Act 1994 Service Tax 223.58 Sep 2006 Supreme Court
Finance Oct 2006 to Sep CESTAT,
Act 1994 Service Tax 212.79 2007 Ahmedabad
Finance Oct 2007 to CESTAT,
Act 1994 Service Tax 177.37 March 2008 Ahmedabad
Gujarat Commercial 85.23 Yeat 2008-09 Deputy
Commercial Tax Comissioner
of
Commercial
Tax
(Appeals)
Ahmedabad
x.The Company does not have accumulated losses at the end of the
current financial year subject to our qualifications in Independent
Auditors'' Report. It has incurred cash losses during the year and the
immediately preceding financial year.
xi. The Company has not issued any debentures. However, it had
defaulted in repayment of dues to Banks and Financial Institutions.
The company approached the consortium of lenders for restructuring of
loans which was approved and implemented on 28th March 2013. However,
certain equipment loans and unsecured loans from NBFCs aggregating to
Rs 3033.10 Lacs (Previous Year '' 7353.95 Lacs) were not restructured
and said loans are treated as Non-Performing Assets by Financial
Institutions.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities. xiii. The Company is not a chit fund or a Nidhi / mutual
benefit fund / society. Accordingly, the provisions of clause
(xiii) of paragraph 4 of the order are not applicable to the Company.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments.
xv. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interests of the Company since
these guarantees are given for a subsidiary Company promoted by the
Company.
xvi. In our opinion, the term loans were applied for the purpose for
which they were raised.
xvii. According to the information and explanations given to us and
on an overall examination of the balance sheet of the Company, we
report that no funds raised on short term basis have been used for
long term investment.
xviii. The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Act. xix. The Company has not
issued any debentures during the year. Accordingly the question of
creating securities or charges in respect thereof does not arise.
xx. The Company has not raised any money by way of public issue
during the year.
xxi. According to information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the year.
For R. K. DOSHI & COMPANY
Chartered Accountants
Regn. No. 102745W
Shailesh A. Gathani
30th May 2014 Partner
Ahmedabad M. No. 049973
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Jaihind
Projects Limited ("the Company"), which comprise the Balance Sheet as
at 31st March 2013, and the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the company in accordance with
Accounting Standards referred to in sub- section (3C) of the section
211 of Companies Act. 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial
statements. _ _
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion .
In our opinion and to the best of out information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2013;
(b) in the case of Statement of Profit and Loss, of the loss for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act. we give in the Annexure. a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by the section 227 (3) of the Act we report that;
we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit
in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books (and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us);
the Balance Sheet Statement of Profit and Loss and Cash Flow Statement
dealt with by this report are in agreement with the books of account
(and with the returns received from the branches not visited by us):
in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of section 211 of the Act:
on the basis of written representations received from the directors, as
on 31st March 2013 and taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March 2013 from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Act.
Since the Central Government has not issued any notification as to the
rate at which the cess is to be paid under section 441A of the Act not
has it issued any Rules under the said section, prescribing the manner
in which such cess is to be paid, no cess is due and payable by the
Company.
Annexure referred to in paragraph 1 under the heading "Report on
Other Legal and Regulatory Requirements" of our report of even date
Re: Jaihind Projects Limited
i. a) The Company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The Company has a phased programme of physical verification of fixed
assets which, in our opinion, is reasonable having regard to the size
of the Company and nature of its assets. In accordance with this
programme, the management has verified fixed assets during the yeai and
no serious discrepancies have been noticed on such verification.
c) During the year, the Company has disposed off some plant and
machinery. According to the information and explanations given to us,
we are of the opinion that said disposal has not affected the going
concerns status of the Company.
ii. a) As explained to us, the management conducts regular physical
verification of inventory at reasonable intervals.
b) The procedures of physical verification of inventory followed by the
management to the extent verified were generally reasonable and
adequate in relation to the size of the Company and the nature of its
business.
c) The Company is maintaining proper records of inventory. In our
opinion the discrepancies noticed on physical verification between the
physical stock and book records were not material having regard to the
size of the Company and nature of its business. In cases where
discrepancies noticed on physical verification have been identified
with inventory records, necessary adjustments have been carried out in
the books. In respect of cases where the reconciliation is not
complete, the management has stated that the same would be adjusted in
due course.
iii. a) The Company has not granted secured / unsecured loans to
parties covered in the register maintained under section 301 of the
Act.
b) The Company has taken secured / unsecured loans from three parties
covered in the register maintained under section 301 of the Act.
Total amount of loans taken Rs.2,090.46 lacs
Amount outstanding at year end 72,548.57 lacs
Maximum amount outstanding at
any point of time *2,548.57 lacs
c) The rate of interest and other terms and conditions of loans taken
by the Company are prima facie not prejudicial to the interest of the
Company.
d) The payment of the principal amount and interest are regular.
iv. In our opinion and according to the information and explanations
given to us, the internal control procedures are generally adequate and
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and sale
of goods and services. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
controls.
v. a) In our opinion and according to the information and explanations
given to us, the contracts or arrangements that
need to be entered in the register required to be maintained in
pursuance of section 301 of the Act, have been so entered.
b) In our opinion and according to the information and explanations
given to us. the transactions made in pursuance of such contracts or
arrangements and exceeding the value of five lakh rupees in respect of
any party have been made at prices which are reasonable having regard
to the prevailing market prices at the relevant time.
vi. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
during the year.
vii. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
viii. We have broadly reviewed the books of account relating to
materials, labour and other items of costs maintained by the Company
pursuant to the Rules made by the Central Government for the
maintenance of cost records under section 209 (1) (d) of the Act and we
are of the opinion that prima facie the prescribed accounts and records
have been made and maintained.
ix. a) The Company has generally been regular in depositing with
appropriate authorities undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-tax, Sales- tax. Wealth Tax, Service
Tax. Custom Duty, Excise Duty, Cess (except Cess under section 441A of
the Act since the aforesaid section has not yet been made effective by
the Central Government) and any other statutory dues applicable to it,
except for certain instances of delay. However, there are no such
material outstanding statutory dues accrued in accounts as of the last
date of the financial year concerned for a period of more than six
months from the date they became payable.
b) According to the information and explanations given to us, the
statutory dues which have not been deposited on account of any dispute
are as under;
Name of
the statute Nature of the Amount in Period to
which Forum where
dispute
dues Rupees Lacs it relates is pending
Income
Tax Act Income Tax 3.21 Assessment
Year 2010-11 Income Tax
Appellate
Tribunal,
Ahmedabad
Finance
Act 1994 Service Tax 223.58 June 16, 2005
to Sep 2006 Supreme Court
Finance
Act 1994 Service Tax 212.79 Oct 2006 to
Sep 2007 CESTAT,
Ahmedabad
Finance
Act 1994 Service Tax 177.37 Oct 2007 to
March 2008 CESTAT,
Ahmedabad
Gujarat
Commercial
Tax Commercial Tax 85.23 Year 2008-09 Deputy
Commissioner of
Commercial Tax
(Appeals)
Ahmedabad
x. The Company has no accumulated losses at the end of the current
financial year. However, it has incurred cash losses during the year
but not during the immediately preceding financial year.
xi. The Company has not issued any debentures. However, it had
defaulted in repayment of dues to banks and financial institutions. The
company approached the consortium of lenders for restructuring of loans
which was approved and implemented before end of the year. However,
certain equipment loans and unsecured loans from banks and NBFCs were
not restructured. The unpaid overdue principal and interest on such
loans as at 31/03/2013 are detailed in the Note 4 to the financial
statements.
xii. In our opinion and according to the information and explanations
given to us, the Company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
xiii. The Company is not a chit fund or a Nidhi / mutual benefit fund
/ society. Accordingly, the provisions of clause 13 of the Order are
not applicable to the Company.
xiv. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures and other investments.
xv. In our opinion and according to the information and explanations
given to us, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial
institutions are not prejudicial to the interests of the Company since
these guarantees are given for a subsidiary Company promoted by the
Company.
xvi. The company has raised new term loans during the year. In our
opinion, the term loans were applied for the purpose for which they
were raised.
xvii. On an overall examination of the balance sheet of the Company,
we report that no funds raised on short term basis have been used for
long term investment.
xviii. The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 303 of the Act.
xix. The Company has not issued any debentures during the year.
Accordingly the question of creating securities or charges in respect
thereof does not arise.
xx. The Company has not raised any money by way of public issue during
the year.
xxi. According to information and explanations given to us, no fraud on
or by the Company has been noticed or reported during the year.
For R. K. DOSHI & COMPANY
Chartered Accountants
Regn. No. 102745W
R. K. Doshi
5" July 2013 Partner
Ahmedabad M. No. 032542
Mar 31, 2012
1. We have audited the attached Balance Sheet of JAIHIND PROJECTS
LIMITED ("the Company") as at 31st March, 2012, the Statement of Profit
and Loss and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto. These financial statements are the
responsibility of the Company's Management Our responsibility is to
express an opinion on these financial statements based on our audit
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) we have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books;
(c) the Balance Sheet, the Statement of Profit and Loss and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
(d) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors as on 31st March, 2012 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2012
from being appointed as a director in terms of Section 274(l)(g) of the
Companies Act, 1956.
(i) Having regard to the nature of the Company's business / activities
/ result, clauses (xiii) and (xiv) of paragraph 4 of CARO are not
applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(v) In respect of loans, secured or unsecured, taken by the Company
from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, according to
the information and explanations given to us:
(a) The Company has taken loans aggregating to Rs. 1002.38 lacs from five
parties. At the year-end, outstanding balances of such loans was Rs.
958.13 lacs and the maximum amount involved during the year was 7
998.13 lacs.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima fade not prejudidal to the interests of the
Company.
(c) The payments of prindpal amounts and interest in respect of such
loans are regular/as per stipulations.
(vi) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(vii) In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in respect
of any party, the transactions have been made at prices which are prima
fade reasonable having regard to the prevailing market prices at the
relevant time.
(viii) According to the information and explanations given to us, the
Company has not accepted any deposit, from the public during the year.
(ix) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(x) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(l)(d) of the Companies
Act 1956, related to the laying of pipelines and other related
activities, and are of the opinion that prima fade, the prescribed
accounts and records have been made and maintained.
(xi) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has not been regular in depositing with appropriate
authorities undisputed dues including Provident Fund, Employees' State
Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty,
Cess and other material statutory dues applicable to it As explained to
us, the Company did not have any dues on account of Exdse Duty.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Cess and other material statutory dues in
arrears as at 31st March, 2012 for a period of more than six months
from the date they became payable.
(c) Details of dues of Provident Fund, Employees' State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Cess and
other material statutory dues which have not been deposited as on 31st
March, 2012 on account of disputes are given below:
Statute Nature of
Dues Forum where Period to which Amount
involved
Dispute is
pending the amount relates (Rs.in lakhs)
Income
Tax Act Income Tax Income Tax
Appellate
Tribunal, Assessment Year
2009-10 4.14
Ahmedabad
Service
Tax Act Service Tax Supreme Court,
New Delhi June 16, 2005 to 223.58
September 2006
Service
Tax Act Service Tax CESTAT,
Ahmedabad October 2006 to 212.79
September 2007
Service
Tax Act Service Tax CESTAT,
Ahmedabad October 2007 to 177.37
March 2008
Gujarat Commercial Deputy
Commissioner of Year 2008-09 85.23
Commer
cial Tax Commercial
Tax Appeals,
Tax Ahmedabad
(xii) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the financial year under
report and the immediately preceding financial year.
(xiii) In our opinion and according to the information and explanations
given to us, the Company has defaulted in the repayment of dues to
banks and financial institutions. Delays were noticed in payment of
interest and principal during the year. The unpaid overdue instalments
and interest to banks and institutions as at March, 2012 were 7 355.70
Lacs and Rs. 47.59 Lacs respectively as stated in Note 5(d) of the Notes
to the finandal statements.
(xiv) In our opinion, the Company has not given any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
(xv) In our opinion and according to the information and explanations
given to us, the Company has given guarantees for loans taken by others
from banks or finandal institutions. According to the information and
explanations given to us, we are of the opinion that the terms and
conditions thereof are not prima fade prejudidal to the interest of the
Company.
(xvi) The Company has raised new term loans during the year. In our
opinion and according to the information and explanations given to us,
the term loans outstanding at the beginning of the year and those
raised during the year have been applied for the purposes for which
they were obtained.
(xvii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
(xviii) According to the information and explanations given to us, the
Company has made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Companies Act, 1956. The prices at which such shares are allotted are
not prima facie prejudicial to the interests of the Company. .
(xix) According to the information and explanations given to us, during
the year covered by our audit report, no debentures have been issued by
the Company and hence the question of creating the securities or
charges in respect thereof does not arise.
(xx) During the year, the Company has not made any public issue of
shares.
(xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company or on the Company has
been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117365W)
Gaurav J.Shah
Partner
AHMEDABAD, 30th May, 2012 (Membership No. 35701)
Mar 31, 2011
1. We have audited the attached Balance Sheet of JAIHIND PROJECTS
LIMITED ("the Company") as at 31st March, 2011, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto. These financial statements are the
responsibility of the Company's Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) we have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and
Loss Account and the Cash Flow Statement dealt with by this report are
in compliance with the Accounting Standards referred to in Section
211(3C) of the Companies Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011;
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors as on 31st March, 2011 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2011
from being appointed as a Director in terms of Section 274(1)(g) of the
Companies Act, 1956.
ANNEXURE TO THE AUDITORS' REPORT (Referred to in paragraph 3 of our
report of even date)
(i) Having regard to the nature of the Company's
business/activities/result, clauses (xiii) and (xiv) of paragraph 4 of
CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(v) In respect of loans, secured or unsecured, taken by the Company
from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, according to
the information and explanations given to us:
(a) The Company has taken loans aggregating Rs. 103.81 lacs from three
parties during the year. At the year-end, outstanding balance of such
loans was Rs. 16.50 lacs and the maximum amount involved during the
year was Rs. 97.16 lacs.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the Company.
(c) The payments of principal amounts and interest in respect of such
loans are regular/as per stipulations.
(vi) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(vii) In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(viii) In our opinion and according to the information and explanations
given to us, the Company has not complied with the provisions of
Sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to rate of interest, submission of statement in lieu of
advertisement and filing of annual return of deposits. According to the
information and explanations given to us, no order has been passed by
the Company Law Board or the National Company Law Tribunal or the
Reserve Bank of India or any Court or any other Tribunal.
(ix) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(x) To the best of our knowledge and according to the information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956.
(xi) According to the information and explanations given to us in
respect of statutory dues:
(a) The Company has been regular in depositing with appropriate
authorities undisputed dues, except for certain instances of delay in
payment, including Provident Fund, Employees' State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Cess and
other material statutory dues applicable to it. As explained to us, the
Company did not have any dues on account of Excise Duty.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Cess and other material statutory dues in
arrears as at 31st March, 2011 for a period of more than six months
from the date they became payable.
(c) Details of dues of Provident Fund, Employees' State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Cess and
other material statutory dues which have not been deposited as on 31st
March, 2011 on account of disputes are given below:
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xvii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
(xviii) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under Section 301 of
the Companies Act, 1956.
Statute Nature Forum where
of Dues Dispute is
pending
Income Tax Act Income Tax Income Tax Appellate
Tribunal,
Service Tax Act Service Tax Supreme Court,
New Delhi
Service Tax Act Service Tax CESTAT, Ahmedabad
Service Tax Act Service Tax CESTAT, Ahmedabad
Income Tax Act Income Tax Commissioner of
Income Tax (Appeals),
Ahmedabad
Gujarat Comme- Commercial Tax Deputy Commissioner
rcial Tax of Commercial Tax
Appeals, Ahmedabd
Statue Period to Amount
which the involved
amount relates (Rs. in lakhs)
Income Tax Act Assessment 4.72
Year 2005-06
Service Tax Act June 16, 2005 223.58
to September 2006
Service Tax Act October 2006 212.79
to September 2007
Service Tax Act October 2007 177.37
to March 2008
Income Tax Act Assessment Year 2.53
2008-09
Gujarat Comme-
rcial Tax Year 2008-09 85.23
(xii) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the financial year under
report and the immediately preceding financial year.
(xiii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of dues to
banks and financial institutions.
(xiv) In our opinion, the Company has not given any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, no debentures have been issued
by the Company and hence the question of creating the securities or
charges in respect thereof does not arise.
(xx) During the year, the Company has not made any public issues of
shares.
(xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company or on the Company has
been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117365W)
Gaurav J. Shah
Ahmedabad, Partner
30th May, 2011 (Membership No. 35701)
Mar 31, 2010
1. We have audited the attached Balance Sheet of JAIHIND PROJECTS
LIMITED ("the Company") as at 31st March, 2010, the Profit and Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, both annexed thereto. These financial statements are the
responsibility of the Companys Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates
made by the Management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 (CARO)
issued by the Central Government in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
(a) we have obtained all the information and explanations which to the
best of 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 the Company so far as it appears from our examination of
those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956;
(e) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date and
(iii) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
5. On the basis of the written representations received from the
Directors as on 31st March, 2010 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31st March, 2010
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956.
Annexure to Auditors Report
(Referred to in paragraph 3 of our report of even date)
(i) Having regard to the nature of the Companys
business/activities/result, clauses (xiii) and (xiv) of paragraph 4 of
CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of the fixed assets.
(b) The fixed assets were physically verified during the year by the
management in accordance with a regular programme of verification
which, in our opinion, provides for physical verification of all the
fixed assets at reasonable intervals. According to the information and
explanations given to us, no material discrepancies were noticed on
such verification.
(c) The fixed assets disposed off during the year, in our opinion, do
not constitute a substantial part of the fixed assets of the Company
and such disposal has, in our opinion, not affected the going concern
status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iv) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(v) In respect of loans, secured or unsecured, taken by the Company
from companies, firms or other parties covered in the register
maintained under Section 301 of the Companies Act, 1956, according to
the information and explanations given to us:
(a) During the year, the Company has not taken loans from any such
party. At the year-end, outstanding balance of such loans taken during
earlier period from two such parties aggregated to Rs. 1 .06 lacs and
the maximum amount involved during the year was Rs. 27.90 lacs.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the Company.
(c) The payments of principal amounts and interest in respect of such
loans are regular/as per stipulations.
(vi) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and the sale of goods and
services. During the course of our audit, we have not observed any
major weakness in such internal control system.
(vii) In respect of contracts or arrangements entered in the register
maintained in pursuance of Section 301 of the Companies Act, 1956, to
the best of our knowledge and belief and according to the information
and explanations given to us:
(a) The particulars of contracts or arrangements referred to Section
301 that needed to be entered in the register maintained under the said
Section have been so entered.
(b) Where each of such transaction is in excess of Rs. 5 lakhs in
respect of any party, the transactions have been made at prices which
are prima facie reasonable having regard to the prevailing market
prices at the relevant time.
(viii) In our opinion and according to the information and explanations
given to us, the Company has not complied with the provisions of
Sections 58A and 58AA or any other relevant provisions of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with
regard to rate of interest, submission statement in lieu of
advertisement and filing of annual return of deposits. According to the
information and explanations given to us, no order has been passed by
the Company Law Board or the National Company Law Tribunal or the
Reserve Bank of India or any Court or any other Tribunal.
(ix) In our opinion, the Company has an adequate internal audit system
commensurate with the size and the nature of its business.
(x) To the best of our knowledge and according to the information and
explanations given to us, the Central Government has not prescribed the
maintenance of cost records under section 209 (1) (d) of the Companies
Act, 1956.
(xi) According to the information and explanations given to us in
respect of statutory dues:
(a) the Company has been regular in depositing with appropriate
authorities undisputed dues, except for certain instance of delay in
payment, including Provident Fund, Employees State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Cess and
other material statutory dues applicable to it. As explained to us, the
Company did not have any dues on account of Excise Duty.
(b) There were no undisputed amounts payable in respect of Provident
Fund, Employees State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Cess and other material statutory dues in
arrears as at 31st March, 2010 for a period of more than six months
from the date they became payable.
(c) Details of dues of Provident Fund, Employees State Insurance,
Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Cess and
other material statutory dues which have not been deposited as on 31st
March, 2010 on account of disputes are given below:
Statute Nature of Dues Forum where Period to which Amount involved
Dispute is
pending the amount relates (Rs. in lakhs)
Income Tax
Act Income Tax Income Tax
Appellate
Tribunal Assessment Year
2005-06 4.72
Service Tax
Act Service Tax Supreme Court,
New Delhi June 16, 2005 to 223.58
September 2006
Service Tax
Act Service Tax CESTAT,
Ahmedabad October 2006 to 212.79
September 2007
Service Tax
Act Service lax CESTAT,
Ahmedabad October 2007 to 177.37
March 2008
(xii) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the financial year under
report and the immediately preceding financial year.
(xiii) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in the repayment of clues to
banks and financial institutions.
(xiv) In our opinion, the Company has not given any loans and advances
on the basis of security by way of pledge of shares, debentures and
other securities.
(xv) In our opinion and according to the information and explanations
given to us, the Company has not given guarantees for loans taken by
others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xvii) In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet, we
report that funds raised on short-term basis have not been used during
the year for long- term investment.
(xviii) According to the information and explanations given to us, the
Company has made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Companies Act, 1956 at a price which is prima facie not prejudicial to
the interests of the Company.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, no debentures have been issued
by the Company and hence the question of creating the securities or
charges in respect thereof does not arise.
(xx) During the year, the Company has not made any public issues of
shares.
(xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company or on the Company has
been noticed or reported during the year.
For DELOITTE HASKINS & SELLS
Chartered Accountants
(Registration No. 117365W)
Gaurav J. Shah
Partner
AHMEDABAD, May 31, 2010 (Membership No. 35701)
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Jaihind Projects Ltd.
-
Jaihind Projects Ltd. Tools
- Bulk Deals
-
Jaihind Projects Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
Jaihind Projects Ltd. Key Financial Ratios
- Ratios
-
Jaihind Projects Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Jaihind Projects Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Jaihind Projects Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Jaihind Projects Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
