Mar 31, 2023
JK Tyre & Industries Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of JK Tyre & Industries Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2023, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (" the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ''Auditor''s Responsibilities for the Audit of the Standalone Financial Statements'' section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
Auditor''s Response |
Recognition of Revenue The Company recognizes revenue at the point in time when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In determining the transaction price for the sale, the Company considers the effects of variable consideration and consideration receivable from the customer. For the year ended 31st March, 2023, the Company''s Statement of Profit & Loss included Sales of ''9538.39 crores. Some terms of sales arrangements are governed by Incoterms, including the timing of transfer of control. The nature of rebates, discounts and sales returns, if any, involve judgment in determining sales revenues and revenue cut-off. The risk is, therefore, that revenue may not be recognized in the correct period or that revenue and associated profit is misstated. Refer to accounting policies Note No. 1.3 (xiv) and Note No. 26 of the standalone Financial Statements. |
Principal Audit Procedures ⢠We performed process walkthrough to understand the adequacy and the design of the revenue cycle. We tested internal controls in the revenue and trade receivables over the accuracy and timing of revenue accounted in the financial statements. ⢠Understanding the policies and procedures applied to revenue recognition, as well as compliance thereof, including an analysis of the effectiveness of controls related to revenue recognition processes employed by the Company. ⢠We reviewed the revenue recognition policy applied by the Company to ensure its compliance with Ind AS 115 requirements. ⢠We performed a detailed testing on transactions, ensuring revenues were recognized in the correct accounting period. We also tested journal entries recognized in revenue focusing on unusual or irregular transactions. ⢠We validated the appropriateness and completeness of the related disclosures in Note No. 26 of the Standalone financial statements. |
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance or conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged With Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with Ind AS and other accounting principles generally accepted in India. This responsibility also 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; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of section 143 (11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit, we
report that:
a) We have sought and 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statement of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls with reference to financial statement.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
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, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as on 31st March, 2023 in its financial position in its standalone financial statements. Refer Note No. 33, 34 & 39 to the standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to
the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in Note No. 53 to the standalone financial statements
(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from 1st April, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended 31st March, 2023
For S S KOTHARI MEHTA & COMPANY Chartered Accountants ICAI Firm''s Registration Number: 000756N
VIJAY KUMAR Partner
Membership Number: 092671
New Delhi, the 17th May, 2023
Mar 31, 2022
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
Key Audit Matter |
Auditor''s Response |
Recognition of Revenue The Company recognizes revenue at the point in time when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In determining the transaction price for the sale, the Company considers the effects of variable consideration and consideration receivable from the customer. For the year ended 31st March, 2022, the Company''s Statement of Profit & Loss included Sales of ''7918.44 Crores. Some terms of sales arrangements are governed by Incoterms, including the timing of transfer of control. The nature of rebates, discounts and sales returns, if any, involve judgment in determining sales revenues and revenue cut-off. The risk is, therefore, that revenue may not be recognized in the correct period or that revenue and associated profit is misstated. Refer to Accounting policies Note No. 1.3 (xiii) and Note No. 24 of the standalone Financial Statements. |
Principal Audit Procedures ⢠We performed process walkthrough to understand the adequacy and the design of the revenue cycle. We tested internal controls in the revenue and trade receivables over the accuracy and timing of revenue accounted in the financial statements. ⢠Understanding the policies and procedures applied to revenue recognition, as well as compliance thereof, including an analysis of the effectiveness of controls related to revenue recognition processes employed by the Company. ⢠We reviewed the revenue recognition policy applied by the Company to ensure its compliance with Ind-AS 115 requirements. ⢠We performed a detailed testing on transactions, ensuring revenues were recognized in the correct accounting period. We also tested journal entries recognized in revenue focusing on unusual or irregular transactions. ⢠We validated the appropriateness and completeness of the related disclosures in Note No. 24 of the Standalone financial statements. |
To the Members of
JK Tyre & Industries Limited
Report on the Audit of the Standalone FinancialStatements
Opinion
We have audited the accompanying standalone financial statements of JK Tyre & Industries Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2022, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2022, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance or conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and those charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with Ind AS and other accounting principles generally accepted in India. This responsibility also 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; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020("the Order"), issued by the Central Government of India in terms of section 143 (11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit, we report that:
a) We have sought and 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 including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31st March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2022 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statement of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls with reference to financial statement.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
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, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as on 31st March, 2022 in its financial position in its standalone financial statements. Refer Note No. 32, 33 & 38 to the standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to
the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise,
representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in Note No. 52 to the standalone financial statements
(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.
For S S KOTHARI MEHTA & COMPANY
Chartered Accountants Firm''s Registration Number: 000756N
HARISH GUPTA
Partner
Membership Number: 098336
New Delhi, the 20th May, 2022
Mar 31, 2018
Independent Auditor''s Report
To the Members
JK Tyre & Industries Limited Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of JK Tyre & Industries Limited ("the Company") which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "Standalone Financial Statements").
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income and cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant rules issued thereunder.
This responsibility also 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; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone 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 Standalone 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 provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified 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 standalone financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, 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 financial position of the Company as at March 31, 2018, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the order.
2. As required by section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose 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 including other comprehensive income, the statement of cash flow and statement of changes in equity dealt with by this report are in agreement with the books of accounts;
(d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act read with relevant rule issued thereunder;
(e) On the basis of written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of section 164(2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our separate report in "Annexure B"; and
(g) 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 the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 33, 36 & 38 to the standalone financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure as referred in paragraph (1) "Report on Other Legal and Regulatory Requirements" of our Independent Auditors'' Report to the members of JK Tyre & Industries Limited on the standalone financial statements for the year ended March 31, 2018, we report that:
i. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management according to the programme of periodical verification in phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. We have been explained by the management that the inventory (except stock lying with the third parties and in transit, for which confirmations have been received/ material received) has been physically verified at reasonable intervals and the procedures of physical verification of inventory followed by the management are reasonable in relation to the size of the Company and nature of its business. According to information and explanations given to us, the material discrepancies, if any, noticed on such physical verification of inventory as compared to book records were properly dealt within the books of accounts.
iii. According to the records and information and explanation made available to us, the Company has not granted any loans, secured or unsecured to companies, firms, LLP, and other parties covered in the register maintained under section 189 of the Companies Act, 2013 ("the Act"). However, Outstanding year-end balance of deferred receivable from a company is ''66.19 crores related to past year transaction under the Companies Act, 1956 and:
(a) Terms and conditions of such transaction are not prejudicial to the interest of the Company.
(b) In respect of aforesaid receivable, receipts of principal as well as interest accrued thereon are as per stipulated terms and conditions.
(c) There is no overdue amount in respect of principal and interest.
iv. According to the information, explanations and representations given to us and based upon audit procedures performed, we are of the opinion that in respect of loans, investments, guarantees and securities, the Company has complied with the provisions of section 185 and 186 of the Act.
v. In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 73 to 76 of the Act or any other relevant provisions of the Act and the rules framed there under with regard to deposits accepted from the public. We have been informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or other Tribunal in this regard.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by Central Government for the maintenance of the cost records under section 148(1) of the Act in respect to the Company''s products to which said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have however not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given
to us and on the basis of examination of the records of the Company, the Company has generally been regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, sales-tax, income tax, service tax, goods and service tax, custom duty, excise duty, value added tax, entry tax, cess and any other material statutory dues with the appropriate authorities to the extent applicable and further there were no undisputed statutory dues payable for a period of more than six months from the date they become payable as at March 31, 2018.
(b) According to the records and information and explanations given to us, there are no dues in respect of income tax, sales tax, service tax, goods and service tax, duty of excise, duty of custom, value added tax and entry tax that have not been deposited on account of any dispute except as given below:
(c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. We have been explained by the management that the inventory (except stock lying with the third parties and in transit, for which confirmations have been received/ material received) has been physically verified at reasonable intervals and the procedures of physical verification of inventory followed by the management are reasonable in relation to the size of the Company and nature of its business. According to information and explanations given to us, the material discrepancies, if any, noticed on such physical verification of inventory as compared to book records were properly dealt within the books of accounts.
iii. According to the records and information and explanation vii. made available to us, the Company has not granted any loans, secured or unsecured to companies, firms, LLP, and other parties covered in the register maintained under section 189 of the Companies Act, 2013 ("the Act"). However, Outstanding year- end balance of deferred receivable from a company is Rs,66.19 crores related to past year transaction under the Companies Act, 1956 and:
(a) Terms and conditions of such transaction are not prejudicial to the interest of the Company.
(b) In respect of aforesaid receivable, receipts of principal as well as interest accrued thereon are as per stipulated terms and conditions.
Name of the Statute |
Nature of the dues |
Forum where dispute is pending |
Years |
Amount (Rs,in Lacs) |
Sales Tax Act |
Sales Tax |
Additional Commissioner (Appeals) |
2010-2014 |
10.28 |
Deputy Commissioner/ Deputy Commissioner (Appeals) |
1996-2017 |
2452.79 |
||
Revision Board |
2005-2006 |
14.57 |
||
Joint Commissioner |
2011-2017 |
8.87 |
||
Tribunal |
2005-2009 |
46.89 |
||
High Court |
1980-1982 |
1.80 |
||
Appellate Tribunal |
2006-2017 |
3.41 |
||
Central Excise Act |
Excise Duty |
Commissioner-Appeals |
1996-2013 |
84.80 |
Additional Commissioner |
2004-2010 |
52.34 |
||
CESTAT |
1981-2010 |
312.28 |
||
Custom Act |
Custom Duty |
Supreme Court |
2012-2013 |
241.15 |
High Court |
2013-2014 |
1558.33 |
||
Income Tax Act |
Income Tax |
Deputy Commissioner |
2013-2015 |
1563.98 |
Finance Act |
Service Tax |
Assistant Commissioner |
2006-2016 |
358.23 |
CESTAT |
2005-2017 |
56.19 |
||
Madhya Pradesh Entry Tax Act, 1976 |
Entry Tax |
Commissioner |
2008-2011 |
139.51 |
viii. In our opinion, on the basis of audit procedures and according to the information and explanations given to us, the Company has not defaulted in repayment of loan or borrowing to any banks, government (both Central and State) and financial institutions. The company did not have any outstanding debentures during the year.
ix. According to the information and explanations given to us, the Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year. The term loans have been applied for the purposes for which they were raised.
x. Based on the audit procedures performed and on the basis of information and explanations provided by the management, no instance of fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, and as described in Note No 47 (II) of the standalone financial statement, we report that managerial remuneration for the year ended March 31, 2018 is in excess of the limit applicable under Section 197 read with schedule V of the Act for which requisite approval is yet to be taken.
xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with section 177 and 188 of the Act where applicable, for all transactions with the related parties and the details of related parties transactions have been disclosed in the standalone financial statements as required by the applicable Accounting Standards.
xiv. According to the information and explanation given to us, the Company has not made any preferential allotment of shares or private placement of shares or fully / partly convertible debentures during the year in terms of provisions of Section 42 of the Act.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 as the provisions of the section is not applicable to the company.
We have audited the internal financial controls over financial reporting of JK Tyre & Industries Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI"). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S. S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm''s Registration Number: 000756N
(HARISH GUPTA)
Partner
New Delhi, the 17th May, 2018 Membership Number: 098336
Mar 31, 2017
To
The Members of JK Tyre & Industries Ltd.
We have examined the compliance of regulations of Corporate Governance by JK Tyre & Industries Ltd. ("Company") for the financial year ended 31st March 2017, as stipulated in Part C of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations").
The compliance of regulations of Corporate Governance is the responsibility of the Management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the regulations of Corporate Governance as stipulated in the above mentioned Listing Regulations.
We further state that such compliance is neither an assurance as to future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.
To the Members of
JK Tyre & Industries Limited Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of JK Tyre & Industries Limited ("the company"), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss (including Other comprehensive income), the Statement of cash Flows and the Statement of changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as "Standalone Ind AS financial statements").
Management''s Responsibility for the Standalone Ind AS Financial Statements
The company''s Board of Directors is responsible for the matters stated in Section 134(5) of the companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued there under.
This responsibility also 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; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS 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 standalone Ind AS 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 provisions of the Act and the Rules made there under.
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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
in our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the financial position of the company as at 31st March, 2017, and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the companies (Auditor''s Report) Order, 2016 ("the Order") issued by the central Government of India in terms of section 143(11) of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the 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, the statement of cash flows and the statement of changes in equity dealt with by this Report are in agreement with the books of accounts.
(d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rule issued there under.
(e) On the basis of the written representations received from the directors as on 31st March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"
(g) 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 the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note No. 34, 37 & 39 to the standalone Ind AS financial statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November 2016 to 30th December 2016 and these are in accordance with the books of accounts maintained by the Company - Refer Note No. 57 to the standalone Ind AS financial statements.
The Annexure referred to in Independent Auditor''s Report to the members of the company on the standalone Ind AS financial statements for the year ended 31st March 2017, we report that:
(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.
(b) The fixed assets have been physically verified by the management according to the programme of periodical verification in phased manner which in our opinion is reasonable having regard to the size of the company and the nature of its fixed assets. The discrepancies noticed on such physical verification were not material.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are in the name of the company.
(ii) The inventories of the company (except stock lying with the third parties and in transit, for which confirmations have been received/ material received) have been physically verified by the management at reasonable intervals and the procedures of physical verification of inventory followed by the Management are reasonable in relation to the size of the company and nature of its business. The discrepancies noticed on such physical verification of inventory as compared to book records were not material.
(iii) According to the records and information and explanation made available to us, the company has not granted any loans, secured or unsecured to companies, firms, LLP, and other parties covered in the register maintained under section 189 of the companies Act, 2013 ("the Act"). However, Outstanding year-end balance of deferred receivable from a company is H 75.79 crores related to past year transaction under the companies Act, 1956 and:
(a) Terms and conditions of such transaction are not prejudicial to the interest of the company.
(b) in respect of aforesaid receivable, receipts of principal as well as interest accrued thereon are as per stipulated terms and conditions.
(c) There is no overdue amount in respect of principal and interest.
(iv) According to the information, explanations and representations provided by the management and based upon audit procedures performed, we are of the opinion that in respect of loans, investments, guarantees and securities, the company has complied with the provisions of section 185 and 186 of the Act.
(v) in our opinion and according to the information and explanations given to us, the company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 73 to76 of the Act or any other relevant provisions of the Act and the rules framed there under with regard to deposits accepted from the public. We have been informed that no order has been passed by the company Law Board or National company Law Tribunal or Reserve Bank of India or any court or other Tribunal in this regard.
(vi) 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 the cost records under section 148(1) of the Act in respect of the company''s products to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate or complete.
(vii) (a) According to the records of the company, the company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, custom duty, excise duty, value added tax, entry tax, cess and other material statutory dues, with the appropriate authorities to the extent applicable and there are no undisputed statutory dues payable for a period of more than six months from the date they become payable as at 31st March 2017.
(b) According to the records and information & explanations given to us, certain dues in respect of income tax, sales tax, service tax, excise duty, value added tax, entry tax, cess and custom duty that have not been deposited with the appropriate authority on account of dispute and the forum where the dispute is pending are given below: -
Name of the Statute |
Nature of the dues |
Forum where dispute is pending |
Amount (Rs. in Lacs) |
Sales Tax Act |
Sales Tax |
Additional commissioner (Appeals) |
8.13 |
Deputy commissioner/ Deputy commissioner (Appeals) |
1946.66 |
||
Revision Board |
14.57 |
||
Joint commissioner |
0.96 |
||
Tribunal |
46.89 |
||
High court |
1.80 |
||
Appellate Tribunal |
3.41 |
||
central Excise Act |
Excise Duty |
commissioner-Appeals |
89.41 |
Additional commissioner |
52.34 |
||
Additional Superintendent |
0.47 |
||
cestat |
312.57 |
||
Assistant commissioner / Deputy commissioner |
2.54 |
||
High court |
0.49 |
||
custom Act |
custom Duty |
Supreme court |
241.15 |
High court |
1558.33 |
||
income Tax Act |
Income Tax |
Deputy commissioner |
1563.98 |
:finance Act |
Service Tax |
Assistant commissioner |
104.32 |
cestat |
55.01 |
||
Madhya Pradesh Entry Tax Act, 1976 |
Entry Tax |
commissioner |
139.51 |
(viii) in our opinion, on the basis of audit procedures and according to the information and explanation given to us, the company has not defaulted in repayment of loans and borrowings to financial institutions, banks, government (both State and central). The company did not have any outstanding debentures during the year.
(ix) On the basis of information and explanation given to us, term loans have been applied for the purposes for which they were obtained, other than temporarily parked in Fixed Deposits with bank, pending utilization. The company did not raise any money by way of further public offer (including debt instruments).
(x) Based on the audit procedures performed and on the basis of information and explanations provided by the management, no fraud by the company and no fraud on the company by its officers or employees has been noticed or reported during the course of our audit.
(xi) On the basis of records and information and explanations made available and based on our examinations of the records of the company, the company has paid / provided managerial remuneration, in accordance with the requisite approvals mandated under Section 197 read with schedule V of the Act. (Note No. 48(11)).
(xii) The company is not a chit fund or a nidhi / mutual benefit fund / Society, therefore, the provisions of clause 4(xii) of the said Order are not applicable to the company, hence we are not offering any comment.
(xiii) As per the information and explanations and records made available by the management of the company and audit procedures performed, for the related parties transactions entered during the year, the company has complied with the provisions of section 177 and 188 of the Act where applicable. As explained and as per the records / details, the related party transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us, the company has not made any preferential allotment of shares or private placement of shares or fully / partly convertible debentures during the year in terms of provisions of section 42 of the Act.
(xv) On the basis of records made available to us and according to the information and explanations given to us, the company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The company is not required to be registered under section 45-iA of the Reserve Bank of India Act 1934, as the provisions of the section is not applicable to the company.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of JK Tyre & Industries Limited ("the Company") as of 31st March 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of internal Financial Controls over Financial Reporting issued by the institute of Chartered Accountants of India (''iCAi''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company''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 financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
in our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of internal Financial controls Over Financial Reporting issued by the institute of chartered Accountants of India.
For LODHA & CO.
chartered Accountants
Firm''s Registration No. 301051E
(N. K. LODHA)
Partner
New Delhi, the 15th May, 2017 Membership No. 85155
Mar 31, 2016
We have audited the accompanying standalone financial statements of JK
TYRE & INDUSTRIES LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2016, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone 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 the Companies (Accounts) Rules, 2014. This responsibility
also 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; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the 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 standalone
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 provisions of the Act and the 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 the disclosures in the financial statements. The
procedures selected depend on the 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. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s 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 audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, 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 affairs of the Company as
at 31st March, 2016, and its profit and its 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, 201 6 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us during the course of audit, we give in the Annexure ''A'' a statement
on the matters specified in the paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the 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 aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2016 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2016
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) As required by section 143(3)(i) of the Companies Act, 2013, and
based on the checking of the books and records of the Company as we
considered appropriate and according to the information and
explanations given to us, our report on the Internal Financial Controls
over Financial Reporting is as per Annexure ''B''.
(g) 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 the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - refer Note no. 32 & 38
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;
on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure - A referred to in paragraph 1 under the heading "Report on
Other Legal and Regulatory Requirements" of our report of even date on
the Standalone Financial Statements ofJK Tyre & Industries Limited for
the year ended 31st March, 2016
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its fixed assets. The discrepancies noticed
on such physical verification were not material.
(c) As per the records and information and explanations given to us,
title deeds of immovable properties are in the name of the Company.
2. The inventories of the Company (except stock lying with the third
parties and in transit, for which confirmations have been received /
materials received) have been physically verified by the management at
reasonable intervals and the procedures of physical verification of
inventory followed by the Management are reasonable in relation to the
size of the Company and nature of its business. The discrepancies
noticed on such physical verification of inventory as compared to book
records were not material.
3. According to the records and information and explanations made
available to us, the Company has not granted any loans, secured or
unsecured to companies, firms, LLP and other parties covered in the
register maintained under section 189 of the Companies Act, 2013.
However, outstanding year-end balance of deferred receivable from a
company is Rs.84.86 crores relating to previous year transaction and:
(a) Terms and conditions of such transaction are not prejudicial to the
interest of the Company.
(b) In respect of aforesaid receivable, receipts of principal as well
as interest accrued thereon are as per stipulated terms and conditions.
(c) There is no overdue amount in respect of principal and interest.
4. According to the information, explanations and representations
provided by the Management and based upon audit procedures performed,
we are of the opinion that in respect of loans, investments, guarantees
and security, the Company has complied with the provisions of the
Section 185 and 186 of the Companies Act, 2013.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 73 to 76 of the Act
or any other relevant provisions of the Act and the rules framed there
under with regard to deposits accepted from the public. We have been
informed that no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any Court or
other Tribunal in this regard.
6. 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 148(1) of the Act in respect
of the Company''s products to which the said rules are made applicable
and are of the opinion that prima facie, the prescribed records have
been made and maintained. We have, however, not made a detailed
examination of the said records with a view to determine whether they
are accurate or complete.
7. (a) According to the records of the Company, the Company is regular
in depositing undisputed statutory dues including provident fund,
employees'' state insurance, income tax, sales tax, service tax, custom
duty, excise duty, value added tax, entry tax, cess and other material
statutory dues with the appropriate authorities to the extent
applicable and there are no undisputed statutory dues payable for a
period of more than six months from the date they become payable as at
31st March, 2016.
(b) According to the records and information & explanations given to
us, there are no dues in respect of income tax, duty of excise and
value added tax that have not been deposited with the appropriate
authorities on account of any dispute and the dues in respect of income
tax, sales tax, service tax, excise duty, value added tax, entry tax,
cess and custom duty that have not been deposited with the appropriate
authority on account of dispute and the forum where the dispute is
pending are given below:-
Name of the Statute Nature of the Forum where dispute
is pending Amount
dues (Rs. in
lacs)
Additional
Commissioner (Appeals) 8.13
Deputy Commissioner/
Deputy Commissioner
(Appeals) 22.47
Revision Board 14.57
Sales Tax Act Sales Tax/VAT Joint Commissioner 0.96
Tribunal 46.89
High Court 1.80
Appellate Tribunal 3.41
Commissioner-Appeals 89.41
Additional Commissioner 79.25
Additional
Superintendent 0.47
Central Excise Act Excise Duty
CESTAT 312.57
Assistant Commissioner
/ Deputy Commissioner 2.54
High Court 0.49
Supreme Court 241.15
Custom Act Custom Duty High Court 1,558.33
Assistant Commissioner 104.32
Finance Act Service Tax CESTAT 4.12
Madhya Pradesh
Entry Tax Act, 1976 Entry Tax Commissioner 139.51
The Rajasthan Tax
on Entry of Goods Entry Tax High Court 168.79
into Local Area
Act, 1999
8. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of loans and borrowings to financial
institutions, banks, government (both State and Central). The Company
did not have any outstanding debentures during the year.
9. On the basis of information and explanations given to us, term
loans have been applied for the purposes for which they were obtained,
other than temporarily parked in Fixed Deposits with Bank, pending
utilization. The Company did not raise any money by way of initial /
further public offer.
10. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, no fraud by
the Company and no fraud on the Company by its officers or employees
has been noticed or reported during the course of the audit.
11. On the basis of records and information and explanations made
available and based on our examination of the records of the Company,
the Company has paid / provided managerial remuneration, in accordance
with the requisite approvals mandated under Section 197 read with
Schedule V of the Act (Note No. 49(II)).
12. The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, the provisions of clause 4 (xii) of the said Order
are not applicable to the Company, hence we are not offering any
comment.
13. As per the information and explanations and records made available
by the management of the Company and audit procedure performed, for the
related parties transactions entered during the year, the Company has
complied with the provisions of Section 1 77 and 1 88 of the Act, where
applicable. As explained and as per records / details, the related
parties transactions have been disclosed as per the applicable
Accounting Standards.
14. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares or fully /
partly convertible debentures during the year in terms of provisions of
Section 42 of the Act.
15. On the basis of records made available to us and according to
information and explanations given to us, the Company has not entered
into non-cash transactions with the directors or persons connected with
him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under Section 45-IA
of the Reserve Bank of India Act, 1934, as the provision of section is
not applicable to the Company.
For LODHA & CO.,
Chartered Accountants
Firm''s Registration No. 301051E
(N. K. LODHA)
Partner
New Delhi, the 16th May, 2016 Membership No. 85155
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financia statements of JK
TYRE & INDUSTRIES LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March, 2015, the Statement of Profit and Loss, the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financia 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 the
Companies (Accounts) Rules, 2014. This responsibility also 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; and design,
implementation and maintenance of adequate interna financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the 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 standalone
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 provisions of the Act and the 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 materia misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the 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 financia control relevant
to the Company''s preparation of the financia 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s 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 audit opinion on the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financia 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 affairs of the Company as
at 31st March, 2015, and its profit and its 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, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us during the course of audit, we give in the Annexure a statement on
the matters specified in the paragraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the 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 aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) 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 the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note no. 32, 34
& 39 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;
on long term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund 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 for the
year ended 31 st March, 2015.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management
according to the programme of periodical physical verification in
phased manner which in our opinion is reasonable having regard to the
size of the Company and the nature of its fixed assets. The
discrepancies noticed on such physical verification were not material.
2. (a) The inventories of the Company (except stock lying with third
parties and in transit, for which confirmations have been received /
materials received) have been physically verified by the management at
reasonable intervals.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. (a) With respect to clause 3 (iii) of the Order, as informed to us,
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 Companies Act, 2013; outstanding year-end
balance of deferred receivable from a Company is H 93.40 crores
(maximum balance outstanding during the year H 101.40 crores) as shown
in Note no. 15 & 21 of the accompanying financial statements.
(b) In this regard, the receipt of the principal as well as interest is
regular.
(c) Furthermore, no amount, principal as well as interest, is overdue
and therefore, provision of clause 3(iii) (b) of the Order is not
applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, during the
course of audit, we have not observed any continuing failure to correct
major weaknesses in internal control system.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Section 73 to 76 of the Act
or any other relevant provisions of the Act and the rules framed there
under with regard to deposits accepted from the public. According to
the information and explanations given to us, no order has been passed
by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or other tribunal in this regard.
6. 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 148(1) of the Act in respect
of the Company''s products to which the said rules are made applicable
and are of the opinion that prima facie, the prescribed records have
been made and maintained. We have, however, not made a detailed
examination of the said records with a view to determine whether they
are accurate or complete.
7. (a) According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
provident fund, employees'' state insurance, income tax, sales tax,
wealth tax, service tax, duty of customs, duty of excise, value added
tax and cess and other material statutory dues with the appropriate
authorities to the extent applicable and there were no undisputed
statutory dues payable for a period of more than six months from the
date they became payable as at 31st March, 2015.
(b) According to the records and information & explanations given to
us, there are no dues in respect of income tax, wealth tax or cess that
have not been deposited with the appropriate authorities to the extent
applicable on account of any dispute and the dues in respect of sales
tax, excise duty, custom duty, service tax and entry tax that have not
been deposited with the appropriate authorities on account of dispute
and the forum where the dispute is pending are given below:-
Name of the
Statute Nature of the Forum where dispute
is pending Amount
dues (Rs. in lacs)
Additional Commissioner
(Appeals) 8.13
Deputy Commissioner 1.32
Deputy Commissioner''
(Appeals) 21.43
Revision Board 14.57
Sales Tax Act Sales Tax/VAT
Joint Commissioner 0.96
Tribunal 46.89
High Court 1.80
Appellate Tribunal 3.41
Commissioner-Appeals 39.68
Additional
Commissioner 52.34
Additional
Superintendent 0.47
Central Excise
Act Excise Duty
CESTAT 312.57
Assistant Commissioner
/ Deputy Commissioner 2.54
High Court 0.49
Supreme Court 241.15
Custom Act Custom Duty
High Court 1,558.33
Assistant Commissioner 104.32
Finance Act Service Tax
CESTAT 4.12
Madhya
Pradesh Entry
Tax Act, 1976 Entry Tax Commissioner 139.51
The Rajasthan
Tax on Entry
of Goods Entry Tax High Court 148.53
into Local
Area Act, 1999
Refer Note no. 32, 34 & 39.
(c) According to the records of the Company and information and
explanations given to us, the amount required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder has been transferred to such fund within time.
8. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year & in the immediately preceding financial year.
9. In our opinion, on the basis of audit procedure and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions or banks. The
Company did not have any outstanding debentures during the year.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loan taken by others from
banks.
11. On the basis of information and explanations given to us, term
loans were applied for the purpose for which the loans were obtained,
other than temporary deployment pending application.
12. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, no fraud on or
by the Company has been noticed or reported during the course of our
audit.
For LODHA & CO.,
Chartered Accountants
Firm''s Registration No. 301051E
(N. K. LODHA)
Partner
New Delhi, the 14th May, 2015 Membership No. 85155
Mar 31, 2014
We have audited the accompanying financial statements of JK Tyre &
Industries Limited, which comprise the Balance Sheet as at 31st March
2014, the Statement of the Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of the 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 principles
generally accepted in India including Accounting standards referred to
in sub section (3C) of section 211 of 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. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including
assessment of 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 company''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the 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 our 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 2014,
b. In case of the Statement of the Profit and Loss, of the profit for
the year ended on that date; and
c. In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on other legal and the regulatory requirements:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order"), as amended, 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 the paragraphs 4 and 5 of the
order.
2. As required by 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;
c. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement referred to in this report comply with the
Accounting Standards referred to in sub- section (3C) of section 211 of
the Companies Act, 1956 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
e. On the basis of the written representations received from the
Directors and taken on records by the Board of Directors, we report
that none of the directors of the Company is disqualified as on 31st
March 2014 from being appointed as a Director of the Company in terms
of clause (g) of sub- section (1) of section 274 of the Companies Act,
1956.
For LODHA & CO.,
Firm Registration Number: 301051E Chartered
Accountants
SAURABH CHHAJER
Partner
New Delhi, the 28th May, 2014 Membership No: 403325
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date. We
report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its fixed assets. The discrepancies noticed
on such physical verification were not material.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2. (a) The Inventory of the Company (except stock lying with third
parties and in transit, for which confirmations have been received /
materials received) has been verified by the Management at reasonable
intervals.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. (a) With respect to clause 4(iii)(a) of the Order, as informed to
us, the Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered therein; outstanding year end
balance of deferred receivable from a company is Rs. 101.40 crs.
(maximum balance outstanding during the year Rs. 108.88 crs) as shown
in note no. 15 & 21 of the accompanying Financial Statements.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms & conditions on which
aforesaid deferred receivable has been given are not prima facie,
prejudicial to the interest of the Company.
(c) In this regard, the repayment of the principal as well as interest
is regular.
(d) Further more, no amount, principal as well as interest, is overdue
and therefore, provision of clause 4(iii)(d) of the Order is not
applicable.
(e) As informed to us, the Company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956.
Accordingly, the provisions of the clause 4(iii)(f) and (g) of the
Order are not applicable to the Company.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the management, during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in internal control system.
5. According to the information and explanations provided by the
Management and based upon audit procedures performed, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section and the transactions made in pursuance
of such contracts or arrangements (exceeding the value of five lacs
rupees in respect of each party during the financial year) have been
made at prices which are generally reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Sections 58A and 58AA or
any other relevant provisions of the Act and the rules framed
thereunder with regard to deposits accepted from the public. According
to the information and explanations given to us, no order has been
passed by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal in this
regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. 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(1) (d) of the Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the Company, the Company is
generally regular in depositing 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 and other material statutory dues with the
appropriate authorities to the extent applicable and there are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March 2014. (b) According
to the records and information & explanations given to us, there are no
dues in respect of Wealth tax and Cess that have not been deposited
with the appropriate authorities on account of any dispute and the dues
in respect of Income tax, Sales tax, Excise duty, Custom duty and
Service tax that have not been deposited with the appropriate
authorities on account of dispute and the forum where the dispute is
pending are given below:
Name of the Nature of Amount
Statute the dues (Rs. in Lacs)
Sales Tax Act Sales Tax 22.74
8.52
14.57
46.89
4.73
1.80
3.41
Central Excise Act Excise Duty 39.68
52.34
0.47
312.57
2.54
0.49
Custom Act Custom Duty 241.15
1558.33
Finance Act Service Tax 104.32
4.12
Income Tax Act, 1961 Income Tax 157.76
Madhya Pradesh Entry Tax 101.60
Entry Tax Act, 1976
The Rajasthan Tax on Entry Tax 85.62
Entry of Goods into
Local Area Act, 1999
Name of the Forum where dispute
Statute is pending
Sales Tax Act Deputy Commissioner/Deputy
Commissioner (Appeals)
Additional Commissioner
Revision Board
Tribunal
Joint Commissioner
High Court
Appellate Tribunal
Central Excise Act Commissioner (Appeals)
Additional Commissioner
Additional Superintendent
CESTAT
Assistant Commissioner
High Court
Custom Act Supreme Court
High Court
Finance Act Assistant Commissioner
CESTAT
Income Tax Act, 1961 Commissioner Appeals
Madhya Pradesh Commissioner
Entry Tax Act, 1976
The Rajasthan Tax on High Court
Entry of Goods into
Local Area Act, 1999
Read with note no. 32
10. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the Company has not
defaulted in repayment of dues to financial institutions or banks or
debenture holders.
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, the provisions of clause 4 (xiii) of the said Order
are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company does not have any guarantee outstanding for loans taken by
others from bank and financial institutions.
16. In our opinion, on the basis of information and explanations given
to us, the term loans have been applied by the Company during the year
for the purposes for which the loans were obtained, other than
temporary deployment pending application.
17. On the basis of information and explanations given to us and on an
overall examination of the financial statements of the Company, no
funds raised on short-term basis have been used for long-term
investment.
18. According to the information and explanations given to us and as
stated in note no. 4 of the accompanying financial statements, the
Company has made preferential allotment of warrants during the year to
the parties / companies covered in the Register maintained under
section 301 of the Companies Act, 1956 and the price at which warrants
have been issued is not prejudicial to the interest of the Company.
19. According to the information and explanations given to us, the
Company has no outstanding debentures as at the year end.
20. The Company has not raised any money by way of public issue during
the year.
21. Based on the audit procedure performed and on the basis of
information and explanations provided by the Management, no fraud on or
by the Company has been noticed or reported during the course of the
audit.
For LODHA & CO.
Firm Registration Number: 301051E
Chartered Accountants
SAURABH CHHAJER
Partner
New Delhi, the 28th May, 2014 Membership No: 403325
Mar 31, 2013
Report on the financial statements
We have audited the accompanying financial statements of JK Tyre &
Industries Limited, which comprise the Balance Sheet as at 31st March
2013, the Statement of the Profit and Loss and the Cash Flow Statement
for the year then ended, and a summary of the 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 principles generally accepted in India including
Accounting standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956("the Act"). This responsibility includes the
design, implementation and maintenance of internal control relevant to
the preparation and presentation of the 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including assessment of
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 the 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 our 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 case of the Statement of the Profit and Loss, of the profit for
the year ended on that date, and
c. In case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Report on other legal and the 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 the paragraphs 4 and 5 of the
order.
2. As required by 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;
c. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement referred to in this report are in agreement with the books of
account;
d. In our opinion, the Balance Sheet, Statement of Profit & Loss and
Cash Flow Statement referred to in this report comply with the
Accounting Standards referred to in sub- section (3C) of section 211 of
Companies Act, 1956;
e. On the basis of the written representations received from the
Directors and taken on records by the Board of Directors, we report
that none of the directors of the Company is disqualified as on 31st
March 2013 from being appointed as a Director of the Company in terms
of clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
Annexure referred to in paragraph 1 under the heading "Report on other
legal and regulatory requirements" of our report of even date
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its fixed assets. The discrepancies noticed
on such physical verification were not material.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2. (a) The Inventory of the Company (except stock lying with third
parties and in transit, for which confirmations have been received /
materials received) has been verified by the Management at reasonable
intervals.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. (a) As informed to us, the Company has given unsecured loan to a
Company covered in the register maintained under section 301 of the
Companies Act, 1956. The year end balance of such loan is Rs. 108.88
crs. (Maximum balance outstanding during the year Rs. 118.28 crs.).
(b) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms & condition on which
aforesaid loan has been given are not prima facie, prejudicial to the
interest of the Company
(c) In respect of aforesaid loan, the repayment of the principal as
well as interest is regular.
(d) In respect of the loan given by the company no amount, principal as
well as interest, is overdue and therefore provision of clause
4(iii)(d) of the order is not applicable.
(e) As informed to us, the company has not taken any loan, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the companies Act, 1956.
Accordingly, the provisions of the clause 4(iii)(f) and (g) of the
order are not Applicable to the Company,
4, In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services, Based on the audit procedure performed and on the basis of
information and explanations provided by the management, during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in internal control system,
5, According to the information and explanations provided by the
Management and based upon audit procedures performed, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section and the transactions made in pursuance
of such contracts or arrangements (exceeding the value of five lacs
rupees in respect of each party during the financial year) have been
made at prices which are generally reasonable having regard to the
prevailing market prices at the relevant time,
6, In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of sections 58A and 58AA or
any other relevant provisions of the Act and the rules framed there
under with regard to deposits accepted from the public, According to
the information and explanations given to us, no order has been passed
by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal in this regard,
7, In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business,
8, 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(1) (d) of the Act in
respect of the Company''s products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained, We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate or complete,
9, (a) According to the records of the Company, the Company is
generally regular in depositing 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 and other material statutory dues with the
appropriate authorities to the extent applicable and there are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March, 2013,
(b) According to the records and information & explanations given to
us, there are no dues in respect of Income tax, Wealth tax and Cess
that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of, Sales tax, Excise
duty, Custom duty and Service tax that have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are given below:
Name of the Nature of Amount Forum where dispute
Statute the dues (Rs. in
Lacs) is pending
Sales Tax Act Sales Tax 26.51 Deputy Commissioner/
Deputy Commissioner
(Appeals)
8,52 Additional Commissioner
14,57 Revision Board
46,89 Tribunal
21,98 Joint Commissioner
1,80 High Court
Central Excise Act Excise Duty 39,68 Commissioner (Appeals)
52,34 Additional Commissioner
0,47 Addnl, Superintendent
193,82 CESTAT
2,54 Asst, Commissioner
0,49 High Court
Custom Act Custom Duty 241,15 Supreme Court
Finance Act Service Tax 104,32 Asst, Commissioner
4,12 CESTAT
Madhya Pradesh Entry Tax 79,73 Commissioner
Entry Tax Act, 1976
The Rajasthan Tax Entry Tax 63,61 High Court
on Entry of Goods
into Local Area
Act, 1999
Read with note no, 29
10, The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year,
11, In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the company has not
defaulted in repayment of dues to financial institutions or banks or
debenture holders,
12, According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities,
13, The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, the provisions of clause 4 (xiii) of the said Order
are not applicable to the Company,
14, In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments,
15, According to the information and explanations given to us, the
Company does not have any guarantee outstanding for loans taken by
others from bank and financial institutions,
16, In our opinion, on the basis of information and explanations given
to us, the term loans were applied for the purposes for which the loans
were obtained,
17, On the basis of information and explanations given to us and on an
overall examination of the financial statements of the Company, no
funds raised on short-term basis have been used for long-term
investment,
18, According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to any parties or companies covered in the Register maintained
under section 301 of the Companies Act, 1956,
19, According to the information and explanations given to us, the
Company has no outstanding debentures as at the year end,
20, The company has not raised any money by way of public issue during
the year,
21, Based on the audit procedure performed and on the basis of
information and explanations provided by the Management, no fraud on or
by the Company has been noticed or reported during the course of the
audit,
For LODHA & CO,
Firm Registration Number: 301051E
Chartered Accountants
SAURABH CHHAJER
Partner
New Delhi, the 27th May, 2013 Membership No: 403325
Mar 31, 2012
We have audited the attached Balance Sheet of JK Tyre & Industries
Limited, as at 31st March 2012, the Statement of Profit and Loss
Account and also the Cash Flow Statement of the company for the year
ended on that date 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.
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 disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 (as
amended) (The Order) issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act, 1956 (The Act), and on the
basis of such checks of the books and records of the company as we
considered appropriate and according to the information and
explanations given to us during the course of audit, we enclose in the
Annexure, a statement on the matters specified in the paragraphs 4 and
5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, 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;
(c) The Balance Sheet, Statement of Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) In our opinion, Balance Sheet, Profit & Loss Account and Cash Flow
Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act, 1956;
(e) As per the information and explanations given to us, none of the
directors of the Company is disqualified from being appointed as a
director under clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Significant Accounting Policies and Notes thereon, 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:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012;
ii) In the case of Statement of Profit & Loss Account, of the Profit
for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph (1) of our Report of even date of JK TYRE &
INDUSTRIES LIMITED for the year ended 31st March, 2012
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its fixed assets. The discrepancies noticed
on such physical verification were not material.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2. (a) The Inventory of the Company (except stock lying with third
parties and in transit, for which confirmations have been received /
materials received) has been verified by the Management at reasonable
intervals.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has neither granted nor taken any loan, secured or
unsecured to and from companies, firms or other parties as covered in
the register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4 (iii) (b) to (d), (f) & (g) of
the Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the Management, during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in internal control system.
5. According to the information and explanations provided by the
Management and based upon audit procedures performed, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section and the transactions made in pursuance
of such contracts or arrangements (exceeding the value of five lacs
rupees in respect of each party during the financial year) have been
made at prices which are generally reasonable having regard to the
prevailing market prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Sections 58A and 58AA or
any other relevant provisions of the Act and the rules framed
thereunder with regard to deposits accepted from the public. According
to the information and explanations given to us, no order has been
passed by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal in this
regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. 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(1) (d) of the Act in
respect of the Company's products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the Company, the Company is
generally regular in depositing 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 and other material statutory dues with the
appropriate authorities to the extent applicable and there are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March, 2012.
(b) According to the records and information & explanations given to
us, there are no dues in respect of Income tax, Wealth tax and Cess
that have not been deposited with the appropriate authorities on
account of any dispute and the dues in respect of, Sales tax, Excise
duty, Custom duty and Service tax that have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are given below:
Name of the Nature of Amount Forum where dispute
Statute the dues (Rs. in Lacs) is pending
Sales Tax Act Sales Tax 283.53 Deputy Commissioner/
Deputy Commissioner
(Appeals)
0.51 Additional
Commissioner
0.69 Tribunal
0.96 Joint Commissioner
1.80 High Court
Central Excise Excise Duty 56.53 Commissioner(Appeals)
Act
99.81 Additional Commissioner
182.47 CESTAT
19.68 Supreme Court
Custom Act Custom Duty 241.15 Supreme Court
Finance Act Service Tax 28.71 Commissioner (Appeals)
75.62 Deputy Commissioner
32.51 CESTAT
The Rajasthan Entry Tax 49.00 High Court
Tax on Entry
of Goods into
Local Area Act,
1999
10. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the company has not
defaulted in repayment of dues to financial institutions or banks or
debenture holders.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, the provisions of clause 4 (xiii) of the said Order
are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company does not have any guarantee outstanding for loans taken by
others from bank and financial institutions.
16. In our opinion, on the basis of information and explanations given
to us, the term loans were applied for the purposes for which the loans
were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the financial statements of the Company, no
funds raised on short-term basis have been used for long-term
investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to any parties or companies covered in the Register maintained
under section 301 of the Companies Act 1956.
19. On the basis of records made available to us and according to the
information and explanations given to us, the Company has created
securities for debentures as stated in item no. 1 of Note 4. The
Company has no outstanding debentures as at the year end.
20. The company has not raised any money by way of public issue during
the year.
21. Based on the audit procedure performed and on the basis of
information and explanations provided by the Management, no fraud on or
by the Company has been noticed or reported during the course of the
audit.
For LODHA & CO.
Chartered Accountants
N.K. LODHA
Partner
Firm Registration No. 301051E
Membership No. 85155
New Delhi, the 15th May, 2012
Mar 31, 2010
We have audited the attached Balance Sheet of JK Tyre & Industries
Limited as at 31st March 2010, the Profit and Loss Account and also the
Cash Flow Statement of the company for the year ended on that date
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,
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 disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditors Report) Order, 2003 (as
amended) (The Order) issued by the Central Government of India in terms
of Section 227 (4A) of the Companies Act, 1956 (The Act), and on the
basis of such checks of the books and records of the company as we
considered appropriate and according to the information and
explanations given to us during the course of audit, we enclose in the
Annexure, a statement on the matters specified in the paragraphs 4 and
5 of the said Order.
2, Further to our comments in the Annexure referred to in Paragraph 1
above, 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;
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, Balance Sheet, Profit & Loss Account and Cash Flow
Statement dealt with by this report comply with the Accounting
Standards referred to in Section 211 (3C) of the Companies Act, 1956;
(e) As per the information and explanations given to us, none of the
directors of the Company is disqualified from being appointed as a
director under clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956.
In our opinion and to the best of our information and according to the
explanations given to us, the said accounts read together with
Significant Accounting Policies and Notes thereon, 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;
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31 st March, 2010;
ii) In the case of the Profit & Loss Account, of the Profit for the
year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph (1) of our Report of even date of JK Tyre &
Industries Limited for the year ended 31 st March, 2010
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the Management
according to the programme of periodical verification in phased manner
which in our opinion is reasonable having regard to the size of the
Company and the nature of its fixed assets. The discrepancies noticed
on such physical verification were not material.
(c) As per the records and information and explanations given to us,
fixed assets disposed off during the year were not substantial.
2. (a) The Inventory of the Company (except stock lying with third
parties and in transit, for which confirmations have been received /
materials received) has been verified by the Management at reasonable
intervals.
(b) The procedures of physical verification of inventory followed by
the Management are reasonable and adequate in relation to the size of
the Company and nature of its business,
(c) The Company is maintaining proper records of inventory, The
discrepancies noticed on such physical verification of inventory as
compared to book records were not material.
3. The Company has neither granted nor taken any loan, secured or
unsecured to and from companies, firms or other parties as covered in
the register maintained under section 301 of the Companies Act, 1956.
Accordingly, the provisions of clause 4 (iii) (b) to (d), (f) & (g) of
the Order are not applicable.
4. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of goods and
services. Based on the audit procedure performed and on the basis of
information and explanations provided by the Management, during the
course of our audit we have not observed any continuing failure to
correct major weaknesses in internal control system.
5. According to the information and explanations provided by the
Management and based upon audit procedures performed, we are of the
opinion that the particulars of contracts or arrangements referred to
in section 301 of the Act have been entered in the register required to
be maintained under that section and the transactions made in pursuance
of such contracts or arrangements (exceeding the value of five lacs
rupees in respect of each party during the financial year) have been
made at prices which are generally reasonable having regard to the
prevailing market prices at the relevant time,
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by the
Reserve Bank of India and the provisions of Sections 58A and 58AA or
any other relevant provisions of the Act and the rules framed
thereunder with regard to deposits accepted from the public. According
to the information and explanations given to us, no order has been
passed by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal in this
regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company and nature of its business.
8. 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(1 )(d) of the Act in
respect of the Companys products to which the said rules are made
applicable and are of the opinion that prima facie, the prescribed
records have been made and maintained. We have, however, not made a
detailed examination of the said records with a view to determine
whether they are accurate or complete.
9. (a) According to the records of the Company, the Company is
generally regular in depositing 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 and other material statutory dues with the
appropriate authorities to the extent applicable and there are no
undisputed statutory dues payable for a period of more than six months
from the date they became payable as at 31st March, 2010.
(b) According to the records and information & explanations given to
us, there are no dues in respect of Wealth tax and Cess that have not
been deposited with the appropriate authorities on account of any
dispute and the dues in respect of Income tax, Sales tax, Custom duly,
Excise duty and Service tax that have not been deposited with the
appropriate authorities on account of dispute and the forum where the
dispute is pending are given below:
Name of Nature of Amount Forum where dispute
the Statute the dues (Rs. in Lacs) is pending
Income Tax Act Income Tax 284.99 CIT (Appeals)
Sales Tax Act Sales Tax 1,32 Deputy Commissioner
51.03 Deputy Commissioner
(Appeals)
0.04 Joint Commissioner
0.96 Tribunal
2.12 High Court
Central Excise Excise Duty 53.03 Commissioner (Appeals)
Act 95,51 Additional Commissioner
182.47 CESTAT
16.00 High Court
19,68 Supreme Court
Custom Act Custom Duty 241.15 Supreme Court
Finance Act Service Tax 13.58 Commissioner (Appeals)
83.80 Deputy Commissioner
61.32 CESTAT
The Rajasthan Entry Tax 83.65 High Court
Tax on Entry of
Goods into
Local Area
Act, 1999
Read with note no. B 13 of Schedule 14.
10. The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11. In our opinion, on the basis of audit procedures and according to
the information and explanations given to us, the company has not
defaulted in repayment of dues to financial institutions or banks or
debenture holders.
12. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit fund /
society, therefore, the provisions of clause 4 (xiii) of the said Order
are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments.
15. According to the information and explanations given to us, the
Company has given guarantee for loan taken by a body corporate from
Bank as stated in Note no. B 6 of Schedule 14. In our opinion, the
terms and conditions on which the Company has given guarantee for loan
taken by others from bank are not prima facie prejudicial to the
interest of the Company. However, the Company has not given any
guarantee for loans taken by others from Financial Institutions.
16. In our opinion, on the basis of information and explanations given
to us, the term loans were applied for the purposes for which the loans
were obtained.
17. On the basis of information and explanations given to us and on an
overall examination of the financial statements of the Company, no
funds raised on short-term basis have been used for long-term
investment.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to any parties or companies covered in the Register maintained
under section 301 of the Companies Act, 1956.
19. On the basis of records made available to us and according to the
information and explanations given to us, the Company has created
securities as stated in footnote (1) of Schedule 3 in respect of
debentures outstanding during the year.
20. We have verified the end use of money raised by the right issue as
disclosed in the note no. B 1 of Schedule 14.
21. Based on the audit procedure performed and on the basis of
information and explanations provided by the Management, no fraud on or
by the Company has been noticed or reported during the course of the
audit.
For LODHA & CO.
Chartered Accountants
N.K. LODHA
Partner
Firm Registration No. 301051E
Membership No. 85155
New Delhi, the 25th May, 2010