Mar 31, 2022
JMC Project (India) LimitedREPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Opinion
We have audited the standalone financial statements of JMC Project (India) Limited (the âCompanyâ), which comprise the standalone balance sheet as at 31 March, 2022, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information in which are included the Returns for the year ended on that date audited by the branch auditors of the Companyâs branches at Ethiopia, Sri Lanka, Mongolia, Maldives and Ghana and other auditors of the Companyâs eight unincorporated joint ventures in India (hereinafter referred to as âStandalone financial statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the branch auditors on financial statements of such branches as were audited by the branch auditors and reports of other auditors on the financial statements of such unincorporated joint ventures, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âActâ) 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 31 March, 2022, and its loss and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditorâs 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 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 thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us along with the consideration of reports of the branch auditors and other auditors referred to in âOther Mattersâ section below, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
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.
Key Audit Matters (Contd.) DESCRIPTION OF KEY AUDIT MATTER
Sr. No. |
The key audit matter |
How the matter was addressed in our audit |
1 |
Recognition of contract revenue and margin: |
Our procedures included the following: |
See note 16 to the standalone financial statements The Company enters into Engineering Procurement and Construction (EPC) contracts, which are complex |
⢠Assessed compliance of the Companyâs policies in respect of revenue recognition with the applicable accounting standards. |
|
in nature and span over a number of reporting periods. The accounting standard requires an entity to select a single measurement method for the relevant performance obligation which depicts the entityâs performance in transferring goods or services. In case of onerous contract, present obligations are recognised and measured as provisions. |
⢠We selected a sample of contracts to test, using a risk-based criteriaâs which included individual contracts with: - significant revenue recognised during the year; - significant accrued value of work done balances held at the year-end; or - low profit margins/no profit margins. |
|
The Company is recognising contract revenue and margin for these contracts based on input method, in accordance with the requirement of the standard. |
⢠Obtained an understanding of Companyâs process for analysing long term contracts, the risk associated with the contract and any key judgments. |
|
It relies on Companyâs estimates of the final outcome of each contract, and involves judgment, particularly in forecasting the cost to complete a contract, valuing contract variations, claims and liquidated damages. We identified contract accounting as a key audit |
⢠Evaluated the design and implementation of key internal controls over the contract revenue and cost estimation process through the combination of procedures involving inquiry, observations, reperformance and inspection of evidence. |
|
matter because the estimation of total revenue and total cost to complete the contract is inherently subjective, complex and require significant judgment. The same may get subsequently changed due to change in prevailing circumstances, assumptions, contract variations, etc., and could result in |
⢠Verified underlying documents such as original contract, and its amendments, key contract terms and milestones, etc. for verifying the estimation of contract revenue and costs and/or any change in such estimation. |
|
significant variance in the revenue and profit or loss from contract for the reporting period. |
⢠Evaluating the outcome of previous estimates and agreeing the actual cost after the year end to the forecasted costs for the period. ⢠Considered the adequacy of disclosures made in note 38 to the Companyâs standalone financial statements in respect of these judgments and estimates. |
Sr. No. |
The key audit matter |
How the matter was addressed in our audit |
2 |
Recoverability of carrying value of investment: See Note 6(a) and 6(c) to the standalone financial statements The assessment of recoverable amount of the Companyâs investment in and loans receivable from subsidiaries and joint venture involves significant judgment. The investments are carried at cost less any diminution in value of such investments and tested for impairment at each reporting date. These includes assumptions such as projected cash flows, discount rates, future business plan, claims, recoverability of certain receivables as well as economic assumption such as growth rate. We focused on this area as a key audit matter due to judgment involved in forecasting future cash flows and the selection of assumptions. |
Our procedures included the following: ⢠Evaluated the design and implementation and testing operating effectiveness of controls over the managementâs process of impairment assessment. ⢠Evaluated the net worth and past performance of the Company to whom loans given or investments made. ⢠Compared the carrying amount of the investment with the expected value of the business based on the discounted cash flow analysis. ⢠Challenged the significant assumptions and judgements of independent valuation obtained by the Company used in impairment analysis, such as forecast revenue, margins, terminal growth and discount rates with the assistance of our valuations specialist. ⢠Compared the previous forecast to actual results to assess the Companyâs ability to forecast accurately. ⢠Performed sensitivity analysis on Key assumptions including discount rates and estimated future growth. ⢠Evaluated accuracy of disclosure in the financial statements. |
The Companyâs Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companyâs annual report, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance 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 in the 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.
Managementâs and Board of Directorsâ Responsibilities for the Standalone Financial Statements
The Companyâs Management and Board of Directors are 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 state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 and Board of Directors are responsible for assessing the Companyâs 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 is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs 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 auditorâs 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 control 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 with reference to financial statements 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 the Management and Board of Directors.
⢠Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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.
⢠Obtain sufficient appropriate audit evidence regarding the financial statements of branches and unincorporated joint ventures of the Company to express an opinion on the standalone financial statements. For the branches and unincorporated joint ventures included in the standalone financial statements, which have been audited by branch auditors and other auditors, such branch auditors and other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in the section titled âOther Mattersâ in this audit report.
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 auditorâs 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.
Other Matter
We did not audit the financial statements five branches and eight unincorporated joint ventures included in the standalone financial statements of the Company whose financial statements reflects total assets (before consolidation adjustments) of INR 150,973 lakhs as at 31 March, 2022, total revenue (before consolidation adjustments) of INR 140,541 lakhs and net cash inflows (before consolidation adjustments) amounting to INR 1,211 lakhs for the year ended on that date, as considered in the standalone financial statements. The financial statements of these branches and unincorporated joint ventures have been audited by the branch auditors and other auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of branches and unincorporated joint ventures, is based solely on the report of such branch auditors and other auditors.
The said branches are located outside India whose financial statements have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Companyâs management has converted the financial statements of such branches located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Companyâs management. Our opinion in so far as it relates to the balances and affairs of such branches located outside India is based on the report of branch auditors and the conversion
adjustments prepared by the management of the
Company and audited by us.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. (A) 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) I n 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 reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.
d) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.
e) I n our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
f) On the basis of the written representations received from the directors as on 31 March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2022 from being appointed as a director in terms of Section 164(2) of the Act.
g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and its unincorporated joint ventures
Report on Other Legal and Regulatory Requirements (Contd.)
incorporated in India and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
(B) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditorâs) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a) The Company has disclosed the impact of pending litigations as at 31 March, 2022 on its financial position in its standalone financial statements - Refer Note 25 to the standalone financial statements.
b) 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 - Refer Note 29 and Note 35 to the standalone financial statements.
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
d) (i) The management has represented
that, to the best of its knowledge and belief, no funds 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 persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
¦ directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Company or
¦ provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall:
¦ directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Funding Party or
¦ provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.
(iii) Based on such audit procedures as 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 (d) (i) and (d) (ii) contain any material mis-statement.
e) The dividend declared or paid during the year by the Company is in compliance with Section 123 of the Act.
(C) With respect to the matter to be included in the Auditorâs Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
Chartered Accountants Firmâs Registration No: 101248W/W-100022
Partner
Mumbai Membership No: 105317
12 May, 2022 UDIN: 22105317AIVDPO4158
Mar 31, 2019
Report on Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of JMC Projects (India) Limited (âthe Companyâ), which comprise the standalone balance sheet as at 31 March 2019, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information, in which are included the Returns for the year ended on that date audited by the branch auditors of the Companyâs branches at Ethiopia and Sri Lanka and other auditors of the Companyâs five unincorporated joint ventures in India (hereinafter referred to as âStandalone financial statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of other auditors on separate financial statements of such branches and unincorporated joint ventures as were audited by the other auditors, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âActâ) 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 31 March 2019, and profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143 (10) of the Act. Our responsibilities under those SAs are further described in the Auditorsâ 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 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 thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained and evidence obtained by the other auditors in terms of their reports referred to in the âOther Mattersâ paragraph below, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, 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.
Description of Key Audit Matters
Recognition of contract revenue, margin and related receivables See Note 16 to the standalone financial statements |
|
The Key audit matters |
How the matter was addressed in our audit |
The Company enters into Engineering Procurement and Construction (EPC) contracts, which are complex in nature |
Our procedures included the following: - We selected a sample of contracts to test, using a risk |
and span over a number of reporting periods. |
based criteria which included individual contracts |
The accounting standard requires an entity to select a |
with: |
single measurement method for the relevant performance obligation that depicts the entityâs performance in |
- significant revenue recognised during the year; |
transferring goods or services or if a contract is onerous, |
- significant accrued value of work done balances |
present obligations are recognized and measured as |
held at the year-end; or |
provisions. |
- low profit margins. |
The Company is recognizing contract revenue and |
- Obtained an understanding of managementâs process |
margin for these contracts based on input method, in |
for reviewing long term contracts, the risk associated |
accordance with the requirement of the standard which relies on managementâs estimates of the final outcome |
with the contract and any key judgments. |
of each contract, and involves the exercise of significant |
- Evaluated the design and implementation of key |
management judgment, particularly in forecasting the |
internal controls over the contract revenue and cost |
cost to complete a contract, in valuing contract variations, |
estimation process through the combination of |
claims and liquidated damages. |
procedures involving inquiry and observations, reperformance and inspection of evidence in respect of |
We identified contract accounting as a key audit matter because the estimation, of the total revenue and total |
operations of these controls. |
cost to complete the contract, prepared based on the |
- Verified underlying documents such as original |
prevailing circumstances, is inherently subjective, complex |
contract, and its amendments, if any, key contract |
and require significant management judgment and |
terms and milestones, etc. for verifying the estimation |
forecast of contract revenue and/or contract cost may |
of contract revenue and costs and /or any change in |
get subsequently changed due to change in prevailing |
such estimation. |
circumstances, assumptions, contract variations or any |
- Evaluated the outcome of previous estimates and |
other factor, and could result in material variance in the |
agreeing the actual cost after the year end to the |
revenue and profit or loss from contract for the reporting period. |
forecasted costs for the period. - Inquired with management on the progress of works and collections from customers to identify specific customers with which the company might have disagreements or disputes. - Evaluated the status of trade receivables on sample basis which are past due as at year end, the Companyâs on-going business relationship with customer and past payment history of the customers through discussion with management. |
Recoverability of carrying value of investment See Note 6 (a) to the standalone financial statements |
|
The Key audit matters |
How the matter was addressed in our audit |
The assessment of recoverable amount of the Companyâs |
Our procedures included the following: |
investment in and loans receivable from subsidiaries |
- Evaluated the net worth and past performance of the |
involves significant judgement in respect of assumptions |
Company to whom loans given or investments made. |
such as discount rates, current work in hand, future |
- Compared the carrying amount of the investment |
contract wins/ future business plan and the recoverability |
with the expected value of the business based on the |
of certain receivables as well as economic assumption |
discounted cash flow analysis; |
such as growth rate. |
- Assessed the key assumptions for independent valuation obtained by management applied by |
We focused on this area as a key audit matter due to |
comparing them with historical performance to assess |
judgement involved in forecasting future cash flows and |
the Companyâs ability to forecast accurately. |
the selection of assumptions. |
- Performed sensitivity analysis on Key assumptions including discount rates and estimated future growth. - Assessed the appropriateness of the relevant disclosures in the financial statements. |
Other Information
The companyâs management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companyâs annual report, but does not include the financial statements and our auditorsâ report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance 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 in the 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.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs management and Board of Directors are 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 state of affairs, profit and other comprehensive income, changes in equity and cash flows 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.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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, management and Board of Directors are responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs 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 auditorâs 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 control 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 with reference to financial statements 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 managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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 financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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 auditorâs 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.
Other Matters
We did not audit the financial statements of two branches and five unincorporated joint ventures included in the standalone financial statements of the Company whose standalone financial statements reflect total assets of Rs 55,493 lakhs as at 31 March 2019 and total revenue of Rs 37,668 lakhs for the year ended on that date, as considered in the standalone financial statements. These branches and unincorporated joint ventures have been audited by the branch and unincorporated joint venture auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches and unincorporated joint ventures, is based solely on the report of such branches and unincorporated joint ventures auditors.
The two branches located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Companyâs management has converted the financial statements of such branches located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Companyâs management. Our opinion in so far as it relates to the balances and affairs of such branches located outside India is based on the report of other auditors and the conversion adjustments prepared by the management of the Company and audited by us.
Our opinion is not modified in respect of the above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of section 143 (11) of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraphs 3 and 4 of the Order to the extent applicable.
(A) As required by 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
(c) the reports on the accounts of the branch offices and unincorporated joint ventures of the Company audited under Section 143(8) of the Act by branch auditors and unincorporated joint venture auditors have been sent to us and have been properly dealt with by us in preparing this report.
(d) the standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account and with the returns received from the branches and unincorporated joint ventures not visited by us.
(e) in our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under section 133 of the Act.
(f) on the basis of the written representations received from the directors as on 31 March 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2019 from being appointed as a director in terms of Section 164(2) of the Act.
(g) with respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ.
(B) With respect to the other matters to be included in the Auditorsâ 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 as at 31 March 2019 on its financial position in its standalone financial statements - Refer Note 24 to the standalone financial statements;
ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses on long-term contracts. The Company did not have any material foreseeable losses on derivative contracts - Refer Note 29 to the standalone financial statements;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2019; and
iv. The disclosures in the standalone financial statements regarding holdings as well as dealings in specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been made in these financial statements since they do not pertain to the financial year ended 31 March 2019.
(C) With respect to the matter to be included in the Auditorsâ Report under section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) which are required to be commented upon by us.
Annexure A to the Independent Auditorâs Report - 31 March 2019
With reference to the Annexure A referred to in the Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31 March 2019, we report the following:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets and investment properties.
(b) The Company has a regular programme of physical verification of its fixed assets and investment properties by which the fixed assets and investment properties are verified annually. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the policy, the Company has physically verified its fixed assets and investment properties during the year and we are informed that 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 the records of the Company, the title deeds of immovable properties as disclosed in Note 3 and Note 4 to the standalone financial statements, are held in the name of the Company.
(ii) The inventory of building material, components and spares has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been dealt with in books of account.
(iii) The Company has granted interest free unsecured loans to five companies covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ). The Company has not granted any loans, secured or unsecured, to firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act.
i) According to the information and explanations given to us, in our opinion, the terms and conditions on which the unsecured loans have been granted to the companies listed in the register maintained under Section 189 of the Act were not, prima facie, prejudicial to the interest of the Company.
ii) According to the information and explanations given to us, the unsecured loans granted to companies are repayable on demand. The borrowers have been regular in payment of principal and interest (if any) as demanded.
iii) There are no overdue amounts of more than 90 days in respect of the loans granted by the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has not given any loans, or provided any guarantees or security to the parties covered under Section 185 of the Act. Accordingly, compliance under Section 185 of the Act is not applicable to the Company. According to the information and explanations given to us, the provisions of Section 186 of the Act in respect of the loans given, guarantees given or securities provided are not applicable to the Company, since it is covered as a company engaged in business of providing infrastructural facilities. The Company has complied with the provisions of Section 186 of the Act with respect to the investments made.
(v) In our opinion, and according to the information and explanations given to us, the Company has not accepted deposits as per the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly, paragraph. 3 (v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under Section 148(1) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost 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 our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Income-tax, Duty of customs, Goods and Service tax, Entry tax, Local body tax, Property tax, Cess and other material statutory dues have been regularly deposited during the year with the appropriate authorities. The amounts deducted/accrued in the books of account in respect of undisputed statutory including Provident Fund have generally been regularly deposited during the year with the appropriate authorities, though there have been slight delays in a few cases. The amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Employeesâ State Insurance and Profession tax, have not been regularly deposited during the year with the appropriate authorities, though the delays in deposit have not been serious.
According to the information and explanations given to us, no material undisputed amounts payable in respect of Provident fund, Employeesâ State Insurance, Profession tax, Income-tax, Duty of customs, Goods and Service tax, Entry tax, Local body tax, Property tax, Cess and other material statutory dues were in arrears as at 31 March 2019 for a period of more than six months from the date they became payable.
Also, refer note 24 to the standalone financials statements.
(b) According to the information and explanations given to us, there are no dues of Goods and Service tax, Duty of customs and Duty of excise which have not been deposited with the appropriate authorities on account of any dispute. According to the information and explanations given to us, there are no dues of Income-tax, Service tax and Value added tax as at 31 March 2019, which have not been deposited with the appropriate authorities on account of any dispute, except as stated below:
(INR in lakhs)
Name of the Statute |
Nature of the Dues |
Amount Demanded |
Amount not Deposited Under Disputes |
Period to which amount relates |
Forum where dispute is pending |
Finance Act, 1994 |
Tax, Penalty and Interest |
1,154.44 |
1,067.86 |
2007-08 to 2009-10 |
Customs, Excise and Service tax Appellate Tribunal, Ahmedabad |
2,505.73 |
2,505.73 |
2008-09 to 2012-13 |
Customs, Excise and Service tax Appellate Tribunal, Ahmedabad |
||
551.40 |
551.40 |
2015-16 |
Commissioner, Ahmedabad |
||
93.59 |
93.59 |
2015-16 |
Commissioner, Ahmedabad |
||
710.60 |
657.30 |
2014-15 |
Commissioner, Ahmedabad |
||
98.19 |
98.19 |
2012-13 to 2015-16 |
Commissioner, Ahmedabad |
||
176.23 |
176.23 |
2011-12 to 2015-16 |
Commissioner, Ahmedabad |
||
239 |
239 |
2015-16 to June 2017 |
Principal Commissioner, Ahmedabad |
(INR in lakhs)
Name of the Statute |
Nature of the Dues |
Amount Demanded |
Amount not Deposited Under Disputes |
Period to which amount relates |
Forum where dispute is pending |
39.56 |
39.56 |
April 2015 to |
Assistant Commissioner, |
||
June 2017 |
Ahmedabad |
||||
2.50 |
2.50 |
2012-13 to |
Assistant Commissioner, |
||
2016-17 |
Ahmedabad |
||||
The West Bengal |
Tax, Penalty |
57.55 |
57.55 |
2014-15 |
West Bengal Commercial |
VAT Act, 2003 |
and Interest |
Taxes Appellate and |
|||
Revisional Board |
|||||
105.80 |
105.80 |
2009-10 |
West Bengal Commercial |
||
Taxes Appellate and |
|||||
Revisional Board |
|||||
430.01 |
430.01 |
2011-12 |
Dept. Commissioner Kolkata |
||
241.00 |
217.96 |
2015-16 |
CIT (Appeal) |
||
Madhya Pradesh |
Tax, Penalty |
171.43 |
171.43 |
2013-14 |
Additional Commissioner |
VAT Act, 2002 |
and Interest |
Appeals |
|||
0.82 |
0.82 |
2014-15 |
Additional Commissioner |
||
Appeals |
|||||
15.30 |
11.47 |
2015-16 |
Additional Commissioner |
||
Appeals |
|||||
Gujarat VAT Act, |
2.75 |
2.47 |
2013-14 |
Additional Commissioner |
|
2003 |
Appeals |
||||
Maharashtra VAT |
16.64 |
16.64 |
2012-13 |
Maharashtra VAT Tribunal |
|
Act, 2002 |
|||||
New Delhi VAT |
489.10 |
469.10 |
2012-13 & |
Objection Hearing Authority |
|
matter |
2013-14 |
Sales Tax department Delhi |
|||
Chhattisgarh VAT |
17.36 |
14.76 |
2012-13 |
Appellate Authority |
|
matter |
|||||
Income Tax Act, |
778.47 |
- |
2006-07 to |
Income Tax Appellate |
|
1961 |
2011-12 |
Tribunal |
|||
125.19 |
- |
2009-10 |
Income Tax Appellate |
||
Tribunal |
|||||
19.70 |
- |
2010-11 |
Income Tax Appellate |
||
Tribunal |
|||||
18.58 |
- |
2004-05 |
Supreme Court |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to the financial institution, bank and dues to debenture holders. The Company did not have any outstanding loans and borrowings to Government during the year.
(ix) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they are raised.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the management.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, paragraph. 3 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone financial statements as required by applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph. 3 (xiv) of the Order is not applicable to the Company.
(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 any non-cash transactions with directors or persons connected with them. Accordingly, paragraph. 3 (xv) of the Order is not applicable to the Company.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph. 3 (xvi) of the Order is not applicable to the Company.
Annexure B to the Independent Auditorsâ Report - 31 March 2019
Report on the Internal Financial Controls with reference to the aforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(Referred to in paragraph A(g) under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date)
Opinion
We have audited the internal financial controls with reference to standalone financial statements of JMC Projects (India) Limited (âthe Companyâ) as of 31 March 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2019, based on the internal financial controls with reference to financial statements 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 (the âGuidance Noteâ).
Managementâs Responsibility for Internal Financial Controls
The Companyâs management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. 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 companyâs 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 (â hereinafter referred to as âthe Actâ).
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements. 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 with reference to financial statements were 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of such internal financial controls, 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 auditorâs 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 and the audit evidence obtained by the auditors of the relevant branches and unincorporated joint ventures in terms of their reports referred to in the Other matters paragraph below is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial Statements
A companyâs internal financial controls with reference to financial statements 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 companyâs internal financial controls with reference to financial statements include 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 companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Financial Statements
Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Other Matters
Our aforesaid report under section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial control with reference to standalone financial statements in so far as it relates to overseas branches and unincorporated joint ventures which are incorporated in India is based on the corresponding reports of the auditors of such overseas branches and unincorporated joint ventures. Our opinion is not modified in respect of this matter.
For B S R & Co. LLP
Chartered Accountants
Firmâs Registration No: 101248W/W-100022
Vikas R Kasat
Mumbai Partner
8 May 2019 Membership No: 105317
Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of JMC Projects (India) Limited (âthe Companyâ), which comprise the standalone balance sheet as at 31 March 2018, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows for the year then ended and a summary of the significant accounting policies and other explanatory information, in which are incorporated the Returns for the year ended on that date audited by the branch auditors of the Companyâs branches at Ethiopia and Sri Lanka and other auditors of the Companyâs four unincorporated joint ventures in India (hereinafter referred to as âStandalone Ind AS financial statementsâ)
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs, profit (including other comprehensive income), changes in equity and cash flows 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.
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.
In preparing the standalone Ind AS financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditorsâ 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 thereunder.
We conducted our audit of the standalone Ind AS financial statements 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 Auditorsâ 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 Companyâs 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We are also responsible to conclude on the appropriateness of managementâs 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 entityâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditorâs report to the related disclosures in the standalone Ind AS financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditorâs report. However, future events or conditions may cause an entity to cease to continue as a going concern.
We believe that the audit evidence obtained by us and the audit evidence obtained by the auditors of branches and unincorporated joint ventures in terms of their reports referred to in the Other matters paragraph below, 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 of the state of affairs of the Company as at 31 March 2018, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Other matters
We did not audit the Ind AS financial statements of two branches and four unincorporated joint ventures included in the standalone Ind AS financial statements of the Company, whose financial statements reflect total assets of INR 44,704 lakhs as at 31 March 2018 and total revenue of INR 24,326 lakhs for the year ended on that date, as considered in the standalone Ind AS financial statements. The standalone Ind AS financial statements of these branches and unincorporated joint ventures have been audited by the branch and unincorporated joint venture auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches and unincorporated joint ventures, is based solely on the report of auditors of such branches and unincorporated joint ventures. Our opinion is not modified in respect of this matter.
The two branches located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Companyâs management has converted the financial statements of such branches located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Companyâs management. Our opinion in so far as it relates to the balances and affairs of such branches located outside India is based on the report of other auditors and the conversion adjustments prepared by the management of the Company and audited by us.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraphs 3 and 4 of the Order.
2. As required by sub-section (3) of Section 143 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 and proper returns adequate for the purposes of our audit have been received from the branch not visited by us,
(c) the reports on the accounts of the branch offices and unincorporated joint ventures of the Company audited under Section 143(8) of the Act by branch auditors and unincorporated joint venture auditors have been sent to us and have been properly dealt with by us in preparing this report,
(d) the standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of cash flows and the standalone statement of changes in equity dealt with by this Report are in agreement with the books of account,
(e) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act,
(f) on the basis of the written representations received from the directors as on 31 March 2018 taken on record by the board of directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act,
(g) 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
(h) with respect to the other matters to be included in the Auditorsâ 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 24 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 on long-term contracts. The Company did not have any material foreseeable losses on derivative contracts - Refer Note 29 to the standalone Ind AS financial statements,
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2018; and
iv. the disclosures in the standalone Ind AS financial statements regarding holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018. However, amounts as appearing in the audited standalone Ind AS financial statements for the period ended 31 March 2017 have been disclosed. Refer Note 39 of the standalone Ind AS financial statements.
Annexure A to the Independent Auditorsâ Report - 31 March 2018
With reference to the Annexure A referred to in the Independent Auditorsâ Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31 March 2018, we report the following:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets and investment properties.
(b) The Company has a regular programme of physical verification of its fixed assets and investment properties by which the fixed assets and investment properties are verified annually. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the policy, the Company has physically verified its fixed assets and investment properties during the year and we are informed that no material discrepancies were noticed on such verification, and the same have been dealt with in the books of account.
(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 as disclosed in Note 3 and Note 4 to the standalone Ind AS financial statements, are held in the name of the Company.
(ii) The inventory of building material, components and spares has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been dealt with in books of account.
(iii) The Company has granted interest free unsecured loans to five companies covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ). The Company has not granted any loans, secured or unsecured, to firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act.
i) According to the information and explanations given to us, in our opinion, the terms and conditions on which the unsecured loans have been granted to the companies listed in the register maintained under Section 189 of the Act were not, prima facie, prejudicial to the interest of the Company.
ii) According to the information and explanations given to us, the unsecured loans granted to companies are repayable on demand. The borrowers have been regular in payment of principal and interest (if any) as demanded.
iii) There are no overdue amounts of more than 90 days in respect of the loans granted by the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has not given any loans, or provided any guarantees or security to the parties covered under Section 185 of the Act. Accordingly, compliance under Section 185 of the Act is not applicable to the Company. According to the information and explanations given to us, the provisions of Section 186 of the Act in respect of the loans given, guarantees given or securities provided are not applicable to the Company, since it is covered as a company engaged in business of providing infrastructural facilities. The Company has not made any investments during the year. Accordingly, compliance under Section 186 of the Act in respect of investment made during the year is not applicable to the Company.
(v) In our opinion, and according to the information and explanations given to us, the Company has not accepted deposits as per the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly, paragraph 3 (v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under Section 148(1) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost 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 our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident fund, Income-tax, Duty of customs, Duty of excise, Goods and Service tax, Value added tax, Sales-tax, Service tax, Local body tax, Property tax, Cess and other material statutory dues have been regularly deposited during the year with the appropriate authorities. The amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Entry tax have generally been regularly deposited during the year with the appropriate authorities, though there have been slight delays in a few cases. The amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Employeesâ State Insurance, Profession tax, Works contract tax have not been regularly deposited during the year with the appropriate authorities, though the delays in deposit have not been serious. As explained to us, the Company did not have any dues on account of Wealth tax.
According to the information and explanations given to us, no material undisputed amounts payable in respect of Provident fund, Employeesâ State Insurance, Profession tax, Income-tax, Duty of customs, Duty of excise, Goods and Service tax, Value added tax, Sales-tax, Service tax, Works contract tax, Entry tax, Local body tax, Property tax, Cess and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Goods and Service tax, Duty of customs and Duty of excise which have not been deposited with the appropriate authorities on account of any dispute. According to the information and explanations given to us, there are no dues of Income-tax, Sales tax, Service tax and Value added tax as at 31 March 2018, which have not been deposited with the appropriate authorities on account of any dispute, except as stated below:
(INR in lakhs)
Name of the Statute |
Nature of the Dues |
Amount Demanded |
Amount Deposited Under Disputes |
Period to which amount relates |
Forum where dispute is pending |
Finance Act, 1994 |
Tax, Penalty |
1,154.44 |
- |
2007-08 to 2009-10 |
Customs, Excise and Service tax Appellate Tribunal, Ahmedabad |
And Interest |
2,505.73 |
2008-09 to 2012-13 |
Customs, Excise and Service tax Appellate Tribunal, Ahmedabad |
||
551.40 |
2015-16 |
Commissioner, Ahmedabad |
|||
93.59 |
- |
2015-16 |
Commissioner, Ahmedabad |
||
710.60 |
- |
2014-15 |
Commissioner, Ahmedabad |
||
98.19 |
- |
2012-13 to 2015-16 |
Commissioner, Ahmedabad |
||
176.23 |
2011-12 to 2015-16 |
Commissioner, Ahmedabad |
|||
The West Bengal VAT Act, 2003 |
Tax, Penalty |
57.10 |
- |
2008-09 |
West Bengal Commercial Taxes Appellate and Revisional Board |
And Interest |
105.80 |
- |
2009-10 |
West Bengal Commercial Taxes Appellate and Revisional Board |
|
430.01 |
- |
2011-12 |
Dept. Commissioner Kolkata |
||
Madhya Pradesh VAT Act, 2002 |
Tax, Penalty and Interest |
15.60 171.43 |
- |
2009-10 2013-14 |
Additional Commissioner Appeals Additional Commissioner Appeals |
0.82 15.30 |
- |
2014-15 2015-16 |
Additional Commissioner Appeals Additional Commissioner Appeals |
||
Gujarat VAT Act, 2003 |
261.72 |
- |
2006-07 |
Gujarat VAT Tribunal |
|
Maharashtra VAT Act, 2002 |
2.75 |
- |
2013-14 |
Additional Commissioner Appeals |
|
New Delhi VAT matter |
489.10 |
- |
2012-13 & 2013-14 |
Objection Hearing Authority Sales Tax department Delhi |
|
Income Tax Act, 1961 |
778.47 124.19 19.70 18.58 |
778.47 124.19 19.70 18.58 |
2006-07 to 2011-12 2009-10 2010-11 2004-05 |
Income Tax Appellate Tribunal Income Tax Appellate Tribunal Income Tax Appellate Tribunal Supreme Court |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to the banks and financial institutions. The Company did not have any outstanding loans and borrowings to Government and outstanding dues to debenture holders during the year.
(ix) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they are raised.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the management.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, paragraph 3 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3 (xiv) of the Order is not applicable to the Company.
(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 any non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3 (xv) of the Order is not applicable to the Company.
(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3 (xvi) of the Order 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 (âthe Actâ)
We have audited the internal financial controls over financial reporting of JMC Projects (India) Limited (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 (âICAIâ). 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 companyâs 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 (âthe Actâ).
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs 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 âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, 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 ICAI. 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 Auditorsâ judgement, 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 and the audit evidence obtained by the auditors of branches and unincorporated joint ventures in terms of their reports referred to in the Other matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs 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 the standalone Ind AS 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 companyâs assets that could have a material effect on the standalone Ind AS 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 31 March 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 ICAI.
Other matters
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting in so far as it relates to overseas branches and unincorporated joint ventures, is based on the corresponding reports of the auditors of branches and unincorporated joint ventures. Our opinion is not modified in respect of this matter.
For B S R & Co. LLP
Chartered Accountants
Firmâs Registration No: 101248W/W-100022
Vikas R Kasat
Mumbai Partner
24 May 2018 Membership No: 105317
Mar 31, 2017
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of JMC Projects (India) Limited (âthe Companyâ), which comprise the Standalone Balance sheet as at 31 March 2017, the Standalone Statement of profit and loss (including other comprehensive income), the Standalone Statement of cash flows and the Standalone Statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âStandalone Ind AS financial statementsâ)
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation 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 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; 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.
Auditorsâ 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 thereunder.
We conducted our audit of the standalone Ind AS financial statements 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 Auditorsâ 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 Companyâs 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 Companyâs 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 Ind AS, of the financial position of the Company as at 31 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.
Other matters
(a) The comparative financial information of the Company as at and for the year ended 31 March 2016 and the transition date opening balance sheet as at 1 April 2015 included in these standalone Ind AS financial statements, are based on the previously issued statutory standalone financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 and audited by Kishan M. Mehta & Co., Chartered Accountants for the years ended 31 March 2016 and 31 March 2015 whose reports dated 27 May 2016 and 28 May 2015, respectively, expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us. Our opinion is not modified in respect of this matter.
(b) We did not audit the Ind AS financial statements of two branches included in the standalone Ind AS financial statements of the Company, whose financial statements reflect total assets of INR 23,826 lakhs as at 31 March 2017 and total revenue of INR 15,723 lakhs for the year ended on that date, as considered in the standalone Ind AS financial statements. The standalone Ind AS financial statements of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorsâ Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of subsection (11) of Section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraphs 3 and 4 of the Order.
As required by sub-section (3) of Section 143 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 (including other comprehensive income), the Statement of cash flows and the Statement of changes in equity dealt with by this report are in agreement with the books of account,
(d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards prescribed under Section 133 of the Act, read with relevant rules issued thereunder,
(e) on the basis of the written representations received from the directors as on 31 March 2017 taken on record by the board of directors, none of the directors are disqualified as on 31 March 2017 from being appointed as a director in terms of sub-section (2) of Section 164 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 Auditorsâ 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 24 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 on long-term contracts including derivative contracts (if any) - Refer Note 29 to the standalone Ind AS financial statements,
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2017, and
iv. the Company has provided requisite disclosure in its standalone Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 and these are in accordance with the books of accounts maintained by the Company and as produced to us by the Management - Refer Note 39 to the standalone Ind AS financial statements.
Annexure A to the Independent Auditorsâ Report - 31 March 2017
With reference to the Annexure A referred to in the Independent Auditorsâ Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31 March 2017, we report the following:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment and investment properties.
(b) The Company has a regular programme of physical verification of its property, plant and equipment and investment properties by which the property, plant and equipment and investment properties are verified annually. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed upon such verification during the year and these have been dealt with appropriately in the books of account.
(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 as disclosed in Note 3 and Note 4 to the standalone Ind AS financial statements, are held in the name of the Company.
(ii) The inventory of building material, components and spares has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been dealt with in books of account.
(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 (âthe Actâ). Accordingly, paragraphs 3 (iii) (a), (b) and (c) of the Order are not applicable to the Company.
(vi) In our opinion and according to the information and explanations given to us, the Company has not given any loans, or provided any guarantees or security to the parties covered under Section 185 of the Act. Accordingly, compliance under Section 185 of the Act is not applicable to the Company. According to the information and explanations given to us, the provisions of Section 186 of the Act in respect of the loans given, guarantees given or securities provided are not applicable to the Company, since it is covered as a company engaged in business of providing infrastructural facilities. The Company has not made any investments during the year. Accordingly, compliance under Section 186 of the Act in respect of investment made during the year is not applicable to the Company.
(v) In our opinion, and according to the information and explanations given to us, the Company has not accepted deposits as per the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Accordingly, paragraph 3 (v) of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under Section 148(1) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost 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 our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Employeesâ State Insurance, Profession tax, Income-tax, Duty of customs, Duty of excise, Sales-tax, Service tax, Entry tax, Local body tax, Cess and other material statutory dues have been regularly deposited during the year with the appropriate authorities. The amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident fund, Value added tax and Works contract tax have generally been regularly deposited during the year with the appropriate authorities, though there have been slight delays in a few cases. As explained to us, the Company did not have any dues on account of Wealth tax.
According to the information and explanations given to us, no undisputed amounts payable in respect of Provident fund, Employeesâ State Insurance, Profession tax, Income-tax, Duty of customs, Duty of excise, Sales-tax, Service tax, Value added tax, Works contract tax, Entry tax, Local body tax, Cess and other material statutory dues were in arrears as at 31 March 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of Income-tax, Sales tax, Service tax, Duty of customs, Duty of excise and Value added tax as at 31 March 2017, which have not been deposited with the appropriate authorities on account of any dispute, except as stated below:
(INR in lakhs)
Name of the Statute |
Nature of the Dues |
Amount Demanded |
Amount Deposited Under Disputes |
Period to which amount relates |
Forum where dispute is pending |
Finance Act, 1994 |
Tax, Penalty and Interest |
2,898.09 |
2,898.09 |
2007-08 to 2009-10 |
Customs, Excise and Service tax Appellate Tribunal, Ahmedabad |
2,505.73 |
2,505.73 |
2008-09 to 2012-13 |
Customs, Excise and Service tax Appellate Tribunal, Ahmedabad |
||
Customs, Excise and Service tax |
|||||
2.18 |
2.18 |
1997-98 |
Appellate Tribunal, Ahmedabad |
||
551.40 |
551.40 |
2015-16 |
Commissioner, Ahmedabad |
||
93.59 |
93.59 |
2015-16 |
Commissioner, Ahmedabad |
||
710.60 |
710.60 |
2015-16 |
Commissioner, Ahmedabad |
||
98.19 |
98.19 |
2012-13 to 2015-16 |
Commissioner, Ahmedabad |
||
176.23 |
176.23 |
2011-12 to 2015-16 |
Commissioner, Ahmedabad |
||
The West Bengal |
Tax, Penalty and |
57.10 |
57.10 |
2008-09 |
West Bengal Commercial Taxes Ap- |
VAT Act, 2003 |
Interest |
pellate and Revisional Board |
|||
105.80 |
105.80 |
2009-10 |
West Bengal Commercial Taxes Appellate and Revisional Board |
||
430.01 |
430.01 |
2011-12 |
Dept. Commissioner Kolkata |
||
Madhya Pradesh VAT |
Tax, Penalty and |
9.01 |
9.01 |
2009-10 |
Additional Commissioner Appeals |
Act, 2002 |
Interest |
6.59 |
659 |
2009-10 |
Additional Commissioner Appeals |
126.43 |
126.43 |
2013-14 |
Additional Commissioner Appeals |
||
45.00 |
45.00 |
2013-14 |
Additional Commissioner Appeals |
||
Gujarat VAT Act, |
Tax, Penalty and |
261.72 |
261.72 |
2006-07 |
Gujarat VAT Tribunal |
2003 |
Interest |
||||
Maharashtra VAT |
Tax, Penalty and |
145.10 |
145.10 |
2006-07 |
Dept. Commissioner of Sales Tax |
Act, 2002 |
Interest |
15.14 |
15.14 |
2007-08 |
Joint Commissioner of Sales Tax |
789.18 |
789.18 |
2008-09 |
Dept. Commissioner of Sales Tax |
||
40.35 |
40.35 |
2009-10 |
Additional Commissioner Appeals |
||
0.82 |
0.82 |
2014-15 |
Additional Commissioner Appeals |
||
New Delhi VAT |
Tax, Penalty and |
501.57 |
501.57 |
2012-13 & 2013-14 |
Objection Hearing Authority Sales |
matter |
Interest |
Tax department Delhi |
|||
Income Tax Act, |
Tax, Penalty and |
102.52 |
102.52 |
2012-13 |
Commissioner (Appeals) |
1961 |
Interest |
778.62 |
778.62 |
2005-06 to 2011-12 |
Income Tax Appellate Tribunal |
18.54 |
18.54 |
2004-05 |
Supreme Court |
||
Tamil Nadu Mineral |
39.87 |
39.87 |
2006-07 |
Principal Secretary / Joint Secretary, |
|
Concession Rules |
Industries |
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to the banks and financial institutions. The Company did not have any outstanding loans and borrowings to Government and outstanding dues to debenture holders during the year.
(ix) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they are raised.
(x) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the management.
(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, paragraph 3 (xii) of the Order is not applicable to the Company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3 (xiv) of the Order is not applicable to the Company.
(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 any non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3 (xv) of the Order is not applicable to the Company.
(ix) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, paragraph 3 (xvi) of the Order is not applicable to the Company.
For B S R & Co. LLP
Chartered Accountants
Firmâs Registration No : 101248W/W-100022
Vikas R Kasat
Partner
Membership No: 105317
Mumbai
16 May 2017
Mar 31, 2016
To the Members of JMC Projects (India) Limited.
Report on the Financial Statements
We have audited the accompanying standalone financial statements of JMC Projects (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information
Management''s Responsibility for the Financial Statements
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 and cash flow of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with rule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on 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 accounting policies used and the reasonableness of the accounting estimates made by 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 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 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, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in 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 appears from our examination of those books;
c) the Balance Sheet, the Statement of Profit and Loss and cash flow statement dealt with by this Report are in agreement with the books of account;
d) in our opinion, the aforesaid standalone financial statements, comply with the applicable Accounting Standards referred to under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014;
e) on the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, 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 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 if any, of pending litigations in its financial statements- Refer Note No. 27 to the financial statements.
(ii) The Company has made provision, as required under the applicable law and accounting standards for material foreseeable losses on long term contracts including derivative contracts.
(iii) There has been no delay in transferring amount required to be transferred, to the Investor Education and Protection Fund by the Company.
(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets;
b) As explained to us, the fixed assets have been physically verified by the management in reasonable interval and no material discrepancies have been noticed on such verification.
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 held in the name of the Company.
(ii) The inventory has been physically verified by the management during the year at reasonable intervals and in our opinion, discrepancies noticed on physical verification of stocks were not material.
(iii) The company has not granted any loan, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Act.
(iv) According to information and explanations given to us, in respect of loans, investments, guaranties and security the company has complied with the provisions of section 185 and 186 of the Act.
(v) The Company has complied with the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under in relation to the deposits.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government of India, regarding the maintenance of cost records under sub section 1 of section 148 of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have, however not made a detailed examination of the records with a view to determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to us and the records examined by us, the Company is regular
in depositing with appropriate authorities the 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, Cess and any other material statutory dues applicable to it; and there are no such undisputed amount payable which are in arrears as at March 31, 2016 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax and Cess which have not been deposited on account of dispute are given below.
Name of the Statute |
Particulars |
Financial year to which the amount relates |
Forum where the dispute is pending |
Amount (Rs, in Lacs) |
Finance Act, 1994 |
Service Tax |
2007-08 to 2009-10 |
Customs, Excise and Service Tax Appellate Tribunal, Ahmadabad |
2898.09 |
Finance Act, 1994 |
Service Tax |
2008-09 to 2012-13 |
Customs, Excise and Service Tax Appellate Tribunal, Ahmadabad |
2505.73 |
Finance Act, 1994 |
Service Tax |
1997-98 |
Customs, Excise and Service Tax Appellate Tribunal, Ahmadabad |
2.18 |
Finance Act, 1994 |
Service Tax |
2015-16 |
Commissioner, Ahmadabad |
551.40 |
Finance Act, 1994 |
Service Tax |
2014-15 |
Commissioner, Ahmadabad |
710.60 |
Finance Act, 1994 |
Service Tax |
2015-16 |
Commissioner, Ahmadabad |
93.59 |
The West Bengal VAT Act, 2003 |
VAT |
2008-09 |
West Bengal Commercial Taxes Appellate and Provisional Board |
57.10 |
The West Bengal VAT Act, 2003 |
VAT |
2009-10 |
West Bengal Commercial Taxes Appellate and Provisional Board |
105.80 |
The West Bengal VAT Act, 2003 |
VAT |
2011-12 |
Dept. Commissioner Kolkata |
430.01 |
Madhya Pradesh VAT Act, 2002 |
VAT |
2009-10 |
Addl. Commissioner Appeals |
10.44 |
Madhya Pradesh VAT Act, 2002 |
Entry Tax |
2009-10 |
Addl. Commissioner Appeals |
6.59 |
Madhya Pradesh VAT Act, 2002 |
VAT |
2013-14 |
Addl. Commissioner Appeals |
126.43 |
Madhya Pradesh VAT Act, 2002 |
Entry Tax |
2013-14 |
Addl. Commissioner Appeals |
45.00 |
Gujarat VAT Act, 2003 |
VAT & CST |
2006-07 |
Gujarat VAT Tribunal |
263.76 |
Gujarat VAT Act, 2003 |
VAT & CST |
2009-10 |
Asst. Commissioner of Commercial Appeals |
125.40 |
Maharashtra VAT Act, 2002 |
VAT |
2006-07 |
Dept. Commissioner of Sales Tax |
145.10 |
Maharashtra VAT Act, 2002 |
VAT |
2007-08 |
Joint Commissioner of Sales Tax |
15.14 |
Maharashtra VAT Act, 2002 |
VAT |
2008-09 |
Dept. Commissioner of Sales Tax |
789.18 |
Maharashtra VAT Act, 2002 |
VAT |
2009-10 |
Addl. Commissioner Appeals |
40.35 |
New Delhi VAT matter |
VAT |
2012-13 & 2013-14 |
Objection Hearing Authority Sales Tax department Delhi |
521.8 |
Income Tax Act, 1961 |
Income Tax |
2012-13 |
Commissioner (Appeals) |
89.56 |
Income Tax Act, 1961 |
Income Tax |
2006-07, 2008-09, 2009-10, 2011-12 |
Income Tax Appellate Tribunal |
757.67 |
Income Tax Act, 1961 |
Income Tax |
2004-05 |
Supreme Court |
18.58 |
(viii) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of loans or borrowings to financial institutions and Bank. The company has not taken any loan from Government and has not issued debentures.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments). According to the information and explanations given to us and in our opinion the term loan raised have been applied for the purpose for which they were obtained.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statement and as per the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the course of our audit.
(xi) As the company is not a Nidhi Company, Clause (xii) of paragraph 3 of the Company''s (Auditor''s Report) Order, 2016 is not applicable to the Company.
(xii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiii) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xiv) As the Company has not entered into any non-cash transactions with directors or persons connected with him, Clause (xv) of paragraph 3 of the Company''s (Auditor''s Report) Order, 2016 is not applicable to the Company.
(xv) According to information and explanation to us the Company is not required to be registered under section 45-lA of the Reserve Bank of lndia Act, 1934.
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 JMC Projects (India) Limited ("the Company") as of 31st March 2016 in conjunction with our audit of the 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.
Auditors'' 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. 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 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 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 2016, 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, KISHAN M. MEHTA & CO.
Chartered Accountants
Firm''s Registration No.105229W
(K.M.MEHTA)
Date : 27th May, 2016 Partner
Place: Mumbai M.No.13707
Mar 31, 2015
We have audited the accompanying standalone financial statements of JMC
Projects (India) Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2015, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
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
and cash flow of the Company in accordance with the accounting
principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, read with rule 7 of
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of 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 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 financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on 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
accounting policies used and the reasonableness of the accounting
estimates made by 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 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 March 31, 2015 and its Profit and 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, we give in the Annexure 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 appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid standalone financial statements,
comply with the applicable Accounting Standards referred to under
section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014;
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of section 164(2) of the Act;
f) With respect to 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 if any, of pending litigations
in its financial statements- Refer Note No. 27 and 28 to the financial
statements;
(ii) The Company has made provision, as required under the applicable
law and accounting standards for material foreseeable losses on long
term contracts including derivative contracts;
(iii) There has been no delay in transferring amount required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 1 under Report on Other Legal and Regulatory
Requirements of our report of even date)
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets;
b) As explained to us, the fixed assets have been physically verified
by the management in reasonable interval and no material discrepancies
have been noticed on such verification.
(ii) a) The inventory has been physically verified by the management
during the year at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material.
(iii) The Company has not granted any loan, secured or unsecured, to
Companies, firms or other parties covered in the register maintained
under section 189 of the Act.
(iv) In our opinion and according to the information and explanation
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business of with
regard to purchases of inventory and fixed assets and sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
(v) The Company has complied with the directives issued by the Reserve
Bank of India and the provisions of section 73 to 76 or any other
relevant provisions of the Companies Act and the rules framed
there under in relation to the deposits.
(vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government of India,
regarding the maintenance of cost records under sub section (1) of
section 148 of the Companies Act, 2013 and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
We have, however not made a detailed examination of the records with a
view to determine whether they are accurate or complete.
(vii) a) According to the information and explanations given to us and
the records examined by us, the Company is regular in depositing with
appropriate authorities the 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, Cess and any other material statutory dues applicable to it and
there are no such undisputed amount payable which are in arrears as at
March 31, 2015 for a period of more than six months from the date they
became payable.
b) According to the information and explanations given to us, details
of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Customs, Duty of Excise, Value Added Tax and Cess which have not been
deposited on account of dispute are given below.
Name of the
Statute Particulars Period of
which the Forum where the
dispute is Amount
amount
relates pending ( Rs. In Lacs)
Finance
Act, 1994 Service Tax 2007-08 to
2009-10 Customs, Excise and
Service Tax 2898.09
Appellate Tribunal,
Ahmedabad
Finance
Act, 1994 Service Tax 2008-09 to
2012-13 Customs, Excise and
Service Tax 2505.73
Appellate Tribunal,
Ahmedabad
Finance
Act, 1994 Service Tax 1997-98 Customs, Excise and
Service Tax 2.18
Appellate Tribunal,
Ahmedabad
The West
Bengal
VAT Act,
2003 VAT 2008-09 West Bengal
Commercial Taxes 57.10
Appellate and
Provisional Board
The West
Bengal VAT
Act, 2003 VAT 2009-10 West Bengal
Commercial Taxes 105.80
Appellate and
Provisional Board
The West
Bengal VAT
Act, 2003 VAT 2011-12 Dept. Commissioner
Kolkata 0.37
Madhya
Pradesh
VAT Act,
2002 VAT 2007-08 &
2008-09 High Court 295.17
Madhya
Pradesh
VAT Act,
2002 VAT 2009-10 Addl. Commissioner
Appeals 8.47
Madhya
Pradesh
VAT Act,
2002 Entry Tax 2008-09 High Court 52.05
Madhya
Pradesh
VAT Act,
2002 Entry Tax 2009-10 Addl. Commissioner
Appeals 6.59
Gujarat
VAT Act,
2003 VAT & CST 2006-07 Gujarat VAT
Tribunal 261.72
Gujarat
VAT Act,
2003 VAT & CST 2009-10 Asst. Commis-
sioner of 125.40
Commercial
Appeals
Maharashtra
VAT Act,
2002 VAT 2006-07 Dept. Commis-
sioner of
Sales Tax 145.10
Mahara-
shtra VAT
Act, 2002 VAT 2007-08 Joint Commis-
sioner of
Sales Tax 15.10
Mahara-
shtra
VAT Act,
2002 VAT 2008-09 Dept. Commis-
sioner of Sales
Tax 789.18
Uttaran-
chal VAT
matter VAT 2010-11 Dept. Commis-
sioner of 549.00
Commercial Tax
New Delhi
VAT matter VAT 2012-13 &
2013-14 Objection Hearing
Authority 521.80
Sales Tax depar-
tment Delhi
Income Tax
Act, 1961 Income Tax 2006-07 to
2011-12 Commissioner
(Appeals) 1539.11
Tamil Nadu
Minor
Mineral
Concession Royalty 2006-07 Principal
Secretary Joint 39.87
Rules Secretary,
Industries.
c) The Company has transferred the required amount to Investor
Education and Protection Fund in accordance with the relevant provision
of the Companies Act, 1956 and rules made there under within time.
(viii) There are no accumulated losses of the Company as on March 31,
2015. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
banks, financial institutions and debentures holders.
(x) According to the information and explanations given to us, the
Company has given guarantee for loans taken by a subsidiary company
from banks and financial institutions of Rs. 22.50 Crores and the terms
and conditions whereof are not prejudicial to the interest of the
Company.
(xi) According to the information and explanations given to us and in
our opinion the term loan raised have been applied for the purpose for
which they were obtained.
(xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statement and as per
the information and explanations given by the management, we report
that no fraud on or by the Company has been noticed or reported during
the course of our audit.
For KISHAN M.MEHTA & CO.,
Chartered Accountants
Firm's Registration No.105229W
Place : Mumbai (K.M.MEHTA)
Date : May 29, 2015 Partner
Membership No. : 13707
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of JMC PROJECTS
(INDIA) LTD. ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on 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 control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.An
audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements read with notes,
subject to third party confirmations 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 March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by 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 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 appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Companies Act, 1956;
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under Section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management in accordance with a phased programme of verification
of its fixed assets adopted by the Company, which in our opinion is
reasonable, considering the size and the nature of its business. The
frequency of verification is reasonable and no material discrepancies
have been noticed on such physical verification.
(c) During the year, the Company has not disposed off any substantial
part of fixed assets.
(ii) (a) The inventory has been physically verified by the management
during the year at reasonable intervals. In our opinion, the frequency
of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of inventory
have been properly dealt with in the books of accounts.
(iii) (a) The Company has granted unsecured loan to two parties covered
in the register maintained under Section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 93.07 lacs
and year end balance of loan granted to such parties was Rs. 41.69
lacs.
(b) In our opinion the rate of interest and other terms and conditions
of loans given by the Company are not prima facie, prejudicial to the
interest of the Company.
(c) The parties have been regular in the payment of principal and
interest as per stipulation, if any.
(d) There is no overdue amount of loan granted to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Therefore the provisions
of sub clause (e), (f) and (g) of clause (iii) of para 4 of the Order
are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fixed assets and for sale
of goods and services. During the course of our audit, no major
weakness has been noticed in the internal controls in respect of these
areas.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangement that need
to be entered into the Register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
have been made at the prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provision of Section 58A
& 58AA or any other relevant provisions of the Companies Act,1956 and
rules framed there under. We are informed that no order had been passed
by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government of India,
regarding the maintenance of cost records under Section 209(1)(d) of
the Act and are of the opinion that prima facie, the prescribed
accounts and records have been maintained. We have, however not made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
(ix) (a) According to the information & explanations given to us and
records examined by us, the Company is generally regular in depositing
with the appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income Tax, VAT, Wealth Tax, Service Tax, Custom duty,
Excise duty, Cess and other material undisputed statutory dues
applicable to it and there were no undisputed material statutory dues
in arrears as at March 31, 2013 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, details
of dues of Income Tax, VAT, Wealth Tax, Service Tax, Custom duty,
Excise duty and Cess which have not been deposited on account of
dispute are given below.
Name of the Statute Particulars Period of which the
amount relates
Tamil Nadu Minor Mineral
Concession Rules Royalty 2003-04
Finance Act, 1994 Service Tax 2007-08 to 2009-10
The West Bengal VAT
Act, 2003 VAT 2008-09
The West Bengal VAT
Act, 2003 VAT 2009-10
Madhya Pradesh VAT
Act, 2002 VAT 2007-08 & 2008-09
Madhya Pradesh VAT
Act, 2002 VAT 2009-10
Madhya Pradesh VAT
Act, 2002 Entry Tax 2008-09
Madhya Pradesh VAT
Act, 2002 Entry Tax 2009-10
Gujarat VAT Act, 2003 VAT & CST 2006-07
Rajasthan Tax on entry
of Goods into Local Entry Tax 2007-08
Areas Act
Rajasthan VAT Act, 2003 VAT 2012-13
Tamil Nadu Minor Mineral
Concession Rules Royalty 2006-07
Name of the Statute Forum where the dispute Amount
is pending (Rs. In Lacs)
Tamil Nadu Minor Mineral
Concession Rules Finance
Act 1994 High Court 426.90
Customs, Excise and 2,703.37
Service Tax Appellate
Tribunal, Ahmedabad
The West Bengal VAT Act
2003 West Bengal Commercial 57.10
Taxes Appellate and
Revisional Board
The West Bengal VAT Act
2003 Joint Commissioner, Sales 33.54
Tax
Madhya Pradesh VAT
Act, 2002 High Court 295.17
Madhya Pradesh VAT
Act, 2002 Addl. Commissioner 17.03
Appeals
Madhya Pradesh VAT
Act, 2002 High Court 52.05
Madhya Pradesh VAT
Act, 2002 Addl. Commissioner 6.59
Appeals
Gujarat VAT Act 2003 Gujarat VAT Tribunal 249.98
Rajasthan Tax on entry of
Goods into Local Areas Act Deputy Commissioner 2.89
(Appeals)
Rajasthan VAT Act 2003 Dy. Commissioner, 1.86
Commercial Tax
Tamil Nadu Minor Mineral
Concession Rules Principal Secretary / Joint 39.87
Secretary, Industries.
(x) There are no accumulated losses of the Company as on 31st March
2013. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
bank, financial institution or debenture holders.
(xii) The Company has not granted any loans or advances on the basis of
security, by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or nidhi mutual
benefit fund / Society, therefore, the provisions of para 4 (xiii) of
the Companies (Auditor''s Report) Order, 2003, are not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of Para 4(xiv) of the Companies (Auditor''s Report) Order,
2003, are not applicable to the Company.
(xv) In our opinion, the Company has not given any guarantee in respect
of loans taken by others from bank or financial institutions.
(xvi) According to the information and explanations given to us, in our
opinion the term loans raised during the year have been applied for the
purpose for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we report that no funds raised on short-term basis have
been used for long term investment.
(xviii) The Company has not made any preferential allotment of shares
during the year.
(ix) The Company has not issued any Debentures during the year.
(xx) The Company has not raised any money by way of public issue during
the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statement and as per
the information and explanation given by the management, we report that
no fraud on or by the Company has been noticed or reported during the
course of our audit.
For KISHAN M. MEHTA & CO.,
Chartered Accountants
Firm''s Registration No. 105229W
Place : Mumbai (K.M. MEHTA)
Date : 16th May, 2013 Partner
Membership No. 13707
Mar 31, 2012
1. We have audited the attached Balance Sheet of JMC PROJECTS (INDIA)
LIMITED (' 'the Company") as at 31st March, 2012 and also the
Statement of Profit & Loss and Cash Flow statement 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.
2. We conducted our audit in accordance with 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 misstatement. 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.
3. As required by the Companies (Auditor's Report) Order, 2003, 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 as we
considered appropriate, and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments, in the Annexure referred to in paragraph 3
above, we report 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 such
books.
c. The Balance Sheet, Statement of Profit & Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956.
e. In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with the notes thereon,
and subject to third party confirmations, give the information required
by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with accounting principles generally
accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
ii) In the case of Statement of Profit & Loss , of the profit of the
Company for the year ended on that date; and
iii) In the case of Cash Flow statement, of the cash flows for the year
ended on that date.
5. On the basis of written representation received from directors and
taken on record by the board of directors, we report that none of the
directors is disqualified as on March 31, 2012 from being appointed as
a director in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956.
Annexure
Reg: JMC PROJECTS (INDIA) LIMITED
(Referred to in paragraph 3 of our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets,
(b) As explained to us, the fixed assets have been physically verified
by the management in accordance with a phased programme of verification
of its fixed assets adopted by the Company, which in our opinion is
reasonable, considering the size and the nature of its business. The
frequency of verification is reasonable and no material discrepancies
have been noticed on such physical verification.
(c) During the year, the Company has not disposed off any substantial
part of fixed assets.
(ii) (a) The inventory has been physically verified by the management
during the year at reasonable intervals. In our opinion, the frequency
of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion discrepancies noticed on physical verification of inventory
have been properly dealt with in the books of accounts.
(iii) (a) The Company has granted unsecured loan to two parties covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs 108.77 Lacs and
year end balance of loan granted to such party was Rs 93.07 Lacs.
(b) In our opinion the rate of interest and other terms and conditions
of loans given by the Company are not prima facie, prejudicial to the
interest of the Company.
(c) The parties have been regular in the payment of principal and
interest as per stipulation, if any.
(d) There is no overdue amount of loan granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Therefore the provisions
of sub clause (e), (f) and (g) of clause (iii) of para 4 of the Order
are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fixed assets and for sale
of goods and services. During the course of our audit, no major
weaknesses have been noticed in the internal controls in respect of
these areas.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangement that need
to be entered into the Register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
have been made at the prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provision of section 58A
& 58AA or any other relevant provisions of the Companies Act,1956 and
rules framed there under. We are informed that no order had been passed
by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The provisions of Section 209 (1) (d) of the Companies Act, 1956
regarding maintenance of cost record are not applicable to the Company.
(ix) (a) According to the information & explanations given to us and
records examined by us, the Company is generally regular in depositing
with the appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Income Tax, VAT, Wealth Tax, Service Tax, Custom duty,
Excise duty, Cess and other undisputed statutory dues applicable to it.
(b) According to the information and explanations given to us, details
of dues which have not been deposited on account of dispute are below.
Name of the
Statute Particulars Period of
which the Froum where the Amount
amount
relates dispute is pending (Rs in
Lacs)
Tamil Nadu
Minor
Mineral
Concession
Rules Royalty 2003-04 High Court 426.90
Finance
Act, 1994 Service Tax 2007-08 to
2009-10 Customs, Excise
and 2695.13
Service Tax
Appellate
Tribunal,
Ahmedabad
The Central
Excise
Act,1944 Excise Duty 2006-07 to
2008-09 Customs,
Excise and 107.88
Service Tax
Appellate
Tribunal,
Bangalore
The West
Bengal VAT
Act, 2003 VAT 2008-09 Joint
Commissioner, 12.01
Sales Tax,
Kolkata
Madhya
Pradesh
VAT Act,
2002 VAT 2007-08 &
2008-09 High Court 295.17
Madhya
Pradesh
VAT Act,
2002 Entry Tax 2008-09 High Court 52.05
Gujarat
VAT Act,
2003 VAT & CST 2006-07 Dy. Commissioner, 249.98
Commercial Tax,
Ahmedabad
Rajasthan
Tax on
entry of
Goods into
Local Entry Tax 2007-08 Deputy
Commissioner 2.89
Areas Act (Appeals)
(x) There are no accumulated losses of the Company as on 31st March
2012. The Company has not incurred cash losses during the financial
year covered by our audit and in the immediately preceding financial
year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
bank, financial institution or debenture holders.
(xii) The Company has not granted any loans or advances on the basis of
security, by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or nidhi mutual
benefit fund / Society, therefore, the provisions of para 4 (xiii) of
the Companies (Auditor's Report) Order, 2003, are not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments.Accordingly, the
provisions of para 4(xiv) of the Companies (Auditor's Report) Order,
2003, are not applicable to the Company.
(xv) The Company has given guarantees in respect of loans taken by the
subsidiary Company from bank, amounting to Rs 40.00 Lacs. According to
the information and explanations given to us, the terms and conditions
on which the Company has given guarantees are not prejudicial to the
interest of the Company.
(xvi) According to the information and explanations given to us, in our
opinion the term loans raised during the year have been applied for the
purpose for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we report that no funds raised on short-term basis have
been used for long term investment.
(xviii) The Company has not issued any Debentures during the year.
(xix) The Company has not raised money by way of public issue during
the year.
(xx) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statement and as per
the information and explanation given by the management, we report that
no fraud on or by the Company has been noticed or reported during the
course of our audit.
For KISHAN M. MEHTA & CO
Chartered Accountants
Registration No. 105229W
(KISHAN M MEHTA)
Partner
Mem. No.13707
Ahmedabad
DATED: 19th May, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of JMc PROJEcTS (INDIA)
LIMITED ("the company") as at 31st March, 2011 and also the Profit &
Loss Account and Cash Flow Statement for the year ended on that date
annexed thereto. These fnancial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these fnancial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
fnancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by management, as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956 (Ãthe Act) and on the basis of such checks as we
considered appropriate, and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specifed in paragraphs 4 and 5 of the said Order.
4. Further to our comments, in the Annexure referred to in paragraph 3
above, we report 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 such
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, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub section (3c) of section 211 of the
companies Act, 1956.
e. In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with the notes thereon,
and subject to third party confrmations, give the information required
by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with accounting principles generally
accepted in India:
i) In the case of the Balance Sheet, of the state of affairs of the
company as at 31st March, 2011;
ii) In the case of Profit & Loss Account, of the Profit of the Company
for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash fows for the year
ended on that date.
5. On the basis of written representation received from directors and
taken on record by the board of directors, we report that none of the
directors is disqualifed as on 31st March 2011 from being appointed as
a director in terms of clause (g) of sub- section (1) of Section 274 of
the companies Act, 1956.
ANNEXURE
Reg: JMC PROJECTS (INDIA) LIMITED
(Referred to in paragraph 3 of our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets,
(b) As explained to us, the fixed assets have been physically verifed by
the management in accordance with a phased programme of verifcation of
its fixed assets adopted by the Company, which in our opinion is
reasonable, considering the size and the nature of its business. The
frequency of verifcation is reasonable and no material discrepancies
have been noticed on such physical verifcation.
(c) During the year, the Company has not disposed off any substantial
part of fixed assets.
(ii) (a) The inventory has been physically verifed by the management
during the year at reasonable intervals. In our opinion, the frequency
of verifcation is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verifcation of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion discrepancies noticed on physical verifcation of inventory have
been properly dealt with in the books of accounts.
(iii) (a) The Company has granted unsecured loan to two parties covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 148.43 Lacs
and year end balance of loan granted to such party was Rs. 105.34 Lacs.
(b) In our opinion, the rate of interest and other terms and conditions
of loans given by the company are not prima facie, prejudicial to the
interest of the company.
(c) The parties have been regular in the payment of principal and
interest as per stipulation, if any.
(d) There is no overdue amount of loan granted to companies, frms or
other parties listed in the register maintained under section 301 of
the companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured, from
companies, frms or other parties listed in the register maintained
under Section 301 of the companies Act, 1956. Therefore the provisions
of sub clause (e), (f) and (g) of clause (iii) of para 4 of the Order
are not applicable to the company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fixed assets and for sale of
goods and services. During the course of our audit, no major weaknesses
have been noticed in the internal controls in respect of these areas.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangement that need
to be entered into the Register maintained under Section 301 of the
companies Act, 1956 have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the companies Act, 1956
have been made at the prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provision of section 58A
& 58AA or any other relevant provisions of the Companies Act,1956 and
rules framed there under. We are informed that no order had been passed
by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any court or any Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The provisions of section 209 (1) (d) of the companies Act, 1956
regarding maintenance of cost record are not applicable to the company.
(a) According to the information & explanations given to us and records
examined by us, the Company is generally regular in depositing with the
appropriate authorities undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, VAT, Wealth Tax, Service Tax, Custom duty,
Excise duty, Cess and other undisputed statutory dues applicable to it.
(b) According to the information and explanations given to us, details
of dues which have not been deposited on account of dispute are below.
Name of the
Statute Particulars Period of
which the Forum where the Amount (Rs.
amount
relates dispute is pending In Lacs)
Tamil Nadu Minor
Mineral concession
Rules Royalty 2003-04 High Court 426.90
Finance Act, 1944 Service Tax 2007-08 to
2009-10 Customs, Excise 2601.25
and Service Tax
Appellate Tribunal,
Ahmedabad
Karnataka VAT Act VAT 2005-06 and
2008-09 Tribunal and High 56.40
court
Rajasthan Tax on
entry of Goods into
Local Entry Tax 2007-08 and
2010-11 Deputy 2.89
Areas Act commissioner
(Appeals)
(x) There are no accumulated losses of the Company as on 31st March
2011. The Company has not incurred cash losses during the fnancial year
covered by our audit and in the immediately preceding fnancial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
bank, fnancial institution or debenture holders.
(xii) The Company has not granted any loans or advances on the basis of
security, by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or nidhi mutual
beneft fund / Society, therefore, the provisions of para 4
(xiii) of the Companies (Auditors Report) Order, 2003, are not
applicable to the Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of para 4(xiv) of the Companies (Auditors Report) Order,
2003, are not applicable to the company.
(xv) The Company has given guarantees in respect of loans taken by the
subsidiary Company from bank, amounting to Rs. 40.00 Lacs. According to
the information and explanations given to us, the terms and conditions
on which the company has given guarantees are not prejudicial to the
interest of the company.
(xvi) According to the information and explanations given to us, in our
opinion the term loans raised during the year have been applied for the
purpose for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and Cash Flow Statement of
the Company, we report that no funds raised on short-term basis have
been used for long term investment.
(xviii) The Company has made preferential allotment of 43,50,000 equity
shares to its Holding Company, Kalpataru Power Transmission Ltd. at a
price in accordance with the Securities and Exchange Board of India
(Issue of Capital and Disclosure requirements) Regulations, 2009 and
accordingly, the price at which these shares have been issued is not
prejudicial to the interest of the company.
(xix) The Company has issued Secured Redeemable Non Convertible
Debentures of Rs. 5000 Lacs and on the basis of information provided to
us the security documents have been executed.
(xx) The Company has not raised money by way of public issue during the
year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the fnancial statement and as per
the information and explanation given by the management, we report that
no fraud on or by the company has been noticed or reported during the
course of our audit.
For SUDHIR N. DOSHI & CO For KISHAN M. MEHTA & CO
chartered Accountants chartered Accountants
Registration No. 110496W Registration No. 105229W
(SUDHIR N. DOSHI) (KISHAN M MEHTA)
Proprietor Partner
Mem. No.30539 Mem. No.13707
Ahmedabad Ahmedabad
DATED: 12th May, 2011 DATED: 12th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of the JMC PROJECTS
(INDIA) LIMITED ("the Company") as at 31st March, 2010 and also the
Profit & Loss Account and cash flow statement 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.
2. We conducted our audit in accordance with 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 misstatement. 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.
3. As required by the Companies (Auditors Report) Order, 2003, 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 as we
considered appropriate, and according to the information and
explanations given to us, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments, in the Annexure referred to in paragraph 3
above, we report 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 such
books.
c. The Balance Sheet and Profit 8c Loss Account and cash flow
statement dealt with by this report are in agreement with the books of
account.
d. In our opinion, the Balance Sheet and Profit and Loss Account and
cash flow statement dealt with by this report comply with the
Accounting Standards referred to in sub section (3C) of section 211 of
the Companies Act, 1956.
e. On the basis of written representation received from directors and
taken on record by the board of directors, we report that none of the
directors is disqualified as on March 31,2010 from being appointed as a
director in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956.
5. In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with the notes thereon,
and subject to third party confirmations, give the information required
by the Companies Act, 1956, in the manner so required and give a true
and fair view in conformity with 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, 2010;
b. In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date; and
c. In the case of cash flow statement, of the cash flows for the year
ended on that date.
Reg: JMC PROJECTS (INDIA) LIMITED
(Referred to in paragraph 3 of our report of even date)
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management in accordance with a phased programme of verification
of its fixed assets adopted by the Company which in our opinion is
reasonable, considering the size and the nature of its business. The
frequency of verification is reasonable and no material discrepancies
have been noticed on such physical verification.
(c) During the year, the Company has not disposed off any substantial
part of fixed assets.
(ii) (a) The inventory has been physically verified by the management
during the year at reasonable intervals. In our opinion, the frequency
of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, procedures of physical verification of inventory followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. In our
opinion discrepancies noticed on physical verification of inventory
have been properly dealt with in the books of accounts.
(iii) (a) The Company has granted unsecured loan to two parties covered
in the register maintained under section 301 of the Companies Act,
1956. The maximum amount involved during the year was Rs. 132.22 Lacs
and year end balance of loan granted to such party was Rs. 95.29 Lacs.
(b) In our opinion the rate of interest and other terms and conditions
of loans given by the Company are not prima facie, prejudicial to the
interest of the Company.
(c) The parties have been regular in the payment of principal and
interest as per stipulation, if any.
(d) There is no overdue amount of loan granted to companies, firms or
other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(e) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act, 1956. Therefore the provisions
of sub clause (e), (f) and (g) of clause (iii) of para 4 of the Order
are not applicable to the Company.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchases of inventory and fixed assets and for sale
of goods and services. During the course of our audit, no major
weaknesses have been noticed in the internal controls in respect of
these areas.
(v) (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the particulars of contracts or arrangement that need
to be entered into the Register maintained under Section 301 of the
Companies Act, 1956 have been so entered.
(b) According to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in
the register maintained under Section 301 of the Companies Act, 1956
have been made at the prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the provision of section 58A
& 58AA or any other relevant provisions of the Companies Act, 1956 and
rules framed there under. We are informed that no order had been passed
by the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any Tribunal.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The provisions of section 209 (1) (d) of the Companies Act, 1956
regarding maintenance of cost record are not applicable to the Company.
(ix) (a) According to the information & explanations given to us and
records examined by us, the Company is generally regular in depositing
with the appropriate authorities undisputed statutory dues including
Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, VAT,
Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other
undisputed statutory dues applicable to it.
(b) According to the information and explanations given to us, details
of dues which have not been deposited on account of dispute are below.
Name of the Statute Particulars Period of which the Forum where the
Amount
amount relates dispute is pending (Rs. In Lacs)
Tamilnadu Minor Mineral Royalty 2003-04 High Court 426.90
Concession Rules
Karnataka State VAT Act VAT 2005-06 Appellant Tribunal for 854.29
to quantum and High Court writ
2008-09 petition on point of law
Income Tax Act, 1961 Income Tax 2006-07 Commissioner of Income Tax
16.71
(Appeal)
(x) There are no accumulated losses of the Company as on 31/03/2010.
The Company has not incurred cash losses during the financial year
covered by our audit and in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
bank. The Company does not have any dues to a financial institution or
debenture holders.
(xii) The Company has not granted any loans or advances on the basis of
security, by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or nidhi mutual
benefit fund / Society, therefore, the provisions of para 4 (xiii) of
the Companies (Auditors Report) Order, 2003, are not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of para 4(xiv) of the Companies (Auditors Report) Order,
2003, are not applicable to the Company.
(xv) The Company has given guarantees in respect of loans taken by the
subsidiary Company from bank and non banking financial company
amounting to Rs. 151.07 Lacs. According to the information and
explanations given to us, the terms and conditions on which the Company
has given guarantees are not prejudicial to the interest of the
Company.
(xvi) According to the information and explanations given to us, in our
opinion the term loans raised during the year have been applied for the
purpose for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and cash flow statement of
the Company, we report that no funds raised on short-term basis have
been used for long term investment.
(xviii) The Company has not made any preferential allotment of shares
during the year.
(xix) The Company did not have any outstanding debentures during the
year.
(xx) The Company has raised money byway of Right issue of the equity
shares amounting to Rs 3,990.86 lacs during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statement and as per
the information and explanation given by the management, we report that
no fraud on or by the Company has been noticed or reported during the
course of our audit.
For SUDHIR N. DOSHI & CO For KISHAN M. MEHTA & CO
Chartered Accountants Chartered Accountants
Registration No. 110496W Registration No. 105229W
(SUDHIR N. DOSHI) (KISHAN M. MEHTA)
Proprietor Partner
Mem. No. 30539 Mem. No. 13707
Ahmedabad Ahmedabad
DATED: 29th May, 2010 DATED: 29th May, 2010