Mar 31, 2023
JAIPRAKASH ASSOCIATES LIMITED
Report on the Audit of the Standalone Financial Statements
Qualified opinion
We have audited the accompanying Standalone Financial Statements of Jaiprakash Associates Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31st, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and Notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe Standalone Financial Statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, the loss and total comprehensive loss, changes in equity and its cash flows for the year ended on that date.
Basis of Qualified Opinion Attention is drawn to:
(i) Note No. 44 to the Standalone Financial Statements which provides that the status of insolvency proceedings of Jaypee Infratech Limited (âJIL'') which has been undergoing Corporate Insolvency Resolution Process (âCIRPâ) since 09.08.2017 in terms of the provisions of the Insolvency & Bankruptcy Code, 2016 (âIBCâ) vide orders dated 09.08.2017 and 14.08.2018 passed by the Hon''ble National Company Law Tribunal (âNCLTâ) Allahabad and orders dated 06.08.2020 and 24.03.2021 passed by Hon''ble Supreme Court of India. In compliances with the said order dated 24.03.2021, bids were invited, and resolution plan submitted by Suraksha Realty Limited along with Lakshdeep Investments and Finance Private Limited (Suraksha) was approved by Committee of Creditors (âCoCâ) and submitted to Hon''ble NCLT Principal Bench Delhi. Principal Bench Hon''ble NCLT, New Delhi vide its Order dated 07th March 2023 approved the resolution plan of Suraksha. Yamuna Expressway Industrial Development Authority (YEIDA), Income Tax Department and the company has since then filed their objections on the Plan with Hon''ble National Company Law Appellate Tribunal. The matter is currently pending
for adjudication.
The company has not made provision of Rs. 849.26 Crores as diminution in value of the Investment in equity of JIL. Had this provision was made, the Loss would have been increased to that extent and Value of investment would have been decreased to that extent.
Matter stated above has also been qualified in our report in preceding year ended 31st March 2022.
(ii) Note No. 13.4 to Standalone Financial Statements which provides that the Company has not made provision for interest payable on Foreign Currency Convertible Bonds (FCCB) for the financial year 2022-23 amounting to Rs. 73.14 crores. Further, the company has also reversed outstanding Interest on FCCB till 31.03.2022 amounting to Rs. 175.33 crores.
Had this provision was made and interest not been reversed, the loss would have been increased to that extent and outstanding amount of interest payable on FCCB would have been increased to that extent.
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the Standalone Financial Statements.
Emphasis of matter:
1. Note no. 32 [d] (i) and (ii) to Standalone Financial Statements which describes details of demands raised by Competition Commission of India (âCCI'') and consequential appeals filed by the company.
2. Note no. 38and Note No. 39 to Standalone Financial Statements which describes the status of Comprehensive Re-organisation and Restructuring Plan (CRRP) of the company and insolvency application filed by ICICI Bank Ltd with Hon''ble NCLT, Allahabad Bench.
3. Note no. 40 to Standalone Financial Statements regarding status of invocation of Corporate Guarantee and pledged shares of Bhilai Jaypee Cement Limited (BJCL) by Yes Bank Limited against the term loan facilities granted to
Jaypee Cement Corporation Limited (subsidiary of the company).
4. Note no. 46 to Standalone Financial Statements which describes status of lease deeds and pending litigation of the land admeasuring 1085 hectares located at Special Development Zone (SDZ).
5. Note no. 48 to Standalone Financial Statements regarding status of recoverability of amount invested in the development of Coal Block due to termination notice for Mandla North Coal Mine & consequential appeals filed by the company.
6. Note no. 50 to Standalone Financial Statements regarding recoverability of trade receivables on the basis of contractual tenability, progress of negotiations/ discussions/ arbitration/ litigations/ legal opinions.
7. Note no. 51 to Standalone Financial Statements which describes status of Entry Tax matters pending under appeals pertaining to the State of Madhya Pradesh and Himachal Pradesh.
8. Note no. 13.11 to Standalone Financial Statements
which describes the status of less than hundred percent availability of security cover of Principal & Interest amount outstanding of Secured Non-Convertible Debentures in accordance with Regulation 54 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.
9. Note no. 54[I](a) to Standalone Financial Statements which describes the divestment of the Cement, Clinker and Power Plants by the Company and Definitive Agreements executed by the company in this regard.
Our opinion on the Standalone Financial Statements is not modified in respect of the above stated matters.
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.
We have determined the matters described below to be the key audit matters to be communicated in our report. |
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Key Audit Matters |
How the matter was addressed in our audit |
1. Revenue recognition from Construction Contracts |
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The Company recognises revenue on the basis ofpercentage of completion based on the proportion of contract costs incurred, relating to the total costs of the contract at completion. Thus, the recognition of revenue is based on estimates in relation to total estimated costs of each contract and cost incurred. There are significant accounting judgments which includes estimates of cost of completion of the Contract, the stages of completion and timing of revenue recognition. Estimates also takes into account various contingencies in the contracts & uncertain risks, disputed claims against the company relating to different contract which are reviewed by the management on a regular basis over the contract life and adjusted appropriately. The revenue on contracts may also include variable consideration (variations and claims). Variable consideration is recognised when the recovery of such consideration is probable. Refer to Note No. 1 Significant Accounting Policies of the Standalone Financial Statements- âRevenue from contracts with customers- Revenue from construction and other contracts. |
Our audit included but was not limited to the following procedures: ⢠Assessing the appropriateness of the Company''s revenue recognition accounting policies in line with Ind AS 115 and testing thereof. ⢠Assessed the appropriateness of the estimates used as well as their operating effectiveness. ⢠Selection of sample of contracts for appropriate identification of performance obligations. ⢠Obtaining and review of the approved estimates of costs to complete for contracts on sample basis, determination of milestones & reasonableness of revenue disclosures. |
2. Provisions and Contingent Liabilities |
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The company is involved in various disputes for which final outcomes cannot be easily predicted and which could potentially result in significant liabilities. The assessment of the risks associated with the litigations is based on complex assumptions, which require the use of judgment and such judgment relates, primarily, to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures in the Standalone Financial Statements. Because of the judgment required, the materiality of such litigations and the complexity of the assessment process, the area is a key matter for our audit. Refer Note No. 32 to the Standalone Financial Statement. |
Our audit included but was not limited to the following procedures: ⢠Assessment of the process and relevant controls implemented to identify legal and tax litigations and pending administrative proceedings. ⢠Assessment of assumptions used in the evaluation of potential legal and tax risks performed by the legal and tax department of the company considering the legal precedence and other rulings in similar cases. ⢠Inquiry with legal and tax departments of the company regarding the status of the most significant disputes and inspection of the key relevant documentation. ⢠Analysis of opinion received from the experts as per requirement. ⢠Review of the adequacy of the disclosures in the notes to the Standalone Financial Statements. |
3. Assessment and Recoverability of Trade Receivables |
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Trade Receivables are significant to the Company''s Standalone Financial Statements. The collectability of trade receivables is a key element of the company''s working capital management, which is managed on an ongoing basis by its management. Due to the nature of the Business and the requirements of customers, various contract terms are in place which impacts the timing of revenue recognition. There is a significant element of judgment. Given the magnitude and judgment involved in the impairment assessment of trade receivables, we have identified this as a key audit matter. |
We performed audit procedures on existence of trade receivables, which included substantive testing of revenue transactions, trade receivable external confirmations / reconciliations on sample basis and testing the subsequent paymentsreceived, if any. Assessing the recoverability of trade receivables requires judgment and we evaluated management''s assumptions in determining the provision for expected credit losson trade receivables, by analyzing the enforceability, ageing of receivables, assessing significant overdue individual trade receivables and specific local risks, combined with the legal documentations, where applicable. We tested the timing of revenue and trade receivables recognition based on the terms agreed with the customers. We also reviewed, on a sample basis, terms of the contract with the customers, invoices raised, etc., as a part of our audit procedures. Furthermore, we assessed the appropriateness of the disclosures made in notes to the Standalone Financial Statements. |
4. Impairment of Investment |
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The Company has significant investments in its subsidiaries, associates, joint ventures, and others. As of March 31, 2023, the carrying values of Company''s investment in its subsidiaries, associates, joint ventures, and other amounts to Rs. 6,93,302 lakhs. Management reviews regularly whether there are any indicators of impairment of the investments by reference to the requirements under Ind AS 36 âImpairment of Assetsâ. For investments where impairment indicators exist, significant judgments are required to determine the key assumptions used in the valuation model and methodology, such as revenue growth, discount rates etc. Considering, the impairment assessment involves significant assumptions and judgement, the same has been considered as key audit matter. |
Our audit included but was not limited to the following procedures: ⢠Assessed the Company''s valuation methodology applied in determining the recoverable amount of the investments. ⢠Obtained and review the valuation report used by the management for determining the fair value (ârecoverable amount'') of its investments. ⢠Considered the independence, competence and objectivity of the management specialist involved in determination of valuation. ⢠Tested the fair value of the investment as mentioned in the valuation report to the carrying value in books. ⢠Made inquiries with management to evaluate relevance and reasonableness of significant assumptions and methods etc. |
Information Other than the Standalone Financial Statements and Auditorâs Report Thereon
The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Director''s Report including Annexures ofDirector''s Report, Corporate Governance Report, Management Discussion and Analysis, Business Responsibility Report and Declarations but does not include the Standalone Financial Statements and our auditor''s report thereon, which we obtained prior to the date of this audit report, and Secretarial Audit Report & Certificate of Nondisqualification of directors which are expected to be made available to us after the date of this audit report.
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 identified above 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 on the other information that we have obtained prior to the date of this audit report, 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.
When we read the Secretarial Audit Report and Certificate of Non-disqualification of directors, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Standalone Financial Statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure, and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. Further to our comments in the âAnnexure Aâ, as required by Section 143(3) of the Act, based on our audit we report that:
a) We have sought andexcept for the effects of the matter described in the âBasis of Qualified Opinion'' paragraph above, obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) Except for the effects of the matter described in the âBasis of Qualified Opinion'' paragraph above, 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 and the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) Except for the effects of the matter described in the âBasis of Qualified Opinion''paragraph above, in our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors as on 31stMarch2023, taken on record by the Board of Directors, none of the directors is disqualified as on 31stMarch2023 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 âAnnexure Bâ. Our report expresses a qualified opinion on the adequacy and operating effectiveness of the Company''s Internal Financial Controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the company to its directors during the year is in accordance with the provisions of section 197 read with Schedule V of the Act.
h) With respect to the other matters included in the Auditor''s Report in accordance with Rule 11 of the companies (Audit and Auditors) Rule, 2014, in our opinion and to the best of our information and according to the explanation given to us:
i. The company has disclosed the impact of pending litigation as on 31st March 2023, on its financial position in its Standalone Financial Statements - Refer Note No. 32 to the Standalone Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
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 on March 31,2023.
iv. (a) The management has represented to us that, to the best of management''s knowledge and belief, other than as disclosed in the notes to the accounts, 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 person or entity, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented to us that, to the best of management''s knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person or entity, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(c) According to the information and explanations given to us and based on our examination of the records of the company, nothing has come to our notice that has caused us to believe that the representations made above in Point no. iv(a) and iv(b) contain any material misstatement.
v. The company has not declared or paid any dividend during the year.
vi. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the company only w.e.f. April 1, 2023, reporting under this clause is not applicable.
CHARTERED ACCOUNTANTS Firm Registration No. 000112N CA PANKAJ MANGAL PARTNER
Place: New Delhi Membership No. 097890
Date: 27th May 2023 UDIN: 23097890BGZGWY5286
Mar 31, 2018
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Jaiprakash Associates Limited (âthe Companyâ) which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
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 gives 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 the Companies (Indian Accounting Standards) Rules, 2015. 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.
Auditorâs 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 and the Rules made there under, including 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 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 auditorâs 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.
Basis of Qualified opinion
Attention is drawn to:
Note No.41 of standalone financial statements regarding the insolvency petition filed by IDBI with the Honâble National Company Law Tribunal (âthe NCLTâ), Allahabad against the Jaypee Infratech Limited (âJILâ) âSubsidiaryâ of the company. The petition has been admitted and Interim Resolution Professional (âIRPâ) personal has been appointed by the NCLT. The Honâble Supreme Court of India also admitted the Petition/Intervention filed by certain home buyers of Jaypee Infratech Limited and directed the company to deposit Rs.2000 Crores with its Registry. The said order was modified by the Honâble Supreme Court of India and accordingly company has deposited Rs.550 crores upto 31 March 2018.
In view of the pendency /ongoing CIRP/legal proceedings with the NCLT Allahabad and the Honâble Supreme Court of India, the impact on the carrying value of the Non Current Investment in the equity of JIL Rs.849.26 Crores, Current Receivables Rs.341.75 Crores, Corporate Guarantees amounting to Rs.232.17 Crores, to the lenders of JIL and deposit with the Honâble Supreme Court of India, is not ascertainable.
Qualified opinion:
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the 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 March 31 2018, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of matter:
We draw attention to the following matters:
1) As Stated in Note No. 32 [d] of the standalone financial statements,
[i] The Competition Commission of India vide its Order dated 31st August, 2016 held various cement manufacturers liable for alleged contravention of certain provisions of the Competition Act, 2002 during F.Y. 2009-10 & 2010-11 and imposed a penalty of Rs.1,323.60 Crores on the Company. The Company has filed an appeal against the said Order before the Competition Appellate Tribunal wherein the Tribunal vide its order dated 15th November, 2016 read with order dated 7th December, 2016 granted stay in depositing the penalty imposed subject to the condition that the company shall deposit 10% of the penalty calculated on the profit earned by the cement business i.e. Rs.23.77 Crores, which was duly deposited. Thereafter, the matter was heard on various dates by the Honâble National Company Law Tribunal (to whom the power in such matters has been transferred) and the Order has been reserved.
[ii] The Competition Commission of India vide its other order dated 19th January, 2017 held various cement manufacturers liable for alleged contravention of certain provisions of the Competition Act, 2002 in the state of Haryana during F.Y. 2012-13 to F.Y. 2014-15 and imposed a penalty of â38.02 Crores on the Company. The Company had filed appeal against the Order. The Competition Appellate Tribunal stayed the operation of impugned order and further proceedings will commence after the Order in the matter referred in SL. No. [i] above, is passed.
2) As stated in Note No. 38 of the standalone financial statements, State Bank of India has invoked the pledge of 10,00,00,000 Equity Shares of Jaypee Infratech Limited (JIL) held by the company and had sold 3,18,96,744 Equity Shares in the open market during the quarter ended March 31, 2018. The impact of the above said sale of shares has been taken in the standalone Financial Statements. Balance shares aggregating to 6,81,03,256 are held with trusteeship as at 31.03.2018. Pending disposal of balance shares by the Lender, the balance shares continue to be shown as part of Current Investments at cost.
3) As Stated in Note No. 39 of the standalone financial statement, Non-Current Trade receivables include Rs.2645.45 Crore, outstanding as at 31 March 2018 (Rs.2983.52 Crore, outstanding as at 31st March 2017) which represents various claims raised on the Clients based on the terms and conditions implicit in the Engineering & Construction Contracts in respect of closed/suspended/under construction projects. These claims are mainly in respect of cost over run arising due to suspension of works, client caused delays, changes in the scope of work, deviation in design and other factors for which company is at various stages of negotiation/ discussion with the clients or under Arbitration/ litigation. On the basis of the contractual tenability, progress of negotiations/ discussions/ arbitration/ litigations, the management considers these receivables are fully recoverable.
4) As stated in Note No. 40 of the standalone financial statements, the company has made an investment of Rs.340 Crores (34 crores Equity Shares of Rs.10/- each, fully paid up) in Prayagraj Power Generation Company limited (âPPGCLâ), an associate company. Lenders of PPGCL has invoked the entire pledged share of PPGCL held by Jaiprakash Power Venture Limited (âJPVLâ) [Holding Company of PPGCL] on 18th December 2017 due to default in payment of interest to Banks/Financial Institutions. Keeping in the view of above facts, the impact on the carrying amount of Equity Shares of PPGCL held by the company is currently unascertainable and considered at Book Value.
5) As Stated in Note No. 42 of the standalone financial statement, the Company has received Termination Notice for the Mandla North Coal Mine allotted by Nominated Authority, Ministry of Coal on account of not meeting eligibility criteria mentioned in the Coal Mines Development and Production Agreement along with instructions for invocation of the Bank Guarantee submitted by JAL in the form of Performance Security. The Honâble High Court has granted a stay against the Termination Notice and invocation of Performance Guarantee. Since, the matter is now being sub-judice in High Court, the recoverability of the amount invested aggregating to Rs.293 Crores as on 31.03.2018 in the development of the Coal Block and impact of the invocation of the Performance Guarantee is uncertain, no provision has been considered necessary to be made in the standalone financial statements.
6) As Stated in Note No. 43 of the standalone financial statement, the Confirmations/ Reconciliation of balances of certain secured & unsecured loans, balances with banks, trade receivables, trade and other payables (including capital creditors) (including receivable/ payables from/ to related parties) and loans and advances are pending. The management is confident that on confirmation / reconciliation there will not be any material impact on the standalone financial statements.
7) As stated in Note No. 45 of the standalone financial statement, there are certain Entry tax matters under Appeals aggregating to Rs.510.59 Crores (excluding interest, currently unascertainable) pertaining to the State of Uttar Pradesh, Madhya Pradesh and Himachal Pradesh. The Company has challenged these on account of Constitutional Validity etc. in Honâble High Courts/ Supreme Court. No provision has been made of the above in the standalone financial statements and management is of the opinion that the Company will succeed in the appeal. The Company has already deposited Rs.299.93 Crores and also furnished Bank Guarantees of Rs.202.66 Crores against the above.
8) [i] As stated in Note no. 46 of the standalone financial statements, the Lenders of the Company in their Joint Lenders forum (âJLFâ) meeting held on 22nd June, 2017 have approved restructuring/ realignment/ reorganization of debt of the Company & its wholly owned subsidiary, JCCL. The Company has reworked the finance cost pertaining to Financial Year 2016-17 in accordance with the Lenders approved debt restructuring / realignment/ reorganization scheme.
[ii] For the FY 17-18, the Company has provided interest expenses on the debt portion that will remain with the company in accordance with the restructuring Scheme approved and Master Re-structuring Agreement (MRA) signed with the Lenders. Interest aggregating to Rs.796.39 Crores on debt portion of Rs.11,091.27 Crores which will be transferred to Real Estate SPV namely Jaypee Infrastructure Development Limited (JIDL) on order of Honâble National Company Law Tribunal (NCLT), Allahabad with appointed date of 1st July, 2017 has been added to the carrying cost of the Inventory/ Projects under Development in respect of SDZ Real Estate Undertaking [SDZ-RE], since the same has to be serviced from the assets/development of Assets of SDZ-RE and as such no further impact in this respect on the financial results is envisaged.
[iii] As a part of restructuring / reorganization / realignment of the debt of the Company, the Scheme of Demerger of the Undertaking (SDZ -RE) comprising identified moveable and immoveable assets and liabilities to be transferred to and vested in the wholly owned subsidiary of the Company, namely, Jaypee Infrastructure Development Limited (JIDL) as a going concern, on a slump exchange basis is pending for sanction with NCLT Allahabad.
Our opinion is not modified in respect of above stated matters.
Other Matter:
The comparative financial information of the Company for the year ended March 31, 2017 prepared in accordance with Indian Accounting Standards, included in these Standalone Financial Statements, have been audited by the predecessor auditors. The report of the predecessor auditors on the comparative financial information dated May 29, 2017 on the comparative financial information expressed an unmodified opinion. 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, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in ââAnnexure Aâ 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 except for the possible effects of the matter described in the Basis of Qualified Opinion given above, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) Except for the possible effects of the matter described in the Basis of Qualified Opinion given above, 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 Changes in Equity, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) Except for the possible effects of the matter described in the Basis of Qualified Opinion paragraph above, in our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015.
e) The matter described in the âBasis of Qualified Opinionâ and âEmphasis of Matter given above, in our opinion may have an adverse effect on the functioning of the Company;
f) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
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 âAnnexure Bâ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.
h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 32 to the financial statements;
ii. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There are no amounts that were due for being transferred to the Investor Education and Protection Fund by the Company.
(Referred to in paragraph 1 under âReport on Other Legal and Regulatory Requirementsâ section 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. The situation of the moveable assets used in the construction activity keeps on changing from works sites depending upon requirements for a particular contract.
(b) The Company has a regular programme of physical verification of its fixed assets by which substantial fixed assets are verified in a phased manner. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us, we report that, other than the immovable properties acquired on amalgamations with the Company as per schemes approved by the Honâble High Courts in earlier years, the title deeds are held in the name of the Company as at the balance sheet date, except the following:
Description & location of property |
Gross Book Value (Rs. Lacs) |
Land at Dera Mandi Gaon, New Delhi & building thereon |
153 |
Freehold land at Rangpuri, New Delhi (Compulsorily acquired by the Government) |
3 |
(ii) The inventory, except for goods-in-transit, has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. In respect of goods-in-transit, subsequent goods receipts have been verified or confirmations have been obtained from the parties. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) In our opinion and according to the information and explanations given to us, the Company has not granted any amount in the nature of loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or Other Parties covered in the register maintained under Section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable to the Company.
(iv) In our opinion and according to the information and explanations given to us, the Company has generally complied with the provisions of Sections 185 and 186 of the Act, with respect to the loans given, investments made, guarantees given and security provided.
(v) In our opinion and according to the information and explanations given to us the Company has not accepted any deposit during the year. The Company has generally complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013, read with the Orders issued by the Honâble National Company Law Tribunal (NCLT) from time to time; however, there have been delays in repayment of matured fixed deposits which had matured for repayment on or before the balance sheet date and were outstanding as at 31st March 2018. However during the year, the company had repaid the deposits within the time extended by honorable NCLT except FDâs amounting to Rs.21 lakhs (including interest) which are pending repayment due to directions by the Government authorities/ courts etc.
(vi) We have broadly reviewed the books of account maintained by the Company as specified under Section 148(1) of the Act, for maintenance of cost records in respect of products manufactured by the Company, 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) As per records produced before us and according to the information and explanations given to us the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employeesâ State Insurance, Income-tax, Sales tax, Service tax, Customs Duty, Excise Duty, Value Added Tax, Cess, Goods and Services Tax and other material statutory dues applicable to it to the appropriate authorities, and there were no arrears of such dues at the end of the year which have remained outstanding for a period of more than six months from the date they became payable, except for the following:
Particulars of Dues |
Rs. (in Lacs) |
Royalty Payable |
199.41 |
District & National Mineral Foundation Payable |
651.71 |
Electricity Duty Payable |
3663.18 |
Service Tax Payable |
360.04 |
TDS/TCS Payable |
462.74 |
Sales Tax/Entry Tax Payable |
6.07 |
(b) As per records produced before us and explanations given to us and on the basis of our examination of the records of the Company, details of dues of Income-tax, Sales-tax, Service tax, Duty of Customs, Duty of Excise and Value added tax which have not been deposited as on 31 March 2018 on account of disputes are given below:
[Figures in Rs. Lacs]
Name of Statute (Nature of dues) |
Period to which amount relates |
Forum where dispute is pending |
Total |
|||
Commissionarate |
Appellate authorities Tribunal |
High Court |
Supreme Court |
|||
Central Excise |
1988-2016 |
7636.26 |
7636.26 |
|||
1996-2018 |
2498.77 |
2498.77 |
||||
1997-2009 |
780.14 |
780.14 |
||||
Electricity Duty & Cess |
1991-2002 & 2006-2018 |
17157.75 |
17157.75 |
|||
Sales Tax/VAT |
1999-2002 to 2006-2015 |
7276.57 |
7276.57 |
|||
2004 -2013 |
511.93 |
511.93 |
||||
2000-2001, 2005-2018 |
8431.71 |
8431.71 |
||||
2002-2008 |
9029.24 |
9029.24 |
||||
Entry Tax |
2000-2001, 2011-2015 |
2828.13 |
2828.13 |
|||
2006-12 |
646.11 |
646.11 |
||||
2001-2002, 2010-2018 |
21215.46 |
21215.46 |
||||
Rural Infrastructure Tax |
2005-2018 |
0.00 |
0.00 |
|||
Tax on transportation of goods in Himachal Pradesh |
2010-2018 |
7221.33 |
7221.33 |
|||
Service Tax |
2005-2013 |
69607.22 |
69607.22 |
|||
Customs |
0.00 |
4509.34 |
11.77 |
4521.10 |
||
Income Tax |
AY 2010-11 to AY 2012-13 |
1673.50 |
1673.50 |
|||
AY 12-13 to 15-16 |
31833.00 |
31833.00 |
Note: Net of Amount deposit under protest
(viii) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion, that during the year, the Company has defaulted in repayment of principal and/or interest to banks, financial institutions, & privately placed debenture-holders wherein the period of delay ranges from 1 day to 925 days.
The overdue interest on borrowings amounts to Rs.24,647.50 lacs as reflected in the standalone Ind AS financial statements âOther Financial liabilitiesâ which was outstanding as at 31st March 2018.
The overdue principal repayments of borrowings amounts to Rs.37,247.31 lacs as reflected in the standalone Ind AS financial statements âOther Financial liabilitiesâ which was outstanding as at 31st March 2018.
Lender wise details for overdue interest & overdue principal repayments are given below:
Name of Bank/FI/Debenture holders |
Overdue Principal repayments as at 31.3.2018 |
Period of default for overdue principal repayments |
Overdue Interest as at 31.3.2018 |
Period of default for overdue interest |
(Rs. in lacs) |
(Rs. in lacs) |
|||
Allahabad Bank |
4.72 |
1-60 Days |
||
Axis Bank Limited |
188.46 |
1-547 Days |
||
Bank of Baroda |
1.27 |
1-60 Days |
||
Bank of India |
17.82 |
1-60 Days |
||
Bank of Maharashtra |
90.73 |
1-60 Days |
||
IDBI Bank Ltd. |
250.06 |
1-60 Days |
||
ICICI Bank Ltd. |
594.20 |
1-60 Days |
||
Canara Bank |
336.86 |
1-547 Days |
||
Central Bank of India |
1.25 |
1-60 Days |
||
Corporation Bank |
16.98 |
1-60 Days |
||
HDFC |
1250.00 |
1-60 Days |
914.24 |
1-60 Days |
Karnataka Bank |
8.43 |
1-60 Days |
||
KarurVysya Bank |
932.35 |
1-275 Days |
3.88 |
1-60 Days |
Lakshmi Vilas Bank |
20.90 |
1-60 Days |
Oriental Bank of Commerce |
17.17 |
1-60 Days |
||
Punjab & Sind Bank |
0.91 |
1-60 Days |
||
Indusind Bank Ltd |
81.27 |
1-60 Days |
||
Standard Chartered Bank |
79.07 |
1-60 Days |
||
State Bank of India |
3143.84 |
1-364 Days |
||
Syndicate Bank |
0.24 |
1-60 Days |
||
The South Indian Bank Ltd |
13.82 |
1-60 Days |
||
The Jammu & Kashmir Bank Ltd |
5.58 |
1-60 Days |
||
Uco Bank |
17.72 |
1-60 Days |
||
United Bank of India |
9.2 |
1-60 Days |
||
Yes Bank Ltd |
178.32 |
1-60 Days |
||
IFCI Ltd. |
55.10 |
1-60 Days |
||
LIC Term Loan |
64.96 |
1-60 Days |
||
L&T Infrastructure Finance Co Ltd |
10.73 |
1-60 Days |
||
Deferred Payment of Land |
32831.55 |
13-925 Days |
18519.8 |
13-925 Days |
Foreign Currency Loans/Bonds |
2233.42 |
1 Days |
||
Total |
37247.32 |
24647.53 |
The company has not defaulted in repayment dues to the Government.
(ix) According to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained. The Company did not raise money by way of initial public offer or further public offer (including debt instruments) during the year.
(x) According to the information and explanations given to us, 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) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has made payment to its Managerial Personnel in terms of their respective appointments and within the limits prescribed under the Companies Act, 2013 during the year. However, in view of default in repayment of principal and / or interest to Banks and Financial Institutions during the year ended 31-3-2015, 31.03.2016 and 31.03.2017, the Central Government has vide its letter dated 27-12-2017 directed the Company to recover the remuneration paid to its Managing and Wholetime Directors. It is understood that the Company is in the process of making application to Central Government for waiver of said recovery. In case such waiver is not approved by the Central Government, the Company intends to seek approval of the Banks / Public Financial Institutions / Secured Creditors and the shareholders for such waiver, in terms of Section 197 of the Companies Act, as amended in due course. The Companyâs Nomination and Remuneration Committee & the Board of Directors have already consented for such course of action.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi company. 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 the 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 non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable to the Company.
(xvi) 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 Over Financial Reporting 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 JAIPRAKASH ASSOCIATES LTD (âthe Companyâ) as of March 31, 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. 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.
Auditorâs 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) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the 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 auditorâs judgement, 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 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 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 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 companyâs 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, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Rajendra K. Goel & Co.
Chartered Accountants
Firm Registration Number: 001457N
(R. K. Goel)
Partner
Membership No. 006154
Place : New Delhi
Date : May 19, 2018
Mar 31, 2017
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Jaiprakash Associates Limited (âthe Company") which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act and the Rules made there under, including 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 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 auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
Without qualifying our opinion, we draw attention to note 32(d) of the standalone Ind AS financial statements, relating to the order of the Competition Commission of India (CCI), concerning alleged contravention of the provisions of the Competition Act, 2002 during F.Y.2009- 10 & 2010-11 and imposing a penalty of '' 132360 lacs on the Company. The Company has filed an appeal against the said Order before the Competition Appellate Tribunal wherein the Tribunal granted stay in depositing the penalty imposed subject to the condition that the Company shall deposit 10% of the penalty calculated on the profit earned by the cement business i.e. ''2377 lacs, which has since been deposited. Further, The Competition Commission of India vide its other order dated 19th January, 2017 held various cement manufacturers liable for alleged contravention of certain provisions of the Competition Act, 2002 in the state of Haryana during F.Y.2012-13 to F.Y. 2014-15 and imposed a penalty of ''3802 lacs on the Company. The Company has filed appeal against the order before Competition Appellate Tribunal.
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 March 31, 2017, and its loss (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Other Matter
The financial information of the Company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements for the year ended March 31, 2016 and March 31, 2015 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion dated May 28, 2016 and November 14, 2015 respectively. adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.
Our opinion is not qualified in respect of this matter. Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 32 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. There are no amounts that were due for being transferred to the Investor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8 November, 2016 of the Ministry of Finance, during the period from 8 November, 2016 to 30 December, 2016. Based on audit procedures performed and the representations provided to us by the management we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management. - Refer Note 45 to the standalone Ind AS financial statements.
2. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Order") issued by the Central Government in terms of Section 143(11) of the Act, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in âAnnexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Act")
We have audited the internal financial controls over financial reporting of JAIPRAKASH ASSOCIATES LTD (âthe Company") as of March 31, 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing 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 unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets. The situation of the moveable assets used in the construction activity keeps on changing from works sites depending upon requirements for a particular contract.
(b) A substantial portion of the Fixed Assets have been physically verified by the management during the year and to the best of our knowledge and information given to us, no material discrepancies have been noticed on such physical verification.
(c) According to the information and explanations given to us and the records examined by us, we report that, other than the immovable properties acquired on amalgamations with the Company as per schemes approved by the Hon''ble High Courts in earlier years, the title deeds are held in the name of the Company as at the balance sheet date, except the following:
Description & location of |
Gross Book |
property |
Value |
(Rs, lacs) |
|
Land at Dera Mandi Gaon, New |
153 |
Delhi & building thereon |
|
Freehold land at Rangpuri, |
|
New Delhi (Compulsorily |
3 |
acquired by the Government) |
(ii) (a) As explained to us, the Inventory has been physically
verified by the management at reasonable intervals during the year.
(b) In our opinion and according to the information and explanations given to us, no material discrepancies were noticed on physical verification.
(iii) 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. Hence, the provisions of Clauses 3(iii)(a), 3(iii)(b), and 3(iii)(c) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, in respect of loans, investments, guarantees, and security, the provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.
(v) In our opinion and according to the information and explanations given to us the Company has not accepted any deposit during the year. The Company has generally complied with the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013, read with the Orders issued by the Hon''ble National Company Law Tribunal (NCLT) from time to time; however, there have been delays in repayment of matured fixed deposits which had matured for repayment on or before the balance sheet date and were outstanding as at 31st March 2017. The Company has been granted extension from time to time for repayment of its outstanding deposits by the Hon''ble NCLT, the last interim extension having been granted till 30th May 2017.
(vi) We have broadly reviewed the accounts and cost records maintained by the segments of the Company where cost records have been prescribed by the Central Government under section 148(1) 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.
(vii)(a) As per records produced before us and according to the information and explanations given to us the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income-tax, Sales tax, Service tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it to the appropriate authorities, and there were no arrears of such dues at the end of the year which have remained outstanding for a period of more than six months from the date they became payable, except for the following:
Particulars of dues |
Rs, (In lacs) |
Royalty Payable |
3537.60 |
Excise Duty payable |
198.82 |
District & National Mineral Foundations Payable |
2266.37 |
Electricity Duty Payable |
4327.97 |
Service Tax Payable |
207.19 |
TDS Payable |
230.60 |
(b) As per records produced before us and according to the information and explanations given to us there are no dues of Income-tax or Sales-tax or Service Tax, or duty of Customs or duty of Excise, or Value Added Tax which have not been deposited on account of any dispute, except for the following:
_Figures in Rs, Lacs
Name of Statute (Nature of dues) |
Period to which amount relates |
Forum where dispute is pending |
Total |
|||
Commissionarate |
Appellate authorities- Tribunal |
High Court |
Supreme Court |
|||
Central Excise |
1988-2016 |
2,624.60 |
- |
- |
- |
2,624.60 |
1996-2017 |
- |
5,195.41 |
- |
- |
5,195.41 |
|
1997-2009 |
- |
- |
780.14 |
- |
780.14 |
Figures in '' Lacs |
Name of Statute (Nature of dues) |
Period to which amount relates |
Forum where dispute is pending |
Total |
|||
Commission rate |
Appellate authorities- Tribunal |
High Court |
Supreme Court |
|||
Electricity Duty & Cess |
1991-2002 & 2006-2017 |
- |
- |
12,643.47 |
- |
12,643.47 |
Sales Tax/VAT |
1999-2002 to 2006-2015 |
4,727.39 |
- |
- |
4,727.39 |
|
2004 -2013 |
- |
630.98 |
- |
- |
630.98 |
|
2000-2001, 2005-2017 |
- |
- |
8,944.59 |
- |
8,944.59 |
|
2002-2008 |
- |
- |
- |
9,029.24 |
9,029.24 |
|
Entry Tax |
2000-2001, 2011-2015 |
192.36 |
- |
- |
- |
192.36 |
2006-12 |
- |
240.29 |
- |
- |
240.29 |
|
2001-2002, 2010-2017 |
- |
- |
3,266.23 |
- |
3,266.23 |
|
2005-2017 |
- |
- |
- |
20,709.11 |
20,709.11 |
|
Rural Infrastructure Tax |
2005-2017 |
- |
- |
- |
3,043.51 |
3,043.51 |
Tax on transportation of goods in Himachal Pradesh |
2010-2017 |
8,140.97 |
8,140.97 |
|||
Service Tax |
2005-2013 |
338.90 |
69,529.13 |
- |
- |
69,868.03 |
Levy on transport of limestone |
2007-2011 |
- |
- |
- |
555.20 |
555.20 |
Cess under Building and other Construction |
2008-2012 |
- |
- |
- |
- |
- |
Water Cess |
2003-2013 |
- |
- |
- |
- |
- |
Customs |
- |
4,487.03 |
- |
- |
4,487.03 |
|
Income Tax |
AY 2014-15 |
1,674.00 |
- |
- |
- |
1,674.00 |
AY 08-09 to 13-14 |
- |
- |
17,545.16 |
- |
17,545.16 |
(viii) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion, that during the year, the Company has defaulted in repayment of principal and/or interest to banks, financial institutions, & privately placed debenture-holders wherein the period of delay ranges from 1 day to 634 days.
The overdue interest on borrowings amounts to Rs, 3,31,202.11 lacs as reflected in the standalone Ind AS financial statements âOther Financial liabilities" which was outstanding as at 31st March 2017.
The overdue principal repayments of borrowings amounts to Rs, 375,179.13 lacs as reflected in the standalone Ind AS financial statements âOther Financial liabilities" which was outstanding as at 31st March 2017.
Lender wise details for overdue interest & overdue principal repayments are given below:
Name of Bank/FI/Debenture holders |
Overdue Principal repayments as at 31.3.2017 |
Period of default for overdue principal repayments |
Overdue Interest as at 31.3.2017 |
Period of default for overdue interest |
(Rs,in lacs) |
(Rs,in lacs) |
|||
Allahabad Bank |
2,000.00 |
1-305 Days |
1,292.57 |
1-335 Days |
Axis Bank Limited |
- |
0.20 |
1 Day |
|
Bank of India |
2,631.50 |
1-386 Days |
859.88 |
1- 366 Days |
Bank of Maharashtra |
11,119.00 |
1-549 Days |
15,930.32 |
1-549 Days |
IDBI Bank Ltd |
- |
33,330.09 |
1-336 Days |
|
ICICI Bank Ltd. |
68,924.41 |
1-336 Days |
76,162.52 |
1-336 Days |
Canara Bank |
- |
15,452.03 |
1-547 Days |
|
Central Bank of India |
- |
350.35 |
1-336 Days |
|
Corporation Bank |
3,157.80 |
1-477 Days |
1,934.29 |
1-488 Days |
Exim Bank |
8,756.67 |
1-365 Days |
1,588.93 |
1-335 Days |
Karnataka Bank |
4,434.00 |
1-547 Days |
3,437.73 |
1-549 Days |
Karur Vysya Bank |
1,204.36 |
1 Day |
418.57 |
1-60 Days |
Name of Bank/FI/Debenture holders |
Overdue |
Period of |
Overdue Interest |
Period of |
Principal |
default for |
as at 31.3.2017 |
default for |
|
repayments as at |
overdue principal |
overdue interest |
||
31.3.2017 |
repayments |
|||
(Rs,in lacs) |
(Rs,in lacs) |
|||
Lakshmi Vilas Bank |
2,105.20 |
1-295 Days |
1,600.33 |
1-336 Days |
Oriental Bank of Commerce |
2,105.20 |
1-295 Days |
962.87 |
1-275 Days |
Punjab & Sind Bank |
5,389.00 |
1-547 Days |
2,263.88 |
1-549 Days |
State Bank of Bikaner & Jaipur |
1,125.00 |
1-182 Days |
392.82 |
1-181 Days |
Indusind Bank Ltd |
- |
1,172.99 |
1-59 Days |
|
Standard Chartered Bank |
16,283.17 |
1-275 Days |
19,023.34 |
1-486 Days |
State Bank of Hyderabad |
4,500.00 |
1-275 Days |
1,553.92 |
1-275 Days |
State Bank of Indore |
1,125.00 |
1-456 Days |
496.76 |
1-455 Days |
Bank of India |
- |
573.42 |
1-336 Days |
|
State Bank of India |
159,166.55 |
1-479 Days |
70,504.95 |
1-457 Days |
State Bank of Travancore |
3,750.00 |
1-278 Days |
1,615.57 |
1-304 Days |
Syndicate Bank |
2,496.00 |
1-455 Days |
1,179.61 |
1-455 Days |
The South Indian Bank Ltd |
1,000.00 |
60 Days |
903.75 |
1-60 Days |
The Jammu & Kashmir Bank Ltd |
1,871.94 |
275 days |
851.42 |
1-244 Days |
Uco Bank |
11,664.00 |
1-273 Days |
5,180.08 |
1-275 Days |
United Bank of India |
4,500.00 |
1-455 Days |
3,201.54 |
1-454 Days |
Yes Bank Ltd |
1,000.00 |
1 Day |
246.21 |
1 Day |
AKA Ausfuhrkredit GmbH |
2,661.38 |
84- 634 Days |
75.30 |
84-634Days |
IFCI Ltd. |
18,405.78 |
1-321 Days |
11,540.78 |
1-440 Days |
LIC - NCDs |
29,000.00 |
1-341 Days |
10,545.29 |
1-341 Days |
LIC Term Loan |
- |
4,666.78 |
1-305 Days |
|
SIDBI |
3,553.18 |
91- 275 Days |
740.91 |
1-276 Days |
L&T Infrastructure Finance Co Ltd |
1,250.00 |
1 Day |
- |
|
Other Including Deferred Payment of Land and Foreign Currency Loans/Bonds |
41,152.11 |
24-570 Days |
||
375,179.13 |
331,202.11 |
The Company has not defaulted in repayment dues to the Government.
(ix) The Company has not raised moneys by way of further public offer. Further, in our opinion and according to the information and explanations given to us, the moneys raised by way of debt instruments and term loans have been applied by the Company during the year for the purposes for which they were raised.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) I n our opinion and according to the information and explanations given to us, the Company has paid / provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Companies Act, 2013.
(xii) The Company is not a Nidhi company and hence reporting under clause (xii) of the Order is not applicable.
(xiii) I n our opinion and according to the information and explanations given to us the Company is in compliance with Section 177 and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
(xv) I n our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or directors of its holding, subsidiary or associate company or persons connected with them and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
For M.P. Singh & Associates
Chartered Accountants
Firm Registration Number: 002183C
(CA Ravinder Nagpal) Partner
Membership No. 081594
Place : New Delhi
Date : May 29, 2017
Mar 31, 2015
We have audited the accompanying financial statements of Jaiprakash
Associates Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, the Statement of Profit and Loss, and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
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 financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
Without qualifying our opinion, we draw attention to note 36(d) of the
financial statements, relating to the order of the Competition
Commission of India (CCI), concerning alleged contravention of the
provisions of the Competition Act, 2002 and imposing a penalty of Rs,
132360 lacs on the Company. As per directions of the Competition
Appellate Tribunal an amount of Rs, 13747 lacs has been deposited which
will remain with them and not be disbursed during the pendency of the
appeal. Based on the advice of the Company''s counsels as well as its
own assessment, the Company believes that it has strong grounds for the
success of the appeal, and hence no provision has been considered
necessary by the Company in this regard.
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 loss and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(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 it 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 aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on March 31, 2015 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 the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Note 36 to the
financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts required to be
transferred to the Investor Education and Protection Fund by the
Company.
ANNEXURE referred to in paragraph 1 under ''Report on Other Legal and
Regulatory Requirements'' section of our report of even date to the
members of Jaiprakash Associates Limited on the accounts of the Company
for the year ended 31st March 2015.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. The situation of the moveable assets used in the construction
activity keeps on changing from works sites depending upon requirements
for a particular contract.
(b) A substantial portion of the Fixed Assets have been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company & nature of its assets. According to the information given
to us and to the best of our knowledge, no material discrepancies were
noticed on such physical verification.
(ii) (a) As explained to us, the Inventory has been physically verified
by the management at reasonable intervals during the year.
(b) In our opinion the procedures of physical verification of
inventories followed by the management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
(iii) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods /real
estate, electrical energy services & supplies under EPC contracts.
During the course of our audit we have not observed any major weakness
in such internal control system.
(v) In our opinion and according to the information and explanations
given to us the Company has not accepted any deposit during the year.
The Company has complied with the provisions of Sections 73 to 76 or
any other relevant provisions of the Companies Act, 2013; however, with
regard to repayment of unpaid matured deposits which had matured for
repayment on or before the balance sheet date and were outstanding as
at 31st March 2015, the New Delhi Bench of the Hon''ble Company Law
Board, vide its order dated 16.02.2015 and subsequent orders for
extension of time, the last order being issued on 16.09.2015, has
granted time up to 31.12.2015 to repay the balance of unpaid deposits
matured as at 31.03.2015 and deposits matured after 31.03.2015.
(vi) We have broadly reviewed the accounts and cost records maintained
by the Cement, Power & Real Estate divisions of the Company as
prescribed by the Central Government under section 148(1) 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.
(vii) (a) As per records produced before us and according to the
information and explanations given to us the Company is generally
regular in depositing undisputed statutory dues applicable to it like,
Provident Fund, Employees'' State Insurance, Income-tax, Service Tax,
Sales Tax/ Value Added Tax, Wealth Tax, Customs Duty, Excise Duty, Cess
and other material statutory dues applicable to it with the appropriate
authorities, and there were no arrears of such dues at the end of the
year which have remained outstanding for a period of more than six
months from the date they became payable, except for royalty on
limestone amounting to Rs, 858 lacs and electricity duty Rs, 241 lacs.
(b) As per records produced before us and according to the information
and explanations given to us there are no dues of Income-tax,
Sales-tax, Wealth tax, Service Tax, Customs duty, Excise Duty, Value
Added Tax or Cess which have not been deposited on account of any
dispute, except for the following:
(Rs, lacs)
Name of Statute Period to Forum where dispute is pending
(Nature of dues) which amount
Commissionarate Appellate
relates authorities-
Tribunal
Central Excise 1988 - 2015 2,409.66 -
2001 - 2015 - 4,409.46
1995 - 2009 - -
1994 - 1995 - -
Electricity
Duty & Cess 1991 - 2002 & - -
2006 - 2015
Sales Tax/VAT 1999 - 2002 & 1,836.21 -
2006 - 2015
2004 - 2005 & - 70.67
2007 - 2011
1998 - 2001, - -
2005 - 2008,
2012 - 2015
2002 - 2008
Entry Tax 2000 - 2001, 643.73 -
2006 - 2008,
2010 - 2012
2010 - 11 - 123.31
2001 - 2002, - -
2011 - 2015
2007 - 2015 - -
Royalty on
limestone Up to June - -
2014
Rural Infras-
tructure Tax 2005 - 2015 - -
Tax on trans
portation 2010 - 2015 - -
of goods in
Himachal
Pradesh
Service Tax 2005 - 2012 - 69,040.13
Levy on
transport of 2007 - 2011 - -
limestone
Customs - 4,909.85
Income Tax AY 2014-15 1,728.72 -
(Rs, lacs)
Name of Statute Forum where dispute is pending Total
(Nature of dues)
High Court Supreme
Court
Central Excise - - 2,409.66
- - 4,409.46
842.29 - 842.29
- 16.43 16.43
Electricity
Duty & Cess 12,612.26 - 12,612.26
Sales Tax/VAT - - 1,836.21
- - 70.67
7,140.73 - 7,140.73
- 9,029.24 9,029.24
Entry Tax - - 643.73
- - 123.31
2,166.29 - 2,166.29
- 19,392.85 19,392.85
Royalty on
limestone 16,211.03 - 16,211.03
Rural Infra
structure Tax - 1,016.12 1,016.12
Tax on tran
sportation - 5,387.17 5,387.17
of goods in
Himachal
Pradesh
Service Tax - - 69,040.13
Levy on
transport of - 582.70 582.70
limestone
Customs - - 4,909.85
Income Tax - - 1,728.72
(c) There are no amounts that were due for being transferred to the
Investor Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 and Rules made thereunder.
(viii) The company does not have any accumulated losses at the end of
the financial year, and has incurred cash losses amounting to Rs, 61792
lacs during the financial year covered by our audit and cash losses
amounting to Rs, Nil in the immediately preceding financial year.
(ix) Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
Company has not defaulted in repayment of dues to any financial
institution, bank or debenture holder, except (a) some instances of
delay in payment of interest to financial institutions, banks and
debenture holders ranging for a period from 24 day to 119 days, which
have been subsequently made good, (b) over-due interest on borrowings
amounting to Rs, 58008 lacs which is outstanding as at 31st March 2015
for a period of 1 to 83 days and which is being reflected under Note
No. 10 - ''Other Current Liabilities'' in the financial statements, and
(c) over-due principal repayments of borrowings amounting to Rs, 53812
lacs which is outstanding as at 31st March 2015 for a period of 16 to
83 days and which is being reflected under Note No. 10 - ''Other Current
Liabilities'' in the financial statements.
(x) In our opinion and according to the information and explanations
given to us, where the Company has given guarantee for loans taken by
its subsidiaries from banks or financial institutions, the terms and
conditions thereof are not prejudicial to the interest of the company.
(xi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were applied by the Company during the year for the purposes
for which the loans were obtained, other than temporary deployment
pending application.
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
For M. P. SINGH & ASSOCIATES
Chartered Accountants
Firm Registration Number 002183C
(CA. Ravinder Nagpal)
Partner
M.No. 081594
Place : Noida
Dated : 14th November, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Jaiprakash
Associates Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss, and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
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, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by 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
Without qualifying our opinion, we draw attention to note 34(d) of the
financial statements, relating to the order of the Competition
Commission of India (CCI), concerning alleged contravention of the
provisions of the Competition Act, 2002 and imposing a penalty of Rs.
132360 lacs on the Company. As per directions of the Competition
Appellate Tribunal an amount of Rs. 13236 lacs has been deposited which
will remain with them and not be disbursed during the pendency of the
appeal. Based on the advice of the Company''s counsels as well as its
own assessment, the Company believes that it has strong grounds for the
success of the appeal, and hence no provision has been considered
necessary by the Company in this regard.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
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 notified under
the Act read with the General Circular 15/2013 dated 13 September 2013
of the Ministry of
Corporate Affairs in respect of Section 133 of the Companies Act, 2013.
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
(Rs. lacs)
Forum where dispute is pending
Period to
Name of
Statute Appellate
which amount Supreme Total
(Nature of
dues) relates Commissi
-onarate authorities- High
Court Court
Tribunal
Central Excise 1988-1992 13.65 - - - 13.65
2000-2002 - 1.32 2.16 - 3.48
2000-2004 - 88.22 - - 88.22
2004-2005 - 150.59 - - 150.59
2005-2007 2.06 - - - 2.06
2005-200 - 64.88 - - 64.88
2005-2008 - 328.69 - - 328.69
2009-2010 2.52 2.02 - - 4.54
2000-2003 - 12.55 - - 12.55
2002-2004 - 72.93 - - 72.93
2004-2006 - - 1.80 - 1.80
2006-2007 - 53.75 - - 53.75
2006-2008 - 10.29 - - 10.29
2007-2008 - 480.81 - - 480.81
2008-2009 - 17.38 224.15 - 241.53
2008-2010 306.19 - - - 306.19
2008-2011 317.42 763.59 - - 1,081.01
2006-2010 138.35 542.28 - - 680.62
2009-2011 1.89 578.70 - - 580.59
2010-2011 24.73 - - - 24.73
2010-2012 3.80 0.16 - - 3.96
2011-2012 5.34 - - - 5.34
2012-2013 13.54 - - - 13.54
2013-2014 - 551.76 - - 551.76
Electricity
Duty & Cess 1991-2002 - - 1,844.71 - 1,844.71
2003-2004 - - - 92.49 92.49
2006-2011 - - 10,643.33 - 10,643.33
2008-2014 - - 104.09 - 104.09
U.P. Trade Tax 1998-1999 - - 241.71 - 241.71
2007-2008 130.36 - - - 130.36
2008-2009 12.36 - - - 12.36
2009-2010 - 4.00 - - 4.00
2001-2001 - - 0.73 - 0.73
2010-2011 23.71 - - - 23.71
MPCT/CST 1999-2000 9.83 - - - 9.83
2001-2002 20.38 - - - 20.38
2004-2005 - 58.25 - - 58.25
2005-2006 - - 266.19 - 266.19
2002-2008 - - - 9,029.24 9,029.24
2000-2001 - - 227.23 - 227.23
2006-2008 427.41 - - - 427.41
2007-2008 - - 90.49 - 90.49
2008-2009 - 2.05 - - 2.05
2009-2010 2.93 265.52 - - 268.45
2012-2014 - - 86.85 - 86.85
2010-2011 582.18 170.09 - - 752.26
2013-2014 - - 988.55 - 988.55
Himachal VAT 2013-2014 - - 2,266.69 - 2,266.69
U.P. Entry Tax 2007-2008 - - - 1054.15 1054.15
2008-2009 - - - 2835.65 2835.65
2009-2010 - - - 3161.19 3161.19
2010-2011 - - - 404.42 404.42
2011-2012 - - - 510.95 510.95
2012-2013 - - - 4.28 4.28
2013-2014 - - - 19.97 19.97
M.P.Entry Tax 2000-2001 0.90 - - - 0.90
2001-2002 - - 148.76 - 148.76
2006-2007 9.40 - - - 9.40
2005-2014 - - - 7,729.81 7,729.81
2007-2008 92.07 0.33 - - 92.41
2009-2014 - - - 1,026.89 1,026.89
2010-2011 190.74 5.43 - - 196.16
Himachal Entry
Tax 2010-2011 - - 196.07 - 196.07
2011-2012 - - 507.87 - 507.87
2012-2013 - - 335.99 - 335.99
2013-2014 - - 410.00 - 410.00
Royalty on
limestone incl
Upto Dec 2012 - - 13,738.42 - 13,738.42
interest
Rural
Infrastructure
Tax Oct 05-
Dec-13 - - - 375.31 375.31
Jan-07- Mar-
13 - - - 203.91 203.91
Tax on trans
-portation
of goods in
Himachal 2010-2011 - - - 243.67 243.67
Pradesh
2011-2012 - - - 759.67 759.67
2012-2013 - - - 366.04 366.04
2013-2014 - - - 2,026.40 2,026.40
Service Tax 2009-2010 - 5.13 - - 5.13
Levy on
transport of 2007-2011 - - - 582.70 582.70
limestone
Water Cess 2003-2013 - - 197.55 - 197.55
Customs Duty 2012-2013 - 5,781.56 - - 5,781.56
FY 2005-2006
Income Tax ÂTDS 1,31,
122.00 - - - 1,31,122.00
to 2012-2013
(x) The company does not have any accumulated losses and has not
incurred any cash losses during the financial year covered by our audit
or 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
financial institutions, banks or debenture holders.
(xii) The Company has not granted loans and 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 a nidhi/mutual
benefit fund/society. Therefore, clause (xiii) of Para 4 of the Order
is not applicable.
(xiv) In our opinion the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly,
clause (xiv) of Para 4 of the Order is not applicable.
(xv) In our opinion and according to the information and explanations
given to us, where the Company has given guarantee for loans taken by
its subsidiaries from banks or financial institutions, the terms and
conditions thereof are not prejudicial to the interest of the company.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were applied by the Company during the year for the purposes
for which the loans were obtained, other than temporary deployment
pending application.
(xvii) According to the information and explanations given to us and on
the overall examination of the Balance Sheet of the Company for the
year under report, we are of the opinion that no funds raised on short
term basis have been used for long term investment.
(xviii)According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has created security/charge in respect of secured
non-convertible debentures issued and outstanding at the year end.
(xx) As the Company has not raised any money by way of public issues
during the year, Clause (xx) of Para 4 of the Order is not applicable.
(xxi) According to the information and explanations given to us, no
material fraud by or on the Company has been noticed or reported during
the year.
For M.P. SINGH & ASSOCIATES
Chartered Accountants
Firm Registration No. 002183C
CA Ravinder Nagpal
Place : Noida Partner
Dated : 27th May, 2014 M.No.081594
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Jaiprakash
Associates Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, and the Statement of Profit and Loss, and the
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
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
Without qualifying our opinion, we draw attention to note 34(d) of the
financial statements, relating to the order of the Competition
Commission of India (CCI), concerning alleged contravention of the
provisions of the Competition Act, 2002 and imposing a penalty of Rs.
1,323.6 crores on the Company. The Company is advised by its counsels
that it has a good case for the Competition Appellate Tribunal setting
aside the order passed by CCI, and accordingly no provision has been
considered necessary by the Company in this regard.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 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
subsection (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.
ANNEXURE referred to in paragraph 1 of our report of even date to the
members of Jaiprakash Associates Limited on the accounts of the Company
for the year ended 31st March 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. The situation of the moveable assets used in the construction
activity keeps on changing from works sites depending upon requirements
for a particular contract.
(b) A substantial portion of the Fixed Assets have been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company & nature of its assets. According to the information given
to us and to the best of our knowledge, no material discrepancies were
noticed on such physical verification.
(c) Fixed assets disposed off by the Company during the year were not
substantial; hence it does not affect the Company as a going concern.
(ii) (a) The inventories have been physically verified by the
management at reasonable intervals during the year. In our opinion the
frequency of verification is reasonable.
(b) The procedures of physical verification of inventories 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. The
discrepancies noticed on physical verification were not material and
these have been properly dealt with in the books of account.
(iii) The Company has not granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods /real
estate, electrical energy, services & supplies under EPC contracts.
During the course of our audit we have not observed any continuing
failure to correct major weakness in internal control system.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us we are of the opinion that the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 have been entered into the register required to
be maintained under that section. The transactions made in pursuance of
such contracts or arrangements have been made at prices which are
reasonable having regard to 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 provisions of Section
58a, 58AA and any other provisions of the Companies Act, 1956, and the
rules framed thereunder with regard to the deposits accepted from the
public. As informed to us, no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
court or any other Tribunal.
(vii) In our opinion the Company has an internal audit system
commensurate with the size & nature of its business.
(viii) We have broadly reviewed the accounts and cost records
maintained by the Cement & Power divisions of the Company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956, and are of
the opinion that prima-facie the prescribed accounts and records have
been maintained. We have not, however, made a detailed examination of
the records.
(ix) (a) As per records produced before us, the Company is generally
regular in depositing undisputed statutory dues like Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, cess and other material statutory dues applicable to it, with the
appropriate authorities and there were no arrears of such dues at the
year end which have remained outstanding for a period of more than six
months from the date they became payable.
(b) As per records produced before us the dues of Income-tax,
Sales-tax, Wealth tax, Service tax, Customs Duty, Excise Duty and cess
which have not been deposited on account of any dispute are stated
hereunder:
(Rs. lacs)
Period to
Name of Statute which amount
(Nature of dues) relates Commissionarate
Central Excise 1988-92 13.65
2000-02 -
2000-04 -
2004-05 -
Name of Statute Forum where dispute is pending
Appellate Supreme Total
authorities- High Court Court
Tribunal
Central Excise - - - 13.65
1.32 2.16 - 3.48
88.22 - - 88.22
150.59 - - 150.59
(x) The company does not have any accumulated losses and has not
incurred any cash losses during the financial year covered by our audit
or 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
financial institutions, banks or debenture holders.
(xii) The Company has not granted loans and 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 a nidhi/mutual
benefit fund/society. Therefore, clause (xiii) of Para 4 of the Order
is not applicable.
(xiv) In our opinion the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly,
clause (xiv) of Para 4 of the Order is not applicable.
(xv) In our opinion and according to the information and explanations
given to us, where the Company has given guarantee for loans taken by
its subsidiaries from banks or financial institutions, the terms and
conditions thereof are not prejudicial to the interest of the company.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were applied by the Company during the year for the purposes
for which the loans were obtained, other than temporary deployment
pending application.
(xvii)According to the information and explanations given to us and on
the overall examination of the Balance Sheet of the Company for the
year under report, we are of the opinion that no funds raised on short
term basis have been used for long term investment.
(xviii)According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has created security/charge in respect of secured
non-convertible debentures issued and outstanding at the year end.
(xx) As the Company has not raised any money by way of public issues
during the year, Clause (xx) of Para 4 of the Order is not applicable.
(xxi) According to the information and explanations given to us, no
material fraud by or on the Company has been noticed or reported during
the year.
For M.P. SINGH & ASSOCIATES
Chartered Accountants
Firm Registration No. 002183C
(CA Ravinder Nagpal)
Place : Noida Partner
Dated : 4th May, 2013 M.No.081594
Mar 31, 2012
1. We have audited the attached Balance Sheet of Jaiprakash Associates
Limited as at 31st March, 2012 and also the annexed Statement of Profit
and Loss and the Cash Flow Statement for the year ended on that date.
These financial statements are the responsibility of the Jaiprakash
Associates Limited 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. These Standards require that we plan and
perform the audit to obtain reasonable assurance whether the Financial
Statements are prepared 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 presentation of
financial statement. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, we give 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 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 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 representations received from the
directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors of the Company is
disqualified as on 31st March, 2012 from being appointed as a director,
in terms of clause (g) of sub-section(1) of section 274 of the
Companies Act, 1956;
(f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with
significant accounting policies and notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date on the accounts
for the year ended 31st March, 2012, of Jaiprakash Associates Limited.
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. The situation of the moveable assets used in the construction
activity keeps on changing from works sites depending upon requirements
for a particular contract.
(b) A substantial portion of the Fixed Assets have been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company & nature of its assets. According to the information given
to us and to the best of our knowledge, no material discrepancies were
noticed on such physical verification.
(c) Fixed assets disposed off by the Company during the year were not
substantial; hence it does not affect the Company as a going concern.
(ii) (a) The inventories have been physically verified by the
management at reasonable intervals during the year. In our opinion the
frequency of verification is reasonable.
(b) The procedures of physical verification of inventories 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. The
discrepancies noticed on physical verification were not material and
these have been properly dealt with in the books of account.
(iii) The Company has not granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods / real
estate, electrical energy, services & supplies under EPC contracts.
During the course of our audit we have not observed any continuing
failure to correct major weakness in internal control system.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us we are of the opinion that the
particulars of contracts or arrangements referred to in Section 301 of
the Companies Act, 1956 have been entered into the register required to
be maintained under that section. The transactions made in pursuance of
such contracts or arrangements have been made at prices which are
reasonable having regard to 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 provisions of Section
58A, 58AA and any other provisions of the Companies Act, 1956, and the
rules framed thereunder with regard to the deposits accepted from the
public. As informed to us, no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
court or any other Tribunal.
(vii) In our opinion the Company has an internal audit system
commensurate with the size & nature of its business.
(viii) We have broadly reviewed the accounts and cost records
maintained by the Cement & Power divisions of the Company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956, and are of
the opinion that prima-facie the prescribed accounts and records have
been maintained. We have not, however, made a detailed examination of
the records.
(ix) (a) As per records produced before us, the Company is generally
regular in depositing undisputed statutory dues like Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income- tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, Cess and other material statutory dues applicable to it, with the
appropriate authorities and there were no arrears of such dues at the
year end which have remained outstanding for a period of more than six
months from the date they became payable.
(b) As per records produced before us the dues of Income-tax,
Sales-tax, Wealth tax, Service tax, Customs Duty, Excise Duty and Cess
which have not been deposited on account of any dispute are stated
hereunder:
(Rs. lacs)
Forum where dispute is pending
Period to
Name of
Statute
(Nature of
dues) which
amount Appellate Supreme
relates Commissio
narate authorities- High Court Court
Tribunal
Central
Excise 1988-92 - - - -
1999-01 - 0.65 - -
2000-02 - 1.32 - 2.16
2000-04 - 88.22 - -
2004-05 - 140.97 - -
2005-07 2.06 - - -
2005-06 - 64.88 - -
2007-09 - 585.07 - -
2009-10 2.52 819.92 - -
2000-01 - - - -
2000-03 7.11 12.55 - -
2002-04 - 72.93 - -
2004-06 - - 1.80 -
2006-07 - 0.58 - -
2007-08 - 480.81 - -
2008-09 19.08 321.30 - -
2006-10 - 552.28 - -
2009-11 580.72 - - -
Electricity
Duty & Cess 1991-
2002 - - 1,844.71 -
2003-
2004 - - - 50.64
2003-
2004 - - - 41.85
U.P. Trade
Tax 1998-99 - - - 241.71
1999-00 - - - 480.15
2000-01 - - 0.73 810.29
2001-02 - - - 711.14
2002-03 - - - 584.78
2003-04 - - - 289.77
2004-05 - - - 612.94
2007-08 68.47 57.28 - -
2010-11 3.76 - - -
U.P.Entry
Tax 2008-12 - - - 44.20
2007-08 - - - 1,054.14
2008-09 - - - 2,817.38
2009-10 - - - 3,145.02
2010-11 - - - 401.49
2011-12 - - - 555.05
M.P.Entry
Tax 2000-01 0.90 - - -
2001-02 - - 148.75 -
2006-07 57.34 - - -
2005-12 - - - 4,785.81
2007-08 95.39 - - -
2009-11 - - - 206.94
Himachal
Entry Tax 2010-11 - - 261.27 -
2011-12 - - 509.97 -
MPCT/CST 1999-00 - 9.83 - -
2001-02 20.38 - - -
2004-05 - 34.65 - -
2005-06 - - 266.19 -
2002-08 - - - 9,030.66
2000-01 - - 227.23 -
2007-08 16.82 - 90.49 -
2009-10 - - - -
2010-11 - - - -
2011-12 - - 89.15 -
Royalty on
limestone
incl interest Upto
Dec
2008 - - 8,844.98 -
Rural
Infrastruc
ture Tax Oct 05-
Dec 09 - - - 289.30
Tax on
transport
ation of
goods in 2010-11 - - 243.67 -
Himachal
Pradesh
2011-12 - - 759.67 -
Service Tax 2008-09 - 138.65 - -
2009-10 - 5.13 - -
Forest
Transit fee - - - 1,730.99
Levy on
transport of
limestone 2007-
2011 - - - 582.70
Income Tax AY
2009-10 4,082.16 - - -
Name of statute (Nature of dues ) Total
Central Excise 13.65
0.65
3.48
88.22
140.97
2.06
64.88
585.07
822.44
-
19.66
72.93
1.80
0.58
480.81
340.38
552.28
580.72
Electricity Duty & Cess 1,844.71
50.64
41.85
U.P. Trade Tax 241.71
480.15
811.02
711.14
584.78
289.77
612.94
125.75
3.76
U.P. Trade Tax 44.20
1,054.14
2,817.38
3,145.02
401.49
555.05
M.P. Entry Tax 0.90
148.75
57.34
4,785.81
95.39
206.94
Himachal Entry Tax 261.27
509.97
MPCT/CST 9.83
20.38
34.65
266.19
9,030.66
227.23
107.31
-
-
89.15
Royalty on limestone incl interst 8,844.98
Rural Infrastructure Tax 289.30
Tax on transportation of goods in 243.67
Himachal Pradesh
759.67
Service Tax 138.65
5.13
Forest Transit fee 1,730.99
Levy on transport of limestone 582.70
Income Tax 4,082.16
(x) The Company does not have any accumulated losses and has not
incurred any cash losses during the financial year covered by our audit
or 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
financial institutions, banks or debenture holders.
(xii) The Company has not granted loans and 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 a nidhi/ mutual
benefit fund/society. Therefore, clause (xiii) of Para 4 of the Order
is not applicable.
(xiv) In our opinion the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly,
clause (xiv) of Para 4 of the Order is not applicable.
(xv) In our opinion and according to the information and explanations
given to us, where the Company has given guarantee for loans taken by
its subsidiaries from banks or financial institutions, the terms and
conditions thereof are not prejudicial to the interest of the company.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were applied by the Company during the year for the purposes
for which the loans were obtained, other than temporary deployment
pending application.
(xvii) According to the information and explanations given to us and on
the overall examination of the Balance Sheet of the Company for the
year under report, we are of the opinion that no funds raised on short
term basis have been used for long term investment.
(xviii)According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has created security/charge in respect of secured
non-convertible debentures issued and outstanding at the year end.
(xx) As the Company has not raised any money by way of public issues
during the year, Clause (xx) of Para 4 of the Order is not applicable.
(xxi) According to the information and explanations given to us, no
material fraud by or on the Company has been noticed or reported during
the year.
For M.P. SINGH & ASSOCIATES
Chartered Accountants
Firm Registration No.002183C
(CA M.P. SINGH)
Place : Noida Partner
Dated : 30th May, 2012 M.No.1454
Mar 31, 2011
1. We have audited the attached Balance Sheet of Jaiprakash Associates
Limited as at 31st March 2011 and also the annexed Profit and Loss
Account and the Cash Flow Statement for the year ended on that date.
These financial statements are the responsibility of the Jaiprakash
Associates Limited 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. These Standards require that we plan and
perform the audit to obtain reasonable assurance whether the Financial
Statements are prepared 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 presentation of
financial statement. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order 2004,
issued by the Central Government of India in terms of Sub-section (4A)
of Section 227 of the Companies Act, 1956, we give 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 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, 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) on the basis of written representations received from the
directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the directors of the Company is
disqualified 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;
(f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with
Significant accounting policies and notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2011;
(ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date on the accounts
for the year ended 31st March 2011, of Jaiprakash Associates Limited.
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. The situation of the moveable assets used in the construction
activity keeps on changing from works sites depending upon requirements
for a particular contract.
(b) A substantial portion of the Fixed Assets have been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of the
Company & nature of its assets. According to the information given to
us and to the best of our knowledge, no material discrepancies were
noticed on such physical verification.
(c) Fixed assets disposed off by the Company during the year were not
substantial; hence it does not affect the Company as a going concern.
(ii) (a) The inventories have been physically verified by the management
at reasonable intervals during the year. In our opinion the frequency
of verification is reasonable.
(b) The procedures of physical verification of inventories 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. The
discrepancies noticed on physical verification were not material and
these have been properly dealt with in the books of account.
(iii) The Company has not granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods /real
estate, electrical energy, services & supplies under EPC contracts.
During the course of our audit we have not observed any continuing
failure to correct major weakness in internal control system.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us we are of the opinion that the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 have been entered into the register required to
be maintained under that section. The transactions made in pursuance of
such contracts or arrangements have been made at prices which are
reasonable having regard to 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 provisions of Section
58A, 58AA and any other provisions of the Companies Act, 1956, and the
rules framed thereunder with regard to the deposits accepted from the
public. As informed to us, no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
court or any other Tribunal.
(vii) In our opinion the Company has an internal audit system
commensurate with the size & nature of its business.
(viii) We have broadly reviewed the accounts and cost records
maintained by the Cement & Power divisions of the Company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956, and are of
the opinion that prima-facie the prescribed accounts and records have
been maintained. We have not, however, made a detailed examination of
the records.
(ix) (a) As per records produced before us, the Company is generally
regular in depositing undisputed statutory dues like Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, cess and other material statutory dues applicable to it, with the
appropriate authorities and there were no arrears of such dues at the
year end which have remained outstanding for a period of more than six
months from the date they became payable.
(b) As per records produced before us the dues of Income- tax,
Sales-tax, Wealth tax, Service tax, Customs Duty, Excise Duty and cess
which have not been deposited on account of any dispute are stated
hereunder:
Rs. Lakhs
Forum where dispute is pending
Name of
Statute Period to
which Appellate
authorities- High Supreme Total
(Nature
of dues) amount
relates Commissionarate Tribunal Court Court
Central
Excise
1988-92 13.65 - - - 13.65
2000-02 - 1.32 2.16 - 3.48
2000-03 - 12.55 - - 12.55
2000-04 - 88.22 - - 88.22
2002-04 - 72.93 - - 72.93
2003-06 - - 3.62 - 3.62
2004-05 - 140.97 - - 140.97
2005-06 - 64.88 - - 64.88
2005-07 2.06 - - - 2.06
2006-07 - 0.58 - - 0.58
2007-08 - 480.81 - - 480.81
2007-09 - 585.07 - - 585.07
2008-09 - 321.30 - - 321.30
2006-10 807.63 - - - 807.63
2009-10 - 819.92 - - 819.92
2005-10 - - 552.84 - 552.84
2009-11 4.68 - - - 4.68
Electri-
city
Duty &
Cess
1991-02 - - 1,844.71 - 1,844.71
2003-04 - - - 92.49 92.49
U.P.
Trade Tax
1998-99 - - 235.04 - 235.04
1999-00 - - - 480.15 480.15
2000-01 - - - 810.29 810.29
2001-02 - - - 711.14 711.14
2002-03 - - - 584.78 584.78
2003-04 - - - 289.77 289.77
2004-05 - - - 612.94 612.94
2007-08 - 57.28 - - 57.28
U.P.
Entry Tax
2003-04 - - - 256.53 256.53
2004-05 - - - 53.00 53.00
2005-06 - - - 452.75 452.75
2006-07 - - - 366.74 366.74
2007-08 - - 1,304.45 1,262.85 2,567.
30
2008-09 81.84 - 3,462.52 - 3,544.36
2009-10 202.68 - 3,804.60 - 4,007.28
2008-11 - - 83.92 - 83.92
2010-11 11.01 - 488.80 - 499.81
M.P.
Entry Tax
2000-01 0.90 - - - 0.90
2001-02 - - 148.75 - 148.75
2004-05 12.67 - - - 12.67
2006-07 57.34 - - - 57.34
2007-08 211.95 - - - 211.95
2005-11 - - - 3,481.81 3,481.
81
2008-11 - - - 2.45 2.45
Himachal
Pradesh
Entry
Tax 2010-11 - - 363.38 - 363.38
MPCT/
CST
1999-00 9.83 - - - 9.83
2001-02 20.38 - - - 20.38
2004-05 - 48.14 - - 48.14
2005-06 - - 252.70 - 252.70
2006-07 - 23.60 - - 23.60
2007-08 50.06 - - - 50.06
Royalty
on
limestone
including
interest
Upto Dec
2008 - - 9,034.98 - 9,034.
98
Building
and Other
Construc-
tion
Workers
Welfare
Cess
2008-11 - - 234.04 - 234.04
Rural
Infra-
struc-
ture
Tax
Oct 05-
Dec09 - - - 289.30 289.30
Tax on
transport-
ation of
goods in
Himachal
Pradesh
2010-11 - - 243.67 - 243.67
Service
Tax
2008-09 - 185.00 - - 185.00
Income
Tax
AY 2008-09 399.85 - - - 399.85
(x) The Company does not have any accumulated losses and has not
incurred any cash losses during the financial year covered by our audit
or 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
financial institutions, banks or debenture holders.
(xii) The Company has not granted loans and 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 a nidhi/ mutual
benefit fund/society. Therefore, clause (xiii) of Para 4 of the Order is
not applicable.
(xiv) In our opinion the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly,
clause (xiv) of Para 4 of the Order is not applicable.
(xv) In our opinion and according to the information and explanations
given to us, where the Company has given guarantee for loans taken by
its subsidiaries from banks or financial institutions, the terms and
conditions thereof are not prejudicial to the interest of the Company.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were applied by the Company during the year for the purposes
for which the loans were obtained, other than temporary deployment
pending application.
(xvii) According to the information and explanations given to us and on
the overall examination of the Balance Sheet of the Company for the
year under report, we are of the opinion that no funds raised on short
term basis have been used for long term investment.
(xviii) According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has created security/charge in respect of secured
non-convertible debentures issued and outstanding at the year end.
(xx) A the Company has not raised any money by way of public issues
during the year, Clause (xx) of Para 4 of the Order is not applicable.
(xxi) According to the information and explanations given to us, no
material fraud by or on the Company has been noticed or reported during
the year.
For M.P. SINGH & ASSOCIATES
Chartered Accountants
Firm Regn No. 002183C
(CA M.P. Singh)
Partner M.No.1454
Place : Noida
Dated : 12 August 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Jaiprakash Associates
Limited as at 31st March 2010 and also the annexed Profit and Loss
Account and the Cash Flow Statement for the year ended on that date.
These financial statements are the responsibility of the Jaiprakash
Associates Limited 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. These Standards require that we plan and
perform the audit to obtain reasonable assurance whether the Financial
Statements are prepared 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 presentation of
financial statement. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order 2004,
issued by the Central Government of India in terms of Sub- section (4A)
of Section 227 of the Companies Act, 1956, we give 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 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, 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) on the basis of written representations received from the
directors, as on 31st March 2010, and taken on record by the Board of
Directors, we report that none of the directors of the Company is
disqualified as on 31st March 2010 from being appointed as a director,
in terms of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read together with
significant accounting policies and notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2010;
(ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement of the cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our report of even date on the accounts
for the year ended 31st March 2010, of Jaiprakash Associates Limited.
(i) (a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets. The situation of the moveable assets used in the construction
activity keeps on changing from works sites depending upon requirements
for a particular contract.
(b) A substantial portion of the Fixed Assets have been physically
verified by the management during the year and in our opinion the
frequency of verification is reasonable having regard to the size of
the Company & nature of its assets. According to the information given
to us and to the best of our knowledge, no material discrepancies were
noticed on such physical verification.
(c) Fixed assets disposed off by the Company during the year were not
substantial; hence it does not affect the Company as a going concern.
(ii) (a) The inventories have been physically verified by the
management at reasonable intervals during the year. In our opinion the
frequency of verification is reasonable.
(b) The procedures of physical verification of inventories 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. The
discrepancies noticed on physical verification were not material and
these have been properly dealt with in the books of account.
(iii) The Company has not granted nor taken any loans, secured or
unsecured to/from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods /real
estate, electrical energy, services & supplies under EPC contracts.
During the course of our audit we have not observed any continuing
failure to correct major weakness in internal control system.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us we are of the opinion that the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 have been entered into the register required to
be maintained under that section. The transactions made in pursuance of
such contracts or arrangements have been made at prices which are
reasonable having regard to 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 provisions of Section
58A, 58AA and any other provisions of the Companies Act, 1956, and the
rules framed thereunder with regard to the deposits accepted from the
public. As informed to us, no order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
court or any other Tribunal.
(vii) In our opinion the Company has an internal audit system
commensurate with the size & nature of its business.
(viii) We have broadly reviewed the accounts and cost records
maintained by the Cement & Power divisions of the Company pursuant to
the Rules made by the Central Government for the maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956, and are of
the opinion that prima-facie the prescribed accounts and records have
been maintained. We have not, however, made a detailed examination of
the records.
(ix) (a) As per records produced before us, the Company is generally
regular in depositing undisputed statutory dues like Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty, cess and other material statutory dues applicable to it, with the
appropriate authorities and there were no arrears of such dues at the
year end which have remained outstanding for a period of more than six
months from the date they became payable.
(b) As per records produced before us the dues of Income-tax,
Sales-tax, Wealth tax, Service tax, Customs Duty, Excise Duty and cess
which have not been deposited on account of any dispute are stated
hereunder:
(Rs.Lakhs.)
Name of Statute Period to which Forum where dispute is pending
(Nature of dues) amount relates Commissi
onarate Appellate
authorities- High
Tribunal Court
Income Tax AY 2007-08 505.77
Central Excise 1988-91 13.65
2000-02
2000-04 88.22
2004-05 140.14
2005-07 2.06
2005-08 2.05
2005-10 481.89
Electricity Cess 2003-04
U.P. Trade Tax 1998-99 241.71
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
U.P.Entry Tax 2003-04
2004-05
2005-06
2006-07
2007-08
2008-09 123.06
2009-10 239.57
M.P.Entry Tax 2000-01 0.90
2001-02 148.75
2006-07 57.34
2007-10 2,124.27
2007-08 222.58
MPCT/CST 1999-00 9.83
2001-02 20.38
2005-06 76.05 34.65
Royalty on limestone
Upto Dec 2008 5,312.94
Building and Other
Construction
Workers Welfare Cess 2008-10 132.35
Rural Infrastructure
Tax Oct 05- Dec09
Total
Name of Statue Supreme
Income Tax
Central Excise 505.77
13.65
2.16 2.16
88.22
140.14
2.06
2.05
481.89
Electricity Cess
U.P. Trade Tax 92.49 92.49
241.71
480.15 480.15
810.29 810.29
711.14 711.14
584.78 584.78
289.77 289.77
612.94 612.94
U.P.Entry Tax 213.66 213.66
133.00 133.00
449.43 449.43
375.61 375.61
2,293.71 2,293.71
3,462.52 3,585.58
3,804.60 4,044.17
M.P.Entry Tax 0.90
148.75
57.34
2,124.27
222.58
MPCT/CST 9.83
20.38
110.70
Royalty on limestone
Building and Other Construction
Workers Welfare Cess
Rural Infrastructure Tax 5,312.94
132.35
289.30 289.30
(x) The company does not have any accumulated losses and has not
incurred any cash losses during the financial year covered by our audit
or 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
financial institutions, banks or debenture holders.
(xii) The Company has not granted loans and 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 a nidhi/mutual
benefit fund/society. Therefore, clause (xiii) of Para 4 of the Order
is not applicable.
(xiv) In our opinion the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly,
clause (xiv) of Para 4 of the Order is not applicable.
(xv) In our opinion and according to the information and explanations
given to us, where the Company has given guarantee for loans taken by
its subsidiaries from banks or financial institutions, the terms and
conditions thereof are not prejudicial to the interest of the company.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were applied by the Company during the year for the purposes
for which the loans were obtained, other than temporary deployment
pending application.
(xvii) According to the information and explanations given to us and on
the overall examination of the Balance Sheet of the Company for the
year under report, we are of the opinion that no funds raised on short
term basis have been used for long term investment.
(xviii) According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the Register maintained under section 301 of
the Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has created security/charge in respect of secured non-
convertible debentures issued and outstanding at the year end.
(xx) As the Company has not raised any money by way of public issues
during the year, Clause (xx) of Para 4 of the Order is not applicable.
(xxi) According to the information and explanations given to us, no
material fraud by or on the Company has been noticed or reported during
the year.
For M.P. SINGH & ASSOCIATES
Chartered Accountants
(CA M.P. Singh)
Partner
Place : New Delhi M. No.1454
Dated : 30th May, 2010 Firm Regn. No. 002183C