Mar 31, 2015
We have audited the accompanying standalone financial statements of
JATTASHANKAR INDUSTRIES LIMITED, which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 ("the Act")
with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash 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 the financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included
in the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and 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 standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2015, and its profit and its
cash flows for the year ended on that date.
EMPHASIS OF MATTER
We draw attention to Note No.5 to the financial statement that company
has made the provision of gratuity an estimated basis instead of on
the basis of actuarial valuation, impact of profit is unascertained.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014,except AS -15
liabilities of gratuity in respect of which is accounted for on
estimated basis instead of actuarial basis.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015
Taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2015 from being appointed as a director
in terms of Section 164 (2) of the Act.
(f) With respect to the other matters to be included in the
Auditor's Report in accordance with Rule 11 of the Companies (Audit
and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
ANNEXURE TO AUDITORS REPORT
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) The fixed assets of the Company have been physically verified
during the year by the management and no material discrepancies
between the books records and physical inventory have been noticed.
The company has not disposed off any substantial part of fixed assets
during the year.
2. In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of its
inventories and no material discrepancies were noticed on such
physical verification. The procedures followed by the management for
physical verification of stock are in our opinion, reasonable and
adequate in relation to the size of the Company and nature of its
business.
3. 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.
4. In our opinion and according to the information and explanation
given to us there is adequate internal control system commensurate
with the size of the company and nature of its business with regard to
purchases of fixed assets, goods/services and sale of goods/services.
During the course of our audit, we have not observed any continuing
failure to correct the major weakness in the internal control system.
5. The company has not accepted deposits and accordingly there no
requirement to comply with directives issued by the Reserve Bank of
India and the provisions of sections 73 to 76 or any other relevant
provisions of the Companies Act and the rules framed there under.
6. The Central government has not prescribed the maintenance of cost
records under section 148 (1) of the Companies Act & as informed to
us, the same has also not been maintained.
7. a) According to the information and explanation given to us and
based on the books and records examined by us the 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 statutory dues, wherever applicable, have been
generally deposited regularly during the year with appropriate
authorities. There are no outstanding statutory dues as on 31st March,
2015 for a period of more than six months from the date they become
payable.
b) According to the information and explanation given to us and based
on the books and records examined by us, there are no dues of Income
Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty,
cess and other statutory dues, wherever applicable.
c) The Company does not have any amount required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under has been transferred to such fund within time.
8. The company has accumulated loss at the financial year of
Rs.3,35,87,390/-(reported figure) and has not incurred cash loss
during the financial year and immediately preceding current financial
year.
9. As there is no term loan taken from bank or institutions. Hence
there is no question arise for default in repayment of such loans.
10. The company has not given guarantee for loans taken by others from
Banks or Financial Institutions , the terms and conditions whereof are
prejudicial to the interest of the company;
11. The company has not taken any term loan during the year. Hence
relevant clause is not applicable to the company.
12. According to the information and explanation given to us, no fraud
on or by the company has been noticed or reported during the year.
For SHANKARLAL JAIN & ASSOCIATES
Chartered Accountants
Firm Reg. No.109901 W
S.L. AGARWAL
Place: Mumbai (PARTNER)
Date : 29.05.2015 Membership No. 72184
Mar 31, 2014
We have audited the accompanying financial statements of JATTASHANKAR
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position ,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 Account, 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
issued by the central government in terms of Section 227 (4A) of the
companies 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 explanation which to the
best of our knowledge and belief were necessary for the purpose of our
Audit;
b) In our opinion , proper books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books;
c) The Balance Sheet , Statement of Profit and Loss Account & Cash Flow
Statement with this report are in agreement with the books of accounts;
d) In our opinion Balance Sheet & Profit and Loss Account & Cash Flow
Statement dealt with this report Comply with the Accounting Standards
as specified in section 211 (3 C ) of the Companies Act , 1956
e) On the basis of written representations and explanations received
from Directors, as on 31.03.2014 and taken on record by the Board of
directors, none of the Directors Iis disqualified as on 31.03.14 from
being appointed as a director in terms of Clause (g) of Sub Section (1)
of Section of 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
(Referred to its paragraph 1 thereof)
As required by the companies ( Auditors Report) Order ,2003 issued by
the company Central Government of India in terms of section 227 (4A) of
the companies Act.,1956 On the basis of such checks as we considered
appropriate ,we report that :-
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
assets but the same is to be updated.
b) We are informed that fixed assets were not verified by the
management during the year. Discrepancy if any , will be determined
only after the fixed asset register is updated.
c) The company has not disposed off substantial part of fixed assets
during the year to effect to its going concern.
2. a) Inventories have been physically verified during the year by the
management at reasonable intervals.
b) The procedure followed by the management for physical verification
of stock is in our opinion reasonable and adequate in relation to the
size of the company and the nature of its business.
c) In our opinion and according to information and explanation given to
us ,the company has maintained proper records of its inventories &
discrepancies were noticed on verification between the physical stock
and book stock were not material & have been properly dealts with in
the books of account.
3. a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act 1956. Hence relevant Provisions
are not applicable to the Company .
b) The Company has taken interest free unsecured loan from a company
(strategic promoter).Balance outstanding of Rs. 340.00 lacs at the end
of the year. In our opinion the terms and conditions of the said loan
are not prejudicial to the interest of the Company.
c) Company is regular in repayment of principal and interest as
stipulated .
4. In our opinion and according to the information and explanation
given to us ,there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business ,for the purchase & sale of inventories, fixed assets and with
regards to sale of goods and services .During the course of our audit
,We have not observed any continuing to correct the major weakness in
internal controls .
5. a) There are transactions in the company that need to be entered in
the register in pursuance of Section 301 of the Companies Act 1956
,were duly entered .
b) In our opinion and according to the information and explanation
given to us,the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
companies Act 1956 and aggregating during the year to 5,00,000/- or
more in respect of each party ,have been made at prices seems
reasonable as prevailing market prices for such goods ,materials or the
price at which transactions for similar goods ,materials or services
have been made with the other parties are not comparable not having
similar goods or services.
6. In our opinion and according to information and explanation given
to us ,the company has not accepted any deposits from public ,hence
provisions of Section 58A & 58 AA of the Companies Act 1956 are not
applicable.
7. The company has no Internal Audit System during the year.
8. We have broadly reviewed the books of accounts maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209 (1) of the companies Act
1956 & are of the opinion that prima facie the prescribed accounts and
records have been made maintained by the company . However, We have
not made detailed examination of records so as to ascertain whether
they are accurate and complete.
9. The company is regular in depositing statutory dues including
Provident fund ,Investor Education & Protection Fund ,Employees State
Insurance ,Income Tax, Wealth Tax ,Sales Tax ,Customs duty and Excise
duty, Service Tax , Cess and other materials statutory dues wherever
applicable with appropriate authorities . We are informed that no
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March 2014for the period of more than six months
from the date they became payable.
10 The company has accumulated loss at the financial year of Rs.
6,12,39,692/- (reported figure) and it has incurred no cash loss in the
financial year & immediately preceding current financial year .
11. In our opinion and according to information and explanation given
to us, company has not defaulted in repayment of dues to financial
institution & others .
12. According to information and explanation given to us, the company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. In our opinion the company is not a chit / nidhi / mutual
fund/society. Therefore the provision of Clause 4 (Xiii) of the
companies (Auditors Report) orders 2003 are not applicable to the
company.
14. In our opinion the company is not dealing or trading in any shares
,securities ,debentures & others investments Accordingly the provision
of Clause 4 (Xiii) of the companies ( Auditors Report) order 2003 are
not applicable to the company.
15. The company has not given guarantee for loans taken by others from
Banks or Financial Institutions.
16. The company has not taken any term loan during the year.Hence
relevant clause is not applicable to the company.
17. According to information and explanation given to us and an
overall examination of Balance Sheet of the company, we report that no
funds raised during the year, on short term basis have been used for
long term investments.
18. 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.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by way of Public issue during
the year.
21. According to information and explanations given to us, no frauds
on or by the company has been noticed or reported during the course of
our audit.
For SHANKARLAL JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Reg. No. 109901W)
sd/-
PLACE: MUMBAI S.L.AGRAWAL
DATE: 30/05/2014 (PARTNER)
Membership No. 72184
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Jattashankar
Industries Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2013, and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position ,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Company''s
preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made
by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements , subject to Note
No. 23(a) regarding Non Provision of Gratuity liability and Note No.
23(b) regarding provision of Leave encashment instead of cash basis due
to which profit is understated by Rs. 50,000/- , 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 Account, 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
issued by the central government in terms of Section 227 ( 4A) of the
companies 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 explanation which to the
best of our knowledge and belief were necessary for the purpose of our
Audit;
b) In our opinion , proper books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books;
c) The Balance Sheet , Statement of Profit and Loss Account & Cash Flow
Statement with this report are in agreement with the books of accounts;
d) In our opinion Balance Sheet & Profit and Loss Account & Cash Flow
Statement dealt with this report Comply with the Accounting Standards
as specified in section 211 ( 3 C ) of the Companies Act , 1956 except
Accounting Standards 15 in respect of gratuity liability as referred in
Note No. 23(1)
e) On the basis of written representations and explanations received
from Directors, as on 31.03.2013 and taken on record by the Board of
directors, none of the Directors Is disqualified as on 31.03.13 from
being appointed as a director in terms of Clause (g) of Sub Section (1)
of Section of 274 of the Companies Act, 1956.
(Referred to its paragraph 1 thereof)
As required by the companies ( Auditors Report) Order ,2003 issued by
the company Central Government of India in terms of section 227 (4A) of
the companies Act.,1956 On the basis of such checks as we considered
appropriate ,we report that :-
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
assets but the same is to be updated.
b) We are informed that fixed assets were not verified by the
management during the year. Discrepancy if any , will be determined
only after the fixed asset register is updated.
c) The company has not disposed off substantial part of fixed assets
during the year to effect to its going concern.
2.a) Inventories have been physically verified during the year by the
management at reasonable intervals.
b) The procedure followed by the management for physical verification
of stock is in our opinion reasonable and adequate in relation to the
size of the company and the nature of its business.
c) In our opinion and according to information and explanation given to
us ,the company has maintained proper records of its inventories &
discrepancies were noticed on verification between the physical stock
and book stock were not material & have been properly dealt with in
the books of account.
3. a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act 1956. Hence relevant Provisions
are not applicable to the Company .
b) The Company has taken interest free unsecured loan from a company
(strategic promoter).Balance outstanding of Rs. 439.00 lacs at the end
of the year. In our opinion the terms and conditions of the said loan
are not prejudicial to the interest of the Company.
c) Company is regular in repayment of principal and interest as
stipulated .
3. In our opinion and according to the information and explanation
given to us ,there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business ,for the purchase & sale of inventories fixed assets and with
regards to sale of goods and services .During the course of our audit
,We have not observed any continuing to correct the major weakness in
internal controls .
5.a) There are transactions in the company that need to be entered in
the register in pursuance of Section 301 of the Companies Act 1956
,were duly entered .
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
companies Act 1956 and aggregating during the year to 5,00,000/- or
more in respect of each party ,have been made at prices seems
reasonable as prevailing market prices for such goods ,materials or the
price at which transactions for similar goods ,materials or services
have been made with the other parties are not comparable not having
similar goods or services.
6. In our opinion and according to information and explanation given
to us ,the company has not accepted any deposits from public ,hence
provisions of Section 58A & 58 AA of the Companies Act 1956 are not
applicable.
7. The company has no Internal Audit System during the year.
8. We have broadly reviewed the books of accounts maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209 (1) of the companies Act
1956 & area of the opinion that prima facie the prescribed accounts and
records have been made maintained by the company .However, We have not
made detailed examination of records so as to ascertain whether they
are accurate and complete.
9. The company is regular in depositing statutory dues including
Provident fund ,Investor Education & Protection Fund ,Employees State
Insurance ,Income Tax, Wealth Tax ,Sales Tax ,Customs duty and Excise
duty, Service Tax , Cess and other materials statutory dues wherever
applicable with appropriate authorities . We are informed that no
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March 2013 for the period of more than six
months from the date they became payable.
10 The company has accumulated loss at the financial year of Rs.
8,71,49,715/- ( reported figure ) and it has incurred no cash loss in
the financial year & immediately preceding current financial year .
11. In our opinion and according to information and explanation given
to us, company has not defaulted in repayment of dues to financial
institution & others .
12. According to information and explanation given to us, the company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. In our opinion the company is not a chit / nidhi / mutual
fund/society. Therefore the provision of Clause 4 (Xiii) of the
companies (Auditors Report) orders 2003 are not applicable to the
company.
14. In our opinion the company is not dealing or trading in any shares
,securities ,debentures & others investments .Accordingly the provision
of Clause 4 (Xiii) of the companies ( Auditors Report) order 2003 are
not applicable to the company.
15. The company has not given guarantee for loans taken by others from
Banks or Financial Institutions.
16. The company has not taken any term loan during the year. Hence
relevant clause is not applicable to the company.
17. According to information and explanation given to us and an
overall examination of Balance Sheet of the company, we report that no
funds raised during the year, on short term basis have been used for
long term investments.
18. 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.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by way of Public issue during
the year.
21. According to information and explanations given to us, no frauds
on or by the company has been noticed or reported during the course of
our audit.
For SHANKARLAL JAIN & SSOCIATES
CHARTERED ACCOUNTANTS
(Firm Reg. No. 109901W)
sd/-
PLACE: MUMBAI S.L.AGRAWAL
DATE: 03/09/2013 (PARTNER)
Membership No. 72184
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. Jattashankar
Industries Limited (Formerly Known as Jatta Industries Limited.) as at
31st March 2012, & also the Profit & Loss Account and The Cash Flow
Statement for the year ended on that date annexed thereto. These
Financial statements are the responsibility of the company's
Managements .Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan & perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable Basis for our opinion.
1. As required by the companies ( Auditor's Report ) order, 2003
issued by the central government in terms of Section 227 ( 4A) of the
companies Act, 1956
2. We enclose in the annexure, a statement on the matters specified in
Paragraphs 4 and 5 of the said order.
3. Further to our comments in the annexure referred to the above, we
report that
a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
Audit;
b) In our opinion, proper books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books;
c) The Balance Sheet, Profit and Loss Account & Cash Flow Statement
with this report are in agreement with the books of accounts;
d) In our opinion Balance Sheet & Profit and Loss Account & Cash Flow
Statement dealt with this report Comply with the Accounting Standards
as specified in section 211 ( 3 C ) of the Companies Act, 1956 except
Accounting Standards 15 in respect of gratuity liability and Leave
encashment as referred in Note No. 5 .
e) On the basis of written representations and explanations received
from Directors, as on 31.03.2012 and taken on record by the Board of
directors, we report that none of the Directors On the basis of the
written representation received from all of them are disqualified as on
31.03.12 from being appointed as a director in terms of Clause (g) of
Sub Section (1) of Section of 274 of the Companies Act, 1956.
4. In our opinion and to the best of our information and according to
the explanations given to us, the accounts subject to Note No.5
regarding non provision of gratuity & Leave Encashment liability amount
is unascertained, due to this, Profit is overstated to that extent,
and read together with the significant accounting policies and other
notes of NOTE-1, give the information required by the Companies Act,
1956 in the manner so required by the Companies Act, 1956 in the
manner so required give a true & fair view ;
(i) In the case of Balance Sheet of the state of affairs of the company
as at 31st March, 2012
And
(ii) In the case of Profit and Loss Account of the PROFIT for the year
ended on that date.
And
(iii) In the case of the Cash Flow Statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT (Referred to its paragraph 1 thereof)
As required by the companies (Auditors Report) Order, 2003 issued by
the company Central Government of India in terms of section 227 (4A) of
the companies Act., 1956 On the basis of such checks as we considered
appropriate, we report that :-
1. a) The company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
assets but the same is to be updated.
b) We are informed that fixed assets were not verified by the
management during the year. Discrepancy if any, will be determined
only after the fixed asset register is updated.
c) The company has not disposed off substantial part of fixed assets
during the year to effect to its going concern.
2.a) Inventories have been physically verified during the year by the
management at reasonable intervals.
b) The procedure followed by the management for physical verification
of stock is in our opinion reasonable and adequate in relation to the
size of the company and the nature of its business.
c) In our opinion and according to information and explanation given to
us, the company has maintained proper records of its inventories &
discrepancies were noticed on verification between the physical stock
and book stock were not material & have been properly dealts with in
the books of account.
3. a) The company has not granted any loans, secured or unsecured to
companies, firms or other parties listed in the register maintained
under Section 301 of the Companies Act 1956. Hence relevant Provisions
are not applicable to the Company . b) The Company has taken interest
free unsecured loan from a company (strategic promoter). Balance
outstanding of Rs. 426.19 lacs at the end of the year. In our opinion
the terms and conditions of the said loan are not prejudicial to the
interest of the Company.
4. In our opinion and according to the information and explanation
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business, for the purchase & sale of inventories, fixed assets and with
regards to sale of goods and services .During the course of our audit,
We have not observed any continuing to correct the major weakness in
internal controls .
5.a) There are transactions in the company that need to be entered in
the register in pursuance of Section 301 of the Companies Act 1956,
were duly entered .However there transactions are subject to compliance
of section 300 of the Act.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
companies Act 1956 and aggregating during the year to 5,00,000/- or
more in respect of each party, have been made at prices seems
reasonable as prevailing market prices for such goods, materials or the
price at which transactions for similar goods, materials or services
have been made with the other parties are not comparable not having
similar goods or services.
6. In our opinion and according to information and explanation given
to us, the company has not accepted any deposits from public, hence
provisions of Section 58A & 58 AA of the Companies Act 1956 are not
applicable.
7. The company has no Internal Audit System during the year.
8. We have broadly reviewed the books of accounts maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209 (1) of the companies Act
1956 & are of the opinion that prima facie the prescribed accounts and
records have been made maintained by the company .However, We have not
made detailed examination of records so as to ascertain whether they
are accurate and complete.
9.a) The company is regular in depositing statutory dues including
Provident fund, Investor Education & Protection Fund, Employees State
Insurance, Income Tax, Wealth Tax, Sales Tax, Customs duty and Excise
duty, Service Tax, Cess and other materials statutory dues wherever
applicable with appropriate authorities . We are informed that no
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March 2012 for the period of more than six
months from the date they became payable.
b) The disputed statutory dues in respect of excise demand pending
before appropriate higher authorities details as under :-
Name of the Nature of dues Amount Period to which
Statue amounts relates
Central Excise Differential Duty 11,11,073/- F.Y.2002-03
Act 1944 of poy purchased DRI.
under EOU
Name of the Forum where the
Statue dispute is pending
Central Excise Act Add.Comm.Customs
1944
10. The company has accumulated loss at the financial year of Rs.
9,91,35,495/- ( reported figure ) and it has incurred no cash loss in
the financial year & immediately preceding current financial year . .
11. In our opinion and according to information and explanation given
to us, company has not defaulted in repayment of dues to financial
institution & others due to One Time settlement .
12. According to information and explanation given to us, the company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. In our opinion the company is not a chit/nidhi/mutual
fund/society. Therefore the provision of Clause 4 (Xiii) of the
companies (Auditors Report) orders 2003 are not applicable to the
company.
14. In our opinion the company is not dealing or trading in any
shares, securities, debentures & others investments .Accordingly the
provision of Clause 4 (Xiii) of the companies ( Auditors Report) order
2003 are not applicable to the company.
15. The company has not given guarantee for loans taken by others from
Banks or Financial Institutions.
16. The company has not taken any term loan during the year
17. According to information and explanation given to us and an
overall examination of Balance Sheet of the company, we report that no
funds raised during the year, on short term basis have been used for
long term investments.
18. 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.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by way of Public issue during
the year.
21. According to information and explanations given to us, no frauds
on or by the company has been noticed or reported during the course of
our audit.
For SHANKARLAL JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
(Firm Reg. No. 109901W)
SD/-
S. L. AGRAWAL
(PARTNER)
Membership No. 72184
PLACE : MUMBAI
DATE : 03.09.2012
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. Jattashankar
Industries Limited (Formerly Known as Jatta Industries Limited.) as at
31st March 2010, & also the Profit & Loss Account and The Cash Flow
Statement for the year ended on that date annexed thereto. These
Financial statements are the responsibility of the company's
Managements .Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan & perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An Audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
Basis for our opinion.
1. As required by the companies ( Auditor's Report ) order , 2003
issued by the central government in terms of Section 227 ( 4A) of the
companies Act , 1956
2. We enclose in the annexure, a statement on the matters specified in
Paragraphs 4 and 5 of the said order.
3. Further to our comments in the annexure referred to the above , we
report that
a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the purpose of our
Audit;
b) In our opinion , proper books of accounts as required by law have
been kept by the company so far as appears from our examination of the
books;
c) The Balance Sheet , Profit and Loss Account & Cash Flow Statement
with this report are in agreement with the books of accounts;
d) In our opinion Balance Sheet & Profit and Loss Account & Cash Flow
Statement dealt with this report Comply with the Accounting Standards
as specified in section 211 ( 3 C ) of the Companies Act , 1956 except
Accounting Standards 15 in respect of gratuity liability and Leave
encashment as referred in Note No. 5 .
e) On the basis of written representations and explanations received
from Directors, as on 31.03.2010 and taken on record by the Board of
directors, we report that none of the Directors On the basis of the
written representation received from all of them are disqualified as on
31.03.10 from being appointed as a director in terms of Clause (g) of
Sub Section (1) of Section of 274 of the Companies Act, 1956.
4. In our opinion and to the best of our information and according to
the explanations given to us , the accounts subject to Note No.4
regarding sundry balances of debtors ,creditors and loan & advances are
subject to confirmation and reconciliation , Note No.5 regarding non
provision of gratuity & Leave Encashment liability amount is
unascertained , Note No.9 regarding land purchased from the Directors
for which agreement is yet to be executed , Note No.14 certain
discarded assets sold of Rs.1,49,39,413/- in earlier years subject to
approval of Financial Institutions , Note No.16 non provision of
interest on secured loan for the year of Rs.8,85,66,848/- and
accumulated interest of Rs.53,25,15,426/-(up to previous year ) due to
this loss is understated to that extent , Note No. 17 regarding
Assignment deed yet to be registered and read together with the
significant accounting policies and other notes of Schedule "M"
accounts , give the information required by the Companies Act,1956 in
the manner so required.
We further report that without considering item mentioned for Note No.4
& Note No.5 effect of which can not be determined ,had the observation
made by us in Para 3 above been considered the loss for the year would
have been Rs.8,38,29,007/- ( as against report the figure of Profit of
Rs.47,37,841/-) and accumulated loss ( including loss of earlier year
Un provided for Rs.53,25,15,426/-) would have been Rs.87,41,62,853/-(
as against reported figure Rs.25,30,80,579/-).
Due to increase in loss for the year after considering the observations
as referred in Para 3 above , Earning Per Share basic & diluted as
reported in Note No.18 in Schedule "M" would be (Rs.19.11)as against
reported of Rs.1.08 The information required by the Companies Act ,
1956 in the manner so required give a true & fair view ;
( i ) In the case of Balance Sheet of the state of affairs of the
company as at 31st March , 2010
And
(ii ) In the case of Profit and Loss Account of the PROFIT for the
year ended on that date.
And
(iii) In the case of the Cash Flow Statement of the cash flows for the
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
(Referred to its paragraph 1 thereof)
As required by the companies ( Auditors Report) Order ,2003 issued by
the company Central Government of India in terms of section 227 (4A) of
the companies Act.,1956 On the basis of such checks as we considered
appropriate ,we report that :- 1. a) The company has maintained proper
records showing full particulars including quantitative details and
situation of Fixed assets but the same is to be updated.
b) We are informed that fixed assets were not verified by the
management during the year. Discrepancy if any , will be determined
only after the fixed asset register is updated.
c) The company has not disposed off substantial part of fixed assets
during the year to effect to its going concern.
2.a) Inventories have been physically verified during the year by the
management at reasonable intervals.
b) The procedure followed by the management for physical verification
of stock is in our opinion reasonable and adequate in relation to the
size of the company and the nature of its business.
c) In our opinion and according to information and explanation given to
us ,the company has maintained proper records of its inventories &
discrepancies were noticed on verification between the physical stock
and book stock were not material & have been properly deals with in
the books of account.
3. The company has not granted or taken any loans, secured or
unsecured to /from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act 1956.
4. In our opinion and according to the information and explanation
given to us ,there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business ,for the purchase & sale of inventories ,fixed assets and with
regards to sale of goods and services .During the course of our audit
,We have not observed any continuing to correct the major weakness in
internal controls .
5.a) There are transactions in the company that need to be entered in
the register in pursuance of Section 301 of the Companies Act 1956
,were duly entered .However there transactions are subject to
compliance of section 300 of the Act. b) In our opinion and according
to the information and explanation given to us, the transactions made
in pursuance of contracts or arrangements entered in the register
maintained under section 301 of companies Act 1956 and aggregating
during the year to 5,00,000/- or more in respect of each party ,have
been made at prices seems reasonable as prevailing market prices for
such goods ,materials or the price at which transactions for similar
goods ,materials or services have been made with the other parties are
not comparable not having similar goods or services.
6. In our opinion and according to information and explanation given
to us ,the company has not accepted any deposits from public ,hence
provisions of Section 58A & 58 AA of the Companies Act 1956 are not
applicable.
7. The company has no Internal Audit System during the year.
8. We have broadly reviewed the books of accounts maintained by the
company pursuant to the order made by the Central Government for the
maintenance of cost records under section 209 (1) of the companies Act
1956 & are of the opinion that prima facie the prescribed accounts and
records have been made maintained by the company .However, We have not
made detailed examination of records so as to ascertain whether they
are accurate and complete.
9.a) The company is regular in depositing statutory dues including
Provident fund ,Investor Education & Protection Fund ,Employees State
Insurance ,Income Tax, Wealth Tax ,Sales Tax ,Customs duty and Excise
duty, Service Tax , Cess and other materials statutory dues wherever
applicable with appropriate authorities . We are informed that no
undisputed amounts payable in respect of aforesaid dues were
outstanding as at 31st March 2010 for the period of more than six
months from the date they became payable.
b) The disputed statutory dues in respect of excise demand ,Income Tax
Liability pending before appropriate higher authorities details as
under :-
Name of the Nature of dues Amount Period to which Forum where
Statue amounts relates the dispute
is pending
Central
Excise Differential
Duty of 11,11,073/- F.Y.2002-03 Add.Comm.
Act 1944 poy purchased custom ms
under EOU DRI.
Central
Excise Excise duty on 17,33,150/- F.Y.2004-05 Deputy
Act 1944 stocks of yarns Commissioner
lost in floods
Income Tax
Act Disallowance 1,54,16,891/- F.Y.2000-01 Income Tax
1961 of Sundry Bal. Appellate
w/off Tribunal
10. The company has accumulated loss at the financial year of Rs.
25,30,80,579/- ( reported figure ) and it has incurred no cash loss in
the financial year & immediately preceding current financial year
However as per our main report accumulated loss would be Rs.
87,41,62,853/- .
11. In our opinion and according to information and explanation given
to us and with reference to Schedule "C" the company has defaulted in
repayment of dues of Rs.81,13,62,300/- (including interest un-provided
of Rs.62,10,82,274/- ) to financial institution & others.
12. According to information and explanation given to us, the company
has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities.
13. In our opinion the company is not a chit / nidhi / mutual
fund/society. Therefore the provision of Clause 4 (Xiii) of the
companies (Auditors Report) orders 2003 are not applicable to the
company.
14. In our opinion the company is not dealing or trading in any shares
,securities ,debentures & others investments .Accordingly the provision
of Clause 4 (Xiii) of the companies ( Auditors Report) order 2003 are
not applicable to the company.
15. The company has not given guarantee for loans taken by others from
Banks or Financial Institutions.
16. The company has not taken any term loan during the year
17. According to information and explanation given to us and an overall
examination of Balance Sheet of the company, we report that no funds
raised during the year, on short term basis have been used for long
term investments.
18. 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.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by way of Public issue during
the year.
21. According to information and explanations given to us, no frauds
on or by the company has been noticed or reported during the course of
our audit.
For SHANKARLAL JAIN & SSOCIATES
CHARTERED ACCOUNTANTS
(Firm Reg. No.109901W)
SD/-
PLACE : MUMBAI S.L.AGRAWAL
DATE : 06.09.2010 (PARTNER)