We have audited the accompanying standalone financial statements of JIK
INDUSTRIES 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 STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 ("the Act") with respect to
the preparation and presentation 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 the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We have conducted our audit in accordance with the Standards on
Auditing specified under section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by 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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) in the case of the Statement of Profit and Loss, of the loss for the
period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
period ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors
as on March 31,2015, 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; and
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 25(B)(1) to
the financial statements;
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses; and
iii. There were no amounts required to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT
Issued by the Central Government under sub section 11 of section 143 of
the Companies Act, 2013, (18 of 2013) Referred to in paragraph 1 of our
report of even date
i) In respect of its fixed assets:
a. The company is in the process of maintaining proper records for
showing full particulars including quantitative details and situation
of fixed assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
ii) In respect of inventory of raw material, stores and operating
supplies:
a. The inventory has been physically verified during the period by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of the 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 verification between the physical stock and
the book records have been appropriately dealt with in the books of
account.
iii) In respect of the loans, secured or unsecured, given/taken by the
company from companies, firms or other parties covered in the register
maintained u/s.189 of the Companies Act, 2013.
a. The repayment of principal amounts and interest during the year has
been as per stipulation.
b. There are no overdue amounts of more than Rs. 100,000/- outstanding
at the year-end.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and with regards to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control.
v) The Company has not accepted any deposits, as such the 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, were not applicable.
vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148(1) of the Companies Act,
2013 in respect of its products and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not carried out a detailed examination of
the accounts and records with a view to determine whether these are
accurate or complete.
vii) (a) According to the information and explanations given to us the
following undisputed statutory dues were outstanding as per books of
accounts as at March 31,2015, for a period of more than six months from
the date they became payable are;
Name of the statue Nature of the dues Period to which Amount
relates
Sales Tax Act. Sales Tax 2002-03
Sales Tax Act. Sales Tax 2005-06
MVAT Act Vat 2013-14
ESIC Act ESIC 2014-15
Profession Tax Act Profession Tax 2014-15
Name of the statue Amount (In Lacs.)
Sales Tax Act. 0.86
Sales Tax Act. 2.17
MVAT Act 0.40
ESIC Act 0.57
Profession Tax Act 0.12
(b) According to the records of the Company, the dues of Income Tax
which have not been deposited on account of disputes are as under:
Name of the statue Nature of dues Amount(In Lacs) Period which the
amount relates
Income Tax Act Income Tax 39.67 1995-96 (*)
Income Tax Act Income Tax 156.70 2000-01
Income Tax Act Income Tax 372.69 2001-02
Income Tax Act Income Tax 2259.25 2005-06
Income Tax Act Income Tax 0.10 2006-07
Income Tax Act Income Tax 273.54 2007-08
Income Tax Act Income Tax 768.26 2008-09
Income Tax Act Income Tax 4005.22 2009-10
Income Tax Act Income Tax 4156.24 2010-11
Name of the statue Forum where disputes pending
Income Tax Act Income Tax Appellate Tribunal,
Mumbai.
Income Tax Act Commissioner of Income Tax, Mumbai
City II.
Income Tax Act Commissioner of Income Tax, Mumbai
City II.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
Income Tax Act Income Tax Appellate Tribunal,
Mumbai.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
(*) ITAT (Mumbai) vide its order dated 23.10.2012 has partly allowed
the appeal. Order giving effect for the same is awaited.
(c) There were no amounts required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder.
viii) The Company as at March 31,2015 has completely eroded its net
worth and the Company has incurred cash losses during the financial
year and also in immediately preceding financial year.
ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions and banks.
x) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee.
xi) In our opinion and according to the information and explanations
given to us, no term loans have been obtained during the year under
review.
xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For MOTILAL & ASSOCIATES
Chartered Accountants
Registration No.:106584W
Place: Mumbai (M L JAIN)
Date: 25th May, 2015 Partner
Membership No. 36811
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