We have audited the accompanying financial statements of JMG
CORPORATION LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31, 2014 and the Statement of Profit and Loss and Cash Flow
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 flow 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") read with General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of 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.
We report that 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 Profit and Loss Account, of the profit for the
year ended on that date.
c) in the case of 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 (as
amended), issued by the Central Government in terms of Section 227(4A)
of the Companies Act, 1956 and on the basis of such checks of the books
and records of the Company as we considered appropriate and according
to the information and explanations given to us during the course of
audit, we annex hereto a statement on the matters specified in
paragraphs 4&5 of the said Order to the extent to which they are
applicable.
2. Further to our comments in the Annexure referred to in paragraphs
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 such
books.
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts.
d) In our opinion, the Balance sheet, the Profit & Loss account and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section 3(c) of section 211 of
the Companies Act, 1956.
e) On the basis of written representation received from Directors and
taken on record by the Board of Directors, we report that none of the
Director is disqualified as on 31.3.2014 from being appointed as a
Director of the Company under clause (g) of sub section (1) of section
274 of the Companies Act, 1956.
3. In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with notes thereon give
the information required by the Companies Act, 1956 (as amended) in the
manner so required and give a true and fair view in conformity with
accounting principles generally accepted in India:
a) in case of Balance Sheet, of the state of affairs of the Company as
at 31st March, 2014 and
b) In the case of the Profit & Loss Account, of the profit for the year
ended on that date.
c) In case of cash flow statement, of the cash flows for the year ended
on that date
ANNEXURE TO THE AUDITORS' REPORT
Annexure referred to in paragraph 1 of the auditors' report to the
Members of JMG CORPORATION LIMITED on the accounts for the year ended
March 31, 2014.
(i) a) The company has maintained proper records to show full
particulars, including quantitative details and situation of fixed
assets.
b) The Fixed assets of the company have been physically verified by the
management in accordance with a phased programme of verification
adopted by the company during the year. No material discrepancies have
been noticed on physical verification as confirmed by the management.
c) As per the information and records provided to us, the manufacturing
division along with all its assets situated at Gurgaon has been
disposed off by the Company during the year.
(ii) a) During the year, the inventories have been physically verified
by the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the information and explanations
given to us, 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) On the basis of our examination of the record of inventories, we are
of the opinion that the company is maintaining proper records of
inventories. As explained to us there was no material discrepancies
noticed on physical verification of stock as compared to books stock.
(iii) a) According to the information and explanations given to us, the
company had not taken any unsecured
loan from the parties covered in the register maintained under section
301 of the Companies Act, 1956. The loan outstanding amounting to Rs.
41 Lacs at the beginning of the year from the party covered under
section 301 of the Companies Act, 1956 has been paid off during the
year.
b) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to the parties
listed in the register maintained under section 301 of the Companies
Act, 1956.
c) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from the parties listed in the register
maintained under section 301 of the Companies Act, are not prima facie,
prejudicial to the interest of the company.
(iv) On the basis of checks carried out during the course of audit and
as per explanations given to us, there are adequate internal control
procedures commensurate with the size of the Company and the nature of
its business with regard to purchases of inventories, fixed assets and
with regard to the sale of goods. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
internal controls.
(v) a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register maintained in pursuance of section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to information and explanations given
to us, there is no transactions in pursuance of contract or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956.
(vi) On the basis of our scrutiny of the company's record and according
to information and explanations provided by the management, the Company
has not accepted any deposits from the public within the meaning of
Section 58A and 58AA or any other relevant provision of the Act.
(vii) The Company has an internal audit system which is commensurate
with the size of the Company and nature of its business.
(viii) We are informed that the Central Government has not prescribed
the maintenance of cost records under section 209 (1) (d) of the
Companies Act, 1956.
(ix) a) According to the information and explanations given to us, the
Company is regular in depositing with appropriate authorities
undisputed statutory dues including provident Fund, sales tax income
tax, service tax and other material statutory dues applicable to it.
As explained to us, the Employee's Insurance Scheme is not applicable
to the Company.
b) According to the information and explanations given to us, no
undisputed amount payable in respect of sales tax, income tax, service
tax and cess were in arrear, as on March, 31,2014 for a period of more
than six months from the date they become payable.
(x) The Company has no accumulated losses at the end of the financial
year and it has not incurred cash losses in the current and immediately
preceding financial year.
(xi) Based on audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the Company has not defaulted during the year in repayment
of dues to Banks/Financial institutions.
(xii) As per records of the company and according to the information
and explanations provided by the management, the company has not
granted any loans and advances on the basis of security by way of
pledge of share debentures and other securities, paragraph 4 (xii) of
the order is not applicable.
(xiii) As Company is not a chit fund/nidhi/mutual benefit funds/society
to which the provisions of special statute relating to chit fund are
applicable, paragraph 4 (xiii) of the order is not applicable.
(xiv) As per records of the company and according to the information
and explanations provided by the management, the Company is not dealing
or trading in shares, securities, debentures and other investments,
paragraph 4 (xiv) of the order is not applicable.
(xv) According to the information and explanations provided by the
Management, the Company has not given any guarantees for loans taken by
others from banks, paragraph 4 (xv) of the order is not applicable.
(xvi) The Company has not taken any term loan, paragraph 4(xvi) of the
order is not applicable.
(xvii) According to the information and explanations given to us and on
the basis of our overall examination of the Cash Flow Statement, we
report that no funds raised on short term basis have been used for long
term investment.
(xviii) The company has not made any preferential allotment to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956.
(xix) As the company has not issued any debentures, paragraph 4(xix) of
the order is not applicable.
(xx) During the year, since the company has not raised money by way of
public issue, paragraph 4(xx) of the order is not applicable.
(xxi) During the course of our examination of the books of accounts
carried out in accordance with generally accepted audit practices in
India and according to information and explanations given to us, we
have neither come across any instance of fraud on or by the company,
noticed or reported during the year nor have been informed of such case
by the management.
FOR ANDROS & COMPANY
CHARTERED ACCOUNTANTS
Sd/-
PLACE : New Delhi (CA SANJEEV GUPTA)
DATE : 14-08-2014 PARTNER
Membership No. 092264
FRN : 008976N |