Jagatjit Industries Ltd


BSE: 507155 | NSE: JAGAJITIND | ISIN: INE574A01016 
Market Cap: [Rs.Cr.] 225 | Face Value: [Rs.] 10
Industry: Breweries & Distilleries

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Auditor's Report

Independent Auditors

TO THE MEMBERS OF JAGATJIT INDUSTRIES LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of Jagatjit Industries Limited("the Company"), which comprise the Balance Sheet as at March 31, 201 3, and theStatement of Profit and Loss and Cash Flow Statement for the year then ended, and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position, financial performanceand cash flows of the Company in accordance with the Accounting Standards referred to insub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). Thisresponsibility includes the design, implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor's judgment, including the assessment of the risks of material misstatement of thefinancial statements, whether due to fraud or error. In making those risk assessments, theauditors considers internal control relevant to the Company's preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byManagement, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to the explanationsgiven to us, the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2013;

(b) In the case of the Statement of Profit and Loss, of the profit for the year endedon that date; and

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

7. 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 ofthe Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and5 of the Order.

8. 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 ourknowledge 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 theCompany so far as appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealtwith 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 FlowStatement comply with the Accounting Standards referred to in sub-section (3C) of section211 of the Act;

(e) On the basis of the written representations received from the directors as on March31, 2013, and taken on record by the Board of Directors, none of the directors isdisqualified 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 Act.

Nitin Chaudhry
Partner
Membership No. F 91463
For and on behalf of
Mittal Chaudhry & Co.
Place : New Delhi Chartered Accountants
Date : 30th May, 2013 Firm Registration No. 002336N

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 7 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of JagatjitIndustries Limited on the financial statements for the year ended March 31, 2013).

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The fixed assets are physically verified by the management according to a phasedprogramme designed to cover all the items over a period of three years, which in ouropinion, is reasonable having regard to the size of the Company and the nature of itsassets. Pursuant to the programme, a portion of the fixed assets has been physicallyverified by the management during the year and no material discrepancies between the bookrecords and the physical inventory have been noticed.

(c) In our opinion and according to the information and explanations given to us, asubstantial part of fixed assets has not been disposed of by the Company during theyear.

(ii) (a) The inventory (excluding stocks with third parties) has been physicallyverified by the management during the year. In respect of inventory lying with thirdparties, these have substantially been confirmed by them. In our opinion, the frequency ofverification is reasonable.

(b) In our opinion, the procedures of physical verification of inventory followed bythe management are reasonable and adequate in relation to the size of the Company and thenature of its business.

(c) On the basis of our examination of the inventory records, in our opinion, theCompany is maintaining proper records of inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.

(iii) (a) The Company has not granted loans, unsecured, to companies, firms or otherparties covered in the register maintained under Section 301 of the Act. Accordingly,clauses (iii)(b) to (iii)(d) of the paragraph 4 of the Order are not applicable to theCompany during the current year.

(e) The Company has not taken any loans, secured or unsecured, from companies, firms orother parties covered in the register maintained under Section 301 of the Act.Accordingly, clauses (iii)(f) to (iii)(g) of the paragraph 4 of the Order are notapplicable to the Company during the current year.

(iv) In our opinion and according to the information and explanations given to us,there is, in general, an adequate internal control system commensurate with thesize of the Company and the nature of its business for the purchase of inventory, fixedassets and for the sale of goods and services. Further, on the basis of our examination ofthe books and records of the Company, and according to the information and explanationsgiven to us, we have neither come across nor have been informed of any continuing failureto correct major weakness in the aforesaid internal control system.

(v) (a) In our opinion and according to the information and explanations given to us,the particulars of contracts or arrangements referred to in Section 301 of the Act havebeen entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, thetransactions made in pursuance of such contracts or arrangements and exceeding the valueof Rupees Five Lakhs in respect of any party during the year have been made at priceswhich are prima facie reasonable, having regard to the prevailing market prices at therelevant time where such prices are available.

(vi) In our opinion and according to the information and explanations given to us, theCompany has complied with the provisions of Sections 58A and 58AA or any other relevantprovisions of the Act and the Companies (Acceptance of Deposits) Rules, 1975 with regardto the deposits accepted from the public. According to the information and explanationsgiven to us, no Order has been passed by the Company Law Board or National Company LawTribunal or the Reserve Bank of India or any Court or any other Tribunal on the Company inrespect of the aforesaid deposits.

(vii) In our opinion, the Company has an internal audit system commensurate with itssize and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the Company inrespect of products where, pursuant to the Rules made by the Central Government of India,the maintenance of cost records has been prescribed under clause (d) of sub-section (1) ofSection 209 of the Act and are of the opinion that prima facie, the prescribed accountsand records have been made and maintained. We have not, however, made a detailedexamination of the records with a view to determine whether they are accurate or complete.

(ix) (a) The Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund, Investor Education and Protection Fund, Employees' StateInsurance, Income Tax, Sales Tax, Wealth-tax, Service tax, Custom duty, Excise duty, Cessand other material statutory dues with the appropriate authorities.

(b) According to the information and explanations given to us, there were no undisputeddues in respect of 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 which were outstanding, at the Balance Sheet date, for aperiod of more than six months from the date they became payable.

(c) According to the information and explanations given to us and the records of theCompany examined by us, the particulars of dues of sales tax, income tax, custom duty,wealth tax, service tax, excise duty and cess as at March 31, 2013 which have not beendeposited on account of a dispute, are as follows:-

Name of the statute Nature of dues Amount (Rs.) Period to which the amount relates Forum where the Dispute is pending
EXCISE DUTY
Central Excise Act, 1944 Demand of Excise duty on sale of Spent Grain 3,088,547 September 2001 to June 2005 CESTAT, New Delhi
Central Excise Act, 1944 Penalty in the above matter 2,690,619 September 2001 to June 2005 CESTAT, New Delhi
Central Excise Act, 1944 Demand of Cess on manufacturing of Corrugated Paper Board 22,772 December 2008 to October 2011 Commissioner (Appeals) Chandigarh - I
Central Excise Act, 1944 Penalty in the above matter 22,772 December 2008 to October 2011 Commissioner (Appeals) Chandigarh - I
SERVICE TAX
The Finance Act, 1994 Wrong availment of Service Tax Cenvat Credit 13,127,235 October 2003 to September 2007 CESTAT, New Delhi
The Finance Act, 1994 Penalty in the above matter 13,127,235 October 2003 to September 2007 CESTAT, New Delhi
The Finance Act, 1994 Wrong availment of Service Tax Cenvat Credit 6,970,632 October 2007 to March 2008 CESTAT, New Delhi
The Finance Act, 1994 Penalty in the above matter 6,970,632 October 2007 to March 2008 CESTAT, New Delhi
The Finance Act, 1994 Demand of Service Tax on Tie-up Operations and Royalty 3,122,000 July 2003 to March 2004 CESTAT, New Delhi
The Finance Act, 1994 Penalty in the above matter 3,123,000 July 2003 to March 2004 CESTAT, New Delhi
The Finance Act, 1994 Demand of Service Tax on Tie-up Operations and Royalty 9,186,110 2007-2008 CESTAT, New Delhi
The Finance Act, 1994 Penalty in the above matter 18,373,220 2007-2008 CESTAT, New Delhi
SALES-TAX
Punjab Haryana General Sales Tax Act Purchase Tax 325,247 1999-2000 Deputy Excise & Taxation Commissioner (Appeals), Patiala
Sales Tax under Bihar Finance Act Inclusion of excise duty to determine gross turnover 1,896,695 1984-1985 Commercial Tax Tribunal, Ranchi
Central Sales Tax Act Liquor stock destroyed, reprocessed and resold 133,017 1988-89 Sales Tax Appellate Tribunal, Hyderabad
State and Central Sales Tax Acts Sales tax on Sales of ENA and Spent Grain 7,300,201 2001 -02 to 2002-03 Allahabad, High Court.

INCOME TAX ACT*

*Departmental Appeals in respect of Income Tax Act, 1961 before the Higher Authoritiesare not being considered as there is no stay on the Order of Lower Authority favouring theCompany and the amount is not ascertainable.

(x) The Company has no accumulated losses as at March 31, 2013 and it has not incurredany cash losses in the financial year ended on that date or in the immediately precedingfinancial year.

(xi) According to the records of the Company examined by us and the information andexplanation given to us, the Company has not defaulted in repayment of dues to anyfinancial institution or bank or debenture holders as at the balance sheet date.

(xii) The Company has not granted any loans and advances on the basis of security byway of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute applicable to chitfund/nidhi/mutualbenefit fund/societies are not applicable to the Company.

(xiv) In our opinion, the Company is not a dealer or trader in shares, securities,debentures and other investments.

(xv) In our opinion, and according to the information and explanations given to us, theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions during the year.

(xvi) In our opinion, and according to the information and explanations given to us, onan overall basis, the term loans have been applied for the purposes for which they wereobtained.

(xvii) On the basis of an overall examination of the balance sheet of the Company, inour opinion and according to the information and explanations given to us, there are nofunds raised on a short-term basis, which have been used for long-term investment.

(xviii) The Company has not made any preferential allotment of shares to parties andcompanies covered in the register maintained under Section 301 of the Act during the year.

(xix) The Company has not issued any debentures accordingly, no securities has beencreated.

(xx) The Company has not raised any money by public issues during the year.

(xxi) During the course of our examination of the books and records of the Company,carried out in accordance with the generally accepted auditing practices in India, andaccording to the information and explanations given to us, we have neither come across anyinstance of fraud on or by the Company, noticed or reported during the year, nor have webeen informed of such case by the management.

Nitin Chaudhry
Partner
Membership No. F 91463
For and on behalf of
Mittal Chaudhry & Co.
Place : New Delhi Chartered Accountants
Date : 30th May, 2013 Firm Registration No. 002336N
   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
United Spirits 40,997.59 117.93 4.83 23.98 5.2 10.8 0.71
United Breweries 21,157.29 129.27 14.73 37.80 12.5 13.4 0.80
Radico Khaitan 1,595.27 20.71 2.22 11.51 11.2 12.8 1.03
Tilaknagar Inds. 808.22 13.72 1.86 8.82 12.3 13.1 1.29
Som Distilleries 648.65 35.23 7.06 16.69 20.9 28.5 0.13
Jagatjit Inds. 225.21 0.00 0.92 8.68 -1.3 3.6 0.77
Khoday India 217.27 0.00 2.95 37.83 0.0 0.0 1.33
IFB Agro Inds. 185.68 7.07 1.08 1.80 19.4 28.2 0.00
Globus Spirits 178.25 10.43 0.64 3.61 12.9 14.8 0.32
G M Breweries 126.17 5.96 1.10 4.29 20.5 27.1 0.24
Mohan Meakin 121.76 0.00 3.17 0.00 -52.5 -6.7 2.04
Empee Distill. 93.39 11.15 0.34 5.36 4.0 6.7 0.52
Pioneer Distil. 87.04 0.00 -2.84 0.00 0.0 0.0 0.00
Rochees Brew. 27.68 0.00 -2.82 0.00 0.0 0.0 0.00
Indage Vintners 25.03 0.00 0.61 0.00 0.0 0.0 2.64

Futures & Options Quote

 
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Key Information

Key Executives:

K K Kohli , Company Secretary  

Narender Sapra , Managing Director  

Ravi Manchanda , Whole-time Director  

Kiran Kapur , Director  


Company Head Office / Quarters:
Jagatjit Nagar,
,
Kapurthala,
Punjab-144802
Phone : 91-181-2783112/16
Fax : 91-181-2783118
E-mail :
hamira@jagatjit.com
investor@jagatjit.com
Web : http://www.jagatjit.com
Registrars:
Jagatjit Industries Ltd
Jagatjit Nagar


Kapurthala - 144 802

Fund Holding

 
Scheme Name No. of Shares
No data found

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