To
The Members of
JAIHIND PROJECTS LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the financial statements of JAIHIND PROJECTS LIMITED ("the
Company"), which comprise the balance sheet as at 31st March2019, and the statement
of Profit and Loss and statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other
explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the Act
in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at 31st
March,2019, its profit/loss and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditor’s Responsibilities for the Audit of
the Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Information other than the financial statements and auditors’ report thereon
The Company’s board of directors is responsible for the preparation of the other
information. The other information comprises the information included in the Board’s
Report including Annexures to Board’s Report but does not include the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Erstwhile management and Those Charged with Governance for the
Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these financial statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with the accounting
principles generally accepted in India, including the accounting Standards specified under
section 133 of the Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, erstwhile management is responsible for
assessing the Company’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of
accounting unless erstwhile management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with
SAs will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by erstwhile management.
• Conclude on the appropriateness of erstwhile management’s use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
We are independent of the Group in accordance with the ethical requirements that are
relevant to our audit of the financial statements and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 ("the
Order"), issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Companies Act, 2013, we give in the ‘Annexure A’, a statement
onthe 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:
i. 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.
ii. 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.
iii. 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.
iv. 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.
v. On the basis of the written representations received from the directors as on 31st
March,2019taken on record by the Board of Directors, none of the directors is disqualified
as on 31st March,2019from being appointed as a director in terms of Section 164 (2) of the
Act.
vi. With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in ‘Annexure B’.
vii. With respect to the matter to be included in the Auditor’s Report under
section 197(16), In our opinion and according to the information and explanations given to
us, the remuneration paid by the Company to its directors during the current year is in
accordance with the provisions of section 197 of the Act.
The remuneration paid to any director is not in excess of the limit laid down under
section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details
under section 197(16) which are required to be commented upon by us.
viii. 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 pending litigations and the impact on its financial
position-refer note 26 to the Standalone Financial Statements.
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
|
For N.K.ASWANI & CO. |
|
Chartered Accountants |
|
FRN: 100738w |
| Place: AHMEDABAD |
NARAIN KHEMCHAND ASWANI |
| Date: 04/09/2019 |
(PROPRIETOR) |
|
Membership No:033278 |
ANNEXURE-A
Annexure to Independent Auditors’ Report
Jaihind Projects Limited (‘The Company’) incorporated in India and to whom
the provisions of the Order apply. Our reporting, hereunder, in so far as it relates to
the aforesaid Company is based on the reports of audited financial statements.
i. a) The Company wherever applicable has maintained the fixed assets registers however
the records maintained by the Company in respect of its fixed assets are not verified and
full particulars of situation of assets, and location of assets have been certified by
erstwhile management.
b) Physical verification of the fixed assets is not done; the same have been certified
by erstwhile management.
ii. a) As explained to us, the erstwhile management of the Company wherever applicable
the Company has conducted physical verification of inventory.
b) According to information and explanations provided to us, inventories at different
sites have been visually quantified and the value estimated by respective site in charge.
We are unable to comment on the correctness of the procedure of physical verification of
inventories followed by the erstwhile management.
iii. a) 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.
The terms of the arrangements do not stipulate any repayment schedule and the loan and
Interest is
b) repayable on demand. Accordingly, paragraph 3 (iii) (b) of the Order is not
applicable to the Company in respect of repayment of the principal amount.
c) There were no overdue amounts of more than rupees one lakh in respect of the loans
granted to the party covered in the register maintained under section 189 of the Act.
iv. In our opinion and according to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from banks or financial
institutions except guarantee given for loan taken by its subsidiary i.e. Jaihind
Infratech Projects Private Limited and the terms and conditions is not prima facie
prejudicial to the interests of the Company.
v. The Company has not accepted any deposits from the public covered under Section 73
to 76 of the Companies Act, 2013.
vi We have broadly reviewed the books of account relating to materials, labour and
other items of costs 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 Act and we are
of the opinion that prima facie the prescribed accounts and records wherever applicable
have beenmade and maintained. We have, however not made detailed examinations of the
records with a view to determine whether they are accurate or complete.
vii. a) According to information and explanations provided to us and on the basis of
examination of records, the Company generally regular in deposit of undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund, Employees State
Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess,
Goods and Services Tax and any other statutory dues applicable to it. As explained by the
erstwhile management during the year under consideration all the statutory payments are
paid out of escrow account with bank only.
b) According to the information andexplanation provided by the erstwhile managementto
us, there were no undisputed amount payable in respect of the aforesaid due which were
outstanding as at 31st March, 2019 for a period of more than six months from
the date they became payable during the year
c) According to the information and explanations given to us and the records of the
Company the statutory dues which have not been deposited on account of any dispute are as
under:
(a) Jaihind Projects Ltd:
| Name of the statute |
Nature of the dues |
Amount in Rs. Lakhs |
Period to which it relates |
Forum where dispute is pending |
| Finance Act 1994 |
Service Tax |
223.58 |
June 16, 2005 to Sep 2006 |
Supreme Court |
| Finance Act 1994 |
Service Tax |
212.79 |
Oct 2006 to Sep 2007 |
CESTAT, Ahmedabad |
| Finance Act 1994 |
Service Tax |
177.37 |
Oct 2007 to March 2008 |
CESTAT, Ahmedabad |
| Gujarat Commercial Tax |
Commercial Tax |
327.41 |
Year 2009-10 |
Deputy Commissioner of Commercial Tax (Appeals), Ahmedabad |
| Gujarat Commercial Tax |
Commercial Tax |
416.95 |
Year 2010-11 |
Deputy Commissioner of Commercial Tax (Appeals), Ahmedabad |
| Gujarat Commercial Tax |
Commercial Tax |
426.12 |
Year 2011-12 |
Deputy Commissioner of Commercial Tax (Appeals),Ahmedabad |
| Income Tax Act 1961 |
Income Tax |
76.73 |
A.Y. 2010-11 |
CIT Appeals 2 |
| Income Tax Act 1961 |
Income Tax |
125.70 |
A.Y. 2011-12 |
CIT Appeals 2 |
d) There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company in accordance with the relevant provisions of
the Act.
viii The Company’s all lenders account slip in Non-Performing Assets. And all
lenders are in the process of recovering there debts from the assets mortgaged and assets
pledged.
ix Based on our audit procedures and according to the information given by the
erstwhile management, the company has not raised any money by way of initial public offer
or further public offer (including debt instruments) or taken any term loan during the
year.
x. Based upon the audit procedures performed for the purpose of reporting the true and
fair view of the financial statements and as per the information and explanations given by
the erstwhile management, which we have relied upon, we report that no fraud on or by the
Company have been noticed or reported during the year.
xi According to the information and explanations given to us, we report that managerial
remuneration has been paid in accordance with the requisite approvals mandated by the
provisions of section 197 read with Schedule V to the Companies Act.
xii The company is not a Nidhi Company. Therefore clause xii) of the order is not
applicable to the company.
xiii. According to the information and explanations given to us, all transactions with
the related parties are in compliance with sections 177 and 188 of Companies Act, 2013
where applicable and the details have been disclosed in the Financial Statements etc. as
required by the applicable accounting standards.
xiv. The company has not made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year under review.
xv. The company has not entered into non-cash transactions with directors or persons
connected with him.
xvi. The company is not required to be registered under section 45-IA of the Reserve
Bank of India Act, 1934.
|
For N.K.ASWANI & CO. |
|
Chartered Accountants |
|
FRN: 100738w |
| Place: AHMEDABAD |
NARAIN KHEMCHAND ASWANI |
| Date: 04/09/2019 |
(PROPRIETOR) |
|
Membership No:033278 |
ANNEXUREB
Report on Internal Financial Controls Over Financial Reporting
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of JAIHIND
PROJECTS LTD. as ofMarch 31, 2019 in conjunction with our audit of the financial
statements of the Company for the year ended on that date.
Erstwhile management’s Responsibility for Internal Financial Controls
The Company’s erstwhile management is responsible for establishing and maintaining
internal financial controls based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to company’s policies, the safeguarding
of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, tothe extent applicable
to an audit of internal financial controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered Accountants of India.
Those Standards and the Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether adequate internal
financial controls over financial reporting was established and maintained and if such
controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures
selected depend on the auditor’s judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that
1. pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in
accordance with authorisations of erstwhile management and directors of the company; and
3. provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper erstwhile management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2019, based on the
internal control over financial reportingcriteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
|
For N.K.ASWANI & CO. |
|
Chartered Accountants |
|
FRN: 100738w |
| Place: AHMEDABAD |
NARAIN KHEMCHAND ASWANI |
| Date: 04/09/2019 |
(PROPRIETOR) |
|
Membership No:033278 |
+91-9892691696
