INDEPENDENT AUDITOR
To,
The Members of,
JAYAVANT PRODUCTS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Jayavant Products Limited
("the Company"), which comprise the Balance Sheet as at March 31, 2013, 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 Principles generally accepted in India including
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 requ?e 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.
Opinion
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:
(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 , of the loss 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 ("the
Order") issued by the Central Government of India in terms of sub-section (4A) of
section 227 of the 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 explanations which to the best of our
knowledge 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 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 Balance Sheet, the Statement of Profit and Loss, and Cash Flow
statement comply with the Accounting Standards referred to in sub section (3C) of section
211 of the Companies Act, 1956;
e. on the basis of the written representations received from the directors as on March
31, 2013, and taken on record by the Board of Directors, none of the d?ectors is
disqualified 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 Companies Act, 1956.
f. As stated in Note no.18 to the Financial Statements, Loans & Advances given by
the company, to the extent of Rs.6,88,02,873.83/- are in contraventions of Section 372A of
the Act;
The possible impact of the non-compliance, in the event coordination requests are not
granted, has not been determined or recognized in the financial statements.
For R.S. AGRAWAL & ASSOCIATES
Chartered Accountants
(Registration no. 100156W)
Anuja Dedhia
Partner
M. No. 123589
Mumbai
30th May 2013.
Annexure to Independent Auditor’s Report
Referred to in Paragraph 1 under the heading of "Report on Other Legal and
Regulatory Requirements of our report of even date.
1. the Company does not have any fixed assets, therefore the reporting requirement
under clauses 4(i) (a), (b) & (c) of the Order is not applicable to the Company;
2. the Company does not hold any inventory, therefore reporting requirement under
clauses 4(ii) (a) (b) & (c) of the Order is not applicable to the Company;
3. according to information and explanation given to us:
a) the Company has during the year, not granted unsecured loan to the companies, firm
and other parties covered in the register maintained under section 301 of the Act.
However, the year end balance of loan granted in earlier year was Rs.11398270/- of such
one party;
b) the terms and conditions of the aforesaid interest free loans granted are prima
facie not prejudicial to the interest of the Company;
c) the receipt of principal amount of the aforesaid loans granted is regular;
d) since the aforesaid loans granted, as informed to us, are receivable on demand, no
amount has been classified as overdue;
e) the Company has not taken any loan during the year from companies, firm and other
parties covered in the register maintained under section 301 of the Act. Consequently, the
requirements of sub clauses (f) and (g) of the clause 4(iii) of the Order are not
applicable to the Company.
4. on the basis of selective checks carried out dining the course of audit and
according to the information and explanations given to us, there is adequate
internal control system commensurate with the size of the Company and nature of its
business with regard to purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, no major weaknesses have been noticed in
internal control system;
5. a) according to the information and explanation given to us, we are of the opinion
that the particulars of contracts or arrangements referred to in section 301 of the Act,
have been entered in the register required to be maintained under that section; and
b) in our opinion and according to information and explanations given to us, there
were no transactions made in pursuance of contracts or arrangements entered in the
register maintained under Section 301 of the Companies Act, 1956 and exceeding the value
of rupees five lacs in respect of any party during the year. Therefore the reporting
requirement under provision of clause 4 (v) (b) of the Order is not applicable to the
Company;
6. the Company has not accepted any deposits from the public. Therefore the reporting
requirement under provision of clause 4(vi) of the Order is not applicable to the Company;
7. the Company is required to have an internal audit system as the Company is listed at
the recognized stock exchange and its paid up capital and reserves at the commencement of
financial year exceeds Rs.50 lacs, however, the Company, during the year, had no such
internal audit system;
8. we have been informed that the Central Government has not prescribed the maintenance
of cost records under Section 209 (1) (d) of the Act;
9. in respect of statutory dues:
a) according to the information and explanations given to us, the Company has generally
been regular in depositing 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 and other statutory dues with the
appropriate authorities as applicable to it. There are no arrears of undisputed statutory
dues as at the last day of financial year concerned, outstanding for a period of more than
six months from the date they became payable; and
b) according to the information and explanations given to us, and books and records
examined by us, there was no disputed dues in respect of sales tax, custom duty, wealth
tax, excise duty, cess and income tax.
10. the accumulated losses at the end of the year are less than fifty percent of
Company’s net worth . The Company has incurred cash losses in the financial year
under audit and the Company has not incurred cash Losses in the immediately preceding
financial year;
11. as per the information and explanation given to us and based on documents and
record produced to us, there were no dues payable to any financial institution, bank or
debenture holders during the year, therefore reporting requ?ement under clause 4 (xi) of
the Order is not applicable to the Company;
12. according to the information and explanation given to us and based on documents and
record produced to us, the Company has not granted 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 or a nidhi/mutual benefit fund or a
society. Therefore reporting requirement under clause 4 (xiii) of the Order is not
applicable to the Company;
14. in our opinion, the Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore reporting requ?ement under clause 4 (xiv) of
the Order is not applicable to the Company;
15. according to the information and explanations given to US, the Company has not
given any guarantee for loans taken by others from banks or financial institutions;
16. as per the records of the Company, the Company has not obtained any term loan
during the year;
17. as per the information and explanation given to us and on the overall examinations
of the financial statements of the Company, we are of the opinion that funds raised on
short-term basis have not been utilized for long-term investments;
18. during the year, the company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section 301 of the Act;
19. the Company did not have any outstanding debenture during the year;
20. the Company has not raised any money through a public issue during the year;
21. based on the audit procedures performed and the information and explanations given
to us by the management, we report that no fraud on or by the Company has been noticed or
reported during the course of our audit.
For R.S. AGRAWAL & ASSOCIATES
Chartered Accountants
(Registration no. 100156W)
Anuja Dedhia
Partner
M. No. 123589
Mumbai
30th May, 2013.
+91-9892691696
