To the Members of
Jayshree Chemicals Limited
Report on the Audit of the Standalone Ind AS financial statements
Opinion
We have audited the Standalone Ind AS financial statements of Jayshree
Chemicals Limited ("the Company") which comprise the balance sheet as at 31st
March 2023, the statement of Profit and Loss, statement of changes in equity and statement
of cash flows for the year ended, and notes to the Standalone Ind AS 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 Stan-dalone Ind AS 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 March 31, 2023, and its loss, changes in equity 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 Auditors Responsibilities for the
Audit of the Standalone Ind AS 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 Standalone Ind AS 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the Standalone Ind AS financial statements of
the current period. These matters were addressed in the context of our audit of the
Standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate
in our report.
Information Other than the Financial Statements and Auditors
Report Thereon
The Companys Board of Directors is responsible for the other
information. The other information obtained at the date of this auditors report is
information included in the Annual report but does not include the financial statements
and our auditors 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 in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information
obtained prior to the date of this auditors report, 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.
Managements Responsibility for the Standalone Ind AS financial
statements
The Companys 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 Standalone Ind AS financial statements that give a true and fair
view of the financial position, financial performance, changes in equity 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
implementation and maintenance of accounting policies; making judgments and estimates 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 statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS financial statements, management is
responsible for assessing the Companys ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless 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
companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Ind AS
financial statements
Our objectives are to obtain reasonable assurance about whether the
Standalone Ind AS financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors 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 in_u-ence the
economic decisions of users taken on the basis of these Standalone Ind AS 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 mis statement of the
Standalone Ind AS 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
misstate- ment 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 management.
• Conclude on the appropriateness of managements 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 Companys ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors
report to the related disclosures in the Standalone Ind AS financial statements or, if
such disclosures are inadequate, to modify our opinion. Our con- clusions are based on the
audit evidence obtained up to the date of our auditors 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
Standalone Ind AS financial statements, including the disclosures, and whether the
Standalone Ind AS 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 Standalone Ind
AS financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditors 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.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditors Report) Order, 2020
("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 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 it appears from our examination of those books.
(c) 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.
(d) In our opinion, the aforesaid Standalone Ind AS 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 the written
representations received from the directors as on 31st March, 2023 taken on record by the
Board of Directors, none of the directors is disqualified as on 31st March, 2023 from
being appointed as a director in terms of Section 164 (2) of the Act.
(f) 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".
(g) With respect to the other matters to be included in the
Auditors Report in accordance with the requirements of section 197(16) of the Act,
as amended: In our opinion and to the best of our information and according to the
explanations given to us, the remuneration paid by the Company to its directors during the
year is in accordance with the provisions of section 197 of the Act.
(h) With respect to the other matters to be included in the
Auditors 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 does not have any pending litigations which would
impact its financial position except as stated in note no. 30(1)(i). 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. iv. (a) The
management has represented that, to the best of their knowledge and belief, other than as
disclosed in the notes to the accounts, no funds have been advanced or loaned or invested
(either from borrowed funds or share premium or any other sources or kind of funds) by the
company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of their
knowledge and belief, other than as disclosed in the notes to the accounts, no funds have
been received by the company from any person(s) or entity(ies), including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the company shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries; and (c) Based on audit procedures that
has considered reasonable and appropriate in the circumstances, nothing has come to our
notice that has caused us to believe that the representations under subclause (a) and (b)
contain any material misstatement.
(iv) No dividend has declared or paid by the Company during the
financial year.
(v) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable for the Company only w.e.f. April 1, 2023, reporting under rule 11(g) is not
applicable to the Company for the financial year 2022-23.
|
For AMK & Associates |
|
Chartered Accountants |
|
FRN: 327817E |
|
Bhupendra Kumar Bhutia |
|
Partner |
| Place: Kolkata |
Membership No. 059363 |
| Date: 15th May 2023 |
UDIN: 23059363BGVZLZ2452 |
Annexure "A"to the Independent Auditors Report
Annexure to the Independent Auditors Report to the Board of
Directors of Jayshree Chemicals Limited referred to in paragraph 1 of Report on Other
Legal and Regulatory Requirements in our Report of even date
(i) (a) (A) The company is maintaining proper records showing full
particulars, including quantitative details and situation of Property, Plant and
Equipment.
(B) There is no intangible asset in the Company as at the balance sheet
date, hence reporting under clause (i)(a)(B) of the Order is not applicable.
(b) The Property, Plant and Equipment have been physically verified by
the management at reasonable intervals and no material discrepancies were noticed on such
verification.
(c) Based on the examination of the registered sale deed / transfer
deed / conveyance deed provided to us, we report that title deeds of all the immovable
properties (other than immovable properties where the Company is the lessee and the lease
agreements are duly executed in favour of the Company) are disclosed in the financial
statements are held in the name of the company as on the balance sheet date.
(d) The Company has not revalued any of its Property, Plant and
Equipment assets, during the year, hence reporting under clause (i)(d) of the Order is not
applicable.
The Company does not have any Right of Use assets or intangible assets
or both as at the balance sheet date.
(e) According to the information and explanations given to us, no
proceedings have been initiated or are pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder. (ii) (a) According to the information and explanations given to us, the
physical verification of inventory has been conducted at reasonable intervals by the
management and in the opinion, the coverage and procedure of such verification by the
management is appropriate, having regard to size of the Company. No discrepancies of 10%
or more in the aggregate for each class of inventories were noticed on such physical
verifica-tion of inventories when compared with books of account.
(b) According to the information and explanations given to us, the
company has not been sanctioned any working capital limits in excess of five crore rupees,
in aggregate, during any point of time of the year, from banks or financial institutions
on the basis of security of current assets, hence reporting under clause (ii) (b) of the
Order is not applicable.
(iii) (a) The Company has made investments in, and granted loans or
advances in the nature of loans, secured or unsecured, to companies, firms, limited
liability partnerships or any other parties during the year, in respect of which: (A) The
Company has provided loans during the year and details of which are given below:
| i. Subsidiaries |
Rs 361.52 Lakhs |
| ii. Others-Inter-Corporate Deposits |
Rs 360.00 Lakhs |
| (B) Balance Outstanding as on 31st March 2023 |
|
| i. Subsidiaries |
Rs 77.04 Lakhs |
| ii. Other-Inter Corporation Deposits |
NIL Lakhs |
The Company has not provided any guarantee or security to companies,
firms, limited liability partnerships or other parties.
(b) The investments made and loans or advances in the nature of loans
granted, in our opinion, prima facie are not prejudicial to the companys interest.
According to the information and explanations given to us, during the
year the company has not provided any guarantee.
(c) According to the information and explanations given to us, in
respect of loans and advances in the nature of loans, the schedule of repayment of
principal and payment of interest has been stipulated and the repayments or receipts are
regular.
(d) There is no overdue amount of loan for more than ninety days as on
31st March 2023
(e) According to the information and explanation given to us, loan or
advance in the nature of loan granted which has fallen due during the year, has not been
renewed or extended or fresh loans granted to settle the overdue of existing loans given
to the same parties.
(f) According to information and explanations given to us and based on
the audit procedures performed, the Company has not granted any loans or advances in the
nature of loans either repayable on demand or without specifying any terms or period of
repayment during the year. Hence, reporting under clause 3 (iii) (f) is not applicable.
(iv) The Company has complied with the provisions of sections 185 and
186 of the Act in respect of loans, investments, guarantees, and security.
(v) According to the information and explanations given to us, the
Company has not accepted any deposit during the year.
As informed to us, no order has been passed by the Company law Board
and National Company Law Tribunal or Reserve Bank of India or any court or any other
tribunal against the company for any violation of deposit provisions.
(vi) The maintenance of cost records by the Company has not been
specified by the Central Government under section 148(1) of the Companies Act, 2013.
(vii) According to the information and explanations given to us, in
respect of statutory dues: a) The Company has generally been regular in depositing
undisputed statutory dues, including Income tax, Goods and Service Tax, Provident Fund,
Employees State Insurance, cess and other material statutory dues applicable to it
to the appropriate authorities. b) There were no undisputed amounts payable in respect of
Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Service Tax, Goods
and Service Tax, Value Added Tax, cess and other material statutory dues in arrears as at
31 March, 2023 for a period of more than six months from the date they became payable.
(a) Details of dues of Income Tax, Excise Duty and Value Added Tax
which have not been deposited as on 31 March 2023 on account of disputes are given below:
Name of the Statute |
Nature of Dues |
Forum where Dispute is Pending |
Period to which Amount
Relates |
Amount net of deposit (Rs in
Lakhs) |
| Odisha VAT Tax Act |
VAT |
DCCT, Berhampur |
2011-12 to 2012-13 |
261.13 |
West Bengal VAT |
VAT |
CTO Kolkata |
2017-18 |
1.72 |
West Bengal VAT |
CST |
CTO Kolkata |
2017-18 |
2.75 |
Income Tax Act |
Income Tax |
Writ Petition before Hon.
Kolkata High Court |
Asst. Year 2016-17 |
9518.08 |
(viii) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, there were no transactions
relating to previously unrecorded income that have been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961.
(ix) (a) According to the information and explanations given to us,
during the year the Company has not defaulted in repayment of loans or other borrowings or
in the payment of interest thereon to any lenders. (b) According to the information and
explanations given to us, the company is not a declared wilful defaulter by any bank or
financial institution or other lender.
(x) According to the information and explanations given to us, no money
was raised by way of initial public offer or further public offer (including debt
instruments) during the year, hence reporting under clause (x) of the Order is not
applicable (xi) (a) According to the information and explanations given to us, no fraud by
the company or any fraud on the company has been noticed or reported during the year.
(b) During the year, no fraud by the company or any fraud on the
company has been noticed or reported, accordingly no such report under sub-section (12) of
section 143 of the Companies Act has been filed by the auditors in Form ADT-4 as
prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central
Government.
(c) According to the information and explanations given to us, the
Company has a mechanism or policy for whistle-blower complaints to lodge. As represented
to us by the management, there are no whistle blower complaints received by the company
during the year.
(xii) The Company is not a Nidhi Company, hence reporting under clause
(xii) of the Order is not applicable. (xiii) All transactions with the related parties are
in compliance with section177 and 188 of Companies Act, 2013 and the details have been
disclosed in the Financial Statements etc., as required by the applicable accounting
standards (xiv) (a) In our opinion and based on our examination, the company has an
adequate internal audit system commensurate with size and nature of its business.
(b) We have considered, the internal audit reports for the year under
audit, issued to the Company during the year and till date, in determining the nature,
timing and extent of our audit procedures.
(xv) According to information and explanations given to us and based on
our examination of the records of the Company, the company has not entered into any
non-cash transactions with directors or persons connected with its directors and hence the
provisions of section 192 of Companies Act are not applicable to the Company. (xvi) The
company is not required to be registered as a non banking financial company under section
45-IA of the Reserve Bank of India Act, 1934, hence reporting under clause (xvi) (a), (b)
and (c) of the Order is not applicable. As represented to us by the management, the group
has no CIC.
(xvii) The company has not incurred cash losses in the current
financial year, however it has incurred cash losses of Rs 1.16 Lakhs in the
immediately preceding financial year.
(xviii) There has not been any resignation of the statutory auditors
during the year.
(xix) On the basis of the financial ratios, ageing and expected dates
of realisation of financial assets and payment of financial liabilities, other information
accompanying the financial statements, the auditors knowledge of the Board of
Directors and management plans, the auditor is of the opinion that no material uncertainty
exists as on the date of the audit report that company is capable of meeting its
liabilities existing at the date of balance sheet as and when they fall due within a
period of one year from the balance sheet date.
(xx) According to the information and explanations given to us,
provisions of section 135 are not applicable to the Company as the Company is not the
meeting the criteria of applicability as prescribed in section 135, hence reporting under
clause (xx) of the Order is not applicable.
|
For AMK & Associates |
|
Chartered Accountants |
|
FRN: 327817E |
|
Bhupendra Kumar Bhutia |
|
Partner |
| Place: Kolkata |
Membership No. 059363 |
| Date: 15th May 2023 |
UDIN: 23059363BGVZLZ2452 |
Annexure "B"to the Independent Auditors Report
Annexure to the Independent Auditors Report to the Members of
Jayshree Chemicals Limited referred to in paragraph 2 (f) of Report on Other Legal and
Regulatory Requirements in our Report of even date
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 Jayshree Chemicals
Limited as of March 31,2023 in conjunction with our audit of the standalone financial
statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 companys 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, to the
extent applicable to an audit of internal financial controls, 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 auditors 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 Companys 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 authorizations of 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 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 finan-cial reporting and such internal financial
controls over financial reporting were operating effectively as at March 31, 2023, 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".
|
For AMK & Associates |
|
Chartered Accountants |
|
FRN: 327817E |
|
Bhupendra Kumar Bhutia |
|
Partner |
| Place: Kolkata |
Membership No. 059363 |
| Date: 15th May 2023 |
UDIN: 23059363BGVZLZ2452 |
(Rs In Lakh)
+91-9892691696
