To the Members of JIN DAL COTEX LTD,
Report on the Standalone Ind AS financial statements Opinion
We have audited the accompanying Standalone Ind AS financial statements of JINDAL
COTEX LTD. ("the Company"), which comprise the Balance Sheet as at March 31,
2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and Cash Flow Statement and for the year then ended, and a
summary of significant accounting policies and other explanatory information (herein after
referred to as "standalone Ind AS financial statements").
In our opinion and to the best of our information and according to the explanations
given to us, except for the effects of the matters described in Emphasis of Matter section
of our report, the standalone financial statements give the information required by the
Companies Act 2013 in the manner so required and give a true and fair view in conformity
with the Indian Accounting Standards prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and
other accounting principles generally accepted in India , of the state of affairs of the
Company as at 31 March, 2023, and its Profit (including other comprehensive income), its
cash flow and the changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with
the Standards on Auditing specified under section 143(10) of the Act (SAs). 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 Institute of Chartered Accountants of India (ICAI) 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 made there under, and we
have fulfilled our other ethical responsibilities in accordance with these requirements
and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our unmodified opinion on the standalone
Ind AS financial statement.
Emphasis of Matter
We draw attention to the following:
• In absence of balance confirmations of Trade receivables, Trade payables and
Loans & Advances, the impact on the financial statements is not ascertainable.
• Since the accounts of the Company have declared NPA with all the banks/financial
institutions, no balance confirmation is thus available since their declaration as NPA.
• The company has various statutory liabilities outstanding since long as on
31/03/2023 being VAT, ESI, EPF etc.
• With reference to the Note No.09 of financial statement, he Exceptional Items of
Rs. 1,036.37 lakhs pertain to Rs. 29.64 lakhs as Profit on Sale of Building, Rs. 0.15
lakhs as Scrap Sales, Rs. 145.93 lakhs as Provisions for Debtors Written Back, Rs. 775.00
lakhs as Rate Difference, Rs. 89.60 lakhs as Rebate and Discount and Rs. 3.94 lakhs as
Prior Period Expenses.
• The Company was in the process of challenging the SAT order in response to SEBI
order WTM/AB/EFD- 1/DRA-1/04/2019-2020 dated 24/04/2019 barring the Company and its
directors from accessing the securities market and further prohibit them from buying,
selling or otherwise dealing in securities (including unit of mutual funds, directly or
indirectly, or being associated with the securities market in any manner, whatsoever, for
a period of five years.
• Ind As on unquoted investments in wholly owned subsidiary and others and on
capital advance have not been applied by the company, so we are unable to comment upon the
effects of the same on the financial statements.
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.
Except for the matters described in emphasis of matter section we have determined that
there are no other key audit matters to communicate in our report.
v. Evaluate the overall presentation, structure and content of the Ind AS financial
statements, including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone Ind AS financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the standalone financial
statements.
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.
Other Matters
The Statement includes the results for the Quarter ended March 31, 2023, being the
balancing figure between audited figures in respect of the full financial year and the
published unaudited year-to-date figures up to the third quarter of the current financial
year which were subject to limited review by us.
Our opinion on the Statement is not modified in respect of this matter.
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 section 143(11) of the Act, we give
in the "Annexure A" a statement on the matters Specified in paragraphs 3 and 4
of the Order.
"ANNEXURE A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in Paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements." Section of our report of even date)
On the basis of such checks as we considered appropriate and according to the
information and explanations given to us during the course of our audit, we report that:
I. In respect of the Companys Property, Plant & Equipment and Intangible Assets:
a) (A) The Company has maintained proper records showing full particulars including
quantitative details and situation of Property, Plant & Equipment.
(B) The company has maintained proper records showing full particulars of intangible
assets.
b) The company has a program of physical verification of Property, Plant &
Equipment to cover most of the items in phased manner over a period of regular intervals,
which in our opinion is reasonable, having regard to the size of company and the nature of
its assets. Pursuant to the program a portion of Property, Plant & Equipment were
verified by the management during the year. According to the information and explanation
given to us, no material discrepancies were noticed on such verification. However, such
reports have not been given to us;
c) The title deeds of all the immovable properties are held in the name of the
company. However, none is made available to us as they are pledged with the financial
institutions.
d) The company has not revalued its Property, Plant & Equipment or Intangible
Assets during the year;
e) As informed, No proceedings have been initiated during the year or are pending
against the Company as at 31st March, 2023, for holding any Benami property under the
Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made
thereunder.
II. In our opinion and according to the information and explanation given to us
a) The physical verification of inventory has been conducted at reasonable
intervals by the management, the coverage and procedure of such verification by the
management
Annexure - B to Independent Auditors Report (Referred to 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 JINDAL
COTEX LTD. as of 31st March, 2023 in conjunction with our audit of the standalone Ind AS
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 (ICAI).
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, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the 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 auditors judgment, including the assessment of the risks of
material misstatement of the standalone Ind AS 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 standalone Ind AS 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 standalone
Ind AS 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 standalone
Ind AS 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 to the best of our information and according to the explanations given
to us, the company has, in all material respects Except for the matters described in the
Emphasis of Matter Section an adequate internal financial controls system over financial
reporting and such internal financial controls over financial reporting were operating
effectively as at 31st March 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 K.R. Aggarwal & Associates |
|
Chartered Accountants |
| Place: Ludhiana |
FRN:030088N |
| Date: 06/06/2023 |
KANIKA (Partner) |
| UDIN: 23539337BGTQRU5831 |
Membership No: 539337 |
+91-9892691696
