BSE: 507155 | NSE: JAGAJITIND | ISIN: INE574A01016
Market Cap: [Rs.Cr.] 219.90 | Face Value: [Rs.] 10
Industry: Breweries & Distilleries
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, 2014, 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.
Managements Responsibility for the Financial Statements
2. The Companys 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") read withthe General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairsin respect of Section 133 of the Companies Act, 2013. This responsibility includes thedesign, implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.
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 theauditors judgment, including the assessment of the risks of material misstatement ofthe financial statements, whether due to fraud or error. In making those risk assessments,the auditors considers internal control relevant to the Companys preparation andfair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Companys internal control. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of the accountingestimates made by Management, as well as evaluating the overall presentation of thefinancial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit 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, 2014;
(b) In the case of the Statement of Profit and Loss, of the loss for the year ended onthat 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 (Auditors Report) Order, 2003 ("theOrder") issued by the Central Government of India in terms of sub-section (4A) ofsection 227 of the Act, we give in the Annexure a statement on the matters specified inparagraphs 4 and 5 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 read with the General Circular 15/2013 dated September 13, 2013 of theMinistry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013;
(e) On the basis of the written representations received from the directors as on March31, 2014, and taken on record by the Board of Directors, none of the directors isdisqualified as on March 31, 2014, from being appointed as a director in terms of clause(g) of sub-section (1) of section 274 of the Act.
|Membership No. F 91463|
|For and on behalf of|
|Mittal Chaudhry & Co.|
|Place : New Delhi||Chartered Accountants|
|Date : 10th July, 2014||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, 2014)
(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 the year.
(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 the size ofthe Company and the nature of its business for the purchase of inventory, fixed assets andfor the sale of goods and services. Further, on the basis of our examination of the booksand records of the Company, and according to the information and explanations given to us,we have neither come across nor have been informed of any continuing failure to correctmajor 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, EmployeesState 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, 2014 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|
|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||17,824||November 2010 to October 2011||Commissioner (Appeals) Chandigarh - I|
|Central Excise Act, 1944||Penalty in the above matter||17,824||November 2010 to October 2011||Commissioner (Appeals) Chandigarh - I|
|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|
|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, 2014 and it has incurred cashlosses in the financial year ended on that date.
However the Company had not incurred cash losses in the immediately preceding financialyear.
(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 chit fund/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 material fraud on or by the Company, noticed or reported during the year, norhave we been informed of such case by the management.
|Membership No. F 91463|
|For and on behalf of|
|Mittal Chaudhry & Co.|
|Place : New Delhi||Chartered Accountants|
|Date : 10th July, 2014||Firm Registration No. 002336N|
|04-Apr-13||Vinod Kumar Banga, Chief Operating Officer - Sales & Marketing, Jagatjit Industries Limited|
|07-Nov-13||Tilaknagar Industries appoints Ronil Sujan as non-executive & independent Director|
|25-Oct-13||Grover Zampa wins five awards at prestigious Decanter Asia Wine Awards 2013|
|24-Oct-13||Fratelli shines at decanter Asia Wine Awards 2013|
|22-Oct-13||JK Arora, Chairman, SOM Group|
|22-Oct-13||Radico Khaitan to consider disposal of IMFL business|
|19-Oct-13||Fratelli launches the Gran Cuve Brut|
K K Kohli , Company Secretary
Narender Sapra , Managing Director
Ravi Manchanda , Director
Kiran Kapur , Director
Company Head Office / Quarters:
Phone : Punjab-91-181-2783112/16 / Punjab-
Fax : Punjab-91-181-2783118 / Punjab-
E-mail : firstname.lastname@example.org / email@example.com
Web : http://www.jagatjit.com
Jagatjit Industries Ltd
Jagatjit Nagar, , ,Kapurthala - 144 802
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