To The Members of J J Exporters Ltd
Report on the Audit of the Ind AS Financial Statements Qualified Opinion
We have audited the accompanying Ind AS financial statements of J J Exporters Ltd (the
Company), which comprise the Balance Sheet as at 31st March, 2021, and
the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the
financial statements, including a summary of the 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 Ind AS 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 accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2021, and Profit, total comprehensive income,
changes in equity and its cash flows for the year ended on that date subjected to our
basis of Qualification.
Basis For Qualified Opinion
A. The Board of Directors had decided in the meeting held on 30th May, 2018
that a major portion of the Companys assets has been taken over by bank and in the
process of sale under the SARFASI Act,2002, and there is no business operations of the
company and the Company does not have any commercial existence, the continuance of
corporate existence of the company was no longer feasible. Thus, the Board has decided
that the Company be wound up under the provisions of section 271(a) of the Companies Act,
2013, subsequently approved by shareholder through Postal Ballot on 02.08.2018 and matter
is pending with NCLT, Kolkata Bench. In view of same company is not a going concern, hence
liquidation accounting method applied to the extent possible.
B. As the bank taken over the Secured assets of the company, which shown at carrying
amount not at Realisable value as company itself applied for the Wounding Up and subjected
to the approval NCLT, Kolkata bench.
C. As the company has not provided for interest on the Bank loan and non-confirmation
and reconciliation of the bank Loans, effect of the same on the financial statement is not
ascertainable at Present. [Refer Note No. 13(v)].
D. As per the bank Statement, secured assets sold by the bank without providing details
and statutory compliance thereof, if any, effect of the same on the financial statement is
not ascertainable. [Refer Note No. 13(vii)].
Emphasis of Matters
Note 12(B) of the financial statements which indicate that the company has accumulated
losses and its net worth has been fully eroded, the company has incurred net loss during
the current and previous years and the companys current liabilities exceeded its total
assets of the company. These conditions, along with other matters set forth in Note 25(5)
of the financial statement so that financial Statement of the company is prepared on
Liquidation basis of accounting.
Responsibilities of Management and Those Charged with Governance for the 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 state
of affairs (financial position), profit or loss (financial performance including other
comprehensive income), cash flows and changes in equity of the Company in accordance with
the accounting principles generally accepted in India, including the Indian Accounting
Standards (Ind AS) prescribed 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 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 standalone Ind AS financial statements that give a
true and fair view and are free from material misstatement, whether due to fraud or error
save and except basis of our Qualification.
In preparing the Financial Statement the management and the board of directors are
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 the board of directors either intends to liquidates the company or to
cease operations or has no realistic alternative but to do so. The Board of directors are
also responsible for overseeing the companys Financial reporting process.
Auditors Responsibilities for the Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS Financial
Statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue and 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 influence the economic decision of user taken on the basis
of these 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 misstatement of the 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 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 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 Ind AS 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
auditors report. However, future events or conditions may cause the Company to cease to
continue as a going concern. The Financial statement is prepared on liquidation basis of
accounting.
• Evaluate the overall presentation, structure and content of the Ind AS Financial
Statements, including the disclosures, and whether the 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Ind AS financial statements except basis of
qualified opinion.
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditors 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 "Annexure-A", a statement on the matters
specified in paragraphs 3 and 4 of the Order.
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, the Statement of Changes in
Equity and the Cash Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards prescribed 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 31stMarch,
2021, taken on record by the board of director, none of the director is disqualified as on
31stMarch, 2021 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 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 the impact of pending litigations on its financial
position in its financial statements as at 31st March 2021 [Refer Note No.
25(1) to the financial statements].
(ii) The company did not have any long term contracts including derivative contract as
at 31st March 2021.
(iii) There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund. [Refer note 25(12)].
| Place: 11, Crooked Lane, |
For Lihala & Co. |
| Kolkata 700069 |
Chartered Acccountants |
|
FRN:315052E |
|
Sd/- |
|
PRIYAM DALMIYA |
| Date: 3rd day of December 2021 |
PARTNER |
|
M No. 303794 |
|
UDIN: 21303794AAAAEY1208 |
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in Paragraph 1 under "Report on Other Legal and Regulatory
Requirements" section of our Report of even date)
The Annexure referred to in Independent Auditors Report to the members of the Company
on the financial statements for the year ended 31st March 2021, we report that:
i) (a) The Company fixed Assets is taken over by the bank and process of sale under
SARFAESI Act, 2002 stated in Note No. [13(A)vii] so that unable to comment on this Clause.
ii) As explained to us, inventories have been physically verified during the year
by the management save and except inventories possession taken by the bank.
iii. According to the information and explanations given to us, the Company has not
granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships
or other parties covered in the register maintained under section 189 of the Companies
Act, 2013.
iv. According to the information and explanations given to us, the Company has not
given any loans, investments, guarantees, and security and has not invested in any other
body corporate, hence the comment on the said clause of the order is not applicable.
v. According to the information and explanations given to us, there is no such
deposits, taken by the Company, for which directives issued by the Reserve Bank of India
and the provisions of sections 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules framed there under, are required to be complied with.
vi. According to the information and explanations given to us, the company is not
required to maintain cost record under sub section (1) of section 148 of Companies Act
2013. Hence, comment on clause on vi of the said order is not applicable.
vii (a). According to the records of the Company and as per the information and
explanations given to us, the company has been regular in depositing undisputed statutory
dues including provident fund, employees state insurance, goods and services tax, income
tax service tax, duty of customs, duty of excise, value added tax, cess and other
statutory dues with the appropriate authorities. No arrears of outstanding statutory dues
on the last day of the financial year concerned exists for a period of more than six
months from the date they became payable.
b) On the basis of our examination of the documents and records the following
disputed statutory dues which have not been deposited with the appropriate authorities are
as under:
The details regarding Income Tax disputed dues pending before Commissioner of Income
Tax (Appeals) is shown below:
(Rs in Lakhs)
| Assessment Year |
Income Tax Amount () |
Assessment Year |
Income Tax Amount () |
| 1998-1999 |
.80 |
2009-2010 |
424.07 |
| 2003-2004 |
1.63 |
2010-2011 |
3.28 |
| 2005-2006 |
52.51 |
2011-2012 |
0.62 |
| 2008-2009 |
458.68 |
2012-2013 |
0.04 |
The details regarding the Sales Tax disputed dues pending before the Appellate and
Revisional Board are as follows:
| Assessment Year |
Sales Tax Amount () |
| 2008-09 |
1.15 |
| 2009-10 |
1.04 |
| 2010-11 |
25.76 |
The details regarding the Excise Duty, Custom Duty and Service Tax dispute dues are as
follows:
| Particulars |
Amount in () |
Forum where Dispute is Pending |
| Custom Duty(including penalty of 48.40) (2009-10 to 2012-13) |
93.17 |
Commissioner of Central Excise |
| Service Tax (2006-07) |
2.56 |
Central Excise and Service Tax Appellate Tribunal (CESTAT) |
| Service Tax (2007-08) |
3.27 |
Central Excise and Service Tax Appellate Tribunal (CESTAT) |
| Service Tax (2006-07) |
3.34 |
Commissioner of Central Excise |
| Service Tax (2007-08) |
0.91 |
Central Excise and Service Tax Appellate Tribunal (CESTAT) |
| Service Tax (2007-08) |
2.67 |
Commissioner of Central Excise |
| Service Tax (2008-09 to 2011-12) |
2.83 |
Commissioner of Central Excise |
| Service Tax (2009-10) |
0.52 |
Commissioner of Central Excise |
| Service Tax (2006-07 & 2007-08) |
6.95 |
Commissioner of Central Excise |
| Service Tax (2007-08) |
2.02 |
Honourable High Court of Calcutta |
viii. The loans from Banks (including interest thereon), are defaulted in
repayment by the company. The said amounts are subject to confirmation and reconciliation,
if any. The Company has not provided interest on the said loans as the secured assets
possession was taken by the Bank under the SARFAESI Act, 2002 as explained loan has become
NPA [Refer Note 13(a)v] and subsequently the possessed assets were sold by Bank as per the
bank statement and adjusted accordingly by the company. [Refer Note 13(a)vii]. The
defaulted principle outstanding Rs. 3538.88 Lakhs and Interest accrued and due of Rs.
358.94 Lakh.
ix. To the best of our knowledge and belief and according to the information and
explanations given to us, the Company has not raised any term loan, and it has not raised
any money by way of initial public offer or further public offer during the year. Hence
comment on this clause in not applicable.
x. During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted audit practices in India, and
according to the information and explanation given to us, we have neither come across
instance of fraud on or by the Company, noticed or reported during the year, nor have we
been informed of such case by the management.
xi. To the best of our knowledge and belief, No managerial remuneration has been
paid and provided in accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies Act, 2013.
xii. According to the information and explanation given to us, clause (xii) in
respect of Nidhi Company is not applicable to the company. Hence the comment on the said
clause does not arise.
xiii. All transactions with the related parties are in compliance with sections 177
and 188 of Companies Act 2013, and have been disclosed in Notes to Accounts as required by
Ind AS 24. [Refer Note 25(4)].
xiv. The company has not made any preferential allotment or private placement of
shares or fully or partly convertible debentures during the year; hence comment on the
said clause of the order is not applicable.
xv. To the best of our knowledge and belief and as per the information and
explanations given to us, the Company has not entered into any non-cash transaction 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.
| Place: 11, Crooked Lane, Kolkata 700069 |
For Lihala & Co. Chartered Acccountants FRN:315052E |
| Date: 3rd day of December 2021 |
Sd/- PRIYAM DALMIYA PARTNER M No. 303794 UDIN: 21303794AAAAEY1208 |
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of section
143 of the Companies Act, 2013 ("the Act")
(Referred to Paragraph 2(g) of Report on Other Legal and Regulatory Requirements of our
Report of even date)
We have audited the internal financial controls over financial reporting of J J
Exporters Ltd ("the Company") as of 31st March 2021 in
conjunction with our audit of the 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 Unit 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 Units 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 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 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 management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorised 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 financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March, 2021,
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. However, subjected to our basis of Qualified Opinion in
the auditors report.
| Place: 11, Crooked Lane, Kolkata 700069 |
For Lihala & Co. Chartered Acccountants FRN:315052E |
| Date: 3rd day of December 2021 |
Sd/- PRIYAM DALMIYA PARTNER M No. 303794 UDIN: 21303794AAAAEY1208 |
+91-9892691696
