JAYANT AGRO Auditors Report

To the Members of


Jayant Agro-Organics Limited


Report on the Standalone Financial Statements


We have audited the accompanying standalone financial statements of Jayant Agro-Organics Limited, which comprises the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss and the 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


The Company''''s 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 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 the Accounting Standards prescribed under Section 133 of the Act, as applicable. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting the 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 internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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 have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order under section 143(11) of the Act.


We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require 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 financial control relevant to the Company''''s preparation of the financial statements that give true and fair view 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 the Company''''s Directors, 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 standalone 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, 2017, and its profit and its cash flow for the year ended on that date.


Report on Other Legal and Regulatory Requirements


1. 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 financial statements comply with the Accounting Standards prescribed under section 133 of the Act, as applicable.


e) On the basis of the written representations received from the directors as on March 31, 2017 taken or record by the Board of Directors, none of the directors is disqualified as on March 31, 2017 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 A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''''s internal financial controls over financial reporting.


g) With respect to the other matters to be included in the Auditor''''s 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 discussed the impact of pending litigations on its financial position - Refer Note 32 to the Financial Statements


ii. Since company did not have any long term contracts including of derivatives, there are no material foreseeable losses on account of such contracts


- Refer Note 44 to the Financial Statements.


iii. There has been no delay in transferring amounts, required to be transferred to the Investor Educator and Protection Fund - Refer Note 45 to the Financial Statements.


iv. The Company has provided requisite disclosure in the financial statements as to holding as well as dealing in Specified Bank Notes during the period from November 08, 2016 to December 30, 2016 - Refer Note 46 to the Financial Statements.


2. As required by the Companies (Auditor''''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section 11 of section 143 of the Act, we give in the ''''Annexure B", a statement on the matters specified in paragraphs 3 and 4 of the Order.


ANNEXURE A TO THE INDEPENDENT AUDITOR''''S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF JAYANT AGRO-ORGANICS LIMITED.


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 Jayant Agro-Organics Limited. ("the Company") as of March 31, 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.


Management''''s Responsibility for Internal Financial Controls


The Company''''s 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 company''''s 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 Company''''s 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 auditor''''s judgment, 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 Company''''s internal financial controls system over financial reporting.


Meaning of Internal Financial Controls Over Financial Reporting


A company''''s 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 company''''s 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 company''''s 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


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 March 31, 2017, 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.


ANNEXURE B TO THE AUDITORS'''' REPORT


Referred to in paragraph 2 of our report of even date on the financial statements for the year ended March 31, 2017 of Jayant Agro-Organics Limited and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we state that:


(i) (a) The Company has generally maintained proper books and records showing full particulars, including quantitative details and situations of fixed assets


(b) The Company has a regular program of physical verification of its fixed assets by which all fixed assets are physically verified, periodically. In our opinion, periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business. According to information and explanations given to us, no material discrepancies were noticed on such verification;


(c) The title deeds of immovable properties of the Company are held in the name of the company.


(ii) Physical verification of inventory has been conducted at reasonable intervals by the management. There is no material discrepancy noticed by management during the year The discrepancies noticed have been dealt with in the books of account appropriately;


(iii) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.


(iv) In our Opinion and according to the explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.


(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public.


(vi) According to the information and explanation given to us, the Central Government vide Companies (Cost Records and Audit) Rules, 2014 prescribed the maintenance of cost records under sub-section (1) of section 148 of the Companies Act, 2013. The Company has maintained the cost records and accounts as required by the Companies (Cost Records and Audit) Rules, 2014.


(vii) In respect of statutory dues:


(a) According to the information and explanation given to us and as per the records of the Company examined by us, undisputed statutory dues including, income tax, custom duty, excise duty, service tax, cess and other statutory dues have been regularly deposited during the year with the appropriate authorities. No undisputed amounts payable were outstanding as at March 31, 2017 for a period of more than six months from the date on which they become payable.


(b) According to the information and explanation given to us and based on the records of the Company examined by us, dues of income tax, VAT and other statutory dues outstanding as on March 31, 2017 which have not been deposited on account of any dispute are tabulated below:-





























































































Name of Statute



Nature of Dues



Amount in Rs.



Period to which it Relates



Forum where pending



Finance Act,1994



Service Tax



434,123



Apr-08 to Sep-08



Deputy Commissioner



Service Tax



434,982



Oct-08 to Mar-09



Deputy Commissioner



Service Tax



874,699



Apr-09 to Sep-09



Additional Commissioner



Service Tax



118,122



Oct-09 to Jan-15



Joint Commissioner



Service Tax



258,697



Apr-08 to Dec-08



CESTAT



Service Tax



345,284



Jan-09 to Mar-09



CESTAT



Service Tax



455,802



Apr-09 to Sep-09



Assistant Commissioner



Service Tax



2,408,656



Oct-09 to Jan-15



Joint Commissioner



Service Tax



667,804



Feb-15 to Jan-16



Joint Commissioner



Service Tax



9,553,275



Apr-06 to May-11



Commissioner



Service Tax



68,869



Apr-11 to Dec-14



CESTAT



Service Tax



826,224



Aug-11 to May-12



CESTAT



Income Tax Act, 1961



Income Tax



2,458,171



FY 2012 - 2013



Commissioner of Income Tax (Appeals)




(viii) According to the information and explanations given to us, and based on the verification of records of the company, the company has not defaulted in repayment of loans or other borrowings from financial institutions, banks, Government or dues to debenture holders.


(ix) The Company has not raised monies by the way of initial public offer or further public offer (including debt instruments) during the year. According to the information and explanations given to us, the term loans raised have been applied by the company during the year for the purposes for which they were raised.


(x) To the best of our knowledge and belief and according to the information and explanation given to us, no fraud by the Company or any material fraud on the Company by its officers/ employees has been noticed or reported, during the year.


(xi) Managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013.


(xii) In our opinion and according to information and explanations given to us, Company is not a Nidhi Company.


(xiii) All transactions with the related parties are in compliance with Section 188 and 177 of Companies Act, 2013 where applicable and the details of the same have been disclosed in Note 39 of the Financial Statements in as required by the accounting standards and Companies Act, 2013.


(xiv) During the year under review the company has not made any preferential allotment / private placement of shares or fully or partly convertible debentures.


(xv) During the year under review, the company has not entered into any non-cash transactions with directors or persons connected with him.


(xvi) The company is not required to be registered under section 45-IA of Reserve Bank of India Act, 1934.


For T. P. Ostwal & Associ ates LLP


Chartered Accountants


(Registration No. 124444W/W100150)


T. P. Ostwal


Place: Mumbai (Partner)


Date: May 06, 2017 Membership No. 30848

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
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