We have audited the accompanying financial statements of Jaidka
Industries Limited ("the Company") which comprise the Balance Sheet as
at 31st March, 2015, 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 and presentation of these 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 specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. 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 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.
We conducted our audit 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 misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the Auditors' 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 and presentation of the financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on whether the Company has in place an
adequate internal financial controls system over financial reporting
and the operating effectiveness of such controls. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by 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 on the financial
statements.
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 31 March 2015 and its Profit and its Cash Flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ('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 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
purpose of our audit.
(b) In our opinion proper books of accounts 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, Statement of Profit and Loss and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
accounts;
(d) In our opinion, the aforesaid standalone 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 written representation received from the directors
as on March 31st' 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on March 31st' 2015, from being
appointed as a director in terms of Section 164(2) of the Act; and
(f) 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 disclosed the impact of pending litigations on its
financial position in its financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards,
for material foreseeable losses, if any, and as required on long-term
contracts including derivatives contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, if any, to the Investor Education and Protection Fund by
the Company.
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 st March 2015;
(ii) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(iii) in the case of the Cash Flow statement, of the cash flows for the
year ended on that date.
The Annexure referred to in paragraph 1 of our Report of even date to
the members of Jaidka Industries Limited on the accounts of the Company
for the year ended 31st March, 2015
On the basis of such checks as we considered appropriate and according
to the informationand explanation given to us during the course of our
audit, we report that:
1. a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets
b) In our opinion the fixed assets have been physically verified by the
management at reasonable intervals, having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such physical verification.
2. a) as informed to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business
c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material in relation to the operations of the
Company
3. The year-end balance of unsecured loan granted to 1 (one) Company
covered in the register maintained under Section 189 amounts to Rs.
291.68 Lakhs (P.Y.Rs. 273.68 Lakhs). There is no irregularity in
respect of receipt of principal amount and interest.
4. In our opinion and according to the information and explanations
given to us, there are internal control procedures commensurate with
the size of the Company and the nature of its business for the purchase
of inventory and fixed assets and for the sale of goods. Further, on
the basis of our examination of the books and 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
correct major weaknesses in the aforesaid internal control procedures.
5. During the year, the Company has not accepted any deposits from the
Public
6. Companies (Cost Records& Audit) Rules, 2014 prescribed by the
Central Government under subsection (1) of section 148 of the Act are
not applicable to the Company
7. (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular in depositing the undisputed statutory dues
including provident fund, employees' state insurance, income tax, sales
tax, service tax, excise duty, customs duty, wealth tax, value added
tax, cess and other material statutory dues with the appropriate
authorities.
(b) According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income-tax,
wealth tax, cess, sales tax, service tax, value added tax, customs duty
and excise duty which have not been deposited on account of a dispute.
(c) According to the information and explanations given to us, the
amounts which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 and rules there under has been transferred to such
fund within time.
8. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution, Bank or debenture holders.
10. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
11. The Company has not taken any term loans from the financial
institutions.
12. 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, and according to the information and
explanations given to us, we have neither come across any 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
For Ashwani & Associates
Chartered Accountants
FRN:000497N
Ashwani Kumar
Partner
Membership No.: 080711
Place: Ludhiana
Date: 30.05.2015
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