Mar 31, 2015
We have audited the accompanying standalone financial statements of JIK
INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31,2015, 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 STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters 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 the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of 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 standalone
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 have 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 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, 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 standalone
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;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2015;
b) in the case of the Statement of Profit and Loss, of the loss for the
period ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
period 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
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 appears from our examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and 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 specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors
as on March 31,2015, taken on record by the Board of Directors, none of
the directors is disqualified as on March 31,2015, 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 - Refer Note 25(B)(1) to
the financial statements;
ii. The Company did not have any long-term contracts including
derivatives contracts for which there were any material foreseeable
losses; and
iii. There were no amounts required to be transferred to the Investor
Education and Protection Fund by the Company.
ANNEXURE TO THE AUDITORS' REPORT
Issued by the Central Government under sub section 11 of section 143 of
the Companies Act, 2013, (18 of 2013) Referred to in paragraph 1 of our
report of even date
i) In respect of its fixed assets:
a. The company is in the process of maintaining proper records for
showing full particulars including quantitative details and situation
of fixed assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
ii) In respect of inventory of raw material, stores and operating
supplies:
a. The inventory has been physically verified during the period by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of the 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 stock and
the book records have been appropriately dealt with in the books of
account.
iii) In respect of the loans, secured or unsecured, given/taken by the
company from companies, firms or other parties covered in the register
maintained u/s.189 of the Companies Act, 2013.
a. The repayment of principal amounts and interest during the year has
been as per stipulation.
b. There are no overdue amounts of more than Rs. 100,000/- outstanding
at the year-end.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and with regards to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control.
v) The Company has not accepted any deposits, as such the 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 and the
rules framed there under, were not applicable.
vi) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 148(1) of the Companies Act,
2013 in respect of its products and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not carried out a detailed examination of
the accounts and records with a view to determine whether these are
accurate or complete.
vii) (a) According to the information and explanations given to us the
following undisputed statutory dues were outstanding as per books of
accounts as at March 31,2015, for a period of more than six months from
the date they became payable are;
Name of the statue Nature of the dues Period to which Amount
relates
Sales Tax Act. Sales Tax 2002-03
Sales Tax Act. Sales Tax 2005-06
MVAT Act Vat 2013-14
ESIC Act ESIC 2014-15
Profession Tax Act Profession Tax 2014-15
Name of the statue Amount (In Lacs.)
Sales Tax Act. 0.86
Sales Tax Act. 2.17
MVAT Act 0.40
ESIC Act 0.57
Profession Tax Act 0.12
(b) According to the records of the Company, the dues of Income Tax
which have not been deposited on account of disputes are as under:
Name of the statue Nature of dues Amount(In Lacs) Period which the
amount relates
Income Tax Act Income Tax 39.67 1995-96 (*)
Income Tax Act Income Tax 156.70 2000-01
Income Tax Act Income Tax 372.69 2001-02
Income Tax Act Income Tax 2259.25 2005-06
Income Tax Act Income Tax 0.10 2006-07
Income Tax Act Income Tax 273.54 2007-08
Income Tax Act Income Tax 768.26 2008-09
Income Tax Act Income Tax 4005.22 2009-10
Income Tax Act Income Tax 4156.24 2010-11
Name of the statue Forum where disputes pending
Income Tax Act Income Tax Appellate Tribunal,
Mumbai.
Income Tax Act Commissioner of Income Tax, Mumbai
City II.
Income Tax Act Commissioner of Income Tax, Mumbai
City II.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
Income Tax Act Income Tax Appellate Tribunal,
Mumbai.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
Income Tax Act Commissioner of Income Tax,
(Appeals) Mumbai.
(*) ITAT (Mumbai) vide its order dated 23.10.2012 has partly allowed
the appeal. Order giving effect for the same is awaited.
(c) There were no amounts required to be transferred to investor
education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder.
viii) The Company as at March 31,2015 has completely eroded its net
worth and the Company has incurred cash losses during the financial
year and also in immediately preceding financial year.
ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions and banks.
x) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee.
xi) In our opinion and according to the information and explanations
given to us, no term loans have been obtained during the year under
review.
xii) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For MOTILAL & ASSOCIATES
Chartered Accountants
Registration No.:106584W
Place: Mumbai (M L JAIN)
Date: 25th May, 2015 Partner
Membership No. 36811
Jun 30, 2014
We have audited the accompanying financial statements of JIK INDUSTRIES
LIMITED (the Company), which comprise the Balance Sheet as at June 30,
2014, and the Statement of Profit and Loss and Cash Flow Statement for
the year ended, and a summary of significant accounting policies and
other explanatory information.
MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation 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 Standards referred to in sub- section (3C) of section
211 of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 control relevant to the Company''s preparation and
fair presentation of the financial statements 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 management, 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 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at June 30, 2014;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. 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 our knowledge 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 the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet and Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in sub- section (3C) of section 211 of the Act;
e) on the basis of written representations received from the directors
as on June 30, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on June 30, 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Act.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 1 of our report of even date
i) In respect of its fixed assets:
a. The company is in the process of maintaining proper records for
showing full particulars including quantitative details and situation
of fixed assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c. The Company has not disposed of any substantial part of its fixed
assets so as to affect its going concern status.
ii) In respect of inventory of raw material, stores and operating
supplies:
a. The inventory has been physically verified during the period by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of the 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 stock and
the book records have been appropriately dealt with in the books of
account.
iii) In respect of the loans, secured or unsecured, given/ taken by the
company from companies, firms or other parties covered in the register
maintained u/s. 301 of the Companies Act, 1956.
a. At the year end, the outstanding balance of such loans aggregated
Rs.1,84,46,153/- and maximum amount outstanding during the year
amounted to Rs. 2,47,58,631/-.
b. The terms and conditions of such loans are, in our opinion, prima
facie, not prejudicial to the interest of the company.
c. The repayment of principal amounts and interest during the year has
been as per stipulation.
d. There are no overdue amounts outstanding at the year-end.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and with regards to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control.
v) In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956;
a. To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
b. According to the information and explanations given to us, the
transactions made in pursuance of contract or arrangements with parties
during the year have been made at prices which are reasonable having
regard to prevailing market prices at that time.
vi) In our opinion and according to the information and explanations
given to us the company has not accepted deposits in terms of the
provisions of section 58A and 58AA or any other relevant provisions of
the Act and the rules framed there under.
vii) We are informed that the company has appointed a firm of chartered
accountant to take care of internal audit.
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956 in respect of its products and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not carried out a detailed examination of
the accounts and records with a view to determine whether these are
accurate or complete.
ix) (a) According to the information and explanations given to us the
following undisputed statutory dues were outstanding as per books of
accounts as at June 30, 2014, for a period of more than six months from
the date they became payable are;
Name of the Nature of the Period to which Amount
statue dues Amount relates (In Lacs.)
Sales Tax Act. Sales Tax 2002-03 0.86
Sales Tax Act. Sales Tax 2005-06 2.17
(b) According to the records of the Company, the dues of Income Tax
which have not been deposited on account of disputes are as under:
Name of the Nature of Amount Period which the
statue dues (In Lacs) amount relates
Income Tax Income 39.67 1995-96
Act Tax (*)
Income Tax Income 656.65 2000-01
Act Tax
Income Tax Income 372.69 2001-02
Act Tax
Income Tax Income 9.59 2002-03
Act Tax (#)
Income Tax Income 48.78 2003-04
Act Tax (##)
Income Tax Income 313.67 2004-05
Act Tax ($)
Income Tax Income 0.10 2004-05
Act Tax
Income Tax Income 2259.15 2005-06
Act Tax
Income Tax Income 0.10 2005-06
Act Tax
Income Tax Income 0.10 2006-07
Act Tax
Income Tax Income 273.44 2007-08
Act Tax
Income Tax Income 0.10 2007-08
Act Tax
Income Tax Income 768.16 2008-09
Act Tax
Income Tax Income 0.10 2008-09
Act Tax
Income Tax Income 4005.12 2009-10
Act Tax
Income Tax Income 0.10 2009-10
Act Tax
Income Tax Income 4156.14 2010-11
Act Tax
Income Tax Income 0.10 2010-11
Act Tax
-Nmae of the statues Forum where disputes pending
Income Tax /Act Income Tax Appellate Tribunal, Mumbai.
Income Tax /Act Commissioner of Income Tax, (Appeals) Mumbai.
Income Tax /Act Commissioner of Income Tax, Mumbai City II.
Income Tax /Act Commissioner of Income Tax, (Appeals) Mumbai.
Income Tax /Act Commissioner of Income Tax, (Appeals) Mumbai.
Income Tax /Act Commissioner of Income Tax, (Appeals) Mumbai.
Income Tax /Act Income Tax Appellate Tribunal, Mumbai.
Income Tax /Act Commissioner of Income Tax, (Appeals) Mumbai.
Income Tax /Act Income Tax Appellate Tribunal, Mumbai.
Income Tax /Act Income Tax Appellate Tribunal, Mumbai.
Income Tax /Act Commissioner of Income Tax, (Appeals) Mumbai.
Income Tax /Act Income Tax Appellate Tribunal, Mumbai.
Income Tax /Act Commissioner of Income Tax, (Appeals) Mumbai.
Income Tax /Act Income Tax Appellate Tribunal, Mumbai.
Income Tax /Act Commissioner of Income Tax, (Appeals) Mumbai.
Income Tax /Act Income Tax Appellate Tribunal, Mumbai.
Income Tax /Act Commissioner of Income Tax, (Appeals) Mumbai.
Income Tax /Act Income Tax Appellate Tribunal, Mumbai.
(*) ITAT (Mumbai) vide its order dated 23.10.2012 has partly allowed
the appeal. Order giving effect for the same is awaited.
(**) CIT (A) - 5 (Mumbai) vide its order dated 15.03.2013 has partly
allowed the appeal. Order giving effect for the same is awaited.
(#) CIT (A) - 38 (Mumbai) vide its order dated 30.04.2014 has allowed
the appeal. Order giving effect for the same is passed vide order dated
22.07.2014.
(##) CIT (A) - 38 (Mumbai) vide its order dated 07.11.2013 has allowed
our appeal. Order giving effect for the same is passed vide order dated
25.06.2014.
($) CIT (A) - 38 (Mumbai) vide its order dated 07.11.2013 has allowed
our appeal. Order giving effect for the same is passed vide order dated
25.06.2014.
x) The accumulated losses of the Company as at June 30, 2014 are more
than fifty percent of its net worth at the year end and the Company has
incurred cash losses during the financial year and also in immediately
preceding financial year.
xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions and banks.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) are
not applicable to the company.
xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) are not applicable to the company.
xv) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee.
xvi) In our opinion and according to the information and explanations
given to us, no term loans have been obtained during the year under
review.
xvii) According to the records examined by us and the information and
explanations given to us, on an overall basis, funds raised on
short-term basis have, prima facie, not been used during the year for
long-term investments.
xviii) During the year, the company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under section 301 of the Companies Act, 1956.
xix) The company has not issued Debentures during the year and hence
the provisions of clause 4(xix) are not applicable to the company.
xx) In our opinion and according to the information and explanations
given to us, the company has not raised any money by public issue
during the year covered by our report.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For MOTILAL & ASSOCIATES
Chartered Accountants
Registration No.:106584W
Place: Mumbai (M.L.JAIN)
Date : 28th August, 2014 Proprietor
M. No. 36811
Jun 30, 2012
1. We have audited the attached Balance Sheet of M/s JIK INDUSTRIES
LIMITED as at June 30, 2012 and the statement of Profit and Loss for
the year ended on that date, both annexed thereto. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003, as
amended by Companies (Auditors' Report) (Amendment) Order, 2004, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure, a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as
follows:
a. We have 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 appears from our examination of
those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report are in compliance with
the accounting standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956;
e. On the basis of written representations received from the
directors, as on June 30, 2012 and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
June 30,2012, from being appointed as a director in terms of section
274 (1) (g) of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the state of the affairs of the
Company as at June 30, 2012; ii) In the case of the Statement of Profit
& 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.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date
i) In respect of its fixed assets:
a. The company is in the process of maintaining proper records for
showing full particulars including quantitative details and situation
of fixed assets.
b. All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed on
such verification.
c. The Company has not disposed of any substantial part of its fixed
assets so as to affect its going concern status.
ii) In respect of inventory of raw material, stores and operating
supplies:
a. The inventory has been physically verified during the period by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of the 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 stock and
the book records have been appropriately dealt with in the books of
account.
iii) In respect of the loans, secured or unsecured, given/taken by the
company from companies, firms or other parties covered in the register
maintained u/s. 301 of the Companies Act, 1956.
a. At the year end, the outstanding balance of such loans aggregated
Rs.2,90,53,949/- and maximum amount outstanding during the period
amounted to Rs. 3,16,20,975/-.
b. The terms and conditions of such loans are, in our opinion, prima
facie, not prejudicial to the interest of the company.
c. The repayment of principal amounts and interest during the period
has been as per stipulation.
d. There are no overdue amounts outstanding at the period-end.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business with regard
to purchase of inventory, fixed assets and with regards to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
control.
v) In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956;
a. To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
b. According to the information and explanations given to us, the
transactions made in pursuance of contract or arrangements with parties
during the period have been made at prices which are reasonable having
regard to prevailing market prices at that time.
vi) In our opinion and according to the information and explanations
given to us the company has not accepted deposits in terms of the
provisions of section 58A and 58AA or any other relevant provisions of
the Act and the rules framed there under.
vii) We are informed that the company is in the process of appointing a
firm of chartered accountants to take care of internal audit.
viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1 )(d) of the Companies
Act, 1956 in respect of its products and are of the opinion that, prima
facie, the prescribed accounts and records have been made and
maintained. However, we have not carried out a detailed examination of
the accounts and records with a view to determine whether these are
accurate or complete.
ix) (a) According to the information and explanations given to us the
following undisputed statutory dues were outstanding as per books of
accounts as at June 30, 2012, for a period of more than six months from
the date they became payable are;
Name of the
statue Nature of the
dues Period to
which Amount(ln Rs.)
Amount
relates
Sales Tax Act. Sales Tax 2002-03 85,579
Sales Tax Act. Sales Tax 2003-04 1,475,888
Sales Tax Act. Sales Tax 2004-05 844,650
Sales Tax Act. Sales Tax 2005-06 216,607
(b) According to the records of the Company, the dues of Income Tax
which have not been deposited on account of disputes are as under:
Name of the Nature of Amount Period
which the Forum where
statue dues (In Rs)
amount relates disputes
pending
Income Tax Act Income Tax 39,67,311 1995-96 Income Tax
Appellate
Tribunal,
Mumbai
Income Tax Act Income Tax 6,56,65,216 2000-01 Commissioner
of Income
Tax, (Appeals)
Mumbai.
Income Tax Act Income Tax 3,72,68,974 2001-02 Commissioner
of Income
Tax, Mumbai
City II.
Income Tax Act Income Tax 9,58,579 2002-03 Income Tax
Appellate
Mumbai
x) The accumulated losses of the Company as at June 30,2012 are more
than fifty percent of its net worth at the year end and the Company has
not incurred cash losses during the financial year and also in the
immediately preceding financial period.
xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions and banks. The Company has not issued debentures during
the year.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) are
not applicable to the company.
xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) are not applicable to the company.
xv) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee.
xvi) In our opinion and according to the information and explanations
given to us, no term loans have been obtained during the year under
review.
xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short-term basis have, prima facie, not been
used during the period for long-term investments.
xviii) During the period, the company has made allotment of shares to
parties covered in the register maintained under section 301 of the
Companies Act, 1956 as per Hon'ble BIFR orders.
xix) The company has not issued Debentures during the year and hence
the provisions of clause 4(xix) are not applicable to the company.
xx) In our opinion and according to the information and explanations
given to us, the company has not raised any money by public issue
during the year covered by our report except private placement of
shares.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For MOTILAL& ASSOCIATES
Chartered Accountants
Registration No.:106584W
(M.L.JAIN)
Place: Mumbai Proprietor
Date : August 29, 2012 M. No. 36811
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s JIK INDUSTRIES
LIMITED as at March 31,2010, the Profit and Loss Account and the Cash
Flow Statement of the Company for the period ended on that date, both
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. These Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, we enclose in the Annexure, a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report as follows:
a. We have 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 appears from our examination of
those books;
c. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
e. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i) In the case of the Balance Sheet, of the state of the affairs of the
Company as at March 31,2010;
ii) In the case of the Profit & Loss Account, of the Profit for the
period ended on that date and
iii) In the case of the Cash Flow Statement, of the Cash Flows for the
period ended on that date. *
f. On the basis of written representations received from the
directors, as on March 31,2010 and taken on record by the Board of
Directors, we report that none of the directors are disqualified as on
March 31,2010, from being appointed as a director in terms of section
274 (1) (g) of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 3 of our report of even date i) In respect of
its fixed assets:
a. The company is in the process of maintaining proper records for
showing full particulars including quantitative details and situation
of fixed assets.
b. All the assets have not been physically verified by the management
during the period but there is a regular programme of verification
which, in our opinion, is reasonable having regard to the size of the
company and the nature of its assets. No material discrepancies were
noticed on such verification.
c. The Company has not disposed of any substantial part of its fixed
assets so as to affect its going concern status.
ii) In respect of inventory of raw material, stores and operating
supplies:
a. The inventory has been physically verified during the period by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of the 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 stock and
the book records have been appropriately dealt with in the books of
account.
iii) The Company has not given any loans, secured or unsecured, to
companies, firms and other parties covered in the register maintained
u/s. 301 of the Companies Act, 1956. Accordingly, Clause iii (b), (c),
& (d) of the said order were not applicable.
The Company has not taken any loans, secured or unsecured, from
companies, firms and other parties covered in the register maintained
u/s. 301 of the Companies Act, 1956. Accordingly, Clause iii (f), & (g)
of the said order were not applicable.
iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regards to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weakness in internal control.
v) In respect of transactions entered in the register maintained in
pursuance of section 301 of the Companies Act, 1956;
a. To the best of our knowledge and belief and according to the
information and explanations given to us, transactions that needed to
be entered into the register have been so entered.
b. According to the information and explanations given to us, the
transactions made in pursuance of contract or arrangements with parties
during the period have been made at prices which are reasonable having
regard to prevailing market prices at that time.
vi) In our opinion and according to the information and explanations
given to us the company has not accepted deposits in terms of the
provisions of section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956.
vii) We are informed that the company is in the process of appointing a
firm of chartered accountants to take care of internal audit.
viii) We have been informed by the Company that the Central Government
has not prescribed maintenance of cost records under section 209(1) (d)
of the Companies Act, 1956 for the product of the Company.
ix) (a) According to the information and explanations given to us the
following undisputed statutory dues were outstanding as per books of
accounts as at March 31,2010, for the period of more than six months;
Name of Nature of Period to which Amount
the statue the dues Amount relates (In Rs.)
Income Tax Act. Interest u/s
201(1 A) 2000-01 3,178
Sales Tax Act. Sales Tax 2000-01 10,460
Sales Tax Act. Sales Tax 2001-02 17,291
Sales Tax Act. Sales Tax 2002-03 259,286
Sales Tax Act. Sales Tax 2003-04 1,475,888
Sales Tax Act. Sales Tax 2004-05 844,650
Sales Tax Act. Sales Tax 2005-06 216,607
Income Tax Act T.D.S. dues 2002-03 46,757
Income Tax Act T.D.S. dues 2003-04 60,714
(b) According to the records of the Company, the dues of Income Tax
which have not been deposited on account of disputes are as under:
Name of the Nature of Amount Period
statue dues (In Rs) which the
amount
relates
Income Tax Act Income Tax 39,67,311 1995-96
Income Tax Act Income Tax 6,56,65,216 2000-01
Income Tax Act Income Tax 3,72,68,974 2001-02
Name of the Forum where disputes
Statue pending
Income Tax Income Tax Appellate
Tribunal, Mumbai
Income Tax Commissioner of Income
Tax, (Appeals) Mumbai.
Income Tax Commissioner of Income
Tax, Mumbai City II.
x) The Company does not have accumulated losses as on March 31,2010 and
the Company has not incurred cash losses during the financial period
but it had incurred cash losses in the immediately preceding financial
year.
xi) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to financial
institutions and banks. The Company has not issued debentures during
the period.
xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
xiii) In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/ society. Therefore the provisions of clause 4(xiii) of
the Companies (Audit Report) order, 2003 are not applicable to the
company.
xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provision of clause 4(xiv) of the Companies (Audit Report) order, 2003
are not applicable to the company.
xv) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee.
xvi) In our opinion and according to the information and explanations
given to us, no term loans have been obtained during the period under
review.
xvii) According to the cash flow statement and other records examined
by us and the information and explanations given to us, on an overall
basis, funds raised on short-term basis have, prima facie, not been
used during the period for long-term investments.
xviii) During the period, the company has made allotment of shares to
parties covered in the register maintained under section 301 of the
Companies Act, 1956 as per Honble BIFR orders.
xix) The company has not issued Debentures during the period and hence
we have no comments to offer in respect of clause 4(xix) of the
Companies (Audit Report) order, 2003.
xx) In our opinion and according to the information and explanations
given to us, the company has not raised any money by public issue
during the period covered by our report except private placement of
shares.
xxi) According to the information and explanations given to us, no
fraud on or by the company has been noticed or reported during the
course of our audit.
For MOTILAL & ASSOCIATES
Chartered Accountants
Registration No.:106584W
M.LJAIN
Proprietor
Membership No. 36811
Place: Mumbai
Dated: June 18,2010
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