| 1. We have audited the accompanying financial statements of Jai Mata
Glass Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. 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") read with the General Circular
15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in
respect of section 133 of the Companies Act, 2013. 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.
3. 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, but not for the
purpose of expressing an opinion on the effectiveness of the entity's
internal control. 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.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the said financial statements together with
the notes thereon and attached thereto give, in the prescribed manner,
the information required by the Act, 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 March31,2014;
b) in the case of the Profit and Loss Account, of the profit/ 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 thatdate.
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
ouraudit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from ourexamination 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 opinon,except for the effect of the matters referred to in
Note No.33 to the financial statements in the Balance Sheet, Statement
of Profit and Loss, and Cash Flow Statement comply with the Accounting
Standards referred to in subsection (3C) of section 211 of the
Companies Act, 1956 read with the General Circular 15/2013 dated 13
September 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Jai Mata Glass Limited on the accounts of the company
for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) Substantial part of the fixed assets has not been disposed off
during the year so as to affect the going concern but attention is
drawn to note 39 of the financial statements whereby the management
does not consider the issue of going concern and has emphasized its
commitment to provide continued financial and operational support by
utilising the existing dealer network to undertake and develop trading
operations related to its line of business.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(b) In our opinion and according to the information and explanations
given to us, 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) In our opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms
orother parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(b) According to the information and explanations given to us, the
Company has taken unsecured interest free loan from three parties
listed in the register maintained under Section 301 of the Companies
Act, 1956 and the maximum amount involved during the year aggregate to
Rs. 727.23 lacs and the year-end balance amounted to Rs. 288.03 lacs.
(c) According to the information explanation given, there was no other
terms and conditions for the loan taken. (e) In respect of loan taken
by the Company, the payment towards principal amount is payable on
demand.
4. In our opinion and according to the information and explanations
given to us, there is generally an adequate internal control procedure
commensurate with the size of the company and the nature of its
business, for the purchase of inventories & fixed assets and payment
for expenses & for sale of goods. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lacs rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. According to the information and explanation given to us, the
Company has not accepted any deposits from the public covered under
section 58A and 58AA of the Companies Act, 1956 and the rules framed
there under. Therefore, the provision of this clause of the Companies
(Auditor's Report) Order, 2003 (as amended) is not applicable to the
Company.
7. In our opinion and according to the information and explanations
given to us, the company has an internal audit system commensurate to
the size and nature of its business.
8. The Central Government has not prescribed maintenance of the cost
records by the Company under Section 209 (1)(d) of the Act, therefore
the provision of clause 4(viii) of the Companies (Auditor's Report)
Order, 2003 is not applicable to the Company.
9. (a) According to the records and information and explanations given
to us, the Company has not been regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Employees' State Insurance, Income-tax, Sales-tax,
Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other
material statutory dues with the appropriate authorities and there are
undisputed statutory dues payable for the year ending March 31, 2014 as
given below:
Service Tax Rs. 12,25,745
Service Tax (Payable under voluntary
deposit scheme) Rs. 15,74,013
Barrier Tax Rs. 10,36,036
Sales Tax Rs. 82,32,130
Mandi Tax Rs. 1,87,606
ESI Rs. 10,30,064
However, it is to be read together with comments in Para No. 4(b) in
the Auditor's Report and Note No. 35 on Financial Statements.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of the dues of
Excise Duty, Sales Tax and Provident Fund, as at March 31, 2014 which
has not been deposited on account of disputes, are as follows:-
Sr.
No. Name of the
Statute Nature of the
dues From where dispute is Amount
pending (Rs. In
lacs)
1 Income Tax
Act, 1961 Income Tax Hon'ble High Court, 23.84
Himachal Pradesh
2 Employees
Provident
Fund Act.1952 Interest & Damages
Charges Employees Provident Fund 46.67
Appellate Tribunal,
New Delhi
10. The accumulated losses of the company have exceeded fifty percent
of its net worth as at the end of the year. The Company has incurred
cash losses during the financial year covered by our audit and in the
immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that, the
Company has not defaulted in repayment of dues to bank as at the
Balance Sheet date.
12. According to the information and explanations given to us, the
Company has not granted loans and advances on the basis of security
byway of pledge of shares, debentures and othersecurities.
13. The Company is not a chit fund or a nidhi /mutual benefit
fund/society. Therefore, the provision of this clause of the Companies
(Auditor's Report) Order, 2003 (as amended) is not applicable to the
Company.
14. According to information and explanations given to us, the Company
is not dealing in or trading in Shares, Mutual funds & other
Investments. Therefore, the provision of this clause of the Companies
(Auditor's Report) Order, 2003 (as amended) is not applicable to the
Company.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loan taken
byothersfromabankorfinancialinstitution.
16. Based on our audit procedures and on the information given by the
management, we report that the company has not raised any term loans
during the year.
17. Based on the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company as at 31*
March, 2014, we report that no funds raised on short-term basis have
been used for long-term investment by the Company.
18. Based on the audit procedures performed and the information and
explanations given to us by the management, we report that the Company
has not made any preferential allotment of shares during the year.
19. The Company has no outstanding debentures during the period under
audit.
20. The Company has not raised any money by public issue during the
year.
21. Based on the audit procedures performed and the information and
explanations given to us, we report that no fraud on or by the Company
has been noticed or reported during the year, nor have we been informed
of such case by the management
For B Bhushan & Co.
Chartered Accountants
FRN: 001596N
Subhash Agarwalla
Place : New Delhi (Partner)
Date : April 22, 2014 Membership No. : 533256
|