| We have audited the accompanying financial statements of Jupiter
Industries and Leasing Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2014, 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.
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 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. 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.
Auditors' 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 Company'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 qualified audit opinion.
Basis for Qualified Opinion
The company has not provided interest agreegating to Rs.7,24,46,021/-
on Bank Borrowings in terms of the order of Mumbai Debts Recovery
Tribunal and non confirmation of the accounts from the Bank.
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for effects of the matters described
in the Basis for Qualified Opinion paragraph, and based on the Emphasis
of Matter on 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 March 31,2014;
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.
Emphasis of Matter
a) Attention is invited to Note No. 1(c) to the Financial Statements,
indicating that the accounts of the company have been prepared on the
basis that the company is a going concern although the ability of the
company to continue its operation in the forseeable future is dependent
on the financial position of the company. Our opinion is not qualified
in respect of the matter.
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 Section
227 (4A) 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, the Statement of Profit & Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th 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, 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 Section 274(1 )(g) of the Companies
Act.
ANNEXURE TO THE AUDITORS' REPORT
Refer to in paragraph "Report on other Legal and Regulatory
Requirements" above of the Auditor's Report of even date to the members
of Jupiter Industries and Leasing Limited on the financial statements
of the company for the year ended 31st March 2014. We report that:
1. The company is not having any fixed assets, hence clauses 4(i)(a),
4(i)(b) and 4(i)(c) of the order are not applicable to the company for
current year.
2. There was no inventory during the year hence clauses 4(1)(ii)(a),
4(ii)(b) and 4 (ii)(c) of the order are not applicable to the company
for current year.
3. a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under Section 301 of the companies Act, 1956.
Since no loan has been granted, hence clauses 3 (b) and 3 (c) are not
applicable.
4. a) The Company has taken unsecured loan/deposit from one party
covered in the register maintained under Section 301 of the Companies
Act 1956. The maximum amount involved during the year and the year end
balance of such loans aggregates to Rs. 24,86,083/- and Rs.24,86,083/-
respectively.
b) In our opinion and according to the information and explanation
given to us, the Nil rate of interest and other terms and conditions on
which loan has been taken by the company are not, prima facie,
prejudicial to the interest of the Company.
c) In respect of the aforesaid loan, there is no stipulation in respect
of time of repaying of the principal amounts.
d) According to the information and explanations provided to us there
is no overdue amounts payable in respect of such loan.
5. In our opinion and according to the information and explanation
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business. There is
no purchase of inventory and fixed asset nor sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system.
6. a) According to the information and explanation given to us and
based on the audit procedures applied by us, we are of the opinion that
the transactions that need to be entered into the register maintained
under section 301 have been so entered.
b) In our opinion and according to the information and explanations
given to us, there have been no transactions made in pursuance of such
contracts or arrangements exceeding the value of rupees five lakhs in
respect of any party during the year.
7. We have been informed that the Company was registered with Reserve
Bank of India as Non Banking Finance Companies. During the year, the
Company is deregistered as per letter dated 23rd June, 2013 from
Reserve Bank of India as a Non Banking Financial Company to the Reserve
Bank of India.
In our opinion and according to the information and explanations given
to us, the Company has not accepted deposits from the public and
therefore, the provisions contained in Sections 58A, 58AA or any other
relevant provisions of the Act and Rules framed thereunder are not
applicable to the Company.
We have been informed that, no order has been passed by Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any
other Court or Tribunal in this regard.
8. The Company has no internal audit system.
9. According to the information and explanation given to us and to the
best of our knowledge, the Central Government has not prescribed
maintenance of cost records under section 209 (1)(d) of the Companies
Act, 1956 for the products of the Company.
10. According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues including
Provident Fund, Employees' State Insurance, Income-tax, Sales-tax,
Wealth-tax, Customs Duty, Excise Duty, Cess and other statutory dues
with appropriate authorities wherever applicable. According to the
information and explanations given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained
outstanding as at 31st March, 2014 for a period more than six months
from the date they became payable.
11. The Company has accumulated losses exceeding fifty percent of its
net worth. The Company has incurred cash losses in the current
financial year and also in the immediately preceding financial year.
12. In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of due to bank. The
detail of period and amount of default as ascertained by management is
as follows:
Name of Bank Principal Amount Interest Accured and due
Canara Bank, Marine 12,352,692/- 72,446,021/-
Lines , Mumbai
Name of Bank Period to which it relates
Canara Bank, Marine 31st of December, 2002 to
Lines , Mumbai 31st of March, 2014
13. The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures or other securities.
14. In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi/mutual benefit
fund/societies.
15. The Company is not dealing or trading in shares, securities,
debentures or other investments and hence, the requirements of Para 4
(xiv) are not applicable to the Company.
16. 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.
17. The Company has not taken any term loan during the year.
18. The Company has not raised any short term / long term fund during
the year.
19. 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.
20. No debentures have been issued by the Company and hence, the
question of creating securities in respect thereof does not arise.
21. The Company has not raised any money through a public issue during
the year.
22. During the course of our examination of the books of account 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 instances
of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such cases by management.
For A. B Modi & Associates
Chartered Accountants
Firm Registration Number 106473W
(Rajesh S. Shah)
Partner
Membership Number 17844
Place : Mumbai
Date : 30th May, 2014
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