JAIPRAKASH ASSOCIATES LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
TO THE MEMBERS OF
JAIPRAKASH ASSOCIATES LIMITED
1. We have audited the attached Balance Sheet of Jaiprakash Associates
Limited as at 31st March, 2012 and also the annexed Statement of Profit
and Loss and the Cash Flow Statement for the year ended on that date.
These financial statements are the responsibility of the Jaiprakash
Associates Limited 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 whether the Financial Statements are
prepared free of material misstatement. 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 presentation of financial statement. We believe
that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003, as amended
by the Companies (Auditor`s Report) (Amendment) Order 2004, issued by the
Central Government of India in terms of sub-section (4A) of Section 227 of
the Companies Act, 1956, we give 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 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, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report, comply 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 31st March, 2012, and taken on record by the Board of Directors, we
report that none of the directors of the Company is disqualified as on
31st March, 2012 from being appointed as a director, in terms of clause
(g) of sub-section(1) of section 274 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, read together with
significant accounting policies and notes thereon, give the information
required by the Companies Act, 1956, in the manner so required and give a
true and fair view:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(ii) in the case of the Statement of Profit and Loss, of the Profit of the
Company for the year ended on that date; and
(iii) in the case of the Cash Flow Statement of the cash flows of the
Company for the year ended on that date.
For M.P. SINGH & ASSOCIATES
Chartered Accountants
Firm Registration No.002183C
(CA M.P. SINGH)
Place: Noida Partner
Dated: 30th May, 2012 M. No. 1454
ANNEXURE TO THE AUDITORS` REPORT
Referred to in paragraph 3 of our report of even date on the accounts for
the year ended 31st March, 2012, of Jaiprakash Associates Limited.
(i)(a) The Company is maintaining proper records showing full particulars
including quantitative details and situation of fixed assets. The situation
of the moveable assets used in the construction activity keeps on changing
from works sites depending upon requirements for a particular contract.
(b) A substantial portion of the Fixed Assets have been physically verified
by the management during the year and in our opinion the frequency of
verification is reasonable having regard to the size of the Company &
nature of its assets. According to the information given to us and to the
best of our knowledge, no material discrepancies were noticed on such
physical verification.
(c) Fixed assets disposed off by the Company during the year were not
substantial; hence it does not affect the Company as a going concern.
(ii)(a) The inventories have been physically verified by the management
at reasonable intervals during the year. 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 physical verification were not material and these
have been properly dealt with in the books of account.
(iii) The Company has not granted nor taken any loans, secured or unsecured
to/from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given
to us there is an adequate internal control system 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 / real estate,
electrical energy, services & supplies under EPC contracts. During the
course of our audit we have not observed any continuing failure to correct
major weakness in internal control system.
(v) Based on the audit procedures applied by us and according to the
information and explanations given to us we are of the opinion that the
particulars of contracts or arrangements referred to in Section 301 of the
Companies Act, 1956 have been entered into the register required to be
maintained under that section. The transactions made in pursuance of such
contracts or arrangements have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations given
to us the Company has complied with the provisions of Section 58A, 58AA
and any other provisions of the Companies Act, 1956, and the rules framed
thereunder with regard to the deposits accepted from the public. As
informed to us, no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any court or any
other Tribunal.
(vii) In our opinion the Company has an internal audit system commensurate
with the size & nature of its business.
(viii) We have broadly reviewed the accounts and cost records maintained by
the Cement & Power divisions of 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, and are of the opinion that prima-
facie the prescribed accounts and records have been maintained. We have
not, however, made a detailed examination of the records.
(ix)(a) As per records produced before us, the Company is generally
regular in depositing undisputed statutory dues like 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 applicable to it, with the
appropriate authorities and there were no arrears of such dues at the year
end which have remained outstanding for a period of more than six months
from the date they became payable.
(b) As per records produced before us the dues of Income-tax, Sales-tax,
Wealth tax, Service tax, Customs Duty, Excise Duty and Cess which have not
been deposited on account of any dispute are stated hereunder:
(Rs. Lacs)
Name of Period to A B C D E
Statute which
(Nature of amount
dues) relates
Central Excise 1988-92 13.65 - - - 13.65
1999-01 - 0.65 - - 0.65
2000-02 - 1.32 - 2.16 3.48
2000-04 - 88.22 - - 88.22
2004-05 - 140.97 - - 140.97
2005-07 2.06 - - - 2.06
2005-06 - 64.88 - - 64.88
2007-09 - 585.07 - - 585.07
2009-10 2.52 819.92 - - 822.44
2000-01 - - - - -
2000-03 7.11 12.55 - - 19.66
2002-04 - 72.93 - - 72.93
2004-06 - - 1.80 - 1.80
2006-07 - 0.58 - - 0.58
2007-08 - 480.81 - - 480.81
2008-09 19.08 321.30 - - 340.38
2006-10 - 552.28 - - 552.28
2009-11 580.72 - - - 580.72
Electricity 1991-2002 - - 1,844.71 - 1,844.71
Duty & Cess 2003-2004 - - - 50.64 50.64
2003-2004 - - - 41.85 41.85
U.P. Trade Tax 1998-99 - - 241.71 - 241.71
1999-00 - - - 480.15 480.15
2000-01 - - 0.73 810.29 811.02
2001-02 - - - 711.14 711.14
2002-03 - - - 584.78 584.78
2003-04 - - - 289.77 289.77
2004-05 - - - 612.94 612.94
2007-08 68.47 57.28 - - 125.75
2010-11 3.76 - - - 3.76
U.P. Entry Tax 2008-12 - - - 44.20 44.20
2007-08 - - - 1,054.14 1,054.14
2008-09 - - - 2,817.38 2,817.38
2009-10 - - - 3,145.02 3,145.02
2010-11 - - - 401.49 401.49
2011-12 - - - 555.05 555.05
M.P.Entry Tax 2000-01 0.90 - - - 0.90
2001-02 - - 148.75 - 148.75
2006-07 57.34 - - - 57.34
2005-12 - - - 4,785.81 4,785.81
2007-08 95.39 - - - 95.39
2009-11 - - - 206.94 206.94
Himachal 2010-11 - - 261.27 - 261.27
Entry Tax 2011-12 - - 509.97 - 509.97
MPCT/CST 1999-00 - 9.83 - - 9.83
2001-02 20.38 - - - 20.38
2004-05 - 34.65 - - 34.65
2005-06 - - 266.19 - 266.19
2002-08 - - - 9,030.66 9,030.66
2000-01 - - 227.23 - 227.23
2007-08 16.82 - 90.49 - 107.31
2009-10 - - - - -
2010-11 - - - - -
2011-12 - - 89.15 - 89.15
Royalty on Upto Dec - - 8,844.98 - 8,844.98
limestone incl 2008
interest
Rural Oct 05- - - - 289.30 289.30
Infrastructure Dec 09
Tax
Tax on 2010-11 - - 243.67 - 243.67
transportation 2011-12 - - 759.67 - 759.67
of goods in
Himachal
Pradesh
Service Tax 2008-09 - 138.65 - - 138.65
2009-10 - 5.13 - - 5.13
Forest
Transit fee - - - 1,730.99 1,730.99
Levy on
transport of
limestone 2007-2011 - - - 582.70 582.70
Income Tax AY 4082.16 - - - 4,082.16
2009-10
A = Forum where dispute is pending - Commissionarate
B = Forum where dispute is pending - Appellate authorities-Tribunal
C = Forum where dispute is pending - High Court
D = Forum where dispute is pending - Supreme Court
E = Total
(x) The Company does not have any accumulated losses and has not incurred
any cash losses during the financial year covered by our audit or in the
immediately preceding financial year.
(xi) In our opinion and according to the information and explanations given
to us, the Company has not defaulted in repayment of dues to financial
institutions, banks or debenture holders.
(xii) The Company has not granted 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, clause (xiii) of Para 4 of the Order is
not applicable.
(xiv) In our opinion the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, clause (xiv) of
Para 4 of the Order is not applicable.
(xv) In our opinion and according to the information and explanations given
to us, where the Company has given guarantee for loans taken by its
subsidiaries from banks or financial institutions, the terms and
conditions thereof are not prejudicial to the interest of the company.
(xvi) To the best of our knowledge and belief and according to the
information and explanations given to us, term loans availed by the
Company were applied by the Company during the year for the purposes for
which the loans were obtained, other than temporary deployment pending
application.
(xvii) According to the information and explanations given to us and on the
overall examination of the Balance Sheet of the Company for the year under
report, we are of the opinion that no funds raised on short term basis
have been used for long term investment.
(xviii) According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties and
companies covered in the Register maintained under section 301 of the
Companies Act, 1956.
(xix) According to the information and explanations given to us, the
Company has created security/charge in respect of secured non-convertible
debentures issued and outstanding at the year end.
(xx) As the Company has not raised any money by way of public issues during
the year, Clause (xx) of Para 4 of the Order is not applicable.
(xxi) According to the information and explanations given to us, no
material fraud by or on the Company has been noticed or reported during
the year.
For M.P. SINGH & ASSOCIATES
Chartered Accountants
Firm Registration No.002183C
(CA M.P. SINGH)
Place: Noida Partner
Dated: 30th May, 2012 M. No. 1454 |