We have audited the accompanying standalone financial statements of J.
J. Finance Corporation 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
the 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 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.
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
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 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 controls relevant to the Company''s
preparation 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
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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 31st 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
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 it appears from our examination of
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid 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 the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
(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 does not have any pending litigations which would
impact its financial position.
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
(iii) There is no amount which were required to be transferred to the
Investor Education and Protection Fund by the Company during the year.
ANNEXURE to the auditors'' report
The Annexure referred to in our Independent Auditors'' Report Report on
Other Legal and Regulatory Requirements to the members of the J. J.
Finance Corporation Limited (the Company) on the standalone financial
statements for the year ended 31 March 2015, we report that :
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) These fixed assets have been physically verified by the management
at reasonable intervals during the year. No material discrepancies were
noticed on such verification.
(ii) (a) The inventory has been physically verified during the year by
the management at reasonable intervals.
(b) In our opinion, the procedures of physical verification of
inventory 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 has maintained proper records of inventory. There were
no material discrepancies noticed on physical verification of inventory
as compared to the book records.
(iii) The company has granted unsecured loans , repayable on demand, to
a company covered in the register maintained under section 189 of the
Companies Act, 2013 . As per information and explanation given to us ,
there is no overdue amount; and hence Clauses (iii) (a) & (b) are not
(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 with regard
to purchase of inventory & fixed assets and sale of goods and services.
We have not observed any major weakness in the internal control system
during the course of the audit.
(v) The Company has not accepted any deposits from the public; and
hence, para 3(v) of the Order is not applicable.
(vi) As informed, maintenance of cost records has not been specified by
the Central Government u/s 148(1) of the Companies Act.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the Company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including provident fund, employees'' state insurance,
income tax, sales tax, wealth tax, service tax, duty of customs, duty
excise , value added tax, cess and other material statutory dues, as
applicable,have been regularly deposited during the year by the Company
with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid statutory dues were
in arrears as at 31 March 2015 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, there
are no material dues of income tax or sales tax or wealth tax or
service tax or duty of customs or duty of excise or value added tax or
cess which have not been deposited with the appropriate authorities on
account of any dispute.
(c) As informed, the Company is not required to transfer any amount to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act, 1956 and rules made thereunder.
(viii) 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.
(ix) As per the information and explanations given to us, the Company
has not defaulted in repayment of dues to financial institutions and
(x) According to the information and the explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
(xi) The Company has not availed term loans, and the question of
application of the same for intended purpose does not arise.
(xii) Based on the audit procedures performed for reporting on the true
& fair view of the financial statements and as per the information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the year under audit.
For CHATURVEDI & PARTNERS
Firm Reg No. 307068E
CA Anup Kumar Dubey
Place : Kolkata Partner
Dated : May 28th,2015 Membership No. 054975