Annual Report cb smile - Jet Airways

Annexure to the Auditors’ Report (contd.)
7) The Company has an internal audit system comprising of its own internal management audit team and during the year it
also involved a firm of chartered accountants for specific areas. The scope of internal audit needs to be extended to
include certain areas viz. outsourced payroll and purchase of fixed assets so as to be commensurate with the size of the
Company and nature of its business.
8) Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub section (1) of
section 209 of the Companies Act, 1956. Therefore, the provisions of clause 4(viii) of the Companies (Auditor’s Report)
Order, 2003 are not applicable to the company.
9) In respect of statutory dues:
a) According to the records of the Company, 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 have been generally regularly deposited with the appropriate
authorities. According to the information and explanation given to us, no undisputed amounts payable in respect of
the aforesaid dues were outstanding as at March 31, 2010 for a period of more than six months from the date they
become payable.
b) According to the information and explanations given to us, there are no dues of sales tax, income tax, service tax,
custom duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute other than
the following:
Name of statute Nature of the dues Amount Period to which the Forum where
(Rs. lac) amount relates dispute is pending
IATT Rules, 1989 IATT Interest & Penalty 321 2003-04 Commissioner of
Customs (Appeals),
New Delhi
B.M.C. Act, 1988 Octroi Dues 2,899 2000-01 Mumbai High Court
Central Excise and Service Tax 33 2001-02 to2004-05 Commissioner of
Custom Act Central Excise
(Appeals)
Central Excise and
Custom Act
Central Excise and
Service Tax 288 2001-02 To 2006-07 CESTAT
Custom Act Service Tax 78,106 2002-03 to 2008-09 Commissioner of
Central Excise
Income Tax Act,1961 Income Tax 1,078 2005-2006 to Commissioner of
2008-2009 Income Tax
(Appeals)
10) The accumulated losses of the Company at the end of the financial year are less than fifty per cent of its net worth and
it has not incurred cash loss during the current financial year and in the immediately preceding financial year, the
Company had made cash losses.
11) Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that
the Company has not defaulted in the repayment of dues to financial institutions and banks.
12) In our opinion and 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 any other securities and hence
question of maintenance of adequate records for this purpose does not arise.
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