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J Kumar Infraprojects Ltd.

BSE: 532940 Sector: Infrastructure
NSE: JKIL ISIN Code: INE576I01022
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OPEN 265.50
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VOLUME 18447
52-Week high 351.95
52-Week low 152.30
P/E 7.59
Mkt Cap.(Rs cr) 1,989
Buy Price 262.90
Buy Qty 1.00
Sell Price 263.40
Sell Qty 1.00
OPEN 265.50
CLOSE 269.50
VOLUME 18447
52-Week high 351.95
52-Week low 152.30
P/E 7.59
Mkt Cap.(Rs cr) 1,989
Buy Price 262.90
Buy Qty 1.00
Sell Price 263.40
Sell Qty 1.00

J Kumar Infraprojects Ltd. (JKIL) - Auditors Report

Company auditors report

To the Members of

J. Kumar Infraprojects Limited

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION

We have audited the accompanying Financial Statements of J. KumarInfraprojects Limited ("the Company") which comprise of the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss (including other comprehensive income)Statement of Cash Flows and Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Financial Statements give the information requiredby the Companies Act 2013 (‘‘the Act??) in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2022 and its profitincluding comprehensive income changes in equity and its cash flows for the year ended onthat date.

BASIS FOR OPINION

We conducted our audit of the Financial Statements in accordance withthe Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act2013. Our responsibilities under those Standards are further described in theAuditor?s Responsibilities for the Audit of the Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the Financial Statements under the provisions of theCompanies Act 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the Financial Statements.

KEY AUDIT MATTERS

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Financial Statements of the current year.These matters were addressed in the context of our audit of the Financial Statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.

Revenue recognition - Accounting for Construction Contracts
Key Audit matter Description There are significant accounting judgment including estimation of costs to complete determining the stage of completion and the timing of revenue recognition. The Company recognises revenue and profit/loss on the basis of stage of completion based on the proportion of contract costs incurred at balance sheet date relative to the total estimated costs of the contract at completion. The recognition of revenue and profit/loss therefore rely on estimates in relation to total estimated costs of each contract.
Cost contingencies are included in these estimates to take into account specific uncertain risks or disputed claims against the Company arising within each contract. These contingencies are reviewed by the Management on a regular basis throughout the contract life and adjusted where appropriate.
The revenue on contracts may also include variable consideration (variations and claims). Variable consideration is recognised when the recovery of such consideration is highly probable.
Refer to Note Number 2.2(h) Summary of significant accounting policies - "Revenue Recognition" of the Financial Statements
Principal Audit Procedures Our procedures included:
• Testing of the design and implementation of controls involved for the determination of the estimates used as well as their operating effectiveness;
• Testing the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with Ind AS 115 "Revenue from Contracts with Customers";
• Testing a sample of contracts for appropriate identification of performance obligations;
• For the sample selected reviewing for change orders and the impact on the estimated costs to complete;
• Engaging technical experts to review estimates of costs to complete for sample contracts; and
• Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings
Evaluation of uncertain tax positions
Key audit matter Description The Company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes.
Refer to Note Number 2.2 (m) and (n) -Summary of significant accounting policies - "Taxes on Income" and "provisions contingent liabilities contingent assets and commitments" of the Financial Statements
Principal Audit Procedures Our procedures included the following:
• Obtained understanding of key uncertain tax positions;
• Obtained details of completed tax assessments and demands for the year ended March 31 2022 from the management;
• We along with our internal tax experts -
i. Discussed with appropriate senior management and evaluated the Management's underlying key assumptions in estimating the tax provision;
ii. Assessed management's estimate of the possible outcome of the disputed cases; and
iii. Considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR?SREPORT THEREON

The Company?s management and Board of Directors are responsiblefor the other information. The other information comprises of the information included inthe Company?s Annual Report but does not include the Financial Statements and ourauditors? report thereon.

Our opinion on the Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Financial Statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FORTHE FINANCIAL STATEMENTS

The Company?s Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these Financial Statements that give a true and fair view of thefinancial position financial performance Including other

Comprehensive Income changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards specified under section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Financial Statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the Financial Statements the management is responsiblefor assessing the Company?s ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing theCompany?s financial reporting process.

AUDITOR?S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIALSTATEMENTS

Our objectives are to obtain reasonable assurance about whether theFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor?s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3) (i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management?s use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company?s ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditors?report to the related disclosures in the Financial Statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors? report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theFinancial Statements including the disclosures and whether the Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance of the Companyregarding among other matters the planned scope and timing of the audit and significantaudit findings including any significant deficiencies in internal control that weidentify during our audit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the FinancialStatements of the current period and are therefore the key audit matters. We describethese matters in our auditors? report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

OTHER MATTER

We did not audit the Financial Statements and other information of 20Joint operations included in the Financial Statements of the Company whose FinancialStatements/ financial information reflect total assets of Rs 76581.67 Lakh

(without intercompany elimination) as at March 31 2022 and totalrevenue of Rs 153325.29 Lakh (without intercompany elimination) and total profit aftertax(net) of Rs 1496.49 Lakh (without intercompany elimination) for the year ended on thatdate as considered in the Financial Statements.

The financial information of 5 joint operations have been audited bythe other auditors whose financial information reflect total assets of Rs 73039.52 Lakh(without intercompany elimination) as at March 31 2022 and total revenues of Rs152725.88 Lakh (without intercompany elimination) and total profit after tax (net) of Rs1487.92 Lakh (without intercompany elimination) and whose reports have been furnished tous by the management and for remaining 15 joint operations whose financial informationreflect total assets of Rs 3542.15 Lakh (without intercompany elimination) as at March31 2022 and total revenues of Rs 599.41 Lakh (without intercompany elimination)and total profit after tax (net) of Rs 8.56 Lakh (without intercompany elimination)un-audited financial information and accounts certified by the management have beenfurnished to us by the management and our opinion in so far as it relates to the amountsand disclosures included in respect of these joint operations and our report in terms ofsubsection (3) of section 143 of the Act in so far as it relates to the aforesaid jointoperations is based solely on the report of such other auditors and accounts certified bythe management.

Our opinion is not modified in respect of these matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor?s Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act 2013 we give in the Annexure"A" a statement on the matters specified in paragraphs 3 and 4 of the Order tothe 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Company does not have any branches. Hence the provisions ofsection 143(3)(c) is not applicable.

d) The Balance Sheet the Statement of Profit and Loss including othercomprehensive income the Statement of Changes in Equity and the Cash Flow Statement dealtwith by this Report are in agreement with the books of account.

e) In our opinion the aforesaid Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with

Rule 7 of the Companies (Accounts) Rules 2014.

f) In our opinion there are no financial transactions or matters whichhave any adverse effect on the functioning of the Company.

g) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164(2) of the Act.

h) There is no adverse remark relating to the maintenance of accountsand other matters connected therewith.

i) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

j) With respect to the other matters to be included in theAuditor?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 theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its Financial Statements;

ii. The Company did not have any long-term contracts includingderivative contracts; as such the question of commenting on any material foreseeablelosses thereon does not arise.)

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

iv. (a) The Management has represented that to the best of itsknowledge and belief no funds (which are material either individually or in theaggregate) have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other person orentity including foreign entity ("Intermediaries") with the understandingwhether recorded in writing or otherwise that the Intermediary shall whether directlyor indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provideany guarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in the aggregate) havebeen received by the Company from any person or entity including foreign entity("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall whether directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theFunding Party ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material misstatement.

v. The dividend declared and paid during the year by the Company is incompliance with Section 123 of the Act.

3. With respect to the other matters to be included in theauditor?s report in accordance with the requirements of section 197(16) of the Actas amended:

Inouropiniontothebestofourinformationandaccording to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

Place: Mumbai For Todi Tulsyan & Co.
Date: May 30 2022 Chartered Accountants
Firm Reg. No. 002180C
Dilip Kumar
Partner
M. No. 054575
> UDIN: 22054575AJWIOE6958

Annexure "A" to the Independent Auditors? Report

With reference to the Paragraph ‘‘1?? referred toin the Independent Auditors? Report to the members of the Company on the FinancialStatements for the year ended March 31 2022 we report the following:

i. In respect of the Company?s property plant and equipment:

a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant andequipment.

(B) The Company has maintained proper records showing full particularsof intangible assets.

b) The Company has a program of verification to cover all the items ofproperty plant and equipment in a phased manner at regular intervals which in ouropinion is reasonable having regard to the size of the Company and the nature of itsproperty plant and equipment. Pursuant to the program certain property plant andequipment were physically verified by the management during the year. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c) According to the information and explanations given to us therecords examined by us and based on the examination of the conveyance deeds / registeredsale deed provided to us we report that the title deeds comprising all the immovableproperties (other than properties where the Company is the lessee and the lease agreementsare duly executed in favour of the lessee) of land and buildings which are freehold areheld in the name of the Company as at the balance sheet date.

In respect of immovable properties of land and building that have beentaken on lease and disclosed as property plant and equipment in the Financial Statementsthe lease agreements are in the name of the Company.

d) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not revalued itsProperty Plant and Equipment (including Right of Use assets) or intangible assets or bothduring the year.

e) According to the information and explanations given to us and on thebasis of our examination of the records of the Company no proceedings have been initiatedduring the year or are pending against the Company as at March 31 2022 for holding anybenami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988 asamended in 2016) and rules made thereunder.

ii. (a) The inventory has been physically verified by the managementduring the year. In our opinion the frequency of such verification is reasonable andprocedures and coverage as followed by management were appropriate. No materialdiscrepancies were noticed on verification between the physical stocks and the bookrecords that were more than 10% in the aggregate of each class of inventory.

(b) During the year the Company has been sanctioned working capitallimits in excess of five crore rupees in aggregate from banks on the basis of securityof current assets. The Company has filed quarterly returns or statements with such bankswhich are in agreement with the books of account.

iii. According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not providedany guarantee or security or granted any loans or advances in the nature of loans securedor unsecured to companies firms limited liability partnership or any other partiesduring the year. The Company has made investments in certain companies. The Company hasnot made any investments in firms and limited liability partnership.

(a) Based on the audit procedures carried on by us and as per theinformation and explanations given to us the Company has not provided any loans andadvances in the nature of loans any guarantee and security to any other entity. ThusClause 3(iii)(a)(A) and (B) are not applicable to the Company.

( Rs in Lakh)

Sr. No. Amount
1 Aggregate amount granted/ provided during the year to others 218.72
(Loan to employees)
2 Balance outstanding as at balance sheet date in respect of above case 368.58

(b) According to the information and explanation given to us and basedon the audit procedures conducted by us in our opinion the investment made during theyear and the investments made earlier and the terms and conditions of the grant of all theabove loans are prima facie not prejudicial to the interest of the Company. The Companyhas not provided any guarantee or security or granted any advances in the nature of loansduring the year

(c) In respect of loans granted by the company the schedule ofrepayment of principal and payment of interest (if any) has been stipulated andrepayments of principal amount and receipts of interest are regular as per stipulation.

(d) Based on the audit procedures performed in respect of loansgranted by the Company there is no overdue amount remaining outstanding as at the balancesheet date.

(e) Based on the audit procedures performed there were no loans whichwere renewed or extended or fresh loans granted to settle the overdues of existing loansgiven to same parties. Hence reporting under clause 3(iii)(e) of the Order is notapplicable.

(f) Based on the audit procedures performed the Company has notgranted any loans either repayable on demand or without specifying any terms or period ofrepayment. Hence reporting under clause 3(iii)(f) of the Order is not applicable

iv. According to the information and explanation given to us duringthe year the Company has not granted any loans or provided any guarantees or security tothe parties covered under section 185 of the Companies Act 2013. The Company has compliedwith the provisions of section 185 and 186 of the Act to the extent applicable.

v. The Company has not accepted any deposits from the public or thereis no amount which has been considered as deemed deposit within the meaning of section 73to 76 of the Act and the rules framed there under.

vi. We have reviewed the cost records maintained by the Companypursuant to the Companies (Cost Records and Audit) Rules 2014 prescribed by the CentralGovernment under Section 148 (1) of the Companies Act 2013 and are of the opinion thatprima facie the prescribed cost records have been maintained. We have however have notmade a detailed examination of the records with a view to determine whether they areaccurate or complete. However Cost Audit has been prescribed for the Company and costaudit has been conducted by the Cost Auditor.

vii. According to the information and explanations given to us inrespect of statutory dues:

(a) The Company has generally been regular in depositing undisputedstatutory dues including Provident Fund Employees? State Insurance Income TaxGoods and Service Tax Customs Duty Cess and other material statutory dues applicable toit with the appropriate authorities.

(b) All statutory dues referred to in sub-clause (a) have beendeposited and they are not disputed. Hence reporting under clause 3(vii)(b) is notapplicable.

viii. According to the information and explanations given to us and onthe basis of our examination of the records of the

Company the Company has not surrendered or disclosed any transactionspreviously unrecorded as income in the books of account in the tax assessments under theIncome Tax Act 1961 as income during the year.

ix. (a) According to the records of the Company examined by us and theinformation and explanations given to us the Company has not defaulted in repayment ofloans or other borrowings or in the payment of interest to any lender during the year.

(b) According to the information and explanations given to us and onthe basis of our audit procedures we report that the Company has not been declared wilfuldefaulter by any bank or financial institution or government or any government authorityor any other lender.

(c) In our opinion and according to the information and explanationsgiven to us the term loans have been applied on an overall basis for the purposes forwhich they were obtained.

(d) According to the information and explanations given to us and theprocedures performed by us and on an overall examination of the Financial Statements ofthe Company we report that no funds raised on short-term basis have been used forlong-term purposes by the Company.

(e) According to the information and explanations given to us theCompany has not taken any funds from any entity or person on account of or to meet theobligations of its joint operations. The Company does not have any subsidiary andassociate (as defined under the Act) during the year ended March 31 2022.

(f) According to the information and explanations given to us theCompany has not raised loans during the year on the pledge of securities held in its jointoperations. The Company does not have any subsidiary and associate (as defined under theAct) during the year ended March 31 2022.

x. (a) According to the information and explanations given to us andbased on the records and documents produced before us during the year the Company has notraised money by way of initial public offer or further public offer (including debtinstruments) therefore the provisions of Clause 3(x)(a) of the Order are not applicableto the Company.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or convertible debentures (fullypartially or optionally convertible) during the year. Accordingly clause 3(x)(b) of theOrder is not applicable to the Company.

xi. (a) Based on examination of the books and records of the Companyand according to the information and explanations given to us considering the principlesof materiality as outlined in the Standards on Auditing we report that no fraud by theCompany or on the Company has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us noreport under Section 143(12) of the Act has been filed by the auditors in Form ADT-4 asprescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment.

(c) There has been no whistle blower complaints received by the Companyduring the year.

xii. As the Company is not a Nidhi Company and the Nidhi Rules 2014are not applicable to it therefore the provisions of clause 3(xii) of the Order is notapplicable to the Company.

xiii. According to the information and explanation given to us alltransactions with the related parties are in compliance with Sections 177 and 188 of theAct. The details of such related party transactions have been disclosed in the FinancialStatements as required under Indian Accounting Standard (Ind AS) 24 "Related PartyDisclosures" specified under Section 133 of the Act.

xiv. (a) In our opinion and according to the information andexplanation given to us the Company has an internal audit system commensurate with thesize and nature of its business.

(b) We have considered the internal audit reports of the Company issuedtill date for the period under audit.

xv. According to the information and explanations given to us in ouropinion during the year the Company has not entered into any non-cash transactions withits directors or persons connected with its directors and hence provisions of section 192of the Companies Act 2013 are not applicable to the Company.

xvi. (a) The Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Accordingly clause 3(xvi)(a) of the Orderis not applicable to the Company.

(b) The Company has not conducted non-banking financial / housingfinance activities during the year. Accordingly the reporting under Clause 3(xvi) (b) ofthe Order is not applicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly the reporting under Clause3(xvi)(c) of the Order is not applicable to the Company.

(d) Based on the information and explanations provided by themanagement of the Company during the course of audit the Company (as per the provisionsof the Core Investment Companies (Reserve Bank) Directions 2016) does not have any CIC.

xvii. The Company has not incurred any cash losses in the financialyear or in the immediately preceding financial year.

xviii.There has been no resignation of the statutory auditors duringthe year. Accordingly clause 3(xviii) of the order is not applicable to the Company.

xix. According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the FinancialStatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that Company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe Company. We further state that our reporting is based on the facts up to the date ofthe audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

xx. (a) In our opinion and according to the information andexplanations given to us there is no unspent amount under sub-section (5) of Section 135of the Act pursuant to any project other than ongoing projects. Accordingly clause3(xx)(a) of the Order is not applicable.

(b) In respect of ongoing projects in our opinion and according to theinformation and explanations given to us there is no ongoing projects under subsection(5) of Section 135 of the Act. Accordingly clause 3(xx)(b) of the Order is notapplicable.

xxi. As per the information and explanation given to us there havebeen no qualifications or adverse remarks by the respective auditors of the JointOperations included in the Financial Statements and thus the said clause 3 (xxi) of theOrder is not applicable.

Annexure B

REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OFSUB-SECTION

3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over FinancialReporting of J.Kumar Infraprojects Limited ("the Company") as on March 31 2022in conjunction with our audit of the Financial Statements of the Company for the yearended on that date.

MANAGEMENT?S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The management of the Company is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting ("the Guidance Note") issued by the Institute ofCharteredAccountantsofIndia("ICAI").Theseresponsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the Company?s policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Act.

AUDITOR?S RESPONSIBILITY

Our responsibility is to express an opinion on the Company?sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing as specifiedunder Section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both issued by ICAI. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference toFinancial Statements was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.

Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor?s judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company?s internalfinancial control system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING.

A Company?s internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Financial Statements for external purposes in accordancewith generally accepted accounting principles.

A Company?s internal financial control over financial reportingincludes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; and

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the Company arebeing made only in accordance with authorisations of management and directors of theCompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company?s assetsthat could have a material effect on the Financial Statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion the Company have in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Noteissued by ICAI.

For Todi Tulsyan & Co.
Chartered Accountants
Firm Reg. No. 002180C
Dilip Kumar
Partner
Place: Mumbai M. No. 054575
Date: May 30 2022 UDIN: 22054575AJWIOE6958

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