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Jai Balaji Industries Ltd.

BSE: 532976 Sector: Metals & Mining
NSE: JAIBALAJI ISIN Code: INE091G01018
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OPEN 18.15
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VOLUME 7376
52-Week high 34.50
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Mkt Cap.(Rs cr) 207
Buy Price 18.20
Buy Qty 99.00
Sell Price 18.75
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OPEN 18.15
CLOSE 18.75
VOLUME 7376
52-Week high 34.50
52-Week low 14.20
P/E
Mkt Cap.(Rs cr) 207
Buy Price 18.20
Buy Qty 99.00
Sell Price 18.75
Sell Qty 120.00

Jai Balaji Industries Ltd. (JAIBALAJI) - Auditors Report

Company auditors report

To The Members of

JAI BALAJI INDUSTRIES LIMITED

Report on the Audit of the Standalone Financial Statements Opinion We have audited theaccompanying standalone financial statements of JAI BALAJI INDUSTRIES LIMITED ("theCompany") which comprise the balance sheet as at 31st March 2019 and the statementof Profit and Loss (including other comprehensive income) statement of cash flows andstatement of changes in equity for the year then ended and a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us "except for the effects of the matter described in the Basis forQualified Opinion section" of our report the aforesaid standalone financialstatements give the information required by the Companies Act 2013 ("the Act")in the manner so required and give a true and fair view in conformity with the IndianAccounting Standards prescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended ("Ind AS") and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2019 and its loss total comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Basis for Qualified Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor’sResponsibility for the Audit of the Standalone Financial Statements section of our report.We are independent of the Company in accordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India (ICAI) together with the ethical requirementsthat are relevant to our audit of the standalone financial statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI’s Code of Ethics.We believe that the audit evidence obtained by us is sufficient and appropriate to providea basis for our opinion on the standalone financial statements.

The Company has not provided for interest amounting to Rs. 125381.29 Lacs of which Rs.42092.48 Lacs pertains to the current financial year on various loans and creditfacilities availed from banks and financial institution on the ground that same is beingtreated as Non-Performing Assets by the lenders. Due to this reason loss for the currentfinancial year has been understated by Rs. 42092.48 Lacs and accordingly loss for theyear ended 31st March 2019 would’ve been Rs. 57460.19 Lacs instead of Rs.15367.71Lacs.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

S. NO. THE KEY AUDIT MATTERS HOW THE MATTER WAS ADRESSED IN OUR AUDIT
1 LOAN CLASSIFIED AS Non Performing Assets (NPA) TRANSFERRED TO ASSET RECONSTRUCTIONCOMPANIES (ARC) OUR AUDIT PROCEDURES INCLUDE THE FOLLOWING:
(Refer Note 20 to the Standalone Financial Statements)
a) Rupee Loan from Banks and financial institutions had been classified as NPA and the lenders have served a call up notice for their exposure. Entire exposure of the lenders has fallen due on immediate demand basis. 1. We obtained the understanding of these asset reconstruction schemes through meetings with management and review of the minutes of the Board of Directors.
b) Axis Bank UCO Bank Allahabad Bank and Union Bank of India have already assigned their entire exposure to the Assets Reconstruction Companies in previous years. During the current financial year the following banks have also assigned their entire exposure in favour of Assets Reconstruction Companies: 2. We reviewed the correspondence of the company with the relevant Asset reconstruction companies and we have examined the agreement made with them.
i. Bank of India has assigned its debts due by the Company in favour of Edelweiss Asset Reconstruction Company on 25th Jan2019. The Company had made payments of Rs.1082 lacs to the said ARC upto the balance sheet date which has not been adjusted against theliability and is shown as advances to the ARC.
ii. United Bank of India and State Bank of India has assigned their debts due by the Company in favour of M/s Omkara Assets Reconstruction Private Limited on 29th Dec2018 and 28th Mar2019 respectively. An amount of Rs.140 lacs paid to the said ARC has been considered as an advance to the said ARC .same as above
iii. The WBIDFCL also assigned its debts due by the Company in favour of M/s Omkara Assets Reconstruction Private Limited on 25th April 2019.
c) The Company is in active negotiation with Canara Bank Corporation Bank IDBI Bank Indian Overseas Bank Oriental Bank of Commerce Punjab National Bank The Federal Bank Limited and Vijaya Bank to restructure its debts. The finalisation of any corrective plan is still pending.
2 THE COMPANY’S EXPOSURE TO LITIGATION RISK OUR AUDIT PROCEDURES INCLUDE THE FOLLOWING:
(Refer Note 35A to the Standalone Financial Statements) 1. We obtained details of completed tax assessments and demands for the year ended March 31 2019 from management.
The Company is exposed to different laws regulations and interpretations thereof and hence there is a litigation risk. 2. We examined the assumptions used in estimating the tax provision and the possible outcome of the disputes.
Consequently the Company has significant litigation cases pending with Custom Authorities Excise Authorities Service tax Authorities and Income tax Authorities. 3. We considered legal precedence and other rulings in evaluating management’s position on these tax positions.
Given the nature and amounts involved in such cases and the appellate forums at which these are pending the ultimate outcome and the resultant accounting in the financial statements is subject to significant judgement which can change over time as new facts emerge and each legal case progresses and therefore we have identified this as key audit matter.

 

3 ACCURACY OF RECOGNITION MEASUREMENT PRESENTATION AND DISCLOSURES OF REVENUES AND OTHER RELATED BALANCES IN VIEW OF ADOPTION OF IND AS 115 "REVENUE FROM CONTRACTS WITH CUSTOMERS" OUR AUDIT PROCEDURES INCLUDE THE FOLLOWING:
(Refer to Note 25 to the Standalone Financial Statements) 1. We assessed the procedures applied by management for the identification of the changes required in the financial statements due to application new IND AS 115
The application of the new revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognized over a period. Additionally new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. 2. We considered the adequacy and appropriateness of the additional disclosures and changes to the previous disclosures based on the new requirements.

Emphasis of Matter

1. We draw attention to Note - 36 of the financial statements the Company hasbeen incurring losses and its net worth has completely eroded also its current liabilityexceeds current assets by Rs.177311.44 Lacs. However the financial statements of theCompany have been prepared on a going concern basis because the management is confidentthat the improvement in market scenario will help in improving the financial health of thecompany and accordingly Deferred Tax Assets amounting to Rs.29085.14 Lacs created up to31st March 2015 have been carried forward.

2. We also draw attention to Note No.20 of the accompanying Standalone FinancialStatements in respect of treatment in the books of accounts of the assignment / settlementof Debts of various Banks and the Financial Institutions.

3. We draw attention to Note No.58 to the financial statements in relation tooutstanding balances of trade receivables trade payables and loans and advances which aresubject to confirmation and subsequent adjustments if any.

Information Other than the Financial Statements and Auditor’s Report thereon

The Company’s Board of Directors is responsible for the other information. Theother information comprises Board’s Report Report on Corporate Governance andBusiness Responsibility Report but does not include the consolidated financial statementstandalone financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany’s ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are also responsible for overseeing the Company’s financialreporting process.

Auditor’s Responsibility for the Audit of the Standalone Ind AS FinancialStatements

Our objectives are to obtain reasonable assurance about whether the Ind AS financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the Ind AS financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act2013 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 the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany’s ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor’s report to therelated disclosures in the Ind AS 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 auditor’s 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 the Ind AS financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Ind AS financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor’ report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report that:

(a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those book.

(c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder.

(e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

(g) With respect to the other matters to be included in the Auditor’s Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements – Refer Note 35A

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There has been no such sum which needs to be transferred to the Investor Educationand Protection Fund by the Company.

2. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure "B" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

For S. K. AGRAWAL & CO.
Chartered Accountants
Firm’s Registration No-306033E
(J. K. CHOUDHURY)
Place : Kolkata Partner
Dated : May 30 2019 Membership No: 009367

ANNEXURE "A" TO THE INDEPENDENT AUDITOR’S REPORT

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of JAIBALAJI INDUSTRIES LIMITED ("the Company") as of March 31 2019 to the extentof records available with us in conjunction with our audit of the Ind AS financialstatements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) Provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany’s assets that could have a material effect on the financial statements.

Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company.

For S. K. AGRAWAL & CO.
Chartered Accountants
Firm’s Registration No-306033E
(J. K. CHOUDHURY)
Place : Kolkata Partner
Dated : May 30 2019 Membership No: 009367

Annexure -B to the Independent Auditors’ Report

The Annexure referred to in our Independent Auditor's Report to the members of JAIBALAJI INDUSTRIES LIMITED (‘the Company’) on the standalone financialstatements for the year ended on 31st March 2019. We report that:

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets

(b) The Company has a regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phased manner over a period of three years. Inaccordance with this program certain fixed assets were verified during the year and nomaterial discrepancies were noticed on such verification. In our opinion this periodicityof physical verification is reasonable having regard to the size of the Company and thenature of its assets.

(c) According to information and explanation given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii. The inventories have been physically verified during the year by the management atregular intervals. In our opinion and according to the information and explanations givento us no material discrepancies were noticed on physical verification.

iii. According to information and explanation given to us and on the basis of ourexamination of the records of the Company the Company has granted unsecured loans to onecompany covered in the register maintained under section 189 of the Companies Act 2013(‘the Act’).

Accordingly we report that: -

a) The terms and conditions of such loans are prima facie not prejudicial to thecompany’s interest.

b) The above loans are re-payable on demand

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 185 and 186 of the Companies Act2013 in respect of loans investments guarantees and securities made.

v. The Company has not accepted any deposits from the public. Accordingly paragraph3(v) of the Order is not applicable.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules prescribed by the Central Government for maintenance of cost records undersection 148 (1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has not been regular in depositing undisputed statutory dues includingProvident Fund Employees State Insurance Income Tax Service Tax Value Added Tax dutyof Excise Cess and other statutory dues with the appropriate authorities during the year.

According to the information and explanations given to us the following undisputedamounts payable in respect of the aforesaid dues were outstanding as at 31st March 2019for a period of more than six months from the date they became payable:

Name of statute Nature of Dues Amount Outstanding (Rs. in Lacs) Period to which amount relates
Income Tax Act 1961 TDS 381.78 April’17 to September’18
Finance Act 1994 Service Tax 95.95 December’16 to June’17
The Central Excise Act 1944 Excise Duty 803.32 June’16 to May’17
Provident Fund Act 1952 Provident Fund 784.27 May’16 to September’18
Finance Act 1994 Swachh Bharat Cess 10.22 September’16 to June’17
Finance Act 1994 Krishi Kalyan Cess 10.16 September’16 to June’17
Punjab Value Added Tax Act Value Added Tax 53.57 September’13 to February’14

(b) According to information and explanations given to us the following dues of incometax sales tax duty of excise duty of custom service tax and value added tax have notbeen deposited by the Company on account of disputes:

Name of the statute Nature of dues Amount under dispute not yet deposited (Rs. in lacs) Financial year to which the amount relates Forum where dispute is pending
The Central Excise Act 1944 Excise Duty 22494.80 2007-08 to 2018-19 CESTAT Commissioner (Appeals)
Finance Act 1994 Service Tax 936.14 2010-11 to 2018-19 CESTAT Commissioner (Appeals)
Custom Act 1962 Custom Duty 917.36 2012-13 2016-17 2017-18 2018-19 CESTAT Commissioner (Appeals)
The West Bengal Sales Tax Act 1994 Sales Tax 3.59 2004-05 West Bengal Appellate & Revisional Board
The Central Sales Tax Act 1956 Central Sales Tax 1018.13 2006-07 to 2016-17 West Bengal Appellate & Revisional Board
The West Bengal Value Added Tax Act 2003 Value Added Tax 1667.58 2005-06 to 2014-15 West Bengal Appellate & Revisional Board
The Uttar Pradesh Value Added Tax Act 2007 Value Added Tax 6.85 2005-06 2016-17 West Bengal Appellate Revisional Board
The Income Tax Act 1961 Income Tax 6.85 2008-09 DCIT/CIT(A)

viii. In our opinion and according to information and explanations given by themanagement we are of the opinion that the Company has defaulted in the repayment of duesto banks and financial institution during the year as given below: -

Rs. in lacs

Banks Default of Amount (Principal and Interest)
Canara Bank 3332.30
Corporation Bank 2152.78
Federal Bank 403.21
IDBI Bank 1056.94
Indian Overseas Bank 18950.01
Oriental Bank of Commerce 26459.60
Punjab National Bank 2826.42
VIJAYA Bank 8154.96
Grand Total 54453.28

 

Financial Institution Default of Principal and Interest
WBIDFC 4950.45

*above figures don’t include interest amounting to Rs. 125381.29 lacs of which Rs42092.48 Lacs pertains to financial year 2018-19 Rs. 43744.25 lacs pertain to financialyear 2017-18 and Rs. 39544.56 lacs for the financial year 2016-17 as interest has notbeen provided in the books as mentioned in Note – 20 of the financial statements.

**The lenders have initiated the recovery procedures and have already served the callup notice for their exposure. Therefore instead of structured repayment schedule theentire exposure of the banks/ financial institution has fallen due on immediate basis.

To the best of our knowledge and belief and according to the information andexplanations given to us during the year the Company did not avail any term loan facilityfrom bank or financial institution. Also Company did not raise any money by way ofinitial public offer or further public offer (including debt instruments) during the year.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanation given by the management the companyhas not paid remuneration over and above the limits prescribed under section 197 readwith Schedule – V of the act to executive director.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableIndian Accounting Standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records the Company has not made any private placement of sharesduring the year under review.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with them and hence provisions of section192 of companies Act 2013 are not applicable to the company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For S. K. AGRAWAL & CO.
Chartered Accountants
Firm’s Registration No-306033E
(J. K. CHOUDHURY)
Place : Kolkata Partner
Dated : May 30 2019 Membership No: 009367