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Jai Balaji Industries Ltd.

BSE: 532976 Sector: Metals & Mining
NSE: JAIBALAJI ISIN Code: INE091G01018
BSE 00:00 | 07 Feb 51.45 0.05
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NSE 00:00 | 07 Feb 51.35 -0.05
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OPEN 51.40
PREVIOUS CLOSE 51.40
VOLUME 9573
52-Week high 64.20
52-Week low 35.30
P/E 12.16
Mkt Cap.(Rs cr) 748
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 51.40
CLOSE 51.40
VOLUME 9573
52-Week high 64.20
52-Week low 35.30
P/E 12.16
Mkt Cap.(Rs cr) 748
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

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

Qualified Opinion

We have audited the accompanying Standalone Financial Statements of JaiBalaji Industries Limited ("the Company") which comprise the Balance Sheet asat 31st March 2022 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and a summary of the significant accounting policies and otherexplanatory information.

In our opinion and to the best of our information and according to theexplanations given to us "except for the effects of the matter described in the Basisfor Qualified 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 31st March 2022 and its profit total comprehensive income its cash flows and thechanges in equity for the year ended on that date.

Basis for Qualified Opinion

The Company has not provided for interest amounting to Rs. 157680.94Lacs of which Rs. 29938.85 Lacs pertains to the current financial year on various loansand credit facilities availed from banks and financial institution on the ground that sameis being treated as Non-Performing Assets by the lenders. Due to this reason Profit forthe current financial year has been overstated by Rs. 29938.85 Lacs and accordingly lossfor the year ended 31st March 2022 would have been Rs. 25132.30 Lacs instead of theprofit of Rs. 4806.55 Lacs. Further due to this the Reserves and Surplus of the companywould have been at a negative balance of Rs. 335001.18 Lacs.

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in theAuditor's Responsibility for the Audit of the Standalone Financial Statements sectionof our report. We are independent of the Company in accordance with the Code of Ethicsissued by the Institute of Chartered Accountants of India (ICAI) together with the ethicalrequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our opinion on the standalone financial statements.

Material uncertainty related to going concern

Based on the audit evidence obtained we draw attention that as of thatdate the company's current liabilities exceeded its current assets by Rs.275349.03 Lacs which signifies that the wealth of the company has been completelyeroded. Thus this cast significant doubt on entity's ability to continue as a GoingConcern. However the financial statements of the Company have been prepared on a goingconcern basis because the management is confident that the improvement in market scenariowill help in improving the financial health of the company and accordingly Deferred TaxAssets amounting to Rs. 29085.14 Lacs created up to 31st March 2015 have been carriedforward. Our opinion is not modified in respect of this matter.

Emphasis of Matter

1. We also draw attention to Note No.20 of the accompanying StandaloneFinancial Statements in respect of treatment in the books of accounts of the assignment/settlement of Debts of various Banks and the Financial Institutions. Our report is notmodified in respect of this matter.

2. We draw attention to Note No. 60 to the financial statements inrelation to outstanding balances of trade receivables trade payables and loans andadvances which are subject to confirmation and subsequent adjustments if any. Our reportis not modified in respect of this matter.

3. We draw attention to Note No. 63 to the financial statement whichdescribes the uncertainties and potential impact of the Covid -19 pandemic on theCompany's operations and results as assessed by the management for which adefinitive assessment of the impact in the subsequent period is highly dependent uponcircumstances as they evolve. Our report is not modified in respect of this matter.

4. We draw attention to Note No. 39A to the financial statement inrelation to provision of leave encashment which have not been evaluated by a certified andregistered Actuarial Valuer as required under Ind AS 19 – "EmployeeBenefit". Our report is not modified in respect of this matter.

5. We draw attention to sub note 7 under Additional Disclosures to NoteNo. 20 to the financial statement in relation to One Time Settlement with Canara Bankresulting in a gain of Rs 2070.11 lacs which was credited to Capital Reserve. Our reportis not modified in respect of this matter

Key Audit Matter

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent period. These matters were addressed in the context of our audit of the

Standalone Financial Statements as a whole and informing our opinionthereon and we do not provide a separate opinion on these matters. We have determined thematters described below to be the 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 RECONSTRUCTION COMPANIES (ARC) OUR AUDIT PROCEDURES INCLUDE THE FOLLOWING:
(Refer Note 20 to the Standalone Financial Statements) We reviewed the correspondence of the company with the relevant Asset reconstruction companies and we have examined the agreement made with them.
i) The company has taken Rupee Loan from Banks and financial institutions and due to default in repayment they had been classified as NPA. Thus these Banks and FIs have already assigned their entire exposure to the Assets Reconstruction Companies in previous years. The Company had made payments to the above ARC's which has been adjusted against the total outstanding loan liability.
We reviewed the proposal of the company with the Bank.
We obtained the understanding of these reconstruction schemes through meetings with management and review of the minutes of the Board of Directors.
ii) The Company has negotiated with Corporation Bank and Punjab National Bank (combined with erstwhile Oriental bank of Commerce) to restructure its debts. The Company had made payment to the above banks as per the repayment schedule which has been adjusted against the total outstanding loan liability. We reviewed the further correspondences of the Company with the relevant Banks/ARC's.
iii) The Company has requested all lenders to allow a moratorium period for the payments or re-schedule/ restructure the payment of the instalments amount not paid and moratorium period or revised schedule is yet to be confirmed
2. THE COMPANY'S EXPOSURE TO LITIGATION RISK OUR AUDIT PROCEDURES INCLUDE THE FOLLOWING:
(Refer Note 35A to the Standalone Financial Statements) Obtained and read the Company's accounting policies in respect of claims provisions and contingent liabilities to assess compliance with accounting standards.
The Company has ongoing litigations with various authorities and third parties which could have a significant impact on the results if the potential exposures were to materialise. Assessed the design and implementation of the Company's controls over the assessment of litigations and completeness of disclosures. Supporting documentation were tested for the positions taken by the management meetings conducted with legal counsel and/or legal team and minutes of Board and sub-committee meetings were reviewed to test the operating effectiveness of these controls.
The amounts involved are significant and the application of accounting standards to determine the amount if any to be provided as a liability or disclosed as a contingent liability is inherently subjective.
Claims against the Company not acknowledged as debts are disclosed in the Financial Statements by the Company after a careful evaluation of the facts andlegal aspects of the matters involved. The outcome of such litigation is uncertain and the position taken by management involves significant judgment and estimation to determine the likelihood and/or timing of cash outflows and the interpretation of preliminary and pending court rulings. Involved our tax specialists to assess relevant historical and recent judgements passed by the appropriate authorities in order to challenge the basis used for the accounting treatment and resulting disclosures.
Additionally considered the effect of new information in respect of contingencies as at April 1 2021 to evaluate whether any change was required in the management's position on these contingencies as at March 31 2022.
Assessed in accordance with accounting standards the provisions in respect of litigations and assessed disclosures relating thereto including those for contingencies.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Board's Report including Annexures to Board's Report andShareholder's Information but does not include the Standalone Financial Statements and ourauditor's report thereon. The Board's report including annexures to theBoard's report and Shareholder's Information is expected to be made available tous after the date of this auditor's report.

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

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the financial position financialperformance total comprehensive income Statement of Changes in Equity and Statement ofCash Flow of the Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Standalone Financial Statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibility for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also: l Identifyand assess the risks of material misstatement of the Standalone Financial Statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control. l Obtainan understanding of internal financial control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls. l Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management. lConclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern. l Evaluate the overall presentation structure and contentof the Standalone Financial Statements including the disclosures and whether theStandalone Financial Statements represent the underlying transactions and events in amanner that achieves fair presentation. Materiality is the magnitude of misstatements inthe Standalone Financial Statements that individually or in aggregate makes it probablethat the economic decisions of a reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the Standalone FinancialStatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

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.

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 ofsub-section (11) of section 143 of the Act we give in ‘‘Annexure A''a statement on the matters specified in paragraphs 3 and 4 of the Order to the extentapplicable.

2. As required by section 143(3) of the Act based on our audit wereport that: i. We have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purposes of our audit. ii. Inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books. iii. The Balance Sheet theStatement of Profit and Loss including Other Comprehensive Income Statement of Changes inEquity and the Statement of Cash Flow dealt with by this Report are in agreement with therelevant books of account. iv. In our opinion the aforesaid Standalone FinancialStatements comply with the Ind AS specified under Section 133 of the Act read with Rule 7of the Companies (Accounts) Rules 2014.

v. On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thesedirectors is disqualified as on 31st March 2022 from being appointed as a director interms of Section 164(2) of the act. vi. With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate Report in ‘‘Annexure B''.Our report expresses an unmodified opinion on the adequacy and operating effectiveness ofthe Company's internal financial controls over financial reporting. vii. With respectto the other matters to be included in the Auditor's Report in accordance with therequirements of section 197(16) of the Act as amended: In our opinion and to the best ofour information and according to the explanations given to us the the Company has notpaid any remuneration to its directors during the year and it is in accordance with theprovisions of section 197 of the Act. viii.With respect to the other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us:

a) The Company has disclosed the impact of pending litigations on itsfinancial position in Note 35A of the Standalone Financial Statements.

b) The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

c) There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.

d) 1) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually or in aggregate) have beenadvanced or loaned or invested (either from borrowed funds or share premium or any othersources or kind of funds) by the Company to or any other person orentity includingforeign entity ("Intermediaries") with the understanding whether recorded inwriting or otherwise that the Intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner what soever by or on behalfof the Company ("Ultimate Beneficiaries") or provide any guarantee securityorthe like on behalf of the Ultimate Beneficiaries;

2) The Management has represented that to the best of its knowledgeand belief no funds (which are material either individually orin the aggregate) have beenreceived by the Company from any person or entity in cluding foreign entity("FundingParties")with the understanding whether recordedin writing or otherwise that the Company shall whether directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the FundingParty ("Ultimate Beneficiaries") or provide any guarantee security or the likeon behalfof the Ultimate Beneficiaries;

3) Basedon 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 representation sunder sub-clause(i) and (ii) of Rule11(e) as providedunder (1) and (2) above contain any material misstatement. e) No dividend has been paid ordeclared by the company during the year.

For S K Agrawal And Co. Chartered Accountants LLP
Chartered Accountants
Firm's Registration Number-306033E/E300272
Sd/
CA J. K. Choudhury
Partner
Place: Kolkata Membership No: 009367
Date: May 27 2022 UDIN : 22009367AJSVVH2556

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of Jai BalajiIndustries Limited of even date)

(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant and equipmentand relevant details of right-of-use assets.

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

(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 a program ofphysical verification of Property Plant and Equipment and right-of-use assets so to coverall the assets once every three years which in our opinion is reasonable having regardto the size of the Company and the nature of its assets. Pursuant to the program certainProperty Plant and Equipment were due for verification during the year and werephysically verified by the Management during the year.

According to the information and explanations given to us no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the property tax receipts andlease agreement for land on which building is constructed registered sale deed / transferdeed / conveyance deed provided to us we report that the title in respect ofself-constructed buildings and title deeds of all other immovable properties (other thanproperties where the company is the lessee and the lease agreements are duly executed infavour of the lessee) disclosed in Note 3 of the financial statements included underProperty Plant and Equipment are held in the name of the Company as at the balance sheetdate. (d) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not revalued any of itsProperty Plant and Equipment (including right-of-use assets) and intangible assets duringthe year. (e) According to the information and explanations given to us and on the basisof 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 (as amended in 2016)and rules made thereunder.

(ii) (a) According to the information and explanations given to us andon the basis of our examination of the records of the Company inventory other than theStock-in-

Transit the physical verification has been conducted at reasonableintervals by the management and in our opinion the coverage and procedure of suchverification by the management is appropriate. No discrepancy of 10% or more in theaggregate for each class of inventory was noticed during such physical verification.

(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 beensanctioned any working capital limits.Accordingly Clause ii(b) of Paragraph 3 is notapplicable.

(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 madeinvestment in provided any guarantee or security or granted any loans or advances inthe nature of loans secured or unsecured to companies firms and Limited liabilitypartnership or other parties during the year. Accordingly clause (v) of paragraph 3 ofthe Order is not applicable.

(iv) According to the information and explanations given to us and onthe basis of our examination of the records of the Companythere are no loansinvestments guarantees and security in respect of which provisions of sections 185 and186 of the Companies Act 2013 are applicable and accordingly the requirement to reporton clause 3(iv) of the Order is not applicable to the Company. (v) According to theinformation and explanations given to us and on the basis of our examination of therecords of the Company the Company has not accepted any deposits or amounts which aredeemed to be deposits from the public during the year. Accordingly clause (v) ofparagraph 3 of the Order is not applicable.

(vi) According to the information and explanations given to us and onthe basis of our examination of the Books of Accounts of the Company the Company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether theyare accurate or complete.

(vii)(a) According to the information and explanations given to us andon the basis of our examination of the records of the Company the Company has beenregular in depositing undisputed statutory dues including Provident Fund Employees StateInsurance Income Tax Duty of Customs Goods and Services Tax Cess and other statutorydues with the appropriate authorities during the year. According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st March 2022 for a period of more than six months from the dateof becoming payable.

(b) According to the information and explanations given to us thereare no dues of GST Provident fund Employees' State Insurance Income-tax Salestax Service tax Duty of Customs Value added tax Cess or other statutory dues whichhave not been deposited by the Company on account of disputes except for the following:

Nature of Statute Nature of dues Period to which the matter pertains Forum where matter is pending Amount Demanded (in lacs) Pre-Deposit Net Amount
The Central Excise Act 1944 Excise Duty 2003-04 2006-07 to 2017-18 Central Excise and Service Tax Appellate Tribunal Commissioner 19302.29 133.97 19172.47
The Goods and Service Tax Act 2017 GST 2017-18 to 2021-22 High Court (Kolkata Bhilai) Commissioner (Appeal) West Bengal Appellate & Revisional Board 853.98 0.00 853.98
Customs Act 1962 Custom Duty 2009-10 to 2012-13 2017-18 2018-19 Central Excise and Service Tax Appellate Tribunal Commissioner 1182.26 23.43 1158.83
The Income Tax Act 1961 Income Tax 2009-10 DCIT/CIT(A) 6.85 0.00 6.85
The Finance Act 1994 Service Tax 2003-04 to 2017-18 Central Excise and Service Tax Appellate Tribunal Commissioner High Court (Kolkata) 1142.03 21.55 1120.48
The Value Added Tax 2005 Vat 2005-06. 2006-07 2008-09 2010-11 2011-12 2013-14 2015-16 2017-18 W.B.C.T. Appellate & Revisional Board Large Taxpayer Unit 2813.06 118.71 2694.35
The Central Sales Tax Act 1956 Central Sales Tax 2006-07 2008-09 2010-11 to 2013- 14 2015-16 to 2017-18 W.B.C.T. Appellate & Revisional Board Large Taxpayer Unit 1126.38 36.53 1089.85
Entry Tax Act 1976 Entry Tax 2012-13 to 2017- 18 W.B.C.T. Appellate & Revisional Board 4204.34 15.33 4189.01

(viii) According to the information and explanations given to us and onthe basis of our examination of the Books of Accounts of the Company there were notransactions relating to previously unrecorded income that have been surrendered ordisclosed as income during the year in the tax assessments under the Income Tax Act 1961(43 of 1961).

(ix) (a) According to the information and explanations given to us andon the basis of our examination of the Books of Accounts of the Company the company hasnot defaulted in repayment of loans or other borrowings or in the payment of interestthereon to lender during the year except the following where the repayment terms are notdefined.

Nature of the Borrowing Name of the Lender Amount not paid on due date (in lacs) Whether Principal or interest No. of days delay or unpaid Remarks if any
Rupee Loan Omkara Assets Reconstruction Pvt Ltd. 144854 Principal -- On account of non-finalization of repayment and restructuring terms calculation of delay of days has not been considered
Rupee Loan Atirath Commercial Pvt Ltd. 538 Principal -- On account of non-finalization of repayment and restructuring terms calculation of delay of days has not been considered

(b) According to the information and explanations given to us and onthe basis of our examination of the Books of Accounts of the Company the Company has notbeen declared wilful defaulter by any bank or financial institution or government or anygovernment authority.

(c) According to the information and explanations given to us and onthe basis of our examination of the Books of Accounts of the Company no term loans wereobtained by the company during the year.

Accordingly clause 3(ix)(c) of the Order is not applicable.

(d) According to the information and explanations given to us and onthe basis of our examination of the Books of Accounts of the Company on an overallexamination of the financial statements of the Company funds raised on short term basishave prima facie have not been used during the year for long-term purposes by theCompany. Accordingly clause 3(ix)(d) of the Order is not applicable. (e) According to theinformation and explanations given to us and on the basis of our examination of the Booksof Accounts of the Company the Company has not taken any funds from any entity or personon account of or to meet the obligations of its subsidiary.

Accordingly clause 3(ix)(e) of the Order is not applicable.

(f) According to the information and explanations given to us and onthe basis of our examination of the Books of Accounts of the Company the company has notraised loans during the year on the pledge of securities held in its subsidiaries asdefined under the Companies Act 2013. Accordingly clause 3(ix)(f) of the Order is notapplicable.

(x) (a) The Company has not raised any money by way of initial publicofficer and further public offer (including debt instruments) during the year.Accordingly clause 3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us and onthe basis of our examination of the Books of Accounts of the Company the company has notmade preferential allotment or private placement of optionally convertible debenturesduring the year. Accordingly clause 3(x)(b) of the Order is not applicable.

(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 outlined in Standards on Auditing we report that no fraud by the Companyor 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 sub-section (12) of Section 143 of the Companies Act 2013 has been filed bythe auditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.

(c) We have taken into consideration the whistle blower complaintsreceived by the Company during the year (and up to the date of this report) whiledetermining the nature timing and extent of our audit procedures.

(xii) According to the information and explanations given to us thecompany is not a Nidhi Company.

Accordingly clause (xii) of paragraph 3 of the Order is notapplicable.

(xiii) In our opinion and according to the information and explanationsgiven to us the transactions with related parties are in compliance with Sections 177 and188 of the Companies Act 2013 where applicable and the details of the related partytransactions have been disclosed in the standalone financial statements as required by theapplicable Indian Accounting Standards.

(xiv)(a)Based on information and explanations provided to us and ouraudit procedures in our opinion the Company has an internal audit system commensuratewith the size and nature of its business.

(b) We have considered the internal audit reports for the year underaudit issued to the Company during the year and till date in determining the naturetiming and extent of our audit procedures.

(xv) In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with its directorsor persons connected to its directors and hence provisions of Section 192 of theCompanies Act 2013 are not applicable to the Company. Accordingly clause (xv) ofparagraph 3 of the Order is not applicable.

(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 Order is not applicable.

(b)The Company has not conducted any Non-Banking Financial or HousingFinance activities without obtained a valid Certificate of Registration (CoR) from theReserve Bank of India as per the Reserve Bank of India Act 1934.

(c) The Company is not a Core Investment Company (CIC) as defined inthe regulations made by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of theOrder is not applicable.

(d) According to the information and explanations provided to us duringthe course of audit the Group (as per the provisions of the Core Investment Companies(Reserve Bank) Directions 2016) does not have any CIC.

(xvii) The company has not incurred cash losses in current financialyear and in the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors of theCompany during the year. Accordingly clause 3(xviii) of the Order is not applicable.

(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 and our knowledge of the Board of Directors and management plans and based onour examination of the evidence supporting the assumptions it has come to our attentionwhich causes us to believe that material uncertainty as mentioned in the "MaterialUncertainty Related to Going Concern" paragraph of our report exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will not get discharged by the Company as and when they fall due.

(xx) In our opinion and according to the information and explanationsgiven to us there are no amount required to be spent towards Corporate SocialResponsibility (CSR). Accordingly reporting under clause 3(xx)(a) and 3(xx)(b) of theOrder is not applicable for the year.

For S K Agrawal And Co. Chartered Accountants LLP
Chartered Accountants
Firm's Registration Number-306033E/E300272
Sd/
CA J. K. Choudhury
Partner
Place: Kolkata Membership No: 009367
Date: May 27 2022 UDIN : 22009367AJSVVH2556

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2(f) under 'Report on Other Legal andRegulatory Requirements' section of our report to the Members of Jai Balaji IndustriesLimited of even date)

Report on the Internal Financial Controls Over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013(''the Act'')

We have audited the internal financial controls over financialreporting of Jai Balaji Industries Limited ('the Company') as of 31st March 2022 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting 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 including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the ‘‘Guidance Note'') issued by the Institute ofChartered Accountants of India and the Standards on Auditing prescribed under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively 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 judgement including the assessment of therisks of material misstatement of the Standalone Financial Statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial Statements for external purposes inaccordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofStandalone Financial Statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on theStandalone 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 to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For S K Agrawal And Co. Chartered Accountants LLP
Chartered Accountants
Firm's Registration Number-306033E/E300272
Sd/
CA J. K. Choudhury
Partner
Place: Kolkata Membership No: 009367
Date: May 27 2022 UDIN : 22009367AJSVVH2556

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