To The Members of Jainco Projects (India) Limited Report on the Audit of StandaloneFinancial Statements
We have audited the accompanying standalone financial statements of Jainco Projects(India) Limited (the Company) which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss (including Other Comprehensive Income) thestatement of Cash Flows and the Statement of Changes in Equity for the year then endedand the notes to the financial statements including a summary of the significantaccounting policies and other explanatory information (hereinafter referred to asthe standalone financial statements).
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (Ind AS) and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2021 and its profittotal comprehensive income its cash flows and changes in equity for the year ended onthat date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI)together with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgement were of mostsignificant in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the standalone financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
Emphasis of Matter
We draw attention to Note No 2.20 in the financial statements wherein the Company hasdisclosed the impact of Covi-19 pandemic on its current and future financial performance.Considering the uncertainties involve in the future economic scenario which a based onvarious external factors outside the control of the Company the management's assumptionsand estimates on operational and financial performance of the Company would largely dependon future developments as they emerged as stated in the said note. Our opinion is notmodified in respect of this matter.
Information Other than the Financial Statements and Auditor's Report thereon
The Company's board of Directors is responsible for the other information. The otherinformation comprises the information included in the management Discussion and Analysis.Board's Report including annexures to Board's Report and Report on Corporate Governancebut does not include the standalone and consolidate financial statements and ourrespective auditor's report thereon. The other information referred to above is expectedto be made available to us after the date of this auditor's report.
Our opinion on the standalone financial statements does not cover the other informationand we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information identified above and in doing so consider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.
When we read the other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) prescribed under the Act read with rules framedthereunder as applicable.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Director's either intends to liquidate the Company or to cease theoperations or has no realistic alternative but to do so. Thus Board of Directors are alsoresponsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 a highlevel of assurance but it is not a guarantee that an audit concluded in accordance withSAs will always detect a material misstatements 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 a part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the 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 collusion forgeryintentional omission misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls system in place and the operatingeffectiveness 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 concern basisof accounting 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves the fair presentation.
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 financial statements of thecurrent period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Our opinion is not modified in respect of these matters.
1. Attention is drawn to :
a. Note 2.17 and 26.1 of the financial results relating to advances unsecured loantrade payable and receivable are subject to confirmation from respective parties as atMarch 31 2021 and consequential effect upon reconciliation/adjustment arising there fromif any. Hence financial impact if any is not currently ascertainable. Receivables andadvances include the amount due from customers and parties which are sub-judice or assetswhich are not presently in possession of the company and matter is sub-judice.
b. Note 2.11 Borrowing Cost and dues to financial creditor of the company it has notrecognised isputed interest and other charges payable to all financial creditors inpreparation of the financial results as its being disputed by the company and the matteris sub-judice.
c. Note no. 26.1 effect of total non-recognition of various financial figures i.e.total contingent liability of the company which has been unascertainable includedifferences of claims by financial / operational creditors / statutory dues / effect ofguarantees extended by the company and brought to our notice during our audit.
d. Note no. 26.1 wherein companies some assets current and fixed are not in possessionof company due to reason briefed therein.
e. Note no. 26.1 wherein the company has not made any provision for gratuity paymentfor the year and the same is also not ascertainable by us.
f. Note 2.20 to the standalone financial statements which explain the uncertainties andmanagement's assessment of the financial impact due to lockdown / restrictions related tothe COVID-19 pandemic imposed by the Governments for which a definitive assessment of theimpact is dependent upon future economic conditions.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 (the Order)issued by the Central Government of India in terms of Section 143(11) of the Act we givein Annexure-A a statement on the matters specified in paragraphs 3 and 4 of theOrder.
2. As required by Section 143 (3) of the Act we report that:
(a) We have sought and obtained all the information and explanations which to the 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 books.
(c) The Balance Sheet Statement of Profit and Loss including other comprehensiveincome the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisreport are in agreement with the books of account.
(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant Rulesissued there under.
(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2021 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 - B. Our Report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls withreference to financial statements.
(g) With respect to other matters to be included in Auditor's Report in accordance withthe requirements of section 197(16) of the Act in our opinion and to the best of ourinformation and according to the explanations given to us the remuneration paid by theCompany to its Directors during the year is in accordance with the provisions of section197 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 standalone Ind-AS financial statements.
ii. The Company has certain long-term contracts for which there are no materialforeseeable losses. The Company did not have any derivative contracts.
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.
|For KUMAR ROYBARMAN PRASANTA AND ASSOCIATES ||(Prasanta Kumar Roybarman) |
|Chartered Accountants FRN. 330634E ||Proprietor |
|Date : 30-06-2021 ||M.No. 013905 |
ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under Report on other legal and RegulatoryRequirements' section of our report of even date to the members of the Company on thestandalone financial statements of the Company for the year ended 31 March 2021)
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
(b) The fixed assets have been physically verified by the management at reasonableintervals and in our opinion it is reasonable considering the size of company and natureof asset no such material discrepancies were noticed on such verification and if so thesame have been properly dealt with in the books of account;
(c) According to the information and examinations given to us and on the basis of ourexamination we report that the title deeds of immovable properties are held in the nameof the Company as at the balance sheet date.
(ii) As explained to us the inventories of Stock in trade were maintained in demataccount & physical and has been conducted at reasonable intervals by the managementand if any material discrepancies were noticed on physical verification the same havebeen properly dealt with in the books of account attention is drawn towards note no. 26.1of financial statement;
(iii) According to the information and explanation given to us during the year thecompany has not granted any loans secured or unsecured to companies firms LimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Act. Accordingly provisions of clauses (iii) (a) (b) and (c) of paragraph 3of the aforesaid Order are not applicable to the Company.
(iv) According to the information and explanation given to us during the year theCompany has not given loans made investments given guarantees and provided securitiescovered by provisions of section 185 and 186 of the Act.
(v) The company has not accepted deposits from the public within the meaning ofsections 73 and 74 or any other relevant provisions of the Companies Act and the rulesframed there under.
(vi) The Company is not required to maintain cost records as specified underSub-Section (1) of Section 148 of the Companies Act 2013.
(vii) (a) According to the information and explanations given to us and on the basis ofchecking the records of the Company we are of the opinion that the Company is generallyregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax cess GST and any other statutory dues with appropriate authorities.
(b) According to the information and explanations given to us the following dues ofsales tax value added tax GST duty of custom and duty of excise have not been depositedby the Company on account of any dispute:
|Name of Statue ||Nature of Dues ||Amount Involved ||Forum where demand is pending |
|Income Tax Act 1961 ||Income Tax/Interest/ Penalty AY 2011-12 ||Demand Rs. 127105/- ||Appeal decided effect yet to be given by A.O. |
|Income Tax Act 1961 ||Income Tax/Interest/ Penalty AY 2012-13 ||Demand Rs. 481910/- ||Appeal decided effect yet to be given by A.O. |
|Income Tax Act 1961 ||Income Tax/Interest/ Penalty AY 2013-14 ||Demand Rs. 121462/- ||Appeal decided effect yet to be given by A.O. |
|Income Tax Act 1961 ||Income Tax/Interest/ Penalty AY 2017-18 ||Demand Rs. 153080/- & int. Rs. 41310/- ||Rectification u/s 154 |
|Income Tax Act 1961 ||TDS - Short Payment/ Interest / Late Filing/ ||Demand o/s for 26202.50 ||Appeal not yet filed |
|VAT Act 2003 ||Vat/ Interest/ Penalty for the year 2013-14 and ||Demand Raised Rs.88 Lacs & 44 Lacs ||Appeal at High court/DCCT Sales Tax |
| ||2014-15 || || |
|Gratuity ||Yearly payment ||Not ascertained ||LIC has been requested for sending quote |
(A mere representation to/by the concerned Department is not considered as a dispute)
(viii) According to information and explanation given to us and based on the records ofthe company examined by us the company has not made repayment of short term loans orborrowings to financial institutions/Banks as at Balance Sheet date as there has beendispute between the company and the institution/Bank with regards to amount payableinterest etc. for which cases has been instituted/ will be instituted before appropriatecourt for adjudication of the matter hence being subjudice matter we reserve our opinionin the matter which will be shared after fate of the cases though the company has beenregular in repayment of Long Term Loan which is undisputed.
(ix) The company did not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. Hence this clause is not applicable tothe company.
(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us we have neither observed anyinstance of fraud by the company or any fraud on the company by its officers or employeesof the Company nor have been noticed of such case by the management during the year.
(xi) In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with schedule V to the CompaniesAct 2013 .
(xii) The Company is not a Nidhi Company and hence clause (xii) of paragraph 3 of theaforesaid Order is not applicable to the Company.
(xiii) On the basis of our examination of the books of account of the Company andaccording to the information and explanations given to us the transactions entered intowith the related parties are in compliance with section 177 and 188 of the Companies Act2013.
(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.
(xv) On the basis of our examination of the records of the Company and according to theinformation and explanations given to us the Company has not entered into any non-cashtransactions with directors or persons connected with him.
(xvi) The Company is duly registered with Reserve Bank of India (RBI) as a NBFC companyas per Section 45 IA of the RBI Act 1934. The company has registration certificatebearing registration no. 05.02398 issued by the Reserve Bank of India.
| ||For KUMAR ROYBARMAN PRASANTA AND ASSOCIATES |
| ||Chartered Accountants |
| ||FRN. 330634E |
| ||(Prasanta Kumar Roybarman) |
|Place: Kolkata ||Proprietor |
|Date : 30-06-2021 ||M.No. 013905 |
Annexure B' to the Independent Auditor's Report
(Referred to in Clause (f) of Paragraph 2 of Report on Other Legal and RegulatoryRequirements of our report of even date to the members of the Company on the InternalFinancial Controls Over Financial Reporting for the year ended 31st March2021.)
We have audited the internal financial controls over financial reporting of JaincoProjects (India) Limited (the Company) as of 31st March 2021 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the Guidance Note) and the Standards on Auditing to the extent applicable toan audit of internal financial controls both issued by the Institute of CharteredAccountants of India. 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.
Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of 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) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.
Inherent 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.
According to the information and explanations given to us and based on our audit theCompany has in all material respect an adequate internal financial control overfinancial reporting and such internal financial control over financial reporting wereoperating effectively as at March 31 2021 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note of Internal Financial Controlsover Financial Reporting issued by the Institute of Chartered Accountants of India.
| ||For KUMAR ROYBARMAN PRASANTA AND ASSOCIATES |
| ||Chartered Accountants |
| ||FRN. 330634E |
| ||(Prasanta Kumar Roybarman) |
|Place: Kolkata ||Proprietor |
|Date : 30-06-2021 ||M.No. 013905 |