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Jainex Aamcol Ltd.

BSE: 505212 Sector: Auto
NSE: N.A. ISIN Code: INE280F01019
BSE 00:00 | 03 Feb 136.85 1.00
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NSE 05:30 | 01 Jan Jainex Aamcol Ltd
OPEN 138.95
PREVIOUS CLOSE 135.85
VOLUME 211
52-Week high 170.10
52-Week low 72.50
P/E 13.33
Mkt Cap.(Rs cr) 21
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
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OPEN 138.95
CLOSE 135.85
VOLUME 211
52-Week high 170.10
52-Week low 72.50
P/E 13.33
Mkt Cap.(Rs cr) 21
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jainex Aamcol Ltd. (JAINEXAAMCOL) - Auditors Report

Company auditors report

To

The Members of

Jainex Aamcol Limited

Mumbai

Report on Audit of the Standalone Ind AS Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of Jainex AamcolLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2022 the statement of Profit and Loss (including other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year then endedand notes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information(hereinafter referred to as "thestandalone financial statements).

2. 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 as amended ('the Act") in the manner so required and givea true and fair view in conformity with the Indian Accounting Standards prescribed undersection 133 of the Act read with 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 March 31 2022 and total comprehensiveincome (comprising profit and other comprehensive income) changes in its equity and itsCash Flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (Sas)specified under section 143(10) of the Act. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of thestandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder andwe have fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion.

Key Audit Matters

4. 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 be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone financial statements section ofour report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the standalone financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying standalone financial statements.

Key Audit Matters How Audit addressed the key matters
1. A c t u a r i a l v a l u a t i o n provisions of arrears and funding of Gratuity under Defined Benefit Plan.
The company's Employees Gratuity Fund Scheme is managed by the LIC of India as defined benefit plan. The present value of obligations based on past experience and actual valuation done by LIC read with the compliance of applicable IND AS in this regard has been considered and provided in the nancial statements subject however to funding and payment of arrears to LIC as reflected in the company's financial statements Note No. 30 item (8)(b)(iii). Since the valuation of gratuity is done by LIC with their vast experience in the eld at actuals hence no third-party actuarial valuation is taken as the management is of the view that the company has made provision at actuals which in their view is generally marginally higher than the actuarial valuation if taken. 1. We have performed procedure to ensure that the provision for gratuity is adequately made up to the financial year under audit as per the computation made by the company under the Payment of Gratuity Act as amended from time to time vis-a-vis the computation of gratuity provided by LIC.
2. The company is in arrear of Rs. 6.92 lakhs up to FY 2022 for funding to LIC.
3. We assessed the disclosures in accordance with IND AS 19.
2. Actuarial valuation and funding of leave salary
The company has provided for the actual leave encashment liability as per company rules at the balance sheet date based on permissible accumulated leave balance of the employees at last salary drawn. Since leave encashment liability at actual is fully provided no actuarial valuation is considered necessary by the management. However provision / payment is made for leave encashment during the year and unpaid liability at year end is Rs. 15.28 lakhs. We have performed procedure to ensure that the provision for1. We have performed procedure to leave salary (encashment) is adequately made up to the financial year under audit as per the actual computations made as per company rules for payment of leave salary at actuals and therefore no actuarial valuation is considered necessary by the management.
2. The unpaid liability at the year end is of Rs. 15.28 lakhs up to FY 2022.
3. We assessed the disclosures in accordance with IND AS 19.
3. Impairment of Assets
a. Impairment of assets has been recognized and losses wherever applicable has been charged to Profit & Loss account. 1. Our audit procedures included company's accounting policies with respect to impairment in accordance with IND AS 36 "Impairment of Assets".
As on each balance sheet date the carrying amount of assets is tested for impairment so as to determine; the provision for impairment loss if any required or the reversal if any required or impairment has been recogn- ized in previous year. Non provision of impaired credit (doubtful debts) of Rs.70800/- 2. We performed test of controls over impairment process through inspection of evidence of performance of these controls.
3. We performed the following tests of details:
a) We obtained the management's impairment assessment.
b) We have obtained and evaluated the technical and performance analysis.
4. We accordingly assessed the disclosures in accordance with IND AS 36 "Impairment of Assets"
b. 5. We assessed the impaired credit not provided by the company in the financial statements for the year which has been explained that the same is being closely followed up for recovery and therefore the management being hopeful of recovery; has not provided for the same. Had the provision being made in the financial statement the pro t for the year would have reduced by Rs 70800/- with consequential impact on tax debtors and retained earnings.
4. Recognition of Tax Credits. 1. Our audit procedures included company's accounting policies with respect to recognition of tax credits / debits in accordance with IND AS 12 "Income Taxes"
a) Deferred Tax Liability of Rs. 33.82 lakhs
Current tax is determined as the amount of tax payable in respect of taxable income for the year as per applicable tax rates and laws. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax liability on timing differences being the difference between taxable income and accounting income that originates in one period and capable of reversal in one or more subsequent periods. 2. We performed test of controls over recognition of tax credits/debits through inspection of evidence of performance of these controls.
3. We involved our tax consultant who evaluated the tax positions by comparing it with prior years and past precedents.
4. We discussed the future business plans and financial projections with the company.
b) Minimum Alternate Tax (MAT) credits / entitlements. 5. We assessed the management's long term financial projections and the key assumptions used in the projections by comparing it to approved business plans and projections.
The company has recognized Minimum Alternate Tax (MAT) credit receivable of Rs. 69.48 lakhs as at 31st March 2022.
6. We assessed the disclosures in accordance with IND AS 12 "Income Taxes"
5. Company Secretary
The company had no quali ed Company Secretary as required under Section 203(1)(ii) of Companies Act 2013 from 01- 04-2021 till 19-11-2021. In view of the efforts made the company has been able to get a full- time qualified Company Secretary from 19-11-2021.

Management's Responsibility for the Standalone Financial Statements

5. The Company's Board of Directors is responsible for the preparation and presentationof these standalone financial statements in terms of requirements of section 134(5) of theAct that give a true and fair view of the financial position financial performanceincluding other comprehensive income changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India includingAccounting Standards (Ind AS) specified under section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

6. In preparing the standalone financial statements the management 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 unlessmanagement either intends to liquidate the company or to cease operations or has norealistic alternative but to do so. The Board of Directors is also responsible foroverseeing the Company's financial reporting process of the Company.

Other Information such as "Information Other than the Financial Statements andAuditor's Report thereon

7. The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Board Report along with itsannexures and financial highlights included in company's annual report.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether such other informationis materially inconsistent with the Ind AS

financial statements or our knowledge obtained in the 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.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

8. Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

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

l Identify and assess the risks of material misstatement of the standalone 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.

l Obtain an understanding of internal 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 control systems in place and the operating effectiveness ofsuch controls.

l Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

l Conclude on the appropriateness of management's use of the going concern basis ofaccounting based on the audit evidence obtained whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the entity's ability tocontinue as a going concern. If we conclude that a material uncertainty exists we arerequired to draw attention in our auditor's report to the related disclosure in thestandalone 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 entity to cease tocontinue as a going concern.

l Evaluate the overall presentation structure and the content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

l Obtain sufficient appropriate audit evidence regarding the financial information ofthe entity or business activities of which we are the independent auditors and whosefinancial information we have audited to express an opinion on the standalone financialstatements.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be in uenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work and (ii) to evaluate the effect ofthe identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit ndings 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 statementsfor the current period and are therefore the key audit matters. We describe these mattersin our auditor's 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.

Other Matter

Our opinion on the standalone financial statements and financial information certifiedby the management and our report on Other Legal and Regulatory Requirements below is notmodified being the only statutory auditor of the company which has no branch or branchauditors.

Report on Other Legal and Regulatory Requirements

1. Pursuant to the Companies (Auditor's Report) Order 2020 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act we give in the Annexure" A" a statement on thematters specified in paragraph 3 and 4 of the Order to the extent applicable.

2. (A) 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 and records.

c) The Standalone Balance Sheet the Standalone Statement of Profit & Lossincluding the statement of other comprehensive income Standalone statement of changes inequity and the Standalone cash flow statement dealt with by this report are in agreementwith the books of account.

d) In our opinion the aforesaid standalone financial statements comply with Ind ASspecified under section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors aredisqualified as on March 31 2022 from being appointed as a director in terms ofSection 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference tofinancial statement of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B" to this Report.

(B) 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 explanation given to us:

a) The Company has disclosed the impact of pending litigations as at 31 March 2022 onits financial position in its standalone financial statements Refer Note 30(9) to thestandalone financial statements;

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

c) There has been no occasion in case of the Company during the year under report totransfer any sums to the Investor Education and Protection Fund. The question of delay intransferring such sums does not arise.

d) (i) The management has represented that to the best of its knowledge and belief asdisclosed in the financial statements no fund have been advanced or loaned or invested(either from borrowed funds or share premium or any other sources or kind of funds) by theCompany to or in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall:

l directly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever ("Ultimate Bene ciaries") by or on behalf of the Company or lprovide any guarantee security or the like from or on behalf of the Ultimate Beneciaries.

(ii) The management has represented that to the best of its knowledge and belief asdisclosed in the financial statements no funds have been received by the Company from anypersons or entities including foreign entities ("Funding Parties") with theunderstanding whether recorded in writing or otherwise that the Company shall:

l directly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever ("Ultimate Bene ciaries") by or on behalf of the Funding Partyor

l provide any guarantee security or the like from or on behalf of the Ultimate Beneciaries.

(iii) Based on such audit procedures as considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause (d) (i) and (d) (ii) contain any material misstatement.

e) The Company has neither declared nor paid any dividend during the year.

(c) With respect to the matter to be included in the Auditors' Report under Section197(16) of the Act:

In our opinion and according to the information and explanation given to us theremuneration paid by the company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The emuneration paid to any director is notin excess of the limit laid down under

Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed otherdetails under Section 197 (16) which are required to be commented upon by us.

For P. M. BHARGAVA & CO
CHARTERED ACCOUNTANTS
FRN 145087W
P. M. BHARGAVA
(PROPRIETOR)
M. No. 100595
Place: Mumbai
Date: 30th May 2022
UDIN: 22100595AJWSHH5751

ANNEXURE "A" TO THE INDEPENDENT AUDITORS' REPORT

Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirements" section of our report to the members of the Jainex Aamcol Ltd. on thestandalone financial statement as of and for the year ended 31 March 2022

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:i) a.

(i) As informed to us the company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant and Equipment.

(ii) As informed to us the Company has maintained proper records showing fullparticulars of intangible assets.

b. As informed to us Property Plant and Equipment have been physically veri ed by themanagement during the year. In our opinion this periodicity of physical veri cation isreasonable having regard to the size of the Company and the nature of its assets. No majordiscrepancies were noticed on such veri cation.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the company the title deed of immovable leasehold propertyis held in the name of the company.

d. As informed to us and on the basis of our examination of the records of the companythe company has not revalued its Property Plant and Equipment and Intangible Assetsduring the year.

e. As informed to us and on the basis of our examination of the records of the companythere have not been any proceedings pending or initiated against the company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder.

ii) a. As informed to us and on the basis of our examination of the records of thecompany physical veri cation of inventory has been conducted by the management atreasonable intervals during the year. In our opinion the frequency of veri cation isreasonable. As informed to us and on the basis of our examination of the records of thecompany no discrepancies were noticed during the physical veri cation between thephysical stocks and the book records that were more than 10% in the aggregate of eachclass of inventory.

b. According to the information and explanation given to us and on the basis of ourexamination of the records of the company the Company has not been sanctioned workingcapital limits in excess of 5 crore in aggregate at any points of time during the yearfrom banks or financial institutions on the basis of security of current assets and hencereporting under clause 3(ii)(b) of the Order is not applicable.

iii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any investmentsprovided guarantee or security or granted any loans or advances in the nature of loanssecured or unsecured to companies rms limited liability partnerships or any otherparties during the year. Accordingly provisions of clauses 3(iii)(a)(b)(c)(d)(e) and(f) of the Order are not applicable to the Company.

iv) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not granted any loans or madeany investments or provided any guarantees or security to the parties covered underSections 185 and 186. Therefore the reporting under clause 3(iv) of the Order are notapplicable to the Company.

v) In respect of Loans/Deposits taken

The Company has carried forward unsecured loans/deposits received from ve relatedparties viz. a body corporate as a shareholder another body corporate a director cumshareholder a director (for part period of 3 months)/ promoter cum shareholder and a rmin which a director with his relatives are interested. Unsecured loans received fromdirectors and their 3 relatives and intercorporate loans are not covered under de nitionof deposits as defined in the Acceptance of Deposit Rules 2014 as amended from time totime. During the year the company has not accepted any deposits from public and does nothave any unclaimed deposits as at March 31 2022.

vi) In respect of Cost Audit

As informed to us and on the basis of our examination of the records of the Companythe maintenance of the cost records has not been specified by the Central Government undersub-section (1) of section 148 of the Companies Act 2013.

vii) In respect of Statutory Dues

According to the information and explanation given to us.

(a) The company was generally regular in depositing undisputed statutory dues includingprovident fund employees state insurance income tax customs duty GST and any othermaterial statutory dues applicable to it with appropriate authorities.

(b) There were no undisputed amounts payable in respect of provident fund employeesstate insurance income tax customs duty GST and any other material statutory dues inarrears as at 31st March 2022 for a period of six months from the date they becamepayable.

(c) Details of dues set out herein below in respect of customs duty which has not beendeposited as at 31st March 2022 by the company with the appropriate authorities onaccount of disputes.

Name of Statute Nature of Dues Amount in Rs. lacs Amount in Rs. lacs paid under protest Period to which the amount relates

Forum where disputes is pending

Customs Customs Duty 7.14 2.00 2008-2009

C u s t o m s a n d Excise Tribunal Mumbai Case is heard and matter is reverted back to the concerned assessing authority to re-look a fresh a n d i s s t i l l pending for order.

There were no dues of income tax and GST which have not been deposited as at 31stMarch 2022 on account of dispute.

viii) There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessment under theincome tax act 1961 (43 of 1961).

ix)

(a) As informed to us and on the basis of our examination of the records of theCompany the company has not defaulted in repayment of loans or other borrowings or in thepayment of interest thereon to any lender.

(b) As informed to us and on the basis of our examination of the records of theCompany the Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority.

(c) As informed to us and on the basis of our examination of the records of theCompany the Company has not taken any fresh term loan during the year but the GECLworking capital term loan availed from Bank of India was taken over by ICICI bank duringthe year. Accordingly reporting under clause 3(ix)(c) of the Order is not applicable forthe year.

(d) According to the information and explanations given to us and on an overallexamination of the standalone financial statement of the company we report that no fundsraised on short-term basis have been used for long-term purposes by the Company.

(e) As informed to us and on the basis of our examination of the records of theCompany the company does not have any subsidiaries associates or joint ventures.Accordingly reporting under clause 3(ix)(e) of the Order is not applicable.

(f) As informed to us and on the basis of our examination of the records of theCompany the Company does not have any subsidiaries associates or joint ventures.Accordingly reporting on clause 3(ix)(f) of the Order is not applicable.

(x) In respect of money raised

(a) According to the information and explanation given to us the company has notraised any money by way of initial public offer further public offer (including debtinstruments). Accordingly reporting on clause 3(x)(a) of the Order is not applicable.

(b) The Company has not made any preferential allotment or private placement of shares/ fully or partially or optionally convertible debentures during the year. Accordinglyreporting on clause 3(x)(b) of the Order is not applicable to the Company.

(xi) In respect of Fraud

(a) According to the information and explanation given to us no fraud on the companyby its of cers or employees or by the company has been noticed or reported during theyear.

(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Act has been led by the auditors in Form ADT-4 asprescribed under Rule 13 of the Companies (Audit and Auditors) Rules 2014 with theCentral Government.

(c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.

(xii) In respect of Nidhi Companies

According to the information and explanations given to us the Company is not a NidhiCompany. Accordingly clause 3(xii) of the Order is not applicable.

(xiii) In respect of transactions with related parties

In our opinion and according to the information and explanations given to us hetransactions with related parties are in compliance with Section 177 and 188 of the Actwhere applicable and the details of the related party transactions have been disclosed inthe standalone financial statements as required by the applicable accounting standards.

(xiv)

(a) Based on information and explanation provided to us and our audit procedures inour opinion the company has an internal audit system commensurate with the size and thenature of its business.

(b) We have considered the internal audit report of the company issued till date forthe period under audit.

(xv) In respect of non-cash transactions under section 192

According to the information and explanation given to us the company has not enteredinto any non-cash transactions with directors or persons connected with him. Accordinglythe clause (xv) of the Order is not applicable to the company.

(xvi) In respect of registration as NBFC under section 45-IA of RBI Act 1934

As informed to us the company is not required to get registered under 45-IA of theReserve bank of India Act. Accordingly clause 3(xvi) (b) (c) and (d) of the Order is notapplicable.

(xvii) The Company has not incurred cash losses in the current and in the immediatelypreceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year andaccordingly the reporting under clause 3 (xviii) is not applicable.

(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the standalone financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that the Company is not capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date. We however state that this is not an assurance as to the futureviability of the Company. We further state that our reporting is based on the facts up tothe date of the audit report and we neither give any guarantee nor any assurance that allliabilities falling due within a period of one year from the balance sheet date will getdischarged by the Company as and when they fall due.

(xx) The provisions relating to Corporate Social Responsibility under Section 135 ofthe Act are not applicable to the Company. Accordingly reporting under clause 3(xx) ofthe Order is not applicable to the Company.

(xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect ofaudit of Standalone Financial Statements. Accordingly no comment in respect of the saidclause has been included in this report.

For P. M. BHARGAVA & CO
CHARTERED ACCOUNTANTS
FRN 145087W
P. M. BHARGAVA
(PROPRIETOR)
M. No. 100595
Place: Mumbai
Date: 30th May 2022
UDIN: 22100595AJWSHH5751

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 (A) (f) under "Report on Other Legal and RegulatoryRequirements" section of the Independent Auditor's Report of even date to the membersof the Jainex Aamcol Ltd on Standalone financial statements for the year ended 31 March2022)

Opinion

1. We have audited the internal financial controls with reference to financialstatements of Jainex Aamcol Limited ("the Company") as of March 31 2022 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

In our opinion the Company has in all material respect adequate internal financialcontrols with reference to financial statements and such internal financial controls wereoperating effectively as at 31 March 2022 based on the internal financial controls withreference to financial statements criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the institute of CharteredAccountants of India (the "Guidance Note")

Management's Responsibility for Internal Financial Controls

2. The Company's management and the Board of Directors are responsible for establishingand maintaining internal financial controls based on the internal controls with referenceto financial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act2013 ( hereinafter referred to as "the Act").

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and standards on Auditing prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlswith reference to financial statements. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlsassessing 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 standalone financial statements whether due to fraud orerror.

5. 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 controls withreference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

6. A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of the standalone financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial control with reference to financial statements includes those policies andprocedures that (i) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (ii) provide reasonable assurance that transactions are recorded as necessary topermit preparation of the standalone financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and (iii) provide reasonable assurance regarding prevention or timely detectionof unauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference to FinancialStatements

7. Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to standalone financial statements to future periods are subject to the riskthat the internal

financial control with reference to financial statements may become inadequate becauseof changes in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

For P. M. BHARGAVA & CO
CHARTERED ACCOUNTANTS
FRN 145087W
P. M. BHARGAVA
(PROPRIETOR)
M. No. 100595
Place: Mumbai
Date: 30th May 2022
UDIN: 22100595AJWSHH5751

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