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Jasch Industries Ltd.

BSE: 500220 Sector: Industrials
NSE: JASCHIND ISIN Code: INE711C01010
BSE 11:23 | 06 Feb 125.50 -4.35
(-3.35%)
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NSE 05:30 | 01 Jan Jasch Industries Ltd
OPEN 133.95
PREVIOUS CLOSE 129.85
VOLUME 15636
52-Week high 235.00
52-Week low 124.70
P/E 7.17
Mkt Cap.(Rs cr) 142
Buy Price 125.10
Buy Qty 30.00
Sell Price 125.50
Sell Qty 30.00
OPEN 133.95
CLOSE 129.85
VOLUME 15636
52-Week high 235.00
52-Week low 124.70
P/E 7.17
Mkt Cap.(Rs cr) 142
Buy Price 125.10
Buy Qty 30.00
Sell Price 125.50
Sell Qty 30.00

Jasch Industries Ltd. (JASCHIND) - Auditors Report

Company auditors report

To the Members of

Jasch Industries Limited

(CIN : L24302DL1985PLC383771)

502 Block-C NDM-II NSP

Pitampura Delhi-110034

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Jasch Industries Ltd.(hereinafter referred to as "the Company") which comprise the standaloneBalance Sheet as at 31 March 2022 and the Standalone Statement of Profit and Loss(including other comprehensive income) Standalone Statement of Changes in Equity andStandalone Statement of Cash Flows for the year then ended and notes to the standalonefinancial statements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the standalone financialstatements").

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 March 31 2022 and its profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

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 SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our opinion on Standalone Financial Statements.

Key Audit Matters

Key audit matters ("KAM") are those matters that in our professionaljudgment were of most significance in our audit of the standalone financial statements ofthe current period. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters.

Description of Key Audit Matters

Key audit matters How our audit addressed the key audit matter
Revenue recognition as per Ind AS 115 Our Audit procedures included the following :
Note -21 (Revenue from operations) of the standalone financial statements. . We evaluated the design and tested operating effectiveness of the relevant controls with respect to revenue recognition including those relating to cut off at year end;
The Company's revenue is principally derived from sale of Synthetic Leather products and Industrial Gauging Systems. - We performed substantive testing of revenue transactions recorded during the year by testing the underlying documents which included goods dispatch notes shipping documents and customer acknowledgments as applicable; . We tested manual journal entries posted to revenue to identify unusual items; We tested on a sample basis specific revenue transactions recorded before and after the financial year end date including examination of credit notes issued after the year end to determine whether the revenue has been recognized int the appropriate financial period.
In accordance with Ind AS 115 revenue from sale of goods is recognized when control of the products being sold is transferred to the customer and when there are no unfulfilled obligations. The performance obligations in the contracts are fulfilled at the time of dispatch delivery or upon formal customer acceptance depending on terms of contract with the customer. Revenue is measured at fair value of the consideration received or receivable after deduction of any trade/volume discounts and taxes or duties collected.
We identified revenue recognition as a key audit matter since revenue is significant to the standalone financial statements and is required to be recognized as per the requirements of applicable accounting framework. Based on the above stated procedures no significant exceptions were noted in revenue recognition.
The Company in their meeting held on July 24 2021 have approved restructuring / demerging of the Company & filed with Hon'ble National Company Law Tribunal (NCLT) Delhi demerged application for its wholly owned subsidiary Jasch Gauging Technologies Limited ('JGTL') . We draw attention to Note No. 35(15) to the standalone financial statements which describes the status of application under section 230 to 237 filed by the Company with Hon'ble NCLT Delhi Bench pendency of approval of scheme of arrangement for transfer of Gauging Business to New wholly owned Subsidiary Company namely Jasch Gauging
As a part of restructuring / reorganization of the Company the Scheme of Arrangement of the Gauging Business comprising identified moveable and immoveable assets and liabilities to be transferred to and vested in the wholly owned subsidiary of the Company namely Jasch Gauging Technologies Limited (JGTL) as a going concern is pending for sanction with NCLT Delhi. Technologies Limited . These events not indicate material uncertainty on the company's ability to continue as going concern but materially impact the revenue and profit of the Company since its major part of revenue and income depends upon the Gauging Business .
Trade Receivables are significant to the Company's standalone financial statements. The collectability of trade receivables is a key element of the company's working capital management which is managed on an ongoing basis by its management. Due to the nature of the Business and the requirements of customers various contract terms are in place which impact the timing of revenue recognition. There is a significant element of judgment. Given the magnitude and judgment involved in the impairment assessment of trade receivables we have identified this as a key audit matter. We perform audit procedures on existence to trade receivables which included substantive testing of revenue transactions trade receivable external confirmations and testing the subsequent payments received. Assessing the impact of trade receivables requires judgment and we evaluated management's assumptions in determining the provision for expected credit loss on trade receivables by analyzing the ageing of receivables assessing significant overdue individual trade receivables and specific local risks combined with the legal documentations where applicable.
In calculating the Expected Credit Loss as per Ind As 109 - "Financial Instruments" the company has also considered the estimation of probable future customer default and has taken into account an estimation of possible effect from the pandemic relating to Covid-19.
We tested the timing of revenue and trade receivables recognition based on the terms agreed with the customers. invoices raised etc. as a part of our audit procedures.
Furthermore we assessed the appropriateness of the disclosures made in notes to the standalone financial statements.

Other Information

The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the standalone financial statements and our auditor'sreport thereon. The Company's annual report is expected to be made available to us afterthe date of this auditor's 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 identified above when its become available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

When we read the Company's annual report If we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance and take necessary actions as applicable under the relevant laws andregulations.

Management and Board of Directors'

Responsibilities for the Standalone Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin Section 134 (5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the state of affairs profit andother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting 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 were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the standalone financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements Management and Board of Directors'are responsible 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 the Board of directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

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

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 scepticism throughout the audit. We also :

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

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to standalone financial statements inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the Management and Board ofDirectors.

• Conclude on the appropriateness of Management and Board of Directors use of thegoing concern basis of accounting in preparation of standalone financial statements andbased on the audit evidence obtained whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Company's ability to continueas a going concern. If we conclude that a material uncertainty exists we are required todraw attention in our auditor's report to the related disclosures in the standalonefinancial statements or if such disclosures are inadequate to modify our opinion. Ourconclusions 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 standalonefinancial statements including the disclosures and

whether the standalone financial statements represent the underlying transactions andevents in a manner that achieves 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 standalone financial statementsof 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.

Report on other legal and regulatory requirements

1. As required by Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of Section 143(11) of the Act We givein the "Annexure A' a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

2. (A) Further to our comments in Annexure A As required by Section 143(3) of the Actwe 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 Standalone Balance Sheet the Standalone Statement of Profit and Loss(including other comprehensive income) the Standalone Statement of Changes in Equity andthe Standalone Statement of Cash Flows dealt with by this Report are in agreement with thebooks of account.

(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules2014.

(e) On the basis of the written representations received from the directors as on 31March 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2022 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 with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

(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 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 as at 31 March 2022 onits financial position in its standalone financial statements - Refer Note 34 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) The Company did not have any amount required to be transferred to the InvestorEducation and Protection Fund by the Company.

(d) (i) The Management has represented that to the best of its knowledge an belief nofunds have been advanced or loaned or invested (either from borrowed funds or sharepremium or any other sources or kind of funds) by the Company to or in any other personsor entities including foreign entities("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shall :

• Directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Companyor

• Provide any guarantee security or the like to or on behalf of the UltimateBeneficiaries.

(ii) The management has represented that to the best of its knowledge and belief nofunds have been received by the Company from any person or entities including foreignentities ("Funding Parties") with the understanding whether recorded inwriting or otherwise that the Company shall :

• Directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the FundingParties or

• Provide any guarantee security or the like to or on behalf of the UltimateBeneficiaries.

(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) There is no dividend declared or paid during the year by the Company henceprovision of section 123 of the Act not applicable.

(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 remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) of the Act whichare required to be commented upon by us.

For Mukesh A Mittal & Co.
Chartered Accountants
(Firm Registration No. 016910N)
CA. Shikha Gupta
(Partner)
Membership No. 520509
UDIN : 22520509AJUKUH3564
Place: New Delhi
Date : May 28 2022

Annexure A to the Independent Auditors' report on the standalone financial statementsof Jasch Industries Ltd. for the year ended 31 March 2022

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

(i) (a) (A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of Property plant and equipment.

(B) the Company has maintained proper records showing full particulars of Intangibleassets.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has a regular programme of physicalverification of its Property plant and equipment by which all Property plant andequipment are verified in phased manner over a period of three years. In accordance withthis programme certain Property plant and equipment were verified during the year. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets. No material discrepancies were noticedon such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable propertiesdisclosed in the standalone financial statements are held in the name of the Company.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company has not revalued its Property plant andequipment (including Right-of-use assts) or Intangible assets of both during the year.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.

(ii) (a) The The inventory has been physically verified by the management during theyear. In our opinion the frequency of such verification is reasonable and procedures andcoverage as followed by management were appropriate. No discrepancies were notices onverification between the physical stocks and the book records that were 10% or more in theaggregate for each class 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 been sanctioned working capitallimits in excess of five crore rupees in aggregate from banks on the basis of securityof current assets. In our opinion the quarterly returns or statements filed by theCompany with such bank are in agreement with the books of account of the Company. Thedetails of quarterly returns or statements filed by the company with such banks orfinancial institutions are as per note - 35(9)

(iii) According to the information and explanations given to us an on the basis of ourexamination of the records of the Company the Company has not made any investmentsprovide guarantee or security or granted any advances in the nature of loans secured orunsecured to companies firms limited liability partnerships or any other parties duringthe year. Accordingly clause 3(iii) (a) (b) (c) (d) (e) (f) of the Order are notapplicable.

(iv) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not given any loans or provided any guaranteeor security as specified under Section 185 of the Companies Act 2013 and the Company hasnot provide any guarantee or security as specified under Section 186 of the CompaniesAct2013.

(v) In our opinion and according to the information and explanations given to us andthe records examined by us the company has not accepted deposits or amounts which aredeemed to be deposits during the year. The company generally complied with the provisionsof Sections 73 to 76 or any other relevant provisions of the Companies Act 2013. FurtherCompany is yet to file return of deposit i.e. DPT-3 for the financial year 2021-22.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the Rules made by the Central Government for the maintenance of cost records undersection 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained.

(vii) (a) The Company does not have liability in respect of Sales tax Service taxDuty of excise and Value added tax during the year since effective 1 July 2017 thesestatutory dues has been subsumed into GST.

According to the information and explanations give to us and on the basis of ourexamination of the records of the Company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Goods and Services Tax("GST"). Provident fund Employees' State Insurance Income-tax Duty ofCustoms Cess and other material statutory dues have generally been regularly depositedwith the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of GST Provident fund Employees' State Insurance Income-tax Duty ofCustoms Cess and other material statutory dues were in arrears as at 31 March 2022 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us there are no dues ofGST Provident fund Employees' State Insurance Income-tax Sales tax Service tax Dutyof Customs Value added tax Cess or other statutory dues which have not been deposited bythe Company on account of disputes except for the following : (Amount Rs. In Lakh)

Name of Statute Nature of dues Amount Demanded Amount Paid Period to which the amount relates Forum where dispute is pending
The Haryana Value Added Tax Act 2003 VAT Tax including interest if applicable 100.32 73.79 2011-2012 Jt. Excise and Taxation Commissioner (Appeals) / Excise & Taxation Commissioner Haryana & Hon'ble Supreme Court
The Central Sales Tax Act 1956 Central Sales Tax including interest if applicable 196.52 141.51 2011-2012
The Haryana Value Added Tax Act 2003 VAT Tax including interest if applicable 80.06 63.47 2012-2013
The Central Sales Tax Act 1956 Central Sales Tax including interest if applicable 174.21 139.25 2012-2013

(viii) According the to information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account itthe tax assessments under the Income-tax Act 1961 as income during the year

(ix) (a) In our opinion and according to the information and explanations given to usand the records examined by us the company has

not defaulted in repayment of principal and interest to banks financial institutions.Accordingly Clause3(ix)(a) is not applicable.

(b) 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 been declared a willfuldefaulter by any bank or financial institution or government or government authority.

(c) According to the information and explanations given to us and the records examinedby us term loans have been applied for the purpose for which they were obtained. Also thecompany has taken term loan of Rs. 73.21 lakhs during the year (Refer Note - 13)

(d) According to the information and explanations given to us and the proceduresperformed by us and on an overall examination of the financial statements of the companyno funds raised on short-term basis have been used for long-term purposes by the company.

(e) According to the information and explanations given to us and on an overallexamination of the financial statements of the company the company has not taken anyfunds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.

(f) According to the information and explanations given to us an procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries as defined under the Companies Act 2013. Accordinglyclause 3(ix)(f) of the Order is not applicable.

(x) (a) The Company has not raised any moneys by the way of initial public offer orfurther public offer (including debt instruments).

Accordingly clause 3(x)(a) of the Order is not applicable.

(b) 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 preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(x)(b) of the Order is not applicable.

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

(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Companies Act 2013 has been filed by the auditorsin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.

(c) We have taken into consideration the whistle blower complaints received by theCompany during the year while determining the nature timing and extent of our auditprocedure.

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

(xiii) In our opinion and according to the information and explanations given to usthe transactions with related parties are in compliance with Section 177 and 188 of theCompanies Act 2013 where applicable and the details of the related party transactionshave been disclosed in the standalone financial statements as required by the applicableIndian Accounting Standards. (Refer Note - 36)

(xiv) (a) Based on information and explanations provided to us and our auditprocedures in our opinion the Company has an internal

audit system commensurate with the size and nature of its business.

(b) We have obtained all the internal audit reports of the company on timely basishence the internal audit reports have been entirely considered by us.

(xv) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with its directors or personconnected to its directors and hence provision of Section 192 of the Companies Act 2013are not applicable to the Company

(xvi) (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934. Accordingly clause

3(xvi)(a) of the Order is not applicable.

(b) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934. Accordingly clause 3(xvi)(b) off the Order not applicable.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.

(d) According to the information and explanations provided to us during the course ofaudit the Group does not have any CIC. Accordingly the requirements of clause 3(xvi)(d)are not applicable.

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

Financial Year Profit after Tax (Amount is Rs. Lakh)
2021 - 2022 2024.41
2020 - 2021 1135.20

(xviii) There has been no resignation of the statutory auditors during the year.Accordingly clause 3(xviii) of the Order 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 financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatthe Company is not capable to meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year form the balance sheet dat.We however state that this is not an assurance as to the future viability of theCompany We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

(xx) In our opinion and according to the information and explanations given to us andthe records examined by us Rs. 24.58 lakhs amount was required to be spent by the companyon the activities of CSR as per provisions of Companies Act 2013. Accordingly reportingunder paragraph 3(xx) of the Order are as under : -

Particulars Period Ended 31st March 2022 Year Ended 31st March 2021
Amount required to be spent during the year 24.58 19.22
Amount of expenditure incurred 27.52 37.24
Shortfall at the end of the year - -
Total of previous years shortfall - -
Reason for shortfall N. A. N. A.
Nature of CSR Activities Promoting Education / Eradicating Hunger Promoting Education / Eradicating Hunger
Details of related party transaction e.g. contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard Nil Nil
Where a provision is made with respect to a liability incurred by entering into a contractual obligation the movements in the provision during the year should be shown separately Nil Nil

(xxi) There have been no qualifications or adverse remarks by the respective auditorsin the Companies (Auditor's Report) Order (CARO) r reports of the companies included inthe consolidated financial statements. Details of the companies:

NSo. . Name of Company CIN Holding Company / Subsidiary / Associates / Joint Venture Clause number of the CARO report which is qualified or adverse Remarks
1 Jasch Gauging Technologies Limited U33111DL2021PLC381513 Wholly owned subsidiary Nil Nil
For Mukesh A Mittal & Co.
Chartered Accountants
(Firm Registration No. 016910N)
CA. Shikha Gupta
(Partner)
Membership No. 520509
UDIN : 22520509AJUKUH3564
Place: New Delhi
Date : May 28 2022

Annexure B to the Independent Auditors' Report on the standalone financial statementsof Jasch Industries Ltd for the year ended 31 March

2022

Report on the internal financial controls with reference to the aforesaid standalonefinancial statement under Clause (i) of Sub-section 3 of the Section 143 of the CompaniesAct 2013

(Referred to in paragraph 2(A)(f) under 'Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Opinion

We have audited internal financial controls with reference to standalone financialstatements of Jasch Industries Ltd ("the Company") as of 31 2022 in conjunctionwith the our audit of the standalone financial statements of the Company as at and for theyear ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols were operating effectively as at March 31 2022 based on the internal financialcontrols with reference to standalone financial statements criteria established by thecompany considering the essential components of such internal controls stated in theGuidance note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India (the "Guidance note").

Management's Responsibility for Internal Financial Controls

The Company's management and Board of Directors are responsible for establishing andmaintaining internal financial controls with reference to standalone financial statementsbased on the criteria established the Company considering the essential components ofinternal control stated in the Guidance Note. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to the company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013 (hereinafter referred to as "the Act").

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note and the Standards on Auditingprescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to standalone financial statements. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to standalone financial statements were 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 with reference to standalone financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tostandalone financial statements included obtaining an understanding of such internalfinancial controls assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the standalone financial statementswhether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to these standalone financial statements.

Meaning of Internal Financial Controls with Reference to Standalone FinancialStatements

A company's internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to standalone financial statements include thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of 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 (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized 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 StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

For Mukesh A Mittal & Co.
Chartered Accountants
(Firm Registration No. 016910N)
CA. Shikha Gupta
(Partner)
Membership No. 520509
UDIN : 22520509AJUKUH3564
Place: New Delhi
Date : May 28 2022

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