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Jash Engineering Ltd.

BSE: 535019 Sector: Engineering
NSE: JASH ISIN Code: INE039O01011
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Jash Engineering Ltd. (JASH) - Auditors Report

Company auditors report

To the Members of Jash Engineering Limited

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements ofJash Engineering Limited ('the Company') which comprise the Balance Sheet as at 31stMarch 2022 the Statement of Profit and Loss (including Other Comprehensive Income) theStatement of Cash Flow and the Statement of Changes in Equity for the year then ended anda summary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ('the Act') in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards ('Ind AS')specified under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2022 and its profit (including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Basis for Opinion

2. We conducted our audit in accordance with the Standards on Auditingspecified under section 143(10) of the Act. Our responsibilities under those standards arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance 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 ofthe financial statements under the provisions of the Act and the rules thereunder and wehave 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 opinion.

Key Audit Matters

3. Key audit matters 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 thefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

4. We have determined the matters described below to be the key auditmatters to be communicated in our report.

Key audit matter How our audit addressed the key audit matter
Inventory valuation and allowances: Our audit procedures to assess valuation and allowance for inventories included but were not limited to the following:
At the balance sheet date 31 March 2022 the Company held inventories comprising of raw materials work-in-progress finished goods and stores spares and other consumables worth INR 5686.62 lakhs as included in Note 14 of the accompanying standalone financial statements. Obtained an understanding of the management?s process of valuation of inventory.
The inventory valuation has been automated through SAP while allocation of various production and administration related overheads on the finished goods and work-in-progress inventory is still allocated basis manually calculations Evaluated the design and tested the operating effectiveness of key controls around valuation including around estimates stage of completion complex overhead computations and determination of net realizable value of inventory items.
Owing to the nature of the business which involves manufacture of engineering products specific to the needs of the customers the valuation of inventory involves evaluating reasonableness of ‘Bill of materials? (BOM) determined for each product being manufactured. Evaluated the appropriateness of the Company?s accounting policy and valuation method of inventory in accordance with the accounting standards.
In addition to the above the complexities involved in this assessment include: Discussed with management the rationale supporting assumptions and estimates used in carrying out the inventory valuation and corroborated the same to our understanding of the business. Tested the computation of various overhead absorption rates by tracing the underlying data to audited historical operational results of the Company.
Identification of products where specific administration and production overheads and others allocations such as job work costs and design costs are to be added to the cost of inventory. On a sample basis recomputed the cost of the inventory by applying management?s valuation model which included inspection of approved bills of material (BOM) testing underlying cost of acquisition of raw materials consumed and testing overheads and labour cost allocation to such inventory items.
Judgement involved in computation of machine hour rate labour hour rate which are subject to high estimation uncertainty due to rapid technological changes. Obtained and understanding management process for identi cation of slow moving non-moving or obsolete inventories and ensured that the same is consistently applied.
Further at the end of each reporting period the management of the Company also assesses whether there is any objective evidence that net realizable value of any item of inventory is below the carrying value. If so such inventories are written down to their net realizable value in accordance with Ind AS 2 Inventory. Such specific identi cation performed by management to ascertain slow moving and obsolete inventories and assessment of net realizable value of such slow moving and obsolete inventory items require significant judgement and estimation. Performed an independent analysis of the ageing of inventory line items leading to specific inquiries with the management to ensure the completeness of the inventory identified as slow moving non-moving and obsolete.
Considering the complexities and materiality of amounts involved this matter is considered to be a key audit matter for current year audit. For slow and non-moving inventories as on 31 March 2022 identified by the management recomputed the allowance created by the management using management?s model which has been consistently applied.
Tested the net realizable value of finished goods inventory on a sample basis to recent selling prices less costs to sell to identify allowance required for finished goods.
Evaluated the disclosures made in the standalone financial statements in accordance with the applicable accounting standards.
Recoverability assessment of investment in equity shares of and trade receivable due from Jash USA Inc. a wholly owned subsidiary company (Jash USA?) Our audit procedures in relation to the valuation of the investments included but were not limited to the following:
The Company has investments in equity shares of Jash USA Inc. amounting to INR 5302.69 lakhs as stated in Note 9 and Note 56 to the standalone financial statements. These investments are carried at cost in accordance with IND AS 27 Separate Financials Statements. Obtained an understanding of management?s processes and controls for determining the fair valuation of investments.
The Company assesses the recoverable amount of the investments when indicators exist for decline in value of the investments other than temporary by comparing the fair value (less costs of disposal) and carrying amount of the investments as on the reporting date as disclosed in Note 9 to the standalone financial statements. The Company also has outstanding long- term loans and trade receivable recoverable from Jash USA amounting to INR 548.95 lakhs and INR 5281.70 lakhs respectively. Evaluated the design and tested the operating effectiveness of key controls implemented by the management around fair valuation of investments including for cash flow projections use of estimates involved and review of valuation performed.
The aforesaid investments were tested for diminution and the receivables were assessed for recoverability by the management as at 31 March 2022. For this purpose valuation was carried out by an independent valuation specialist in his capacity as a management?s expert using discounted cash flow (‘DCF?) method. Evaluated the independent valuation specialist?s professional competence expertise and objectivity.
Management's assessment of the fair valuation of investments is complex and requires estimation and judgement around assumptions used. The key assumptions underpinning management's assessment of the fair valuation include but are not limited to projections of future cash flows growth rates discount rates estimated future operating and capital expenditure. Tested the accuracy of the input data provided by the management to the valuation specialist by reconciling the projected cash flows to approved business plans of the subsidiary companies.
Accordingly considering the materiality of the carrying amounts recoverability assessment of aforesaid investments long-term loans and receivables has been considered to be a key audit matter for current year?s audit. Tested the reasonableness of the key assumptions used in the cash flow projections and fair valuation such as growth rates discount rate etc. considering our understanding of the business industry and relevant market factors.
Worked with our valuation specialists in order to compare the Company?s assumption to externally derived data in relation to key inputs such as projected economic growth and discount rate.
Tested the mathematical accuracy of the cash flow projections fair valuation computation and sensitivity analysis prepared by the management.
Evaluated the appropriateness of disclosures made in the standalone financial statement in relation to such investments their fair valuation and such trade receivables as required by applicable accounting standards.

Information other than the Financial Statements and Auditor's Reportthereon

5. The Company's Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Annual Reportbut does not include the standalone financial statements and our auditor's report thereon.The Annual Report is expected to be made available to us after the date of this auditor'sreport.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information identified above when it becomesavailable and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.

When we read the Annual Report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance.

Responsibilities of Management and Those Charged with Governance forthe Standalone Financial Statements

6. The accompanying standalone financial statements have been approvedby the Company's Board of Directors. The Company's Board of Directors are responsible forthe matters stated in section 134(5) of the Act with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive incomechanges in equity and cash flows of the Company in accordance with the Ind AS specifiedunder section 133 of the Act and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing 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 financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

7. In preparing the financial statements the Board of Directors areresponsible 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 intend to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

8. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

9. Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with Standards on Auditing will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of thesefinancial statements.

10. As part of an audit in accordance with Standards on Auditingspecified under section 143(10) of the Act we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thefinancial 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 theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls system with reference to financialstatements in place and the operating effectiveness of such controls;

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management;

• Conclude on the appropriateness of Board of Directors' use ofthe going concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor's report tothe related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern;

• Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation;

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

12. We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

13. From the matters communicated with those charged with governancewe determine those matters that were of most significance in the audit of the financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when in extremely rare circumstances we determine that a mattershould not be communicated in our report because the adverse consequences of doing sowould reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

14. As required by section 197(16) of the Act based on our audit wereport that the Company has paid remuneration to its directors during the year inaccordance with the provisions of and limits laid down under section 197 read withSchedule V to the Act.

15. As required by the Companies (Auditor's Report) Order 2020 ('theOrder') issued by the Central Government of India in terms of section 143(11) of the Actwe give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 ofthe Order to the extent applicable.

16. Further to our comments in Annexure A as required by section143(3) of the Act based on our audit we report to the extent applicable that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our auditof the accompanying standalone financial statements;

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 financial statements dealt with by this report are in agreement withthe books of account;

d) In our opinion the aforesaid standalone financial statements comply with IndASspecified under section 133 of the Act;

e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31st March2022 from being appointed as a director in terms of section 164(2) of the Act;

f) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company as on 31st March 2022 and the operating effectivenessof such controls refer to our separate Report in Annexure B wherein we have expressed anunmodified opinion; and

g) 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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i. The Company as detailed in note 43 to the standalone financial statements hasdisclosed the impact of pending litigations on its financial position as at 31st March2022;

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses as at 31st March 2022;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company during the year ended 31st March 2022;

iv. a. The management has represented that to the best of its knowledge and belief asdisclosed in note 54 (j) to the standalone financial statements no funds have beenadvanced or loaned or invested (either from borrowed funds or securities premium or anyother sources or kind of funds) by the Company to or in any persons or entities includingforeign entities ('the intermediaries') with the understanding whether recorded inwriting or otherwise that the intermediary shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Company ('the Ultimate Beneficiaries') or provide any guarantee security or the likeon behalf the Ultimate Beneficiaries;

b. The management has represented that to the best of its knowledge and belief asdisclosed in note 54 (k) to the standalone financial statements no funds have beenreceived by the Company from any persons or entities including foreign entities ('theFunding Parties') with the understanding whether recorded in writing or otherwise thatthe Company shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party('Ultimate Beneficiaries') or provide any guarantee security or the like on behalf of theUltimate Beneficiaries; and

c. Based on such audit procedures performed as considered reasonable and appropriate inthe circumstances nothing has come to our notice that has caused us to believe that themanagement representations under sub-clauses (a) and (b) above contain any materialmisstatement.

v. The final dividend paid by the Company during the year ended 31st March 2022 inrespect of such dividend declared for the previous year is i n accordance with section 123of the Act to the extent it applies to payment of dividend.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
S/d-
Nitin Toshniwal
Partner
Membership No.: 507568
UDIN: 22507568AJVWSQ3936
Place: Faridabad
Date: 30 May 2022

Annexure A referred to in Paragraph 15 of the Independent Auditor's Report of even dateto the members of Jash Engineering Limited on the standalone financial statements for theyear ended 31st March 2022

In terms of the information and explanations sought by us and given by the Company andthe books of account and records examined by us in the normal course of audit and to thebest of our knowledge and belief we report that:

(I) (a) (A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of property plant and equipment and right ofuse assets.

(B) The Company has maintained proper records showing full particulars of intangibleassets.

(b) The property plant and equipment and right of use assets have been physicallyverified by the management during the year and no material discrepancies were noticed onsuch verification. In our opinion the frequency of physical verification program adoptedby the Company is reasonable having regard to the size of the Company and the nature ofits assets.

(c) The title deeds of all the immovable properties held by the Company (other thanproperties where the Company is the lessee and the lease agreements are duly executed infavour of the lessee) disclosed in the financial statements are held in the name of theCompany. However for title deeds of immovable properties in the nature of land situatedat Village: Bardari Tehsil: Sanwer District: Indore with gross carrying values of Rs.33071465 as at 31st March 2022 which have been pledged as security for loans orborrowings taken by the Company confirmations with respect to title of the Company havebeen directly obtained by us from the respective lenders.

(d) The Company has not revalued its Property Plant and Equipment (and Right of Useassets) or intangible assets during the year.

(e) No proceedings have been initiated or are pending against the Company for holdingany benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) andrules made thereunder. Accordingly reporting under clause 3(i)(e) of the Order is notapplicable to the Company.

(ii) (a) The management has conducted physical verification of inventory at reasonableintervals during the year. In our opinion the coverage and procedure of such verificationby the management is appropriate and no discrepancies of 10% or more in the aggregate foreach class of inventory were noticed.

(b) The Company has a working capital limit in excess of 5 crore sanctioned by banksbased on the security of current assets. The quarterly statements in respect of theworking capital limits have been filed by the Company with such banks and such statementsare in agreement with the books of account of the Company for the respective periods whichwere not subject to audit except for the following:

Name of the Bank Working capital limit sanctioned Nature of current assets offered as security Quarter ended Nature Amount disclosed as per return Amount as per books of accounts Diff. Remarks /reason if any
Axis Bank Limited 5550.00 Entire current assets 30-Jun- 21 Inventory 5898.95 6406.42 (507.48) Refer Note 1 below.
HDFC Bank Trade receivables 9541.14 9844.06 (302.91) Refer Note 2 below.
State Bank of India Trade payables for purchases of goods 1546.34 1247.85 298.49 Refer Note 3 below.
Axis Bank Limited 5550.00 Entire current assets 30-Sep- 21 Inventory 8027.48 7947.45 80.03 Refer Note 1 below.
HDFC Bank Trade receivables 9467.96 9845.29 (377.33) Refer Note 2 below.
State Bank of India Trade payables for purchases of goods 2894.65 3016.13 (121.48) Refer Note 3 below.
Axis Bank Limited 5550.00 Entire current assets 31-Dec- 21 Inventory 8778.10 8803.89 (25.79) Refer Note 1 below.
HDFC Bank Trade receivables 10719.86 10932.06 (212.21) Refer Note 2 below.
State Bank of India Trade payables for purchases of goods 3377.55 3419.39 (41.84) Refer Note 3 below.
Axis Bank Limited 5550.00 Entire current assets 31-Mar- 22 Inventory 5686.62 6012.03 (325.41) Refer Note 1 below.
HDFC Bank Trade receivables 13009.21 13499.19 (489.98) Refer Note 2 below.
State Bank of India Trade payables for purchases of goods 2647.63 2662.74 (15.11) Refer Note 3 below.

Note 1: Difference is on account of provision for inventoryobsolescence and overhead allocation that take place at the end of the review. In quarter4 the difference is also on account of Goods in transit and physical verification done atyear end. For more information refer note no. 54(l) to standalone financial statements.

Note 2: The difference is due to provision for ECL foreign exchangegain/loss on reinstatement done at quarter end and cut off adjustments. Further balancesubmitted to bank doesn't include amount of bills receivables. For more information refernote no. 54(l) to standalone financial statements.

Note 3: The differences is on account of adjustment of advances andrecording of invoices in the books of accounts which are received after the date offilling bank returns.

iii) The Company has provided loans or guarantee to subsidiaries duringthe year as per details given below:

(Amount in INR Lakhs)

Particulars Guarantees Security Loans Advances in nature of loans
Aggregate amount provided/granted during the year: 45000000 - 5611027 -
- Subsidiaries
Balance outstanding as at balance sheet date in respect of above cases: 45000000 - 54894696 -
- Subsidiaries

(a) The Company has not given any security during the year. However In our opinionand according to the information and explanations given to us the investments madeguarantees provided and terms and conditions of the grant of all loans and guaranteesprovided are prima facie not prejudicial to the interest of the Company.

(b) In respect of loans granted by the Company the schedule of repayment of principaland payment of interest has been stipulated and principal and interest amount is not duefor repayment currently.

(c) There is no overdue amount in respect of loans granted to such companies firmsLLPs or other parties.

(d) The Company has not granted any loan which has fallen due during the year. Furtherno fresh loans were granted to any party to settle the overdue loans.

(e) The Company has not granted any loan which is repayable on demand or withoutspecifying any terms or period of repayment.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and section 186 of the Act inrespect of loan investments and guarantees as applicable. Further the Company has notentered into any transaction covered under section 185 and section 186 of the Act inrespect of security.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits or there is no amount which has been considered asdeemed deposit within the meaning of sections 73 to 76 of the Act and the Companies(Acceptance of Deposits) Rules 2014 (as amended). Accordingly reporting under clause3(v) of the Order is not applicable to the Company.

(vi) The Central Government has specified maintenance of cost records under sub-section(1) of section 148 of the Act in respect of the products of the Company. We have broadlyreviewed the books of account maintained by the Company pursuant to the Rules made by theCentral Government for the maintenance of cost records and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. However we havenot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.

(vii) (a) In our opinion and according to the information and explanations given tous undisputed statutory dues including goods and services tax provident fund employees'state insurance income-tax sales-tax service tax duty of customs duty of excisevalue added tax cess and other material statutory dues as applicable have generallybeen regularly deposited with the appropriate authorities by the Company though therehave been slight delays in a few cases. Further no undisputed amounts payable in respectthereof were outstanding at the year-end for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us there are no statutorydues referred in subclause (a) which have not been deposited with the appropriateauthorities on account of any dispute except for the following:

Name of Statues Nature of Dues Amount Amount paid under protest Period to which it relates From where dispute is pending
Central Sales Tax 1956 Central Sales Tax 13.94 8.98 F.Y. 1999 -00 Hon'ble High court of Madhya Pradesh
Central Sales Tax 1956 Central Sales Tax 2.39 0.92 F.Y. 2000 -01 Hon'ble High court of Madhya Pradesh
Central Sales Tax 1956 Central Sales Tax 34.50 29.40 F.Y. 2012-13 Madhya Pradesh Commercial Tax Appellate Board
Central Sales Tax 1956 Central Sales Tax 69.75 7.00 F.Y. 2016 -17 Additional commissioner of Commercial Tax
Central Sales Tax 1956 Central Sales Tax 61.47 6.17 F.Y. 2016 -17 Additional commissioner of Commercial Tax
Central Sales Tax 1956 Central Sales Tax 20.92 2.10 F.Y. 2012 -13 Additional commissioner of Commercial Tax
Central Sales Tax 1956 Central Sales Tax 21.28 2.14 F.Y. 2012 -13 Additional commissioner of Commercial Tax
Income Tax Act 1961 Income Tax 2.14 - F.Y. 2016 -17 (A.Y. 2017-18) Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 3.85 - F.Y. 2017 -18 (A.Y. 2018-19) Commissioner of Income Tax (Appeals)

(viii) According to the information and explanations given to us no transactions weresurrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act 1961 (43 of 1961) which have not been recorded in the books of accounts.

(ix) (a) According to the information and explanations given to us the Company has notdefaulted in repayment of its loans or borrowings or in the payment of interest thereon toany lender.

(b) According to the information and explanations given to us including confirmationsreceived from banks/ financial institution and representation received from the managementof the Company and on the basis of our audit procedures we report that the Company hasnot been declared a willful defaulter by any bank or financial institution or otherlender.

(c) In our opinion and according to the information and explanations given to us moneyraised by way of term loans were applied for the purposes for which these were obtained.

(d) In our opinion and according to the information and explanations given to us andon an overall examination of the financial statements of the Company funds raised by theCompany on short term basis have not been utilised for long term purposes.

(e) According to the information and explanations given to us and on anoverall examination of the financial statements of the Company the Company has not takenany funds from any entity or person on account of or to meet the obligations of itssubsidiaries.

(f) According to the information and explanations given to us theCompany has raised loans during the year on the pledge of securities held in itssubsidiaries as per details below. Further the Company has not defaulted in repayment ofsuch loans raised.

(Amount in Rs. Lakhs)

Nature of loan taken Name of lender Amount of loan Name of the subsidiary joint venture associate Relatio n Details of security pledged Whether there was default in repayment of lo an
Working capital demand loan HDFC Bank 2000 Shivpad Engineers Private Limited Subsidia ry 30% equity shares No ne

(x) (a) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. Accordingly reporting underclause 3(x)(a) of the Order is not applicable to the Company.

(b) According to the information and explanations given to us the Company has not madeany preferential allotment or private placement of shares or (fully partially oroptionally) convertible debentures during the year. Accordingly reporting under clause3(x)(b) of the Order is not applicable to the Company.

(xi) (a) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or on the Company has been noticed or reported duringthe period covered by our audit.

(b) No report under section 143(12) of the Act has been filed with the CentralGovernment for the period covered by our audit.

(c) According to the information and explanations given to us including therepresentation made to us by the management of the Company there are no whistle-blowercomplaints received by the Company during the year.

(xii) The Company is not a Nidhi Company and the Nidhi Rules 2014 are not applicableto it. Accordingly reporting under clause 3(xii) of the Order is not applicable to theCompany.

(xiii) In our opinion and according to the information and explanations given to usall transactions entered into by the Company with the related parties are in compliancewith sections 177 and 188 of the Act where applicable. Further the details of suchrelated party transactions have been disclosed in the standalone financial statements asrequired under Indian Accounting Standard (Ind AS) 24 Related Party Disclosures specifiedin Companies (Indian Accounting Standards) Rules 2015 as prescribed under section 133 ofthe Act.

(xiv) (a) In our opinion and according to the information and explanations given to usthe Company has an internal audit system as required under section 138 of the Act which iscommensurate with the size and nature of its business.

(b) We have considered the reports issued by the Internal Auditors of the Company tilldate for the period under audit.

(xv) According to the information and explanation given to us the Company has notentered into any non-cash transactions with its directors or persons connected with themand accordingly provisions of section 192 of the Act are not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly reporting under clauses 3(xvi)(a)(b) and (c) of theOrder are not applicable to the Company.

(d) Based on the information and explanations given to us and as represented by themanagement of the Company the Group (as defined in Core Investment Companies (ReserveBank) Directions 2016) does not have any CIC.

(xvii) The Company has not incurred any cash loss in the current as well as theimmediately preceding financial year.

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

(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the standalone financialstatements our knowledge of the plans of the Board of Directors and management nothinghas come to our attention which causes us to believe that any material uncertainty existsas on the date of the audit report that Company is not capable of meeting its liabilitiesexisting at the date o1 balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the company as and when they fall due.

(xx) (a) According to the information and explanations given to us the Company has nottransferred unspent amount in respect of other than ongoing projects to a Fund specifiedin Schedule VII to the Act as required under second proviso to sub-section (5) of section135 of the said Act. However the time period of six months from the end of financial yearas permitted under second proviso of section 135(5) of the Act has not lapsed till thedate of our report.

(b) The Company has transferred the remaining unspent amount under sub-section (5) ofsection 135 of the Act in respect of ongoing project within a period of 30 days from theend of financial year to a special account in compliance with the provision of sub-section(6) of section 135 of the Act.

(Amount in Rs. Lakhs)

Financial year Amount unspent on CSR activities for "On going Projects" Amount transferred to Special Account within 30 days from the end of the Financial Year Amount Transferred after the due date Date of Transfer
2021-22 15.00 15.00 - 28 April 2022

xxi) The reporting under clause 3(xxi) of the Order is not applicablein respect of audit of standalone financial statements of the Company. Accordingly nocomment has been included in respect of said clause under this report.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
S/d-
Nitin Toshniwal
Partner
Membership No.: 507568
UDIN: 22507568AJVWSQ3936
Place: Faridabad
Date: 30 May 2022

Annexure B to the Independent Auditor's Report of even date to themembers of Jash Engineering Limited on the consolidated financial statements for the yearended 31st March 2022

Annexure B

Independent Auditor's Report on the internal financial controls withreference to the standalone financial statements under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ('the Act')

1. In conjunction with our audit of the standalone financial statementsof Jash Engineering Limited ('the Company') as at and for the year ended 31st March 2022we have audited the internal financial controls with reference to financial statements ofthe Company as at that date.

Responsibilities of Management and Those Charged with Governance forInternal Financial Controls

2. The Company's Board of Directors is responsible for establishing andmaintaining internal financial controls 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 ('the Guidance Note') issued by the Instituteof Chartered Accountants of India (the "ICAI"). These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of the Company'sbusiness including adherence to the Company's policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility for the Audit of the Internal FinancialControls with Reference to Financial Statements

3. Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to financial statements based on our audit. Weconducted our audit in accordance with the Standards on Auditing issued by the ICAIprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls with reference to financial statements and the Guidance Noteissued by the ICAI. 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 with reference to financial statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls with reference to financialstatements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements includes obtaining an understanding of suchinternal financial controls assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to financial statements .

Meaning of Internal Financial Controls with Reference to FinancialStatements

6. A company's internal financial controls with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company's internalfinancial controls with reference to financial statements include those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance 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 with Reference toFinancial Statements

7. Because of the inherent limitations of internal financial controlswith reference to 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 financial statements to future periods are subject to the riskthat the internal financial controls with reference to financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

8. In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such controls wereoperating effectively as at 31st 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 by the ICAI.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
S/d-
Nitin Toshniwal
Partner
Membership No.: 507568
UDIN: 22507568AJVWSQ3936
Place: Faridabad
Date: 30 May 2022

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