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Jayaswal Neco Industries Ltd.

BSE: 522285 Sector: Engineering
NSE: JAYNECOIND ISIN Code: INE854B01010
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NSE 05:30 | 01 Jan Jayaswal Neco Industries Ltd
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VOLUME 158026
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P/E 4.61
Mkt Cap.(Rs cr) 2,175
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OPEN 22.20
CLOSE 22.65
VOLUME 158026
52-Week high 32.80
52-Week low 17.15
P/E 4.61
Mkt Cap.(Rs cr) 2,175
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jayaswal Neco Industries Ltd. (JAYNECOIND) - Auditors Report

Company auditors report

TO

THE MEMBERS OF JAYASWAL NECO INDUSTRIES LIMITED Report on the Audit of the FinancialStatements

Qualified Opinion

We have audited the accompanying Financial Statements of JAYASWAL NECO INDUSTRIESLIMITED ("the Company") which comprise the Balance Sheet as at March 312021the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and statement of Cash Flows for the year then ended and notes to thefinancial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "the Financial Statements").

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the ‘Basisfor Qualified Opinion' para below the aforesaid Financial Statements give the informationrequired by the Companies Act 2013 ("the Act") in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 312021 and its lossincluding other comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Qualified Opinion

As mentioned in Note no. 18.10 to the Financial Statements Non Current Borrowingsinclude an amount of Rs. 183111.16 Lakhs due to an Asset Reconstruction Company. Banksholding 97.91% (by value) of the total principal debt equivalent to Rs. 356324.74 Lakhsassigned all their rights title and interests in financial assistances granted by them tothe Company in favour of Assets Care & Reconstruction Enterprise Limited acting inits capacity as Trustee of ten different Trust (ACRE). Until the revised terms andcondition will be agreed between the Company and ACRE the arrangement with those banksare valid and as per the arrangements with those banks the Company is required to complywith certain covenants as referred in the said note and non-compliance with thesecovenants may give rights to the banks/ACRE to demand repayment of the loans. As at March312021 the Company has not complied with certain covenants and they have not beenprovided with any confirmation from those lenders for extension of time to comply withthese covenants. The Company has not classified these liabilities as current liabilitiesas required by Indian Accounting Standards (Ind AS) - 1 - "Presentation of FinancialStatements".

We conducted our audit in accordance with Standards on Auditing (SAs) specified undersection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Financial Statements under theprovisions of the Act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI's Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our qualified opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note no. 36 to the Financial Statements regarding preparation ofFinancial Statements of the Company on going concern basis notwithstanding the fact thatthe Company continue to incurred cash losses it's net worth has been fully eroded loanshad been called back by few of the secured lenders application has been made to NationalCompany Law Tribunal (NCLT) Mumbai under section 7 of the Insolvency and BankruptcyCode 2016 (IBC) by State Bank of India the erstwhile lead secured lender which has beencontested by the Company for the reasons stated in the said note. These conditionsindicate the existence of a material uncertainty that may cast significant doubt on theCompany's ability to continue as going concern. Banks holding 97.91% (by value) of thetotal principal debt equivalent to Rs. 356324.74 Lakhs assigned all their rights titleand interests in financial assistances granted by them to the Company in favor of AssetsCare & Reconstruction Enterprise Limited acting in its capacity as Trustee of tendifferent Trust (ACRE) and for the other reasons mentioned in Note no. 36 to the FinancialStatements. The appropriateness of assumption of going concern is critically dependentupon the Company's ability to raise requisite finance and generate cash flows in future tomeet its obligations and to restructure its borrowing with the lenders.

Our opinion is not modified in respect of this matter.

Emphasis of Matter

We draw your attention to the Note no. 2.06 to the Financial Statements regarding theattachment of the properties of the Company to the extent of Rs. 30758.39 Lakhs by theDirectorate of Enforcement which has been contested by the Company and presently stayed.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Financial Statements of the current period. These matterswere addressed in the context of our audit of the Financial Statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Key Audit Matter How our audit addressed the key audit matter
1) Inventories
As of March 31 2021 inventories appear in the Financial Statements for an amount of Rs. 89878.95 Lakhs constitutes 15.23% of the total assets of the Company. Inventories are valued at the lower of cost and net realizable value. Our audit procedure included among others:
The Company may recognize an inventory allowance if inventory items are damaged if the selling price has declined or if the estimated costs to completion or to be incurred to make the sale have increased. We considered this matter as key audit matter due to the: • Reviewing the Company's process and procedure for physical verification of the Inventories identification of non-moving and obsolete items and accounting for the same.
• Significance of the inventories balance. • Obtaining the physical inventory count reports of the Management as per verification plan which were conducted in the presence of internal auditors of the Company and discussing with the internal auditors about the Control checks performed by the internal auditors.
• Complexities involve in determining quality of inventories and quantities on hand due to the number weight location diversity of inventory storage locations • Assessing the methods used to value inventories and ensuring the consistency of accounting methods.
Valuation procedure including of obsolete inventories. Refer note no. 1(C)(VI) and 7 to the Financial Statements. • Testing by sampling the effectiveness of the controls set up by Management to prevent or detect possible errors in valuation of inventories.
• Analyzing the company's assessment of net realizable value as well as reviewing the assumptions and calculations for stock obsolescence.
• Verifying the completeness of disclosure in the Financial Statements as per Ind AS 2.
• Obtaining representation letter from the management as per SA 580 (revised) - Written representations.
Key Audit Matter How our audit addressed the key audit matter
2) Litigation and Regulatory Claims
The Company is subject to number of significant litigations. Major risks identified by the Company in that area related to Energy Development Cess Attachment of the Company's property by the Directorate of Enforcement Application filed by a lender to NCLT under IBC for the recovery of loan Arbitration with the vendors / suppliers other litigation with Government authorities etc. Our audit procedure included the following : • Assessing the procedures implemented by the Company to identify and gather the risks it is exposed to.
The amount of litigation may be significant and estimates of the amounts of provisions or contingent liabilities are subject to significant Management judgment. (Refer Note No. 2.06 2.07 3.03 3.04 26.01 35 and 36 to the Financial Statements). • Obtaining an understanding of the risk analyses performed by the Company with relating supporting documentation and studying written statements from internal and external legal experts where applicable.
Due to complexity involved in these litigation and regulatory claims management's judgment regarding recognition and measurement of provisions for these legal proceedings is inherently uncertain and might change over time as the outcomes of the legal cases are determined. • Discussion with the management on the development in these litigations during the year.
Accordingly it has been considered as a key matter. • Enquiring from the company's legal counsel (internal/external) and study the responses as received from them.
• Verification that the accounting and / or disclosure as the case may be in the financial statements made by the Company is in accordance with the assessment of legal counsel / management based on the information currently available to the Company.
• Obtaining representation letter from the management on the assessment of these matters as per SA 580 (revised) - Written representations.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the management discussion & analysis and director's reportincluded in the annual report but does not include the Financial Statements and ourauditor's report thereon. The above information is expected to be made available to usafter the date of this auditor's report.

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

In connection with our audit of the Financial Statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the FinancialStatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the above other information if we conclude that there is materialmisstatement therein we are required to communicate the matter to those charged withgovernance.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation of these Financial Statements that givea true and fair view of the state of affairs (financial position) loss (financialperformance including other comprehensive income) cash flows and the statement of changesin equity of the Company in accordance with the accounting principles generally acceptedin India including Indian Accounting Standards (‘Ind AS') prescribed under Section133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Financial Statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditors' Responsibility for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the FinancialStatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these Financial Statements.

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

• Identify and assess the risks of material misstatement of the FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3) (i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the ability ofthe Company to continue as a going concern. If we conclude that a material uncertaintyexists we are required to draw attention in our auditor's report to the relateddisclosures in the Financial Statements or if such disclosures are inadequate to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date ofour auditor's report. However future events or conditions may cause the Company to ceaseto continue as a going concern.

• Evaluate the overall presentation structure and content of the FinancialStatements including the disclosures and whether the Financial Statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Financial Statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen 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 Section 143 (3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. The Balance Sheet the Statement of Profit and Loss (Including other comprehensiveincome) the Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d. In our opinion except the matter described in the "Basis for QualifiedOpinion" paragraph above the aforesaid Financial Statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act read with relevant rulesthereunder;

e. The going concern matter described in "Material Uncertainty Related to GoingConcern" paragraph above in our opinion may have an adverse effect on thefunctioning of the Company.

f. On the basis of the written representations received from the directors as on March312021 except from one of the ex-director who expired and taken on record by the Boardof Directors none of the directors is disqualified as on March 312021 from beingappointed as a director in terms of Section 164 (2) of the Act.

g. With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure A".

h. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

i. 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 has disclosed the impact of pending litigations on its financialposition in its Financial Statements as referred to in Note No. 2.06 2.07 3.03 3.0422.06 26.01 35 and 36 to the Financial Statements;

ii. The Company has made provisions as required under the applicable law or Ind ASfor material foreseeable losses if any on long term contracts including derivativecontracts;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government of India in terms of Section 143(11) of the Act we give in"Annexure B" hereto a statement on the matters specified in paragraphs 3 and 4of the Order.

For Pathak H. D. & Associates LLP For Naresh Patadia & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 107783W/W100593 Firm Reg. No. 106936W
Mukesh Mehta Naresh Patadia
Partner Proprietor
Membership No. 43495 Membership No. 35620
UDIN: 21043495AAAACU5051 UDIN: 21035620AAAAAK3782
Mumbai Nagpur
Date: June 30 2021 Date: June 30 2021

"ANNEXURE A" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 (g) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date to the members of Jayaswal Neco IndustriesLimited on the financial statements for the year ended March 312021)

Report on the Internal Financial Controls with reference to Financial Statements underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls with reference to financial statementsof JAYASWAL NECO INDUSTRIES LIMITED (‘the Company') as of March 312021 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls with referenceto financial statements (‘the Guidance Note') issued by the Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

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 issued by the ICAI and the Standards of Auditingprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference tofinancial statements was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether 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 systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

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 financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to FinancialStatements

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 financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as at March 31 2021 basedon the internal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the ICAI.

For Pathak H. D. & Associates LLP For Naresh Patadia & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 107783W/W100593 Firm Reg. No. 106936W
Mukesh Mehta Naresh Patadia
Partner Proprietor
Membership No. 43495 Membership No. 35620
UDIN: 21043495AAAACU5051 UDIN: 21035620AAAAAK3782
Mumbai Nagpur
Date: June 30 2021 Date: June 30 2021

ANNEXURE "B" TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of Jayaswal NecoIndustries Limited on the Financial Statements for the year ended March 312021)

i. In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. As explained to us the Company has physically verified certain assets inaccordance with a phased program of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. No materialdiscrepancies were noticed on such physical verification as compared with the availablerecords.

c. According to the information and explanations given to us the title deeds ofimmovable properties are generally in the name of the Company except in respect of 5immovable properties at Raipur having the aggregate value of Rs. 31 lakhs in respect ofwhich the documents are not registered in the name of the company with the concernedGovernment Authority and also in case of properties acquired by the entities or unit thathave since been amalgamated/merged with the Company in pursuance to the scheme ofamalgamation / demerger / arrangement approved by Hon'ble High Court and details of whichare as under.:

(Rs. in Lakhs

Sr. No. Particulars of the Land and Building Leasehold/ Freehold Land / Building Net Block as at March 312021 Remarks (give reasons for the exception)
1 4 immovable properties land at Raipur (1 agreement equitable mortgage with the lender) Leasehold Land 1777.04 2 title deeds are in the name of Corporate Ispat Alloys Limited from where one unit was demerged and acquired by the Company and 2 title deeds are in the name of Nagpur Alloy Castings Limited an erstwhile Company that was amalgamated with the Company under the Companies Act 1956.
2 7 immovable properties (land / building) at Raipur / Nagpur / Kolkata (4 agreements equitable mortgage with the lenders) Free hold land /building 62.47 The title deeds are in the name of Jayaswal Neco Limited (earlier known as Jayaswal Chemical Private limited) erstwhile Company that was amalgamated with the Company under the Companies Act 1956.

As informed to us in respect of 59 immovable properties having the aggregate value ofRs. 676.45 Lakhs the original title deeds have been deposited with the lenders assecurity we have been produced photocopies of documents for those immovable propertiesand based on such documents the title deeds are held in the name of the Company except 5immovable properties as disclosed above.

ii. In respect of its inventories:

As explained to us inventories have been physically verified during the year by themanagement except for inventories in transit / with job worker for which managementconfirmation has been received. In our opinion the frequency of verification isreasonable. Discrepancies noticed on physical verification of the inventories between thephysical inventories and book records were not material having regard to the size of theoperations of the Company and the same have been properly dealt with.

iii. In respect of loans secured or unsecured granted by the Company to companiesfirms Limited liability partnerships or other parties covered in the register maintainedunder section 189 of the Act:

a. In the earlier years the Company had granted unsecured loan to one such Company andthe terms and conditions on which the loan had been granted were not prima facieprejudicial to the interest of the Company.

b. The terms of repayment of principal and payment of interest have been stipulated andduring the previous year the principal and interest were due for payment but due to thefinancial crisis the party has not paid the same.

c. The amount is overdue and the Company has considered the said loan and interestreceivables as doubtful and has been fully provided for.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act as applicablein respect of grant of loans making investments and providing securities.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore the provisions of clause (v) ofparagraph 3 of the Order are not applicable to the Company.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government underSection 148(1) (d) of the Act as applicable and are of the opinion that prima facie theprescribed accounts and records have been maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

vii. According to the information and explanations given to us in respect of statutorydues:

a. The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income tax Customs Duty ExciseDuty Cess Goods and Service Tax and any other statutory dues with the appropriateauthorities during the year except in certain cases. According to the information andexplanations given to us no undisputed amounts payable in respect of such statutory dueswere outstanding as at March 312021 for a period of more than six months from the datethey became payable.

b. Details of dues of Duty of Custom Duty of Excise Service Tax Sales Tax and ValueAdded Tax aggregating to Rs. 1400.94 Lakhs that have not been deposited on account ofdisputed matters pending before appropriate authorities are as under:

Nature of Dues Statute

Period Involved

Amount Forum where dispute is pending
(Rs. in Lakhs) (*)
Custom Duty Custom Act 1962 2014-16 78.56 CESTAT
2004-05 100.00 Commissioner
Excise Duty Central Excise Act 1944 2009-16 148.09 CESTAT
Service Tax Finance Act 1994 2005-09 and 2015-18 227.44 CESTAT
2015 - 18 15.54 Commissioner
Sales Tax / VAT and Entry Tax Central Sales Tax Act 1956 and Sales Tax Acts of various states 2008-09 9.40 High Court
2007-08 2009-10 2011-17 704.92 Chairman Tribunal
2012-13 49.12 Additional Commissioner
2016-17 49.19 Joint Commissioner
1996-97 2002-03 2013-14 18.68 Deputy Commissioner
Total 1400.94

viii. Based on our audit procedures and according to the information and explanationsgiven by the management we are of the opinion that as on March 312021 the Company hasdefaulted in repayment of dues to lenders aggregating to Rs. 387816.00 Lakhs. Lender wisedetails of such default is as under:

(Rs. In Lakhs

Name of Bank / Others Total Default Below 90 Days Above 90 Days
ACRE 54 Trust (State Bank of India) 135348.37 10417.17 124931.20
ACRE 64 Trust (Punjab National Bank) 90764.00 6763.01 84000.99
ACRE 59 Trust (Union Bank of India) 48883.71 3915.52 44968.19
ACRE 70 Trust (Oriental Bank of Commerce) 16583.86 1292.98 15290.88
ACRE 76 Trust (Bank of India) 9933.72 772.47 9161.25
ACRE 63 Trust (Indian Overseas Bank) 15980.97 1140.42 14840.55
ACRE 69 Trust (Central Bank of India) 28747.92 2165.52 26582.40
ACRE 68 Trust (IDBI Bank) 23112.23 1047.08 22065.15
ACRE 101 Trust (Bank of Maharashtra) 11013.56 697.12 10316.44
ACRE 103 Trust (Andhra Bank) 4850.85 365.17 4485.68
UCO Bank 2596.81 99.31 2497.50
Total 387816.00 28675.77 359140.23

According to the information and explanations given to us the following banks haveclassified the credit facilities given to the Company as Non Performing Asset (NPA) as onMarch 312021 in their Books of Account.

(Rs. in Lakhs

Sr. Bank No. Term Loan Principal Fund Based Working Capital
1 UCO Bank 1432.00 -
2 ICICI Bank - 6187.03
Total 1432.00 6187.03

ix. According to the information and explanations given to us during the year theCompany has not raised any money by way of initial public offer or further public offer(including debt instruments). The term loans raised by the Company in earlier years haveprima facie been applied for the purpose for which they are raised.

x. Based on our audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and on the basis of information and explanationsgiven by the management no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion according to the information and explanations given to us and basedon our examination of records the Company has paid or provided managerial remuneration inaccordance with the provisions of requisite approvals mandated by the provision of section197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a nidhi company. Therefore the provisions of clause (xii) of paragraph 3of the Order are not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the Financial Statements as required by the applicableIndian accounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or debentures during the year. Therefore theprovisions of clause (xiv) of paragraph 3 of the order are not applicable to the Company.

xv. According to the information and explanations given to us during the year theCompany has not entered into non-cash transactions with directors or persons connectedwith him. Therefore the provisions of clause (xv) of paragraph 3 of the Order are notapplicable to the Company.

xvi. In our opinion and according to information and explanations provided to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct1934.

For Pathak H. D. & Associates LLP For Naresh Patadia & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 107783W/W100593 Firm Reg. No. 106936W
Mukesh Mehta Naresh Patadia
Partner Proprietor
Membership No. 43495 Membership No. 35620
UDIN: 21043495AAAACU5051 UDIN: 21035620AAAAAK3782
Mumbai Nagpur
Date: June 30 2021 Date: June 30 2021

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