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Jaypee Infratech Ltd.

BSE: 533207 Sector: Infrastructure
NSE: JPINFRATEC ISIN Code: INE099J01015
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OPEN 2.23
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VOLUME 1067979
52-Week high 5.05
52-Week low 1.68
P/E
Mkt Cap.(Rs cr) 314
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Jaypee Infratech Ltd. (JPINFRATEC) - Auditors Report

Company auditors report

TO THE MEMBERS OF JAYPEE INFRATECH LIMITED Report on the Standalonefinancial statements

We have audited the accompanying Standalone financial statements ofJaypee Infratech Limited ("the Company") which comprise the Balance Sheet as atMarch 31st 2021 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "the standalone financial statements").

Opinion

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 sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312021the loss and total comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis of Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matter We invite attention to:

1. Note no. 31 to Standalone Financial Statements which described theCorporate Insolvency Resolution Process of the Company under Insolvency and BankruptcyCode 2016 (‘the Code') and related matters. Hon'ble Supreme Court vide its orderdated 24th March 2021 stipulates completion of Corporate Insolvency Resolution Processwithin specified time limit. The process is underway as on date of report andconsequently effect in the financial statements will be given once the process iscomplete.

2. Note no. 32 to Standalone Financial Statements which provides thatowing to complete / partial lockdown due to COVID-19 the company's operations were scaleddown/shut in accordance with Government Guidelines.

3. Note no. 38(b) to Standalone Financial Statements regardingdisclosure of balance Cost estimates based on Independent Consultants report which mayvary based on the factors prevailing at the time of actual execution.

4. Note no. 54 to Standalone Financial Statements which provides thatthe balances of creditors debtors lenders YEIDA(Yamuna Expressway IndustrialDevelopment Authority) advances paid/received and other liabilities appearing in thebalance sheet are subject to balance confirmation. The management is in the process ofobtaining the respective confirmations in the due course.

Our opinion is not modified in respect of the above matters.

Material Uncertainty Related to Going Concern

We draw attention to Note No. 31 to the standalone financial statementsregarding the status of Corporate Insolvency Resolution Process of the Company underInsolvency and Bankruptcy Code 2016 (‘the Code') which provides that bids receivedfrom Suraksha Realty and NBCC Ltd. are put to vote by Committee of Creditors("CoC") and consequently operations of the company are managed by InterimResolution Professional. These events indicate that a material uncertainty exists that maycast significant doubt on the company's ability to continue as a going concern. Ouropinion is not modified in respect of above matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matters How the matter was addressed in our audit
1. Evaluation of uncertain direct and indirect tax positions
The Company has material uncertain direct and indirect tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. Our audit included but was not limited to the following procedures:
The Company has disputes pending at various levels of tax authorities over the past several years as on March 31 2021 the company has total such disputed demands amounting to Rs. 1617.01 Crores. • We have evaluated the appropriateness of the design and tested the operating effectiveness of the management's controls over the tax litigation matters.
We have considered these as Key Audit Matter as it requires significant management judgment including accounting estimates that involves high estimation uncertainty. • Obtained details of completed tax assessments and demands during the year ended March 312021 from Management.
• We reviewed the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes.
• Additionally we considered the effect of the outcomes of the Appellate Orders received during the year in respect of uncertain tax positions as at April 1 2020 to evaluate whether any change was required to management's position on these uncertainties.
• We have verified the orders from tax and appellate authorities for the previous year and relied on management judgements in evaluating the tax provisions for the Current Financial Year.
• Further we have relied upon the management judgements and estimates for possible outflow and opinion of legal advisors/internal experts of the company in relations to such disputed tax positions.
• Assessed the appropriateness of the disclosure made in the standalone financial statements.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Management is responsible for the preparation of theother information. The other information comprises the information included in the Board'sReport including Annexures to Board's Report Management Discussion and Analysis/ BusinessResponsibility Report/Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon. Theabove-referred information is expected to be made available to us after the date of thisaudit report.

Our opinion on the standalone financial statements does not cover theother information and we do 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 during thecourse of our audit or otherwise appears to be materially misstated.

When we read the other information if we conclude that there is amaterial misstatement therein we are required to communicate the matter to those chargedwith governance and take appropriate actions necessitated by the circumstances and theapplicable laws and regulations.

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

The company has been undergoing Corporate Insolvency Resolution Process("CIRP") in terms of the provisions of the Insolvency & Bankruptcy Code2016 ("IBC") vide order dated 09.08.2017 and 14.08.2018 passed by the Hon'bleNational Company Law Tribunal ("NCLT") Allahabad read with order dated09.08.2018 passed by the Hon'ble Supreme Court of India in Writ Petition (Civil) No.744/2017 and order dated 06.11.2019 passed by the Hon'ble Supreme Court of India in thematter of Jaiprakash Associates Ltd. & Anr. Vs. IDBI Bank Ltd. & Anr. As perSection 20 of the Insolvency Code management & operations of the Company were beingmanaged by Interim Resolution Professional Mr. Anuj Jain on a Going Concern Basis.

The Committee of Creditors ("CoC") approved the ResolutionPlan of NBCC India Limited ("NBCC") on 17.12.2019. The Hon'ble

NCLT Principal Bench (Delhi) vide its order dated 03.03.2020 approvedthe Resolution Plan of NBCC. However the Resolution Plan is not implemented and NBCCfiled an appeal against Hon'ble NCLT order on 20.03.2020 with Hon'ble National Company LawAppellate Tribunal (NCLAT).

Further Hon'ble NCLAT vide its order dated 22.04.2020 provides thatthe approved Resolution Plan may be implemented subject to outcome of appeal and InterimResolution Professional (IRP) may constitute an Interim Monitoring Committee("IMC") comprising of IRP NBCC and three largest lenders of JIL i.e. IDBI BankLimited India Infrastructure Limited (IIFCL) and Life Insurance Corporation of India(LIC). IMC in its first meeting dated 27.04.2020 determined role responsibilitiespowers and functions of IMC including manage the operations of the company as goingconcern.

Hon'ble Supreme Court of India vide order dated 06.08.2020 directed allappeals pending before the Hon'ble NCLAT shall stand transferred to this Court. Hon'bleSupreme Court further directed the IRP to continue to manage the affairs of the companyand there shall be ad interim stay of the operation of the impugned Hon'ble NCLAT orderdated 22.04.2020. Further directions were passed by the Hon'ble Supreme Court of Indiavide order dated 10.09.2020 that since the entire resolution plan is pending considerationin these proceedings before this Court it is appropriate that no coercive action be takenby any person/authority against the Company until further orders on the principleunderlying Section 14 of the Insolvency and Bankruptcy Code 2016.

Hon'ble Supreme Court of India vide its order dated 24.03.2021 hasdirected the IRP to complete the CIRP within the extended time of 45 days by invitingmodified/fresh resolution plans from Suraksha Realty and NBCC only. Pursuant to thedirections of Hon'ble Supreme Court of India IRP invited fresh/modified Resolution Planfrom Suraksha Realty and NBCC. Consequently Suraksha Realty and NBCC have submitted theirbids on 07.04.2021. Upon discussion of said resolution plans in CoC from time to timeboth applicants have revised their bids. CoC sought extension from Hon'ble Supreme Court07.07.2021 to complete CIRP of the company and both the applicants have submitted theirfinal resolution plan which are put to vote by the CoC.

IRP is currently managing the operations of the company and financialstatements have been prepared on going concern basis. The Company's management isresponsible for the matters stated in Section 134(5) of the Companies Act 2013 ("theAct") with respect to the preparation of these Standalone financial statements thatgive a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance 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 standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible 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 management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Management is responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Standalone FinancialStatements

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 SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace 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 management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone 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 thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the financial statements.

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.

We also provide those charged with governance with a statement that wehave 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.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books.

c) The Balance Sheet and the Statement of Profit and Loss includingOther Comprehensive Income Statement of Changes in Equity and the Statement of Cash Flowdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid Standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2014.

e) On the basis of the written representations received from the nonindependent directors of the company as on 31st March 2021 pending to be taken on recordby the Board of Directors of the company as it is under Corporate Insolvency ResolutionProcess none of the non independent directors is disqualified as on 31st March 2021 frombeing appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure A". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's InternalFinancial Controls with reference to financial statements.

g) With respect to the other matters to be included in the Auditor'sReport in accordance 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 theexplanations given to us no remuneration paid by the Company to its directors during theyear.

h) With respect to the other matters included in the Auditor's Reportin accordance with Rule 11 of the companies (Audit and Auditors) Rule 2014 in ouropinion and to the best of our information and according to the explanation given to us:

i. The company has disclosed the impact of pending litigation on itsfinancial position in its standalone financial statements;

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

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

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Jaypee Infratech Limited ofeven date)

Report on the Internal Financial Controls with reference to FinancialStatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013("the Act")

We have audited the Internal Financial Controls with reference tofinancial statements of JAYPEE INFRATECH LIMITED ("the Company") as ofMarch 312021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The company has been undergoing Corporate Insolvency Resolution Process("CIRP") in terms of the provisions of the Insolvency & Bankruptcy Code2016 ("IBC") vide order dated

09.08.2017 and 14.08.2018 passed by the Hon'ble National Company LawTribunal ("NCLT") Allahabad read with order dated

09.08.2018 passed by the Hon'ble Supreme Court of India in WritPetition (Civil) No. 744/2017 and order dated 06.11.2019 passed by the Hon'ble SupremeCourt of India in the matter of Jaiprakash Associates Ltd. & Anr. Vs. IDBI Bank Ltd.& Anr. As per Section 20 of the Insolvency Code management & operations of theCompany were being managed by Interim Resolution Professional Mr. Anuj Jain on a GoingConcern Basis.

The Committee of Creditors ("CoC") approved the ResolutionPlan of NBCC India Limited ("NBCC") on 17.12.2019. The Hon'ble NCLT PrincipalBench (Delhi) vide its order dated 03.03.2020 approved the Resolution Plan of NBCC.However the Resolution Plan is not implemented and NBCC filed an appeal against Hon'bleNCLT order on 20.03.2020 with Hon'ble National Company Law Appellate Tribunal (NCLAT).

Further Hon'ble NCLAT vide its order dated 22.04.2020 provides thatthe approved Resolution Plan may be implemented subject to outcome of appeal and InterimResolution Professional (IRP) may constitute an Interim Monitoring Committee("IMC") comprising of IRP NBCC and three largest lenders of JIL i.e. IDBI BankLimited India Infrastructure Limited (IIFCL) and Life Insurance Corporation of India(LIC). IMC in its first meeting dated 27.04.2020 determined role responsibilitiespowers and functions of IMC including manage the operations of the company as goingconcern.

Hon'ble Supreme Court of India vide order dated 06.08.2020 directed allappeals pending before the Hon'ble NCLAT shall stand transferred to this Court. Hon'bleSupreme Court further directed the IRP to continue to manage the affairs of the companyand there shall be ad interim stay of the operation of the impugned Hon'ble NCLAT orderdated 22.04.2020. Further directions were passed by the Hon'ble Supreme Court of Indiavide order dated 10.09.2020 that since the entire resolution plan is pending considerationin these proceedings before this Court it is appropriate that no coercive action be takenby any person/authority against the Company until further orders on the principleunderlying Section 14 of the Insolvency and Bankruptcy Code 2016.

Hon'ble Supreme Court of India vide its order dated 24.03.2021 hasdirected the IRP to complete the CIRP within the extended time of 45 days by invitingmodified/fresh resolution plans from Suraksha Realty and NBCC only. Pursuant to thedirections of Hon'ble Supreme Court of India IRP invited fresh/modified Resolution Planfrom Suraksha Realty and NBCC. Consequently Suraksha Realty and NBCC have submitted theirbids on 07.04.2021. Upon discussion of said resolution plans in CoC from time to timeboth applicants have revised their bids. CoC sought extension from Hon'ble Supreme Court07.07.2021 to complete CIRP of the company and both the applicants have submitted theirfinal resolution plan which are put to vote by the CoC.

IRP is currently managing the operations of the company and financialstatements have been prepared on going concern basis. The Management of the company isresponsible for establishing and maintaining internal financial controls based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls with reference to financial statements issued by the Instituteof Chartered Accountants of India ("ICAI'). These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's InternalFinancial Controls with reference to financial statements based on our audit. We conductedour audit in accordance with the Guidance Note on Audit of Internal Financial Controlswith reference to financial statements (the "Guidance Note") issued by theInstitute of Chartered Accountants of India and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both issued by the Instituteof Chartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate Internal Financial Controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the Internal Financial Controls with reference to financial statements andtheir operating 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 standalonefinancial statements whether due to fraud or error. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe Company's Internal Financial Controls with reference to financial statements.

Meaning of Internal Financial Controls with reference to financialstatements

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 standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's InternalFinancial Controls with reference to financial statements includes 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 standalone financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; 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 standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference tofinancial statements

Because of the inherent limitations of Internal Financial Controls withreference 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

In our opinion the Company have in all material respects an adequateInternal Financial Controls with reference to financial statements and such InternalFinancial Controls with reference to financial statements were operating effectively as at31 March 2021 based on the internal control over financial reporting criteria establishedby the Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls with reference to financialstatements issued by the Institute of Chartered Accountants of India.

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Jaypee Infratech Limitedof even date)

i. In respect of the Company's fixed assets:

(a) The company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

(b) A substantial portion of fixed assets has been physically verifiedby the management during the year and in our opinion the frequency of verification isreasonable having regard to the size of the company the nature of its assets. Accordingto the information given to us and to the best of our knowledge no material discrepancieswere noticed on such physical verification.

(c) According to the information and explanations given to us and therecords examined by us we report that the title deeds comprising the immovable propertyof Land are held in the name of company as at the balance sheet date.

ii. (a) As explained to us the Inventory has been physically verifiedby the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanationsgiven to us no material discrepancies were noticed on physical verification.

iii. According to the information and explanations given to us and therecords examined by usthe Company has not granted secured or unsecured loan to companiesfirms limited liability partnerships and other parties covered in the register maintainedunder section 189 of the Companies Act 2013.

iv. In our opinion and according to the information and explanationsgiven to us the Company has not granted any loans made any investment given anyguarantee or provided any security to the parties covered under section 185 and 186 ofthe Companies Act 2013 except for financial assistance availed by Jaiprakash AssociatesLimited the holding company from its lenders.(Refer Note No. 37 of the standalonefinancial statements.)

v. According to the information and explanations given to us thecompany has not accepted deposits during the year. The company generally complied with theprovisions of Sections 73 to 76 or any other relevant provisions of the Companies Act2013. However there has been delay in repayment of fixed deposits. The fixed depositholders being the financial creditors are a part of the Committee of Creditors (CoC) asper Insolvency code and the repayment thereof is incumbent upon successful resolution planfor the Company.

vi. According to the information and explanations given to us costrecords as prescribed by the central Government under Section 148(1) of the Companies Act2013 are being made and maintained.

vii. (a) According to the information and explanations given to us andthe records examined by us in our opinion the company has generally been regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund Employees' State Insurance Income-tax Service tax value added tax Goods andService tax cess and any other material statutory dues applicable to it. There were noarrears of such dues at the year end which have remain outstanding for a period of morethan six months from the date they became payable.

(b) According to the information and explanations given to us and therecords examined by us company has following dues in respect of Income Tax Service Taxand value added tax which has not been deposited on account of any dispute:

Nature of Statute (Nature of Dues) Period to which amount relates Forum where dispute in pending Amount (in Rs. Lacs)
Income Tax (TDS) AY 2011-12 Allahabad High Court 0.45
Income Tax (TDS) AY 2012-13 Allahabad High Court 0.44
Income Tax (TDS) AY 2013-14 Allahabad High Court 0.44
Income Tax (TDS) AY 2014-15 Allahabad High Court 0.44
Income Tax AY 2012-13 CIT (Appeals)
Service Tax July 2010-June 2012 CESTAT Allahabad 3467.03
Service Tax July 2012 - March 2015 CESTAT Allahabad 3378.89
Service Tax (Penalty) July 2012 - March 2015 CESTAT Allahabad 3652.85
Service Tax April 2015 - June 2017 Commissioner CGST (Noida) 346.85
Service Tax July 2012 - June 2017 Commissioner (Appeals) CGST 160.00
Service Tax July 2012 - June 2017 Commissioner (Appeals) CGST 172.97
Service Tax July 2012 - June 2017 Commissioner (Appeals) CGST 0.10
Value Added Tax AY 2014-15 Additional Commissioner (Appeal) Grade – II Noida Commercial Tax 172.06
Value Added Tax AY 2015-16 Additional Commissioner (Appeal) Grade – II Noida Commercial Tax 1063.56
Value Added Tax AY 2015-16 Additional Commissioner (Appeal) Grade – II Noida Commercial Tax 2127.13
Value Added Tax AY 2015-16 Additional Commissioner (Appeal) Grade – II Noida Commercial Tax 1.20
Value Added Tax AY 2015-16 Additional Commissioner (Appeal) Grade – II Noida Commercial Tax 5.90
Value Added Tax AY 2017-18 Additional Commissioner (Appeal) Grade – II Noida Commercial Tax 471.54

viii. Based on the audit procedure and according to the information andexplanations given to us we are of the opinion that the company has defaulted inrepayment of principal and/or interest to banks financial institutions & debentureholders wherein the period of delay ranges from 1 to 2029 days.

Details of overdue interest on borrowings amounting to Rs. 760482.00lakhs reflected in Note no. 21 to the standalone financial statements which wereoutstanding as at 31st March 2021 are given below:

Name of Lender Interest Default (In Rs. Lacs)* Period of Default*
Axis Bank 8716.31 1 to 1400 days
Corporation Bank 57746.94 1 to 1948 days
ICICI Bank 20704.25 1 to 1370 days
IIFCL 79352.86 1 to 1704 days
State Bank of India 53621.82 1 to 1735 days
Bank of Maharashtra 33570.09 1 to 1917 days
IDBI Bank 343833.68 1 to 1704 days
Jammu & Kashmir Bank 18776.69 1 to 1886 days
Syndicate Bank 28805.16 1 to 1917 days
IFCI Limited 28007.53 1 to 1796 days
Union Bank of India 25330.36 1 to 1925 days
LIC of India 59860.93 1 to 1947 days
SREI Equipment Finance Limited 2155.38 1 to 1293 days
Total 760482.00

*As per agreements with respective banks/financial institutions subjectto ongoing appeal filed by successful Resolution Applicant with Hon'ble NCLAT (Refer NoteNo. 16 of the standalone financial statements.).

Details of overdue principal repayments of borrowings amounting to Rs.211925.26 Lacs reflected in Note no. 21 to the standalone financial statements whichwere outstanding as at 31st March 2021 are given below:

Name of Lender Principal Default (In Rs. Lacs)* Period of Default*
Axis Bank 21195.00 1 to 1186 days
Corporation Bank 15550.00 1 to 1550 days
ICICI Bank 7800.00 1 to 1185 days
State Bank of India 30340.00 1 to 1550 days
Bank of Maharashtra 16750.00 1 to 1550 days
IDBI Bank 34650.00 1 to 1550 days
Jammu & Kashmir Bank 7800.00 1 to 1185 days
Syndicate Bank 16750.00 1 to 1550 days
IFCI Limited 5980.00 1 to 1185 days
Union Bank of India 14800.00 1 to 1550 days
LIC of India 36000.00 1 to 2029 days
SREI Equipment Finance Limited 2060.26 1 to 1232 days
IIFCL 2250.00 1 to 455 days
Total 211925.26

*As per agreements with respective banks/financial institutions subjectto ongoing appeal filed by successful Resolution Applicant with Hon'ble NCLAT (Refer NoteNo. 16 of the standalone financial statements.).

ix The company has not raised moneys by way of further public offer.Further in our opinion and according to the information and explanations given to us themoneys raised by way of debt instruments and term loans have been applied by the companyfor the purposes for which they are raised.

x. To the best of our knowledge and according to the information andexplanations given to us no fraud by the company and no material fraud on the company byits officers or employees noticed or reported to us by the management during the year.

xi. According to the information and explanations give to us and basedon our examination of the records of the Company the Company has not paid or provided formanagerial remuneration.

xii. In our opinion and according to the information and explanationsgiven to us Company is not a Nidhi Company. Accordingly reporting under paragraph 3(xii)of the Order is not applicable.

xiii. According to the information and explanations given to us andbased on our examination of the records of the Company all transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.

xiv. According to the information and explanations give to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year and hence reporting under clause 3(xiv) are not applicable tothe company.

xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly reportingunder paragraph 3(xv) of the Order are not applicable.

xvi. The company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For DASS GUPTA & ASSOCIATES
CHARTERED ACCOUNTANTS
Firm Registration No. 000112N
(CA PANKAJ MANGAL)
PARTNER
Date: 22nd June 2021 Membership No. 097890
Place: Noida UDIN: 21097890AAAAAL3321

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