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Jullundur Motor Agency (Delhi) Ltd.

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Jullundur Motor Agency (Delhi) Ltd. (JMA) - Auditors Report

Company auditors report

To the Members of

Jullundur Motor Agency (Delhi) Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Jullundur MotorAgency (Delhi) Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2022 and the Statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and the Statement of Cash Flow for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information (hereinafter referred to as"the standalone financial statements").

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 Companies (Indian Accounting Standards)Rules 2015 as amended ("Ind AS") and other accounting principles generallyaccepted in India of the state of affairs of the Company as at 31 March 2022 the profitand total comprehensive income its changes in equity and its cash flows for the yearended on that date.

Basis for 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 theAuditor's Responsibilities for the Audit of the Standalone 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 (ICAI) together with theindependence requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

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.

Sr. No. Key Audit Matter Auditor's Response
1 Revenue recognition – Accruals for turnover discounts We have performed the test controls as per the following procedures to the accuracy of revenue recognized and accrual for turnover discounts to the customers:
Generally in the markets products are often sold with sales related turnover discounts. Sales are recorded based on the price specified in the sales contract/arrangement with the customers net of discounts returns and taxes. However simultaneously estimated amount of turnover discounts would need to be incurred are also estimated and netted off from sales. Judgment is required to be exercised in determining the level of provisions that would need to be accrued. (Refer Note No. 2(G) for the accounting policies on Revenue Recognition) (a) Obtaining an understanding of the Management processes and control with regard to contractual arrangements for turnover discount to the customers.
(b) Obtained an understanding of key contractual arrangements with customer and Management's process for collecting the relevant information to be able to reasonably estimate the Company's obligation in this regard.
(c) Conducted review of contracts/arrangement where such turnover discount existed and tested Management's basis for estimating the invoices to which such turnover discount will apply.
(d) Tested the application of the appropriate rates of discount and re-performed the test of arithmetic accuracy of the spreadsheet/ credit notes issued.
(e) Performed insight analysis over changes to prior period turnover discount & assessing the estimates considering the evidence in this regard.
2 Net Realizable Value of Stock in trade We have performed the following procedure on test check basis to verify the accuracy of the inventory held and valuation of stock- in-trade including slow moving damaged unsalable or obsolete inventory:
Stock in trade are valued at lower of cost and estimated net realizable value (estimated selling price less estimated cost necessary to make the sale). Considering that there is always a volatility in the selling price of the stock in trade i.e. automobile parts & accessories specially slow moving damaged unsalable inventories items which is dependent upon various market conditions/ demand of the such items determination of the net realizable value for these items involves significant management judgment and therefore has been considered as a key audit matter.
(a) Obtaining an understanding of the Management processes and control with regard to inventory held at close of the year and valuation of stock- in -trade including slow moving damaged unsalable or obsolete inventory.
(Refer Note No. 2(F) for the accounting policies on Inventories) (b) Obtained an understanding of the determination of the cost or net realizable values of the stock-in- trade items i.e. automobile parts & accessories including slow moving damaged unsalable or obsolete items assessed and tested the reasonableness of the significant judgments applied by the management.
(c) Evaluated the design of internal controls relating to the stock- in-trade held and valuation of inventories including slow moving damaged unsalable or obsolete items and also tested the operating effectiveness of the aforesaid controls.
(d) Compared the cost of the stock-in-trade items with the estimated net realizable value and checked if such items were recorded at net realizable value where the cost was higher than the net realizable value.
(e) Assessed the appropriateness of the disclosure in the financial statements in accordance with the applicable financial reporting framework.

Emphasis of Matter

We draw attention to Note 40 to the standalone financial statementsregarding the uncertainties arising out of the outbreak of COVID-19 pandemic andmanagement's evaluation of the impact on the standalone financial statements of thecompany as at the balance sheet date. As mentioned therein the assessment of the Companydoes not indicate any material effect on the carrying value of its assets and liabilitiesof the Company as on the reporting date. The Company will continue to closely monitor anymaterial changes to future economic conditions.

Our opinion is not modified in respect of this matter.

Information Other than the Financial Statements and Auditor'sReport Thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Corporate Governance and Shareholder's Informationbut does not include the consolidated financial statements standalone financialstatements and our auditor's report thereon.

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 and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of Management for the Standalone Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance total comprehensive income changes inequity and cash flows of the Company in accordance with the Ind AS and other accountingprinciples generally accepted in India. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error. Inpreparing the standalone 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.

The Board of Directors are responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

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

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinionon whether the Company has adequate internal financial controls system in place and theoperating effectiveness 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 concernbasis 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 conditionsmay cause the Company to cease to continue as a going concern.

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

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. Wecommunicate with those charged with governance regarding among other matters the plannedscope and timing of the audit and significant audit findings including any significantdeficiencies in internal control that we identify during our audit.

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 precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

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

2. As required by Section 143(3) of the Act based on our audit 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 Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

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

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

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

g) 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 / provided by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h) 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 standalone financial statements. (Refer Note 25 of Standalone FinancialStatements)

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

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

iv. (a) The management has represented that to the best of its knowledge and belief asdisclosed in the note 39 to the accounts no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind offunds) by the Company to or in any other person(s) or entity(ies) including foreignentities ("Intermediaries") with the understanding whether recorded in writingor 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 a Company ("Ultimate Beneficiaries") or provide any guarantee security orthe like on behalf of the Ultimate Beneficiaries;

(b) The management has represented that to the best of its knowledge and belief asdisclosed in the note 39 to the accounts no funds have been received by the Company fromany person(s) or entity(ies) including foreign entities ("Funding Parties")with the understanding whether recorded in writing or otherwise that the Company shallwhether directly or indirectly lend or invest in other persons or entities identified inany manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or provide any guarantee security or the like on behalf of theUltimate Beneficiaries; and

(c) Based on the audit procedures performed that have been considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub clause (i) and (ii) of Rule 11(e) as providedunder (a) and (b) above contain any material mis-statement.

v. (a) The final dividend paid by the Company during the year in respect of the samedeclared for the previous year is in accordance with section 123 of the Companies Act2013 to the extent it applies to payment of dividend.

(b) As stated in note 13 to the financial statements the Board of Directors of theCompany have proposed final dividend for the year which is subject to approval of themembers at the ensuing Annual General Meeting. The dividend declared is in accordance withsection 123 of the Act to the extent it applies to declaration of dividend.

For Aiyar & Co.
Chartered Accountants
Firm's Registration No.: 001174N
Sd/-
Charanjit Chuttani
(Partner)
Place: Gurugram Membership No 090723
Date: 28 May 2022 ICAI UDIN: 22090723AJUZBP4871

Annexure ‘A' to the Independent Auditor's Report

(Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of Jullundur MotorAgency (Delhi) Limited of even date)

With reference to the Annexure A referred to in the IndependentAuditor's Report to the members of the Company on the standalone financial statementsfor the year ended 31 March 2022 we report the following:

i. In respect of the Company's Property Plant and Equipment & IntangibleAssets:

a. (A) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment.

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

b. The Company has a regular programme of physical verification of its Property Plantand Equipment by which all Property Plant and Equipment are verified in a phased manner.In our opinion this periodicity of physical verification is reasonable having regard tothe size of the Company and the nature of its assets. Further as per the informationprovided to us no material discrepancies were noticed on such verifications.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of all the immovable properties(other than properties where company is the lessee and the lease agreements are dulyexecuted in favour of the company) disclosed in the financial statements included inproperty plant and equipment and investment property are held in the name of the Company.

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

e. Based on the information and explanations furnished to us no proceedings have beeninitiated or are pending against the company as at 31st March 2022 for holdingany benami property under the Prohibition of Benami Property Transactions Act 1988 (asamended in 2016) (formerly the Benami Transactions (Prohibition) Act 1988 (45 of 1988))and Rules made thereunder.

ii. a. The inventory has been physically verified by the management during the year atreasonable intervals. In our opinion the frequency of such verification is reasonablehaving regard to the size of the company and nature of its business. In our opinion thecoverage and procedure of such verification by the management is appropriate.

The Company has maintained proper records of inventory in relation to the size of thecompany and nature of its business and no discrepancies of 10% or more were noticed onsuch physical verification of inventory when compared with books of account.

b. According to the information and explanations given to us at any point of time ofyear the company has not been sanctioned any working capital facility from banks orfinancial institutions on the basis of security of current assets and hence reportingunder clause 3 (ii)(b) of the Order is not applicable.

iii. The company has not made investments during the year and the company has notprovided any guarantee or security or granted any loans or advances in the nature ofloans secured or unsecured to companies firms limited liability partnerships or anyother parties. Therefore reporting under clause 3 (iii)(a)(iii)(b)(iii)(c) (iii)(d)(iii)(e) and(iii)(f) of the Order are not applicable.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 186 of the Companies Act with respectto the loans given investments made guarantees and securities given to the extentapplicable . There is no transaction under section 185 of the Companies Act.

v. The Company has not accepted any deposits or amounts which are deemed to be depositswithin the meaning of Sections 73 to 76 of the Act and Rules framed thereunder to theextent applicable. Accordingly the provisions of clause 3 (v) of the Order is notapplicable.

vi. The Central Government has not prescribed the maintenance of cost records underSection 148 of the Companies Act 2013 for any of the activities rendered by the Company.Accordingly the provision of clause 3 (vi) of the Order is not applicable.

vii. a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Goods and Services taxProvident fund Employees' State Insurance Income-tax duty of Customs duty ofExcise Value added tax / Sales tax Cess and other material statutory dues have generallybeen regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us no undisputed amountspayable in respect of Goods and Service tax Provident fund Employees' StateInsurance Income-tax Service tax duty of Customs duty

of Excise Value added tax / Sales tax Cess and other materialstatutory dues were in arrears as at 31 March 2022 for a period of more than six monthsfrom the date they became payable. b) According to the information and explanations givento us there are no dues of Goods and Service tax Income tax Value added tax / Salestax duty of customs duty of Excise which have not been deposited with the appropriateauthorities on account of any dispute other than those mentioned below.

Name of Statue Nature of Dues Amount Period (F.Y.) Forum where dispute is pending
Income Tax Act Income Tax 459.72 Lakhs 2012-2013 CIT(Appeals) New Delhi
2016-2017
2017-2018
Sales Tax Haryana Value added tax / Sales tax 6.81 Lakhs 2015-2016 Assessing Officer Haryana
2016-2017
Sales Tax Jharkhand Value added tax / Sales tax 2.12 Lakhs 2014-2015 Appeal Jamshedpur Jharkhand
Total 468.65 Lakhs

viii. According to the information and explanations given to us and the records of thecompany examined by us there are no transactions in the books of account that has beensurrendered or disclosed as income during the year in the tax assessments under Income TaxAct 1961 that has not been recorded in the books of account.

ix. a. In our opinion and according to the information and explanation given to us thecompany has not taken any loans or other borrowings during the year and there are no loansor other borrowings outstanding at the beginning of the year. Accordingly clause 3(ix)(a) of the Order is not applicable to the Company.

b. In our opinion and according to the explanation given to us the company has notbeen declared willful defaulter by any bank or financial institution or government or anygovernment authority.

c. The company has not taken any term loan during the year and there are no unutilisedterm loans at the beginning of the year hence reporting under clause 3 (ix)(c) of theOrder is not applicable.

d. In our opinion and according to the explanation given to us the company has notraised funds on short term basis. Accordingly clause 3 (ix)(d) of the Order is notapplicable to the Company.

e. In our opinion and according to the explanation given to us the company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries associates or joint ventures.

f. According to the explanation and information given to us the company has not raisedloans during the year on the pledge of securities held in its subsidiaries joint venturesor associate companies. Hence reporting on clause 3 (ix)(f) of the Order is notapplicable.

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 the reportingunder clause 3 (x)(a) of the Order is not applicable to the company.

b. The company has not made any preferential allotment or private placement of sharesor fully or partially or optionally convertible debentures during the year. Accordinglythe reporting under clause 3 (x)(b) of the Order is not applicable to the company.

xi. a. In our opinion and according to the information and explanations given to us wehave neither come across any instance of material fraud by the Company or on the Companynoticed or reported during the year nor have we been informed of any such case by theManagement.

b. During the course of our examination of the books and records of the company noreport under section 143(12) of the Companies Act has been filed in Form ADT-4 asprescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 with the CentralGovernment during the year and upto the date of this report.

c. During the course of our examination of the books and records of the companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanation given to us no whistle blower complaintshave been received during the year by the company. Accordingly reporting under clause 3(xi)(c) of the Order is not applicable to the company.

xii. The company is not a Nidhi company and the Nidhi Rules 2014 are not applicable toit. Accordingly reporting under clause 3 (xii)(a) to 3 (xii)(c) of the Order are notapplicable to company.

xiii. The company has entered into transactions with related parties in compliance withthe provisions of Sections 177 and 188 of the Act. The details of such related partytransactions have been disclosed in the financial statements as required under IndianAccounting Standard 24 "Related Party Disclosures" specified under section 133of the Act.

xiv. a. In our opinion and according to the information and explanation given to usthe company has an internal audit system commensurate with size and nature of itsbusiness.

b. The reports of Internal Auditor for the period under audit have been considered byus.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

Accordingly clause 3 (xv) of the Order is not applicable to the Company.

xvi. a. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly reporting under clause 3 (xvi)(a) of the Order isnot applicable to the company.

b. The company has not conducted Non Banking Financial activities or Housing Financeactivities during the year. Accordingly reporting under clause 3 (xvi)(b) of the Order isnot applicable to the company.

c. The company is not a Core Investment Company (CIC) as defined in the regulation madeby the Reserve Bank of India. Accordingly reporting under clause 3 (xvi)(c) of the Orderis not applicable to the company.

d. In our opinion there is no Core Investment Company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016). Accordingly reportingunder clause 3 (xvi)(d) of the Order is not applicable to the company.

xvii. The company has not incurred any cash losses in the financial year or in 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 basis of thefinancial ratios (Also refer Note 36 to the financial statements) ageing and expecteddates of realization of financial assets and payment of financial liabilities otherinformation accompanying the financial statements our knowledge of the Board of Directorsand management plans and based on our examination of the evidence supporting theassumptions nothing has come to our attention which causes us to believe that anymaterial uncertainty exists as on the date of the audit report that Company is not capableof meeting its liabilities existing at the date of balance sheet as and when they fall duewithin a period of one year from the balance sheet date. We however state that this is notan assurance as to the future viability of the company. We further state that ourreporting is based on the facts up to the date of the audit report and we neither give anyguarantee nor any assurance that all liabilities falling due within a period of one yearfrom the balance sheet date will get discharged by the company as and when they fall due.

xx. As on the Balance Sheet date the company does not have any amount remainingunspent under Section 135(5) of the Act. Accordingly reporting under clause 3 (xx)(a) and3(xx)(b) of the Order are not applicable.

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

For Aiyar & Co.
Chartered Accountants
Firm's Registration No.: 001174N
Sd/-
Charanjit Chuttani
(Partner)
Place: Gurugram Membership No 090723
Date: 28 May 2022 ICAI UDIN: 22090723AJUZBP4871

Annexure ‘B' to the Independent Auditor's Report

(Referred to in paragraph 2(f) under ‘Report on Other Legal andRegulatory Requirements' section of our report to the Members of Jullundur MotorAgency (Delhi) Limited of even date) Report on the Internal Financial Controls overFinancial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act") Opinion

We have audited the internal financial controls over financialreporting of Jullundur Motor Agency (Delhi) Limited ("the Company") as of March31 2022 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2022 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants 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 torespective company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the Company based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the "Guidance Note")issued by the Institute of Chartered Accountants of India and the Standards on 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 over financialreporting 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 system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting of the Company.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process 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 controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting 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 overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

For Aiyar & Co.
Chartered Accountants
Firm's Registration No.: 001174N
Sd/-
Charanjit Chuttani
(Partner)
Place: Gurugram Membership No 090723
Date: 28 May 2022 ICAI UDIN: 22090723AJUZBP4871

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