To The Members of
Jainco Projects (India) Limited
Report on the Audit of Standalone Financial Statements
We have audited the accompanying standalone financial statements of Jainco Projects
(India) Limited ("the Company"), which comprise the Balance Sheet as at 31st
March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
statement of Cash Flows and the Statement of Changes in Equity for the year then ended,
and the notes to the financial statements including a summary of the significant
accounting policies and other explanatory information (hereinafter referred to as
"the standalone financial statements").
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone financial statements give the information required
by the Companies Act 2013 ("the Act"), in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended, ("Ind AS") and other accounting principles generally accepted in
India, of the state of affairs of the Company as at 31st March, 2023, its
profit, its cash flows and changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the audit of the
Financial Statements section of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
India ("ICAI") together with the ethical requirements that are relevant to our
audit of the financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on the
standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significant in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the standalone financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Emphasis of Matter
We draw attention to Note No 2.20 in the financial statements wherein the Company has
disclosed the impact of Covid-19 pandemic on its current and future financial performance.
Considering the uncertainties involve in the future economic scenario which a based on
various external factors outside the control of the Company, the managements assumptions
and estimates on operational and financial performance of the Company would largely depend
on future developments as they emerged as stated in the said note. Our opinion is not
modified in respect of this matter.
Information Other than the Financial Statements and Auditors Report thereon
The Companys board of Directors is responsible for the other information. The other
information comprises the information included in the management Discussion and Analysis.
Boards Report including annexures to Boards Report and Report on Corporate Governance
but does not include the standalone and consolidate financial statements and our
respective auditors report thereon. The other information referred to above is expected
to be made available to us after the date of this auditors report. Our opinion on the
standalone financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information identified above and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
When we read the other information, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to those charged with
governance.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section
134(5) of the Companies Act 2013, with respect to the preparation of these standalone
financial statements that give a true and fair view of the financial position, financial
performance including other comprehensive income, cash flows and changes in equity of the
Company in accordance with the accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS) prescribed under the Act read with
rules framed thereunder as applicable.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the standalone
financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for
assessing the Companys ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease the
operations, or has no realistic alternative but to do so. Thus Board of Directors are also
responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditors report that includes our opinion. Reasonable assurance is a high
level of assurance, but it is not a guarantee that an audit concluded in accordance with
SAs will always detect a material misstatements when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As a part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Financial Statements ,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion forgery,
intentional omission, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the
Companies Act, 2013, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves the fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards From the matters communicated with
those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key
audit matters.
We describe these matters in our auditors report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Other Matters:
Our opinion is not modified in respect of these matters.
1. Attention is drawn to :
a. Note 2.17 and 24.1 of the financial results, relating to advances, unsecured loan,
trade payable and receivable are subject to confirmation from respective parties as at
March 31 and consequential effect upon reconciliation/adjustment arising there from, if
any. Hence, financial impact if any is not currently ascertainable. Receivables and
advances include the amount due from customers and parties which are sub-judice or assets
which are not presently in possession of the company and matter is sub-judice.
b. Note 2.11 & 24.9 Borrowing Cost and dues to financial creditor of the company,
it has not recognised disputed interest and other charges payable & also loss faced by
the company for financial creditors in preparation of the financial results as its being
disputed by the company and the matter is sub-judice.
c. Note no. 24.1 & also 24.9, effect of total non-recognition of various financial
figures i.e. total contingent liability of the company which has been unascertainable
include differences of claims by financial / operational creditors / statutory dues /
effect of guarantees extended by the company and brought to our notice during our audit.
d. Note no. 24.1 wherein companies some assets, current and fixed are not in possession
of company due to reason briefed therein.
e. Note no. 24.1 wherein the company has not made any provision for gratuity payment
for the year and the same is also not ascertainable by us.
f. Note 2.20 to the standalone financial statements which explain the uncertainties and
managements assessment of the financial impact due to lockdown / restrictions related to
the COVID-19 pandemic imposed by the Governments, for which a definitive assessment of the
impact is dependent upon future economic conditions.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2020 ("the Order")
issued by the Central Government of India in terms of Section 143(11) of the Act, we give
in Annexure-A, a statement on the matters specified in paragraphs 3 and 4 of the
Order.
2. 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 best
of 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 the
Company so far as it appears from our examination of those books.
(c) The Balance Sheet, Statement of Profit and Loss including other comprehensive
income, the Cash Flow Statement and the Statement of Changes in Equity dealt with by this
report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with read with Rule 7 of
the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st
March, 2023, taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2023 from being appointed as a director in terms
of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate Report in Annexure - B. Our Report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Companys internal financial controls with
reference to financial statements.
(g) With respect to other matters to be included in Auditors Report in accordance with
the requirements of section 197(16) of the Act, in our opinion and to the best of our
information and according to the explanations given to us, the remuneration paid by the
Company to its Directors during the year is in accordance with the provisions of section
197 of the Act.
(h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial
position in its standalone Ind-AS financial statements.
ii. The Company has certain long-term contracts for which there are no material
foreseeable losses. The Company did not have any derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. The management has represented that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been advanced or
loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the company to or in any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company ("Ultimate Beneficiaries") or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries
v. The management has represented, that, to the best of its knowledge and belief,
other than as disclosed in the notes to the accounts, no funds have been received by the
company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the
company shall, whether, directly or indirectly, lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
vi. Based on such audit procedures which we have considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) contain any material mis-statement. vii.
The company has not declared or paid any dividend during the year is in accordance with
section 123 of the Companies Act 2013", Hence clause not applicable.
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1 under ‘Report on other legal and Regulatory
Requirements section of our report of even date to the members of the Company on the
standalone financial statements of the Company for the year ended 31st March
2023)
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of its fixed assets.
(b) The company dont own intangible assets.
(c) The fixed assets have been physically verified by the management at reasonable
intervals and in our opinion it is reasonable considering the size of company and nature
of asset no such material discrepancies were noticed on such verification and if so, the
same have been properly dealt with in the books of account;
(d) According to the information and examinations given to us and on the basis of our
examination, we report that, the title deeds of immovable properties are held in the name
of the Company as at the balance sheet date.
(e) The company has not revalued its Property, Plant and Equipments during the year
end.
(f) There are no pending proceedings against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.
(ii) (a) As explained to us, the inventories of Stock in trade were maintained in demat
account & physical verification are been conducted at reasonable intervals by the
management and if any material discrepancies were noticed on physical verification, the
same have been properly dealt with in the books of account, attention is drawn towards
note no. 25 of financial statement;
(b) The company has not been sanctioned working capital limits in excess of five crore
rupees, in aggregate, from banks or financial institutions on the basis of security of
current assets.
(iii) According to the information and explanation given to us, during the year, the
company has not granted any new loans, secured or unsecured, to companies, firms, Limited
Liability Partnerships or other parties covered in the register maintained under section
189 of the Act. Accordingly, provisions of clauses (iii) (a) to (f) of the aforesaid Order
are not applicable to the Company.
(iv) According to the information and explanation given to us, during the year the
Company has not given loans, made investments, given guarantees and provided securities
covered by provisions of section 185 and 186 of the Act except as allowed under the RBI
Act for NBFC.
(v) The company has not accepted deposits, from the public within the meaning of
sections 73 and 74 or any other relevant provisions of the Companies Act and the rules
framed there under.
(vi) The Company is not required to maintain cost records as specified under
Sub-Section (1) of Section 148 of the Companies Act, 2013.
(vii) (a) According to the information and explanations given to us and on the basis of
checking the records of the Company, we are of the opinion that the Company is generally
regular in depositing undisputed statutory dues including provident fund, employees state
insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value
added tax cess, GST and any other statutory dues with appropriate authorities.
(b) According to the information and explanations given to us, the following dues of
sales tax, value added tax, GST, duty of custom and duty of excise have not been deposited
by the Company on account of any dispute:
| Name of Statue |
Nature of Dues |
Amount Involved |
Forum where demand is pending |
| Income Tax Act 1961 |
Income Tax/Interest/ Penalty AY 2013-14 |
Demand Rs. 121462/- |
Appeal pending with DCIT |
| Income Tax Act 1961 |
Income Tax/Interest/ Penalty AY 2017-18 |
Demand Rs. 153080/- & int. Rs. 65790/- |
Rectification u/s 154 |
| Income Tax Act 1961 |
TDS – Short Payment/ Interest / Late Filing/ |
Demand o/s for 26202.50 |
Appeal not yet filed |
| VAT Act 2003 |
Vat/ Interest/ Penalty for the year 2013-14 and 2014-15 |
Demand Raised Rs.88 Lacs & 44 Lacs |
Appeal at High court/DCCT Sales Tax |
| Gratuity |
Yearly payment |
Not ascertained |
LIC has been requested for sending quote |
(A mere representation to/by the concerned Department is not considered as a dispute)
(viii) No transactions not recorded in the books of account have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(43 of 1961).
(ix) (a) According to information and explanation given to us and based on the records
of the company examined by us, the company has not made repayment of short term loans or
borrowings to financial institutions/Banks as at Balance Sheet date as there has been
dispute between the company and the institution/Bank with regards to amount payable,
interest etc. for which cases has been instituted/ will be instituted before appropriate
court for adjudication of the matter, hence being sub-judice matter we reserve our opinion
in the matter which will be shared after fate of the cases. Further attention is drawn on
Note no. 24.9 in this regards. The company has also given some settlement offer to the
financier for which outcome is awaited as well.
(b) the company is not declared wilful defaulter by any bank or financial institution
or other lender.
(c) No term loan was outstanding as on balance sheet date.
(d) No new short term loan have been raised during the year, hence this clause not
applicable to the company.
(e) Company dont have subsidiaries, associates or joint ventures hence this clause not
applicable to the company.
(f) Company has not raised loans during the year hence this clause not applicable to
the company.
(x) (a) The company did not raised moneys by way of initial public offer or further
public offer (including debt instruments) during the year. Hence this clause is not
applicable to the company. (b) the company has not made any preferential allotment or
private placement of shares or convertible debentures during the year, hence this clause
is not applicable to the company.
(xi) (a) During the course of our examination of the books and records of the Company
carried out in accordance with the generally accepted auditing practices in India and
according to the information and explanation given to us, we have neither observed any
instance of fraud by the company or any fraud on the company by its officers or employees
of the Company nor have been noticed of such case by the management during the year.
Company has traced some fraud by others upon the company for which the company has
initiated legal complaints and cases at various forums. There will be financial
implication on immovable properties held by the company in its name incase as a result of
outcome of cases. We reserve our observation on the matter as matter is sub judice.
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed
by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and
Auditors) Rules, 2014 with the Central Government.
(c) The company has not received any whistle-blower complaints, during the year.
(xii) The company is not a Nidhi Company, this clause & its sub clauses are not
applicable to the company.
(xiii) On the basis of our examination of the books of account of the Company and
according to the information and explanations given to us, the transactions entered into
with the related parties are in compliance with section 177 and 188 of the Companies Act,
2013 and their details have also been discussed in financial statement.
(xiv) (a) The company has sufficient internal audit system commensurate with the size
and nature of its business.
(b) The company has not appointed any internal auditor, hence no such report was
received by us.
(xv) On the basis of our examination of the records of the Company and according to the
information and explanations given to us, the Company has not entered into any non-cash
transactions with directors or persons connected with him as per the provisions of section
192 of Companies Act.
(xvi) (a) The Company is duly registered with Reserve Bank of India (RBI) as a NBFC
company as per Section 45 IA of the RBI Act, 1934. The company has registration
certificate bearing registration no. 05.02398 issued by the Reserve Bank of India. Sub
clause (b), (c) and (d) are not applicable for the company.
(xvii) The company has not incurred cash losses in the financial year and in the
immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year.
(xix) On the basis of the financial ratios, ageing and expected dates of realization of
financial assets and payment of financial liabilities, other information accompanying the
financial statements, our knowledge of the Board of Directors and management plans, we are
of the opinion that no material uncertainty exists as on the date of the audit report that
company is capable of meeting its liabilities existing at the date of balance sheet as and
when they fall due within a period of one year from the balance sheet date.
(xx) Section 135 Corporate Social Responsibility is not applicable for the company for
the past / present year and company has no such fund available.
(xxi) There has been no qualifications or adverse remarks in the Companies (Auditors
Report) Order (CARO) reports of the companies included in the consolidated financial
statements. Due disclosures we made in Companies financial and Statutory Audit and CARO
report.
Annexure ‘B to the Independent Auditors Report
(Referred to in Clause (f) of Paragraph 2 of Report on Other Legal and Regulatory
Requirements of our report of even date to the members of the Company, on the Internal
Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 ("the Act") over Financial Reporting for the year ended 31st March, 2023)
We have audited the internal financial controls over financial reporting of Jainco
Projects (India) Limited ("the Company") as of 31st March, 2023 in conjunction
with our audit of the standalone financial statements of the Company for the year ended on
that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on "the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India". These responsibilities
include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to companys policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit in accordance
with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, to the extent applicable to
an audit of internal financial controls, both issued by the Institute of Chartered
Accountants of India and deemed to be prescribed under section 143(10) of the Companies
Act, 2013. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects. Our audit
involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our
audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditors judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion on the Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A Companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with authorizations of
management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
Companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
According to the information and explanations given to us and based on our audit, the
Company has, in all material respect, an adequate internal financial control over
financial reporting and such internal financial control over financial reporting were
operating effectively as at March 31, 2023, based on "the internal control over
financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note of Internal Financial Controls
over Financial Reporting issued by the Institute of Chartered Accountants of India".
|
For DIPANKAR MUKHERJEE & ASSOCIATES |
|
Chartered Accountants |
|
FRN. 0332257E |
|
(Dipankar Mukherjee) |
| Place: Kolkata |
Proprietor |
| Date : 30-05-2023 |
M.No. 063796 |
|
UDIN : 23063796BGWDON6277 |
+91-9892691696
