JBF Industries Ltd Directors Report.

To the members of jbf industries limited

Report on the audit of the standalone financial statements

Qualified opinion

We have audited the accompanying standalone financial statements of jbf industries limited ("the company”), which comprise the balance sheet as at 31st march 2020, 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 then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, excepts for the effects of the matters described in the basis for qualified opinion section of our report, the aforesaid standalone financial statements give a true and fair view in conformity with the accounting principles generally accepted in india, of the state of affairs of the company as at 31st march 2020, and its loss including other comprehensive income, the statement of changes in equity and its cash flows for the year ended on that date.

Basis for qualified opinion

(i) as mentioned in the note 33.1 to the standalone financial statements, provision of interest @ 9% p.a. On its borrowings aggregating to Rs 2,618.65 crore for the year ended from 1st april 2019 to 31st march, 2020 as against the documented rate resulting into lower provision of finance cost for the year ended 31st march, 2020 by Rs 139.86 crore, which is not in compliance with ind as -23 "borrowings costs" read with ind as-109 on “financial instruments".

Had the interest been recognized at the documented rate, finance cost, net loss after tax, total comprehensive income and eps for the year ended would have been Rs 388.37 crore, rs (473.36) crore, rs (474.54) crore and rs (57.82) respectively as against the reported figure of Rs 248.51 crore, rs (333.50) crore, rs (334.68) crore and rs (40.73) respectively in the above standalone financial statements. Further current financial liabilities-others and other equity as at 31st march 2020 would have been Rs 1,483.93 crore and Rs 54.57 crore respectively as against reported figure of Rs 1,240.91crore and Rs 297.59 crore respectively in the above standalone financial statements.

(ii) as mentioned in the note 45 to the standalone financial statements, company has exposure in subsidiaries by way of investments, loans and other receivables aggregating to Rs 1,515.69 crore (as at 31st march, 2019 Rs 1,508.24 crore), in respect of which the company could not carry out impairment assessments due to the reasons mentioned therein. We are unable to obtain sufficient appropriate audit evidence about the recoverable amount of the companys exposure. Consequently we are unable to quantify the provisions for impairments in respect of the above and its consequential impacts on the standalone financial statements of the company.

(iii) as mentioned in note 17.3 to the standalone financial statements, other current assets as at 31st march, 2020 includes Rs 6.90 crore given to one of the suppliers of the company as advance against supply of goods, which are unsettled for the extended period of time, have been considered good for recovery by the management for the reasons stated therein. In view of the age of these balances, the absence of subsequent settlements and non-receipt of balance confirmation, we are unable to comment on the recoverability of above advance and its consequential impacts on the standalone financial statements of the company.

(iv) as mentioned in note 37.3 to the standalone financial statements, regarding the application filed with national company law tribunal (nclt), by the one of the operational creditors of jbf rak llc (jbf rak), situated at uae, a subsidiary of the company, against the company, for supply of raw materials to jbf rak and claim of Rs 128.48 crore (us$ 19,899,091.53). No provision has been considered for the above claim for the reasons stated therein. The matter described in above has uncertainties related to the outcome of the legal proceedings and hence we are unable to quantify the provisions for above claim at this stage, if any, and its consequential impacts on the standalone financial statements of the company.

We conducted our audit of the standalone financial statements in accordance with the standards on auditing (sas) as specified under section 143(10) of the companies act, 2013 (“the act"). Our responsibilities under those standards are further described in the auditors responsibilities for the audit of the standalone 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 standalone 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 icais 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.

Material uncertainty related to going concern

Note 46 to the standalone financial statements, regarding preparation of financial statements on going concern basis, notwithstanding the fact that the company has incurred the losses, defaulted in repayment of principle and interest to its lenders, lenders have classified the companys borrowings as npa, declared as wilful defaulter also, some of the lenders have even called back the loans, one of the secured lenders has applied before nclt under insolvency and bankruptcy code, 2016. These conditions, along with other matters as set forth in above note indicate the existence of material uncertainty that may cast significant doubt about companys ability to continue as a going concern. The appropriateness of assumption of going concern is critically dependent upon the companys ability to raise finance and generate cash flows in future to meet its obligations. Our opinion is not modified in respect of this matter.

Emphasis of matters

We draw your attention to the:-

(i) note 37.2 to the standalone financial statements, regarding invocation of corporate guarantee given by the company to the lenders of jbf petrochemical limited ("jpl”). The company has denied above invocation and is of the view that above invocation is not legally tenable for the reasons explained therein and hence no provision against the claims under the invoked corporate guarantee is considered necessary.

(ii) note 50 to the standalone financial statements, regarding non- preparation of consolidated financial statements due to the reasons mentioned therein. The company has six subsidiaries and is required to present consolidated financial statements. However, the company has not prepared and presented the consolidated financial statements required by companies act 2013 and ind as 110 "consolidated financial statements".

(iii) note 53 to the standalone financial statements, regarding the balance confirmations of trade receivables and payables. During the course of preparation of standalone financial statements, emails have been sent to various parties with a request to confirm their balances directly to us, out of which only some parties have responded and accordingly the balances of those parties for which confirmations have not been received are subject to confirmation.the management does not expect any significant impact on account of it.

(iv) note 54 to the standalone financial statements, regarding vacancy of the post of chief executive officer and chief financial officer since 1st may, 2019 and 2nd march, 2020 respectively due to the reason as mention therein.

(v) note 52 to the standalone financial statements, as regards to the management evaluation of covid -19 impact on the future performance of the company. However, in future the impact may be different from those estimated as on the date of approval of these financial statements.

(vi) note 32.2 to the standalone financial statements, regarding managerial remuneration of rs 0.47 crore paid to whole time directors is subject to approvals of shareholders.

Our opinion is not modified in respect of these matters.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. 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. In addition to the matter described in the basis for qualified opinion, material uncertainty related to going concern & emphasis of matters section, we have determined the matters described below to be key audit matters to be communicated in our report.

Key audit matters How our audit addressed the key audit matter
(i) carrying value of trade receivables
As mentioned in note no. 11 to the standalone financial statements, total trade receivable were aggregating to Rs 836.63 crore as on 31st march 2020, out of above 554.67 crore were provided. Our audit procedures included the following:
The collectability of the companys trade receivables and the valuation of allowance for impairment of trade receivables is required a significant management judgment. Management considers specific factors including the age of the balance, location of customers, existence of disputes, recent historical payment patterns and any other available information concerning the creditworthiness of counterparties. Management uses this information to determine whether a provision for impairment is required either for a specific transaction or for a customers balance overall. • we selected a sample of the larger trade receivable balances where a provision for impairment of trade receivables was recognized and understood the rationale behind managements judgment.
• assessing the ageing of trade receivables, the customers historical payment patterns and whether any post year-end payments had been received up to the date of completing our audit procedures.
• reviewing the available evidence including correspondences, if any, legal notices related to disputes, where applicable.
Accordingly, it has been determined as a key audit matter. • assessing the companys provisioning policy and evaluating with reference to applicable accounting standards.
• considered the completeness and accuracy of the disclosures.
(ii) impairment of property, plant & equipment
As at 31st march 2020 value of property, plant and equipment is Rs 1261.07 crore. Managements assessment of the valuation of property, plant and equipment was significant to our audit because this process is complex and requires significant management judgment. Furthermore, there is an increased risk of impairment due to the recently deteriorated market outlook and losses incurred by the company. We carried out procedures to understand managements process for identifying impairment triggers and considered managements assessment of impairment in the above mentioned areas. Our audit procedures included the following:
Determining the recoverable amounts of the assets requires a number of significant judgments and estimates, especially in the assumptions used in the valuation report. • evaluating the appropriateness of the companys judgment regarding identification of assets which may be impaired.
Accordingly, it has been determined as a key audit matter. • assessing the appropriateness of the methodology used by the external valuer in determining the recoverable amount including key assumptions used
• checking, on a sample basis, the accuracy and relevance of the input data provided by management to the external valuer
• considered the completeness and accuracy of the disclosures, which are included in note 5 of the standalone financial statements.

Other information

The companys board of directors is responsible for the other information. The other information comprises the management discussion & analysis and directors report included in the annual report but does not include the standalone financial statements and our auditors report thereon.

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 standalone 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 standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to communicate the matter to those charged with governance. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the standalone financial statements

The companys board of directors is responsible for the matters stated in section 134(5) of the act 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, changes in equity and cash flows of the company in accordance with the accounting principles generally accepted in india, including the indian accounting standards (ind as) specified under section 133 of the act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding of the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of 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 standalone financial statements, management 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 management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Those 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 standalone 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 is not a guarantee that an audit conducted in accordance with sas will always detect a material misstatement 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 standalone financial statements.

As 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 standalone 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 omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the act, 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 ability of the company 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 standalone 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 standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves 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 standalone financial statements of the current year 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.

Report on other legal and regulatory requirements

1 as required by the companies (auditors report) order, 2016 ("the order”), issued by the central government of india in terms of sub-section (11) of section 143 of the companies act, 2013, we give in the "annexure b” a statement on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable.

2 as required by section 143(3) of the act, we report that:

(a) except for the effects of matters described in the basis for qualified opinion paragraph above, 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) except for the effects of matters described in the basis for qualified opinion paragraph above, 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, the statement of profit and loss (including other comprehensive income), the statement of change in equity and the cash flow statement dealt with by this report are in agreement with the books of account.

(d) except for the effects of matters described in the basis for qualified opinion paragraph above, in our opinion, the aforesaid standalone financial statements comply with the indian accounting standards specified under section 133 of the act, read with companies (indian accounting standards) rules 2015, as amended.

(e) the matters described in paragraph "basis for qualified opinion" and "material uncertainty related to going concern” may have an adverse effect on the functioning of the company.

(f) on the basis of the written representations received from the directors as on 31st march, 2020 taken on record by the board of directors, none of the directors is disqualified as on 31st march, 2020 from being appointed as a director in terms of section 164(2) of the act.

(g) 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 a” to this report.

(h) with respect to the other matters to be included in the auditors report 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 the explanations given to us, the remuneration paid or provided by the company to its directors during the year is in accordance with the provisions of section 197 of the act except remuneration paid to two of the whole time directors amounting to rs 0.47 crore, which is subject to the shareholders approval.

(i) 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 as at 31st march 2020 on its financial position in its standalone financial statements as referred in note 37 to the standalone financial statements.

Ii. Except for the effects of matters described in the basis for qualified opinion paragraph above, the company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

Iii. There has been no delay in transferring amounts, required to be transferred, to the investor education and protection fund by the company during the year ended 31st march, 2020.

For pathak h.d & associates llp
Chartered accountants
Firms registration no.107783w/w100593
Place: mumbai Gopal chaturvedi
Date:10.09.2020 Partner
Membership no. 090903
Udin:-20090903aaaadk4682

Annexure - "a" to the independent auditors report

(referred to in paragraph 2 (g) under report on other legal and regulatory requirements of our report of even date on the standalone financial statements of jbf industries limited for the year ended 31st march 2020) report on the internal financial controls over financial reporting under clause (i) of sub-section 3 of section 143 of the companies act, 2013 ("the act")

We have audited the internal financial controls over financial reporting of jbf industries limited ("the company”) as of 31st march, 2020 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 ("the guidance note) 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 and the standards on auditing prescribed under section 143(10) of the companies act, 2013, to the extent applicable to an audit of internal financial controls. 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 standalone 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 qualified 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 authorisations

Of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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.

Qualified opinion

According to the information and explanations given to us and based on our audit, the following material weakness has been identified in the operating effectiveness of the companys internal financial control over financial reporting as on 31st march 2020 the company did not have an appropriate internal control system for customer settlement through credit note, credit evaluation, pricing authorization, establishing customer credit limits and some of the export transactions without any advances/ letter of credits, which may result in the company recognizing revenue without establishing reasonable certainty of ultimate collection.

The company has exposures of Rs 1515.69 crore as at 31st march 2020 in its subsidiaries by way of investment in equity shares, loans including interest thereon and other receivables. The company does not have any adequate mis system from them and consolidated financial statements of that subsidiary is also not available and in the absence thereof, the company could not carried out impairment testing as referred in paragraph (ii) of basis for qualified opinion in the report on the audit of the standalone financial statements.

The company also does not have chief executive officer and chief financial officer since 1st may, 2019 and 2nd march, 2020 respectively as referred in paragraph (iv) of emphasis of matters in the report on the audit of the standalone financial statements. A material weakness is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the companys annual financial statements will not be prevented or detected on a timely basis.

In our opinion, except for the effects/possible effects of above material weakness described above on the achievement of the objectives of the control criteria, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st march 2020, 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.

We have considered the material weakness identified and reported above in determining the nature, timing and extent of audit tests applied in our audit of standalone financial statements of the company for the year ended 31st march 2020, and these material weakness do not affect our opinion on the standalone financial statements of the company.

For pathak h.d. & associates llp
Chartered accountants
Firm reg. No. 107783w/w100593
Gopal chaturvedi
Place: mumbai Partner
Dated: 10.09.2020 Membership no.:-090903
Udin:- 20090903aaaadk4682

Annexure - "b" to independent auditors report

(referred to in paragraph 1 under the heading "report on other legal and regulatory requirements" of our report of even date on the standalone financial statements to the members of jbf industries limited for the year ended 31st march, 2020)

I. In respect of its fixed assets:

A. The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information.

B. As explained to us, the fixed assets have been physically verified by the management in accordance with the programme of verification, which in our opinion is reasonable, considering the size of the company and nature of its assets. No material discrepancies were noticed on such physical verification as compared with the available records.

C. According to the information and explanations given to us and based on the examination of the registered sale deeds and other relevant records evidencing title provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the company as at the balance sheet date, except the following:-

Particulars of land and building Cost of the property as at 31st march, 2020 (Rs in crore) Net block as at 31st march, 2020 (Rs in crore)
Building in mumbai ( no. of property1) 0.09 0.07
Land at silvassa (no. of properties7) 0.54 0.54

In respect of 9 immovable properties having the aggregate cost of Rs 39.62 crore, the original documents have been deposited with the lenders, we have been produced photocopy of documents for those immovable properties and based on such documents, the title deeds are held in the name of the company.

In respect of immovable properties of land and buildings that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the company.

Ii. As explained to us, inventories have been physically verified during the year by the management except material in transit and in our opinion the frequency of verification is reasonable. The year-end verification could not be carried out due to lock- down amidst covid 19 pandemic. The inventories as on that date have been arrived at by rolling back the receipts and issues with respect to verification carried out on a subsequent date by the management. Discrepancies noticed on physical verification of the inventories between the physical inventories and book records were not material, having regard to the size of the operations of the company and the same have been properly dealt with.

Iii. In respect of loans, secured or unsecured, granted by the company to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the act. According to the information and explanation given to us:

A. The company has granted unsecured loans to two such companies and in our opinion, the rate of interest as applicable and other terms and conditions on which the loans had been granted were not, prima facie, prejudicial to the interest of the company.

B. The schedule of repayment of principal and payment of interest were stipulated at the time of granting of loan. The company discontinued to recognize the interest on loan to one of the subsidiary companies w. E. F. 1st april 2018. The repayments of principal amounts and payment of interest were overdue as on the balance sheet date.

C. Principal amount of Rs 772.30 crore and interest thereon of Rs 110.68 crore are overdue from one of the subsidiary companies for more than 90 days. As per the information and explanation given to us, no steps have been taken by the company to recover of principal and interest (refer note 45 to the standalone financial statements).

Iv. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of sections 185 & 186 of the act as applicable, in respect of grant of loan sexcept discontinuance of interest recognition on the loans granted to one of the subsidiary companies. During the year company has not made any investments, not provided any security or given any guarantee.

V. According to the information and explanations given to us, the company has not accepted any deposit from the public. Therefore, the provisions of clause (v) of paragraph 3 of the order are not applicable to the company.

Vi. We have broadly reviewed the cost records maintained by the company pursuant to companies ( cost records & audit ) rules 2014 prescribed by central government under section 148 (1) (d) of the act as applicable and are of the opinion that prima-facie, the prescribed accounts and records have been made and maintained. We have not, however made a detailed examination of the records with a view to determine whether they are accurate and complete

Vii. According to the information and explanations given to us in respect of statutory dues:

A. The company has been generally regular in depositing undisputed statutory dues, including provident fund, employees state insurance, income tax, goods and services tax, duty of customs, cess and any other statutory dues with the appropriate authorities as applicable during the year except some cases of custom duty & goods and services tax. According to the information and explanations given to us, no undisputed amounts payable in respect of such statutory dues were outstanding as at 31st march, 2020 for a period of more than six months from the date they became payable

B. According to the information and explanations given to us, the disputed statutory dues aggregating to Rs 1.76 crore that have not been deposited on account of matters pending before appropriate authorities are as under:

Name of the statute Nature of the dues In crore Period to which the amount relates Forum where dispute is pending
Central excise act,1944 Excise duty 0.64 2005-06 Supreme court
1.12 2005-06 Custom excise & service tax appellate tribunal
Total 1.76

Viii. Based on our audit procedures and according to the information and explanations given by the management, we are of the opinion that the company has defaulted in repayment of dues to banks and financial institutions aggregating to Rs 3,194.90 crore. Lender wise details of such default is as under:-

(Rs in crore)

Bank/financial institution Total default Below 90 days Above 90 days
1 Acre-100-trust (ecl finance limited) 163.51 4.70 158.81
2 Andhra bank 164.37 3.61 160.76
3 Axis bank ltd. 79.70 1.91 77.79
4 Bank of baroda 536.25 13.06 523.19
5 Bank of india 424.55 8.72 415.83
6 Canara bank 288.25 4.19 284.06
7 Icici bank.15 146.79 0.66 146.13
8 Idbi bank 249.34 7.22 242.12
9 Ifci limited 66.72 2.06 64.66
10 Indian overseas bank 103.63 3.07 100.56
11 Lakshmi vilas bank 92.68 2.26 90.42
12 South indian bank 38.63 1.34 37.29
13 Standard chartered bank 133.80 3.51 130.29
14 State bank of india 458.99 17.37 441.62
15 Syndicate bank 68.20 2.25 65.95
16 Tamilnad mercantile bank 27.21 0.88 26.33
17 Union bank of india 152.28 4.42 147.86
Total 3,194.90 81.23 3,113.67

Further, lenders of the company have classified all the credit facilities given to the

Company as at 31st march, 2020 as non-performing asset (npa) in their books of

Account.

Ix. According to the information and explanations given to us, the company did not raise any money by way of initial public offer or further public offer (including debt instruments) and no term loan was raised and therefore the provisions of clause (ix) of paragraph 3 of the order are not applicable to the company.

X. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and on the basis of information and explanations given by the management, no fraud by the company or on the company by its officers or employees has been noticed or reported during the year.

Xi. In our opinion and according to the information and explanations give to us and based on our examination of the records, the company has paid/ provided managerial remuneration (net of recovery) in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule v to the act except remuneration paid to two of the whole time directors amounting to rs 0.47 crore, which is subject to the shareholders approval.

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

Xiii. In our opinion and according to the information and explanations given to us and based on our examination of the records of the company, companys transactions with the related parties are in compliance with sections 177 and 188 of the act as applicable and details of such transactions have been disclosed in the standalone financial statements as required by the applicable indian accounting standards.

Xiv. According to the information and explanations give to us and based on our examination of the records of the company, the company has not made preferential allotment of shares during the year under audit.

Xv. According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions with directors or persons connected with him. Therefore, the provisions of clause (xv) paragraph 3 of the order are not applicable to the company.

Xvi. In our opinion and according to information and explanations provided to us, the company is not required to be registered under section 45-ia of the reserve bank of india act 1934.

For pathak h.d. & associates llp
Chartered accountants
Firm reg. No. 107783w/w100593
Gopal chaturvedi
Place: mumbai Partner
Dated: 10.09.2020 Membership no.:-090903
Udin:- 20090903aaaadk4682