JIK Industries Ltd Auditor Reports

To the Members of JIK Industries Limited Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of JIK Industries Limited ("the Company"), which comprise the balance sheet as at March 31, 2024, the statement of Profit and Loss, the statement of Changes in Equity and statement of Cash Flows for the year then ended, and notes to the 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, the aforesaid financial statements give the information required by the Companies Act, 2013, in the manner so required and 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 March 31, 2024, and its losses, changes in equity and cash flows 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 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 qualified opinion.

Emphasis of Matter

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report.

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 Directors Report including the annexures thereto but does not include the financial statements and our auditors report thereon.

Our opinion on the 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 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. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards 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 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 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 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 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 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 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 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 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 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 [CARO, 2020], issued by the Central Government in terms of section 143 (11) of the Companies Act, 2013, we give in "Annexure A" 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) 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, the Statement of Profit and Loss, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid Financial Statements comply with the Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31^st March, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 2024 from being appointed as a director in terms of Section 164(2) of the Act.

(f) Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software. For the periods where audit trail (edit log) facility was enabled and operated throughout the year for the respective accounting software, we did not come across any instance of the audit trail feature being tampered with

(g) With respect to the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in "Annexure B."

(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 financial statements - Refer Notes 20.15 and 20.16 to the financial statements

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

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

iv. a. The management has represented that to the best of its knowledge and belief, 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 persons or entities including foreign entities ("intermediaries") with the understanding, whether recorded in writing or otherwise, that the intermediary shall:

• directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("ultimate beneficiaries") by or on behalf of the company or

• provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

b. The management has represented that to the best of its knowledge and belief, no funds have been received by the company from any persons or entities, including foreign entities ("Funding Parties") with the understanding, whether recorded in writing or otherwise, that the company shall:

• 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 to or on behalf of the ultimate beneficiaries

c. Based on such audit procedures as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to belief that the representations under sub clause (a) and (b) above contain any material misstatement

v. The Company has neither declared nor paid any dividend during the year.

ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT (Referred to in Para 1 under the Report on Other Legal and Regulatory Requirements section of our report of even date to the members of JIK Industries Limited)

As required by Paras 3 and 4 of the Companies (Auditors Report) Order, 2020, we report that -

(i)

a) (A) The company has maintained proper records showing full particulars, including quantitative details and situation of property, plant & equipment.

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

b) The Property, Plant and Equipment have been physically verified by the management during the period in phased manner at reasonable intervals and no material discrepancies were noticed on such verification.

c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties disclosed in the standalone financial statements are held in the name of the Company.

d) The Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets during the year

e) There are no proceedings that have been initiated during the year or that are pending against the Company as at March 31, 2024 under the Benami Transactions (Prohibition) Act, 1988, and rules made thereunder.

(ii) a) Physical verification of inventory has been conducted by the Management at reasonable intervals during the year. In our opinion, the coverage and procedure of such verification by the management is appropriate. No discrepancies of 10% or more were noticed on such verification.

b) The Company has not been sanctioned any working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets. Consequently, further reporting under (ii)(b) is not applicable.

(iii) The Company has not made any investments in or provided any guarantee or security to companies, firms, Limited Liability Partnerships or any other parties during the year. The Company has granted unsecured loan/ advance to one of its erst-while subsidiaries during the year.

a) The aggregate amount of such advances granted to subsidiaries during the year was Rs. NIL and the balance outstanding at the balance sheet date with respect to such loans/ advances to its subsidiaries was Rs. NIL. The aggregate amount of loans/ advances to parties other than subsidiaries, joint ventures and associates (including erstwhile subsidiaries) given during the year was Rs. 20,000/- and the balance outstanding at the balance sheet date from such parties was Rs. NIL.

b) The terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the companys interest

c) The loans/ advances granted do not carry a fixed schedule for repayment of principal and payment of interest and consequently, reporting under clauses (iii)(c), (iii)(d) & (iii)(e) are not applicable

d) The aggregate amount of loans/ advances granted to the subsidiaries repayable on demand, which are without specifying any terms or period of repayment as at the balance sheet date was Rs. NIL. The aggregate amount of loans/ advances granted to promoters, related parties as per Section 2(76) of the Companies Act, 2013 as at the balance sheet date was Rs. NIL.

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 186 in respect of investments. The Company has not entered into any transaction covered under Section 185 and Section 186 of the Act in respect of loans, guarantees and security.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public. Consequently, the reporting under clause 3 (v) of the Order is not applicable.

(vi) In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act.

(vii) According to the information and explanations given to us and on the basis of examination of the records in respect of statutory dues:

a) the Company has been generally regular in depositing undisputed statutory dues including Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, and other material statutory dues applicable to it with the appropriate authorities, though there have been delays in a few cases. As explained to us, no undisputed amounts payable in respect of the aforesaid statutory dues were outstanding as at March 31, 2024 for a period of more than six months from the date they became payable except for the following;

Name of Statute	Nature of Dues	Amount due beyond 6 Months ft. In lacs)
MVAT Act, 2002	Value Added Tax	198.93
Profession tax Act 1961	Profession Tax	0.95

b) there are no dues on account of income-tax, sales tax, wealth tax, duty of customs, duty of excise, value added tax, GST and cess which have not been deposited with the appropriate authorities on account of any dispute except for the following

Name ot the statue	Nature ot dues	Amount (Rs. In Lacs)	Amount Paid under Protest (Rs. In Lacs)	Period to which the amount relates	Forum where disputes pending
income lax Act, 1961	Income Tax	156.70	NIL	2000-01	Commissioner of Income Tax, Mumbai City II
	Income Tax	372.69	NIL	2001-02	Commissioner of Income Tax, Mumbai City II
	Income Tax	768.16	NIL	2008-09	Commissioner of Income Tax (Appeal)
	Income Tax	273.44	NIL	2007-08	Commissioner of Income Tax (Appeal))
	Income Tax	4005.12	NIL	2009-10	Commissioner of Income Tax (Appeal)
	Income Tax	4156.14	NIL	2010-11	Commissioner of Income Tax (Appeal)
	Income Tax	62.89	NIL	2012-13	Commissioner of Income Tax (Appeal)
	Income Tax	5.03	NIL	2016-17	Commissioner of Income Tax (Appeal)
MVAT Act, 2002	Value Added Tax Interest	236.24*	NIL	2009-10	The Maharashtra Sales Tax - Tribunal, Mumbai
	Value Added Tax Interest	194.99**	6.52	2010-11	The Dy. Commissioner of Sales Tax (Appeals), Mumbai

(*) The Order of Dy. Commissioner is quashed & set aside by Maharashtra sales tax tribunal, and the matter is remanded back to First Appellate with a direction to decide the same on merits.

(**) Appeal has been filed with part payment of the disputed tax in April 2022

(viii) According to the information and explanations given to us, the Company has not surrendered or disclosed any transactions not recorded as income in the books of account, as income during the year, in any tax assessments under the Income-tax Act, 1961.

(ix)

a) The company has not defaulted in repayment of any loans or other borrowings or in the payment of interest thereon to any lender except for the non-payment of 6 instalments to Government of Maharashtra as per the scheme of Honble BIFR, the details of which are given below -

Particulars ( Name of Lenders)	Amount of Default	Date of Default
Development	2,56,038	30.06.2012
Corporation of Konkan	2,56,038	30.06.2013
Ltd	2,56,038	30.06.2014
	2,56,038	30.06.2015
	2,56,038	30.06.2016
	2,56,038	30.06.2017
Sales Tax Deferment	3,96,910	30.06.2012
Loan	3,96,910	30.06.2013
	3,96,910	30.06.2014
	3,96,910	30.06.2015
	3,96,910	30.06.2016
	3,96,910	30.06.2017

The above defaults are continuing as on the Balance Sheet date.

b) The company has not been declared willful defaulter by any bank or financial institution or other lender.

c) The Term loans were applied for the purposes for which the loans were obtained.

d) Fund raised by the company on short term basis have not been utilized for long term purposes.

e) The Company has not has taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures.

f) The company has not raised any funds from any entity or person on the pledge of securities held in its subsidiaries, joint ventures or associate companies

(x) a) In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments).

b) According to the information and explanations given to us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review

(xi) a) No material fraud by the company or on the company has been noticed or reported during the year.

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) According to the information and explanations given to us, the company has not received any whistle- blower complaint during the year.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and hence reporting under clause 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) a) Based on information and explanations provided to us and our audit procedures, in our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

b) We have considered the internal audit reports of the Company issued till date for the period under audit.

(xv) According to the information and explanations given to us, the Company has not entered into any non- cash transactions with its directors or persons connected with them during the year under review.

(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Consequently, further reporting under clauses (xvi)(b), (xvi)(c) and (xvi)(d) is not applicable.

(xvii) The company has incurred cash losses of Rs. 11.57 lacs during the financial year. No cash losses were incurred during the immediately preceding financial year.

(xviii) According to the information and explanations given to us and 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 and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that company is not 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. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.

(xix) The company is not liable for CSR in terms of section 135 of the Companies Act, 2013. Accordingly, reporting under clause (xx)(a) & (xx)(b) of the Order are not applicable.

ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory Requirements section of our report on the Financial Statements to the members of JIK INDUSTRIES LTD. of even date)

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

Opinion

In conjunction with our audit of the financial statements of JIK Industries Limited (hereinafter referred to as "the Company") as of and for the year ended 31 March 2024, we have audited the internal financial controls with reference to the financial statements of the Company as of that date.

In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2024, based on the internal financial controls with reference to financial statements criteria established by such companies considering the essential components of such internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the "Guidance Note").

Managements Responsibility for Internal Financial Controls

The Companys management and the Board of Directors are responsible for establishing and maintaining internal financial controls with reference to financial statements based on the criteria established by the respective Company considering the essential components of internal control stated in the Guidance Note. 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 the respective 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 (hereinafter referred to as "the Act").

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to financial statements 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 Act, to the extent applicable to an audit of internal financial controls with reference to financial statements. 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 with reference to financial statements were 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of the internal controls 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 internal financial controls with reference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A companys internal financial controls with reference to financial statements 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 controls with reference to financial statements 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 with reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, 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 with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Place: Thane	For H. G. Sarvaiya & Co.
Date: 28th May, 2024	Chartered Accountants
	(Firm Reg No.: 115705W)
UDIN: 24045038BKAJ E M6509	sd/-
	H. G. Sarvaiya
	Proprietor
	(M No.: 45038)