TO
THE MEMBERS OF
JINDAL CAPITAL LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of JINDAL. CAPI TAL.
L.IMITF.D ("the Company"), which comprise the Balance Sheet as at March 31,
2022, the Statement of Profit and l.oss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that
date, and a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as "the Standalone Financial Statements").
In our opinion and to the best of our information and according to 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 tlie 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 March 31, 2022, the profit and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. 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 there under, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics.
Wc believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key audit matters
Key audit matters arc those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements of the current period.
These matters were addressed in the context of our audit ollhe standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
sepajiite opinion on these matters. We have nothing to report in this regard.
Information other than the Financial Statements and Auditors Report thereon
The Companys Board of Directors is responsible for the other information. Other
information does not include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and wc 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 on the other information obtained prior to the
date of this auditors report, we conclude that there is a material misstatement of this
other information, we are required to report that fact. Reporting under this section is
not applicable as no other inform information is obtained at the date of this auditors
report.
Managements Responsibility for the 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 financial statements that give
a true and fair view of the financial position, financial performance, total comprehensive
income. Changes in equity and cash flows of the Company in accordance with the accounting
principles generally accepted in India, and in accordance with the Ind AS. 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, 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
cither 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 Responsibility 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
Standards on Auditing 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 Standards on Auditing, 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 I43(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 signilicant 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.
Materiality is the magnitude of misstatements in the Standalone Financial Statements
that, individually or in aggregate, makes it probable that the economi^^ip?jsipns of a
reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We
consider quantitative materiality and qualitative factors in
i) Planning the scope of our audit work and in evaluating the results of our work ; and
ii) To evaluate the effect of any identified misstatements in the Standalone Financial
Statements.
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 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 period and arc 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 Section 143(11) of the Act, we give in the
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, to the extent applicable, 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 purpose 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 including Other Comprehensive
Income, 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 standalone financial statements comply with the IND AS
specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors of the
Company as on March 31, 2022, taken on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2022 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 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 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 does not have any pending litigations which would impact its financial
position.
ii. The Company has made provision, as required under the applicable law or Indian
accounting standards, for material foreseeable losses, if any, on long-term contracts
including derivative contracts
iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
Annexing A to the Independent Auditors Report
To the Members of Jindal Capital Limited
The Annexure referred to in our Independent Auditors Report to the members of the
Company on the standalone financial statements for the year ended 3 I March 2022,
On the basis of such checks as we considered appropriate and taking into consideration
the information and explanations given to us and the books of account and other records
examined by us in the normal course of audit, we report that:
(i) Fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of the fixed assets.
(b) As explained to us, fixed assets have been physically verified by the management
during the year in accordance with the phased programme of verification adopted by the
management which, in our opinion, provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and explanations given to us,
no material discrepancies were noticed on such verification.
(ii) Inventories:
(a) As explained to us, the inventories were physically verified during the year by the
Management at reasonable intervals. According to the information and explanations given to
us, no material discrepancies were noticed on such verification.
(iii) Granting of loans to certain parties:
According to the information and explanation given to us, the Company has granted
unsecured loan to companies, firms or other parties covered in the register maintained
under section 189 of the Companies Aet,20l3 : (a) All terms and conditions are as per the
benefits of company and are not prejudicial to the companys Interest, (b) The Schedule of
repayment of principal and interest has been stipulated and receipts are regular, (c)
There is no such overdue amount remaining outstanding as at the year-end.
(iv) Loans and investments:
(a) According to the information and explanation given to us, the Company has complied
with the provisions of Section 185 and 186 of the Act in respect of loans granted and
investments.
(v) Acceptance of Deposits:
(a) In our opinion and according to the information and explanation given to us, the
Company has not received any public deposits during the year.
(vi) Maintenance of cost records:
(a) According to the information and explanations given to us. the Central Government
has not prescribed maintenance of cost records under sub-section (I) of Section 148 of the
Act, in respect of the activities carried on by the Company.
(vii) Deposit of statutory dues:
(a) According to the records of the company and information and explanations given to
us. the Company has generally been regular in depositing undisputed statutory dues,
including Income-tax, lax deducted at sources. Tax collected at source. Professional Tax,
Sales Tax, GST, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues applicable to it, with the appropriate authorities.
(b) According to the information and explanations given to us, there were no undisputed
amounts payable in respect of Income-tax. Custom Duty, Excise Duty. Sales tax. GST, Cess
and other material statutory dues in arrears /were outstanding at the year end for a
period of more than six months from the date they became payable.
(viii) Default in repayment of dues:
(a) In our opinion and according to the information and explanations given to us, the
Company has not defaulted in the repayment of dues to financial institutions, banks and
debenture holders.
(ix) Application of term loans/public issue/follow on offer:
(a) In our opinion and according to the information and explanations given to us, the
Company did not raise moneys by way of initial public offer or further public offer
(including debt instruments) and term loans have been applied by the company for the
purposes for which they were raised.
(x) Fraud reporting:
(a) To the best of our knowledge and according to the information and explanations
given to us, no fraud by the Company and no material fraud on the Company has been noticed
or reported during the year.
(xi) Managerial remuneration:
(a) In our opinion and according to the information and explanations given to us and
based on examination of the records of the company, the Company has paid the managerial
remuneration according to the provisions of Section 197 read with schedule V to the
Companies Act.
(xii) Nidhi Company:
(a) According to the information and explanations given to us, the company is not Nidhi
Company as per Companies Act 2013. Accordingly, the provision of paragraph 3(xii) of the
Order is not applicable.
(xiii) Related party transactions:
(a) According to the information and explanations given to us and based on our
examination of the records of the company, all transactions with the related parties are
in compliance with section 177 and 188 of the Companies act 2013 where applicable and
details have been disclosed in financial statements etc., as required by the applicable
Indian accounting standards.
(xiv) Preferential allotment/private placement:
(a) According to the information and explanations given to us and based on our
examination of the records of the company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year. Accordingly, the provisions of clause 3(xiv) of the Order are not applicable.
(xv) Non-cash transactions:
(a) According to the information and explanations given to us, the Company has not
entered into any non-cash transactions witli directors or persons connected witli him.
Accordingly, the provision of paragraph 3(xv) of the Order is not applicable.
(xvi) According to the information and explanations given to us, the Company is
required to be registered under Section 45-1A of the Reserve Bank of India Act, 1934 and
the registration has been obtained by the company.
"ANNEXURE-B" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE
STANDALONE FINANCIAL STATEMENT OF JINDAL CAPITAL LIMITED
Report on the Internal Financial Controls 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 Jindal Capital
Limited ("the Company") as of March 31, 2022 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 and Board of Directors are 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, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. 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 Ilnancial 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 Ilnancial 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 qontrols.s^tem
over financial reporting.
"ANNEXURE-B"
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 arc 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
In our opinion, 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 March 31, 2022, 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.
+91-9892691696
