jindal poly films ltd share price Auditors report

To the Members of Jindal Poly Films Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Jindal Poly Films Limited ("the Company"), which comprise the Balance sheet as at March 31 2023, 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 financial policies and otherstatements,including explanatory summaryofsignificant information (hereinafter referred to as "the 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 the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its profit including other comprehensive income, the changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

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 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficientand appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the financial year ended March 31, 2023. These matters were addressed in the context of our audit of the financial and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key Audit Matter	Auditors Response
1. Valuation of inventories	How our audit addressed the key audit matter:
We refer to Note 8 and 2 (l) to the financial statements., at March 31, 2023, the total carrying amount of inventories was Rs. 9,162.71 lakhs. The assessment of impairment of inventories involves significant estimation uncertainty, subjective assumptions and the application of significant judgment. Reviews are made periodically by management on inventories for obsolescence and decline in net realizable value below cost. Allowances are recorded against the inventories for any such declines based on historical obsolescence and slow-moving history. Key factors considered include the nature of the stock, its ageing, shelf life and turnover rate.	AsWe have checked and analyzed the ageing of the inventories reviewed the historical trend on whether there were significant inventories written off or reversal of the allowances for inventory obsolescence. We conducted a detailed discussion with the key management and considered their views on the adequacy of allowances for inventory obsolescence considering the current economic environment. We have also reviewed the subsequent selling prices in the ordinary course of business and compared against the carrying amounts of the inventories on a sample basis at the reporting date. We found managements assessment of the allowance for inventory obsolescence to be reasonable based on available evidence

 

2. Valuation of Current and Non-Current Investments	How our audit addressed the key audit matter:
We refer to notes 4 & 9 to the financial statements.	Our audit procedures included updating our understanding of the processes employed by the Company for accounting and valuing their investments. We have reviewed year end confirmation of mutual fund and depository participants. We have verified that the Company was the recorded owner of all investments. Our audit procedures over the valuation of the Investments included reviewing valuation of all Investments held as at March 31, 2023. We have reviewed those material investments, where probability of realization is very low, should not be carried forward.
As at March 31, 2023, the total carrying amount of investments were Rs. 3,64,101.50 lakhs. Investments mainly includes mutual funds, equity shares, preference shares and bonds. Fair valuation of unquoted current uncertainty, investments involves significant subjective assumptions and the application of significant judgment. This was an area of focus for our audit and the area where significant audit effort was directed.
	Based on the audit procedures performed we are satisfied with existence and valuation of investment as at March 31, 2023.

Information Other than the Financial Statements and Auditors Report Thereon

The Companys management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companys annual report, but does not include the standalone financial statements and our auditors report thereon. The annual report is expected to be made available to us after the date of our audit report. Our opinion on the standalone financialstatements 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 when it becomes available 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 report that fact. When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions, as applicable under the applicable laws and regulations.

Responsibilities of Management for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and statement of changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the 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.

The 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 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 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 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 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.

Materiality is the magnitude of misstatements in the financial statements that, that the economic decisions of a reasonably knowledgeableuserofthefinancialstatementsmaybeinfluenced.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 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 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 financialstatements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 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 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 including Other Comprehensive Income, the Statement of Change in Equity and the Statement of Cash Flows 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 Indian Accounting Standards (Ind AS) as specified under Section 133 of the Act,

(e) On the basis of the written representations received from the directors as at March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as at March 31, 2023 from being appointed as a director in terms of Section 164

(2) of the Act;

(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure B" to this report;

(g) 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, as amended 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 financialposition in its standalone financial statements Refer Note 38.1 to the standalone financial statements; i

i. The Company did not have any material foreseeable losses in long-term contracts including derivative contracts; ii

i. There has been no delay in transferring amounts, 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) during the year, 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 Intermediaries shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b. The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any person

(s) or entity(ies), including foreign entities ("Funding Parties") during the year, with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c. Based on such audit procedures, we have considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause

(a) and

(b) above contain any material misstatement.

(h) As stated in Note 55 to the standalone financial statements a. The dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable. b. The Board of Directors of the Company has proposed dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with Section 123 of the Act, as applicable.

(i) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

(j) In our opinion, the remuneration paid /provided by the Company to its directors during the year is in accordance with the provisions of section 197 read with Schedule V to the Act;

	For Singhi & Co.
	Chartered Accountants
	Firm Reg. No. 302049E
	Bimal Kumar Sipani
	Partner
Place: Noida (Delhi-NCR)	Membership No. 088926
Date: May 30, 2023	UDIN: 23088926BGXBCJ9850

Annexure A to Independent Auditors Report of even date to the members of Jindal Poly Films Limited on the Standalone Financial statements as of and for the year ended March 31,2023 (refer to in paragraph 1 of our report on the other legal and regulatory requirements)

a. (A) The Company is maintaining proper records showing full particulars, including quantitative details and situation of property, plant & equipment except in case of lands records which are in process of reconciliation with title deeds (Registry documents). (B) The Company is maintaining proper records showing full particulars of intangible assets. b. The Company has not physically verified its property, plant and equipment during the year. c. Based on the records examined by us, the title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) and included in property, held in the name of plant &equipment[noteno.3tothefinancial the Company other than followings:

Description of property	Gross carrying value (As per title deed of existing holders)	Title deed held in the name of	Whether title deed holder is a promoter, director or their relative or employee	Period held (i.e. dates of capitalization provided in range)	Reason for not being held in the name of the Company
	1.63			FY 1989-1990
	0.21	Stable Trading		FY 1985-1986
			No
	0.24	Company		FY 1985-1986
	0.07			FY 1985-1986
					Pending for registration
	27.78			FY 1995-1996
	1.52	Snap Pack Pvt. Ltd.	No	FY 1996-1997
	14.26			FY 1997-1998
	93.78	Jindal Photo Film Ltd	No	FY 1995-1996
Freehold Lands	31.26			FY 1994-1995	Assets acquired at the time of merger of India
	6.46	India Poly Films Ltd.	No	FY 1995-1996	Poly Film Ltd. with Jindal Polyester Ltd.
	3.52	Hindustan Pipe	No	FY 1983-1984
	1.82	Udhyog Ltd.		FY 1990-1991
	5.31 9.44	Jindal Polyester & Steel Ltd.	No	FY 1995-1996 FY 1995-1996	Due to change in the name of the company.
	21.99	Jindal Polyster Ltd.	No	FY 2003-2004
	55.00			FY 1995-1996

Lands records are in process of reconciliation with title deeds (Registry documents). In view of pending reconciliation of lands records, we are not in position to comment whether any other lands are not held in the name of the Company. d. The Company has not revalued its property, plant and equipment (including right of use assets) and intangible assets during the year. Therefore, the provisions of clause 3(i)(d) of the Order are not applicable to the Company. e. According to information and explanations given to us, no proceedings have been initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder. Therefore, the provisions of clause 3(i)(e) of the Order are not applicable to the Company. of inventories except stock in transit during the (ii) a. Themanagementhas conductedphysical verification year at reasonable interval and in our opinion, the coverage and procedure of such verificationby the management is appropriate. No discrepancies of 10% or more in the aggregate for each class of inventory were noticed on such physical verifications.

b. As per the information and explanations given to us, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks on the basis of security of current assets. TheCompany has not been sanctioned any working capital limits from any financial institutions. Based on the recordsexamined by us in the normal course of audit of the book of accounts, following difference in the quarterly returns or statements filed by the Company with such banks andthe of account of the Company were found. books

Quarter	Balance as per Statements (Rs. In Lakhs)		Balance as per books of accounts (Rs. In Lakhs)		Difference (Rs. In Lakhs)
ending	Inventory	Trade Receivables	Inventory	Trade Receivables	Inventory	Trade Receivables
Jun-22	81,007.29	22,251.70	1,08,422.58	26,979.47	(27,415.29)	(4,727.77)
Sep-22	14,173.81	12,612.55	16,475.61	12,835.68	(2,301.80)	(223.13)
Dec-22	14,047.14	15,393.46	14,526.36	15,786.60	(479.22)	(393.14)
Mar-23	8,074.87	14,390.21	9,162.71	13,988.19	(1,087.84)	402.02

(iii) a. Based on the books of account examined by us and according to information and explanation given to us, the Company has granted loans or provided advances in the nature of loans, or stood guarantee, or provided security during the year to the followings:

Particulars	Guarantees (Rs. In Lakhs)*	Security (Rs. In Lakhs)	Loans (Rs. In Lakhs)	Advance in nature of loans (Rs. In
				Lakhs)
Aggregate amount granted/provided during the year:
- Subsidiaries	42,638.97		49,741.24	-
- Joint Ventures	-	-	-	-
- Associates	-	-	2,514.00	-
- Others	-	-	37,500.00	-
Balance outstanding as at balance sheet date in
respect of above cases
- Subsidiaries	42,638.97		47,988.00	-
- Joint Ventures	-	-	-	-
- Associates	-	-	2,514.00	-
- Others	-	-	32,500.00	-

b. In our opinion and according to the information and explanations given to us, the investments made, and the terms and conditions of the grant of loans and guarantee provided are, prima facie, not prejudicial to the Companys interest. c. Based on the books of accounts and other relevant records examined by us, the repayment of loans granted are either on demand or did not specify the terms of repayment. However, payment of interest with respect to loans have been stipulated. Repayment of loans whenever demands have been raised and receipt of interest are generally in regular.

d. There is no material amount remaining outstanding for more than ninety days as on the balance sheet date. e. According to the information and explanations given to us and records examined by us, we have not come across any case where the loan for which demands for repayment have been raised during the year, have been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties.

The Company has not given advance in the nature of loan during the year. f. Based on the books of accounts and other relevant records examined by us the Company has granted loans repayable on demand or without stipulating period of repayment. The aggregate amount of loans granted and repayable on demand or without stipulation of period of repayment and percentage thereof to the total loans granted during the year is given below,

Particular	All Parties	Promoters	Related Parties
Aggregate amount of loans
-Repayable on demand (A)	20,502	-	20,502
-Agreement does not specify any terms or period of repayment (B)	32,500	-	32,500
Total (A+B)	53,002	-	53,002
% of loans / advances in nature of loans to the total loans granted during the year	-	-	59.05%

The Company has not granted any advance in the nature of loan.

(iv) The Company has complied with provisions of Section 186 of the Companies Act, 2013 in respect of loan granted, investments made and guarantee provided during the year. There is no loan granted or guarantee or security provided under section 185 and no security provided under section 186 of the Companies Act, 2013 during the year. (v) The Company has not accepted any deposit or amount which are deemed to be deposits covered under sections 73 to 76 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 (as amended) during the year. Therefore, provisions of clause 3(v) of the Order are not applicable to the Company.

(vi) W e have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 in respect of one of the products i.e. packaging (plastic) business of the Company to which the said rules are made applicable and are of the opinion that prima facie, the prescribed records have been made and maintained. We have not, however, made a detailed examination of the said records with a view to determine whether they are accurate or complete.

(vii)

a. According to the records of the Company examined by us, the Company is generally regular in depositing undisputed statutory dues including Goods and Service Tax, Provident Fund, Employees State Insurance, Income-tax, Sales tax, Service tax, Duty of customs, Duty of excise, Value Added tax, Cess and other material statutory dues as applicable, with the appropriate authorities. There were no undisputed outstanding statutory dues as at the yearend for a period of more than six months from the date they became payable.

b. According to the information and explanation given to us and the records of the Company examined by us, there are no statutory dues referred to in sub-clause

(a) on account of any dispute except the followings:

Name of Statue	Nature of Dues	Period to which it relates	Amount (Rs. in Lakhs)*	Forum where dispute is pending
		1993-1994	25.51	ITAT- Delhi
		1999-2000	391.45	CIT(A)- Ghaziabad
		2017-2018	925.12	ITAT- Delhi
The Income Tax Act,1961	Income Tax	2018-2019	2,329.01	ITAT- Delhi
		2019-2020	2,820.88	ITAT- Delhi
			61.62	CIT(A)- NFAC
Sales Tax Act	Sales Tax	2005-06	2.41	Sales Tax Tribunal, Nasik
The Custom Act 1962	Custom Duty	2002-03	366.00	Honble Supreme Court of India
	Electricity duty	April, 2000 to April,2005	433.46	Honble Supreme Court of India
Maharashtra State Electricity Duty Act,2016	Electricity duty	May, 2010 to September, 2011	166.00	High Court Bombay
Water (Prevention and Control of Pollution) Cess Act, 1977	Water Cess	April, 2001 to May, 2003	4.31	High Court Allahabad
EDLI Scheme 1976	EDLI	April 1998 to August 2012	20.21	CGIT Kanpur

*Net of deposits and to the extent amount quantified by the respective authorities.

(viii) According to the information and explanation given to us, there were no transactions which have not recorded in the books of account, have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961. Therefore, the provisions of clause 3

(viii) of the Order are not applicable to the Company.

(ix)

a. Based on the books of accounts examined by us, the Company has not defaulted in repayment of loan or other borrowings and in the payment of interest thereon to any lender during the year.

b. According to information and explanations given to us, the Company is not declared willful defaulter by any bank or financial institution or other lender.

c. Based on the books of account examined by us, term loans were applied for the purpose for which the loans were obtained during the year.

d. According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the financial statements of the Company, we report that no funds raised on short-term basis during the year have been used for long-term purposes by the Company.

e. According to the information and explanation given to us, in our opinion, during the year, the company has not raised loans on the pledge of securities held in its subsidiaries or associate companies. The Company has no joint ventures. Therefore, the provisions of clause 3

(ix)

(e) and 3

(ix)

(f) of the Order are not applicable to the Company.

(x) a. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. Therefore, the provisions of clause 3(x)(a) of the Order are not applicable to the Company. b. The Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Therefore, the provisions of clause 3(x)(b) of the Order are not applicable to the Company.

(xi) a. Based upon the audit procedures performed and considering the principles of materiality outlined in Standards on Auditing, for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given to us, we have neither come across any instance of fraud by the Company or on the Company noticed or reported during the year nor have we been informed of any such case by the management during the course of the audit. b. According to the information and explanations given to us, no report under sub-section (12) of Section 143 of the Act has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government.

c. According to the information and explanations given to us, no whistle blower complaints were received by the Company 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 therefore, the provisions of Clause 3(xii) of the Order are not applicable.

(xiii) As per records of the Company examined by us, transactions with the related parties as identifiedby the Company are in compliance with section 177 and 188 of the Companies Act,2013, where applicable and details for the same have been disclosed in the financial statements as required by the applicable IndianAccounting Standards.

(xiv) a. In our opinion, the Company has an internal audit system however the same need to be further strengthen commensurate with the size and nature of its business. b. We have considered internal audit reports of the Company issued till date for the period under audit. (xv) According to the information and explanations given to us, in our opinion, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with them, hence provision of section 192 of the Companies Act,2013, are not applicable to the Company. Therefore, the provisions of clause 3(xv) of the Order are not applicable to the Company.

(xvi)

a. 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. Therefore, the provisions of clause 3

(xvi)

(a) of the Order are not applicable to the Company.

b. In our opinion, the Company has not conducted any Non-Banking Financial or Housing Finance activities during the year. Therefore, the provisions of clause 3

(xvi)

(b) of the Order are not applicable to the Company.

c. In our opinion, the Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Therefore, the provisions of clause 3

(xvi)

(c) of the Order are not applicable to the Company.

d. According to the representations given to us by the management, there are three CICs as part of the Group.

(xvii) The Company has not incurred cash losses in current year and in the immediately preceding financial year. Therefore, the provisions of clause 3

(xvii) of the Order are not applicable to the Company.

(xviii) There has been no resignation of statutory auditors during the year. Therefore, the provisions of clause 3(xviii) of the Order are not applicable to the Company.

xix) According to the information and explanations given to us and on the basis of thefinancialratios, ageing and expected dates of realization offinancialassets 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 the 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.

(xx) The Company has no unspent amount towards Corporate Social Responsibility (CSR) other than for ongoing projects against which amount remaining unspent under subsection (5) of section 135 of the Companies Act has since been transferred to a special account in compliance with provision of subsection (6) of section 135 of the said act as detail given below,

Financial Year	Amount unspent on Corporate Social Responsibility activities for ongoing projects	Amount transferred to special account within 30 days from the end of the financial year	Amount transferred after due date
2022-23	211.32	211.32	-
Total	211.32	211.32	-

 

	For Singhi & Co.
	Chartered Accountants
	Firm Reg. No. 302049E
	Sd/-
	Bimal Kumar Sipani
	Partner
Place: Noida (Delhi-NCR)	Membership No. 088926
Date: May 30, 2023	UDIN: 23088926BGXBCJ9850

Annexure B referred to in paragraph 2(f) of our report of even date on the other legal and regulatory requirements

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 with reference to standalone financial statements of Jindal Poly Films Limited (‘the Company") as of March 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over the financialreporting 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 financialinformation, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on theCompanysinternalfinancialcontrols with reference to financialstatements 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 as audit of internal financial 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 of and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements 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 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 financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system 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 accordance with generally accepted accounting principles. A companys internal; financial control 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 accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorization 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 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 periods are subject to the risk that the internal financial controls with reference to financial statements may become 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 with reference to financial statements and such internal financial controls with reference to financial at March 31, 2023, based on the internal control with reference to financial statements 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 however same need to be further strengthened.

Emphasis of Matter

We draw attention that the Company has defined risk control matrix of various process basis Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India but the same is required to be further strengthened by incorporating more controls related to entity level controls, process level controls and controls related to financial statements review and closure process. Our opinion under Section 143(3)(i) of the Act is not modified in respect of above matter.

Explanatory Statement

The weakness in operating effectiveness of internal financial control system as stated in ‘Emphasis of Matter, was considered in determining the nature, timing, and extent of audit tests applied in our audit of the March 31, 2023 standalone financial statements of the Company and this report does not affect our report dated May 30, 2023, which expressed an unqualified opinion on those standalone financial statements.

	For Singhi & Co.
	Chartered Accountants
	Firm Reg. No. 302049E
	Sd/-
	Bimal Kumar Sipani
	Partner
Place: Noida (Delhi-NCR)	Membership No. 088926
Date: May 30, 2023	UDIN: 23088926BGXBCJ9850