We have audited the accompanying standalone financial
statements of Valiant Organics Limited (the "Company”),
which comprise the Balance Sheet as at 31 March 2025, the
Statement of Profit and Loss (including the statement on
Other Comprehensive Income), the Statement of Changes
in Equity and the Statement of Cash Flows for the year
ended on that date and notes to the financial statements
(including summary of the material 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 the Indian
Accounting Standards prescribed under section 133 of the
Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, ("Ind AS”) and other accounting
principles generally accepted in India, of the state of affairs
of the Company as at 31 March 2025 and its 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 of the standalone financial statements
in accordance with the Standards on Auditing ("SA”s) specified
under section 143(10) of the Act. Our responsibilities under
those standards are further described in the Auditor's
Responsibilities for the audit of the standalone financial
statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India ("ICAI”) together
with the independence requirements that are relevant to
our audit of the standalone financial statements under the
provisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI's Code of Ethics. We
believe that the audit evidence obtained by us is sufficient
and 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
standalone financial statements of the current period. These
matters were addressed in the context of our audit of the
standalone financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion
on these matters. We have determined the matters described
below to be the key audit matters to be communicated in our
report.
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Sr.
No.
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Key Audit Matter
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Auditor's Response
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1
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Direct and Indirect Tax receivables and contingent
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Principle audit procedures, performed by us -
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liabilities pertaining to tax matters under dispute.
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We have carried out the validation of the information provided
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The Company has reflected ' 139.98 lakhs as GST
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by the management by performing the following procedures:
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matters as on 31 March 2025 (' 111.98 lakhs as on 31
March 2024).
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a) Evaluating the reasonableness of the underlying
assumptions.
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Further, the Company is reflecting demand from Income
Tax Department disputed in appeal to the tune of ' 2,963.
30 lakhs on 31 March 2025 (' 2,875.37 lakhs as on 31
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b) Examining the relevant orders and supporting
documents on record.
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March 2024).
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c) Relying on relevant external evidence available including
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applicable judicial pronouncements and industry
practices.
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Sr. Key Audit Matter Auditor's Response
No.
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Contingent liabilities as defined in Ind AS 37 require
assessment of probable outcomes and cash flows. The
identification and quantification of contingent liabilities
require estimation and judgement by the management.
The ultimate recoverability of receivables is based
on outcome of those proceedings and require inputs
from subject specialists, management judgement and
therefore required significant audit attention.
Refer note no. 36: contingent liabilities not provided for
to the standalone financial statements.
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d) Getting representations from the management wherever
necessary.
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2
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Additional Working Capital Demand Loans
The Company has obtained additional working capital
demand loans from a bank to support its operating
cycle and liquidity requirements. These loans form
a significant portion of the Company's short-term
borrowings as at 31st March 2025 - ' 12,684.65 Lakhs
(' 9,385.17 Lakhs as on 31st March 2024)
The accounting for such borrowings involves assessment
of terms of the loan agreements, compliance with
covenants, correct classification between current and
non-current liabilities, and appropriate presentation and
disclosures in accordance with the requirements of Ind
AS 1 (Presentation of Financial Statements), Ind AS 107
(Financial Instruments: Disclosures), and Schedule III of
the Companies Act, 2013.
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Principle audit procedures, performed by us -
We have carried out the validation of the information provided
by the management by performing the following procedures:
a) Understanding the internal controls relating to obtaining
and accounting for working capital demand loans.
b) Obtaining the sanction letter to verify the limits and
conditions thereon.
c) Verifying the classification of borrowings between
current and non- current based on repayment terms and
management's intent, in accordance with Ind AS 1.
d) Verified the accounting of interest payment /provision.
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3
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Accuracy, Completeness, and disclosure with reference
to Ind AS-16 of Property, Plant and Equipment.
The carrying value of property, plant and equipment
(including capital work in progress) as on 31 March
2025 of ' 64,373.91 Lakhs (as on 31 March 2024 of
' 62,971.38 Lakhs)
Cost Recognition of Property, Plant and Equipment as
specified in IndAS 16 is based on completion of asset
construction activities and management assessment
and judgement that the asset is capable of operating in
the manner intended.
The asset capitalisation is the outcome of various
procurements, approvals from operations experts in
the Company and judgements by the management and
therefore, required significant audit attention.
Refer Note 4: Property, Plant and Equipment in Notes to
the standalone financial statements.
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Our audit procedures, amongst others, include the
following-
e) Obtaining an understanding of operating effectiveness of
management's internal control over capital expenditure.
f) We assessed Company's process regarding maintenance
of records, valuation and accounting of transactions
pertaining to Property, Plant and Equipment with
reference to Indian Accounting Standard 16: Property,
Plant and Equipment.
g) We have reviewed management judgment pertaining to
estimation of useful life and depreciation of the Property,
Plant and Equipment.
h) We have relied upon the observations of internal auditors
of physical verification of Property, Plant and Equipment.
i) We have verified obtained certificates for capitalisation
from the Project heads.
j) Ensuring adequacy of disclosures in the standalone
financial statements.
k) We have relied upon management assessment about
capex project being ready for its intended use and hence
capitalisation of the same
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Information Other than the Standalone Financial
Statements and Auditor's Report thereon
The Company's Board of Directors are responsible for the
preparation of the other information. The other information
comprises the information included in the Management
Discussion and Analysis, Board's Report including Annexures
to Board's Report, Business Responsibility and Sustainability
Report, Corporate Governance and Shareholder's Information,
but does not include the standalone financial statements and
our auditor's report thereon.
Our opinion on the standalone financial statements does not
cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
to the extent made available for our verification as on the
date and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements, or our knowledge obtained during our 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 the Management and Those
Charged with Governance for the Standalone
Financial Statements
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these standalone financial statements
that give a true and fair view of the financial position,
financial performance, including other comprehensive
income, changes in equity and cash flows of the Company in
accordance with the Ind AS and other accounting principles
generally accepted in India. 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 judgements 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 Company's 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
Company's 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 auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional scepticism
throughout the audit. We also:
• I dentify and assess the risks of material misstatement
of the Standalone financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal financial control
relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Company
has adequate internal financial controls with reference
to standalone financial statements 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 the management.
• Conclude on the appropriateness of management's 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 Company's ability
to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw
attention in our auditor's report to the related disclosures
in the standalone financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor's 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
standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions
of a reasonably knowledgeable user of the standalone Ind
AS 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 charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor's 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 (Auditor's Report) Order,
2020 (the "Order”) issued by the Central Government in
terms of Section 143(11) of the Act, we give in "Annexure
A” a statement on the matters specified in paragraphs 3
and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our
audit 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, Statement
of Changes in Equity and the Statement of Cash
Flows dealt with by this Report are in agreement
with the books of accounts.
d) I n our opinion, the aforesaid financial statements
comply with the Ind AS specified under Section
133 of the Act read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) On the basis of the written representations received
from the directors taken on record by the Board of
Directors, none of the directors is disqualified as on
31 March 2025 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
Company's internal financial controls with reference
to standalone financial statements.
g) With respect to the other matters to be included
in the Auditor's 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 Auditor's 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 financial position in its
standalone financial statements - Refer note
no 36 to the standalone financial statements.
ii. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses.
iii. During the year, there were no amounts due
for transfer to the Investor Education and
Protection Fund (IEPF) in accordance with the
provisions of the Companies Act, 2013.
iv. (a) The Management has represented
that, to the best of its knowledge and
belief as disclosed in note no 41 (d)(i)
to the standalone financial statements,
no funds (which are material either
individually or in the aggregate) have
been advanced or loaned or invested
(either from borrowed funds or share
premium or any other sources or kind of
funds) by the Company to or in any other
person or entity, including foreign entity
("Intermediaries”), with the understanding,
whether recorded in writing or otherwise,
that the Intermediary shall, whether,
directly or indirectly lend or invest in
other persons or entities identified in any
manner whatsoever by or on behalf of
the Company ("Ultimate Beneficiaries”) or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that,
to the best of its knowledge and belief,
as disclosed in note no 41 (d)(ii) to the
standalone financial statements, no funds
(which are material either individually
or in the aggregate) have been received
by the Company from any person or
entity, including foreign entity ("Funding
Parties”), with the understanding, whether
recorded in writing or otherwise, that
the Company shall, whether, directly or
indirectly, lend or invest in other persons
or entities identified in any manner
whatsoever by or on behalf of the Funding
Party ("Ultimate Beneficiaries”) or provide
any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that
have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused
us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e),
as provided under (a) and (b) above,
contain any material misstatement.
v. The Company has not proposed any interim
or final dividend in the previous year; hence
Section 123 of the Act, is not applicable in this
regard.
vi. Based on our examination, which included test
checks, the Company has used accounting
software for maintaining its books of account,
which includes a feature for recording an audit
trail (edit log). The Company has maintained
audit trails at the transaction and application
levels; however, the audit trail at the database
level has not been enabled. The audit trail
feature was operational throughout the year
at the aforementioned levels and, prima facie,
does not appear to have been tampered with
during the year.
Further, the Company has preserved the
audit trail (edit logs) for the previous year at
transaction and application level, except for
the database level.
For Gokhale & Sathe,
Chartered Accountants,
Firm Registration No.: - 103264W
Ravindra More
Partner
ICAI Membership No. 153666
UDIN: - 25153666BMLYIO1768
Date: - 22 May 2025
Place: - Mumbai
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