We have audited the accompanying Standalone Ind AS financial statements of VALLABH STEELS LTD. (“the
Company”), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including
Other Comprehensive Income), the Statement of Changes in Equity and Cash Flow Statement and for the year then
ended, and a summary of significant accounting policies and other explanatory information (herein after referred to as
“standalone Ind AS financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of
the matters described in Basis for Qualified Opinion section of our report, the standalone 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 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, 2024, and its Profit (including other comprehensive
income), its cash flow and the changes in equity for the year ended on that date.
Basis for Qualified Opinion
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing
specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in
the Auditors Responsibilities for the Audit of the standalone Ind AS Financial Statements section of our report. We are
independent of the company in accordance with the code of Ethics issued by Institute of Chartered Accountants of
India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone Ind AS financial
statements under the provisions of the Companies Act, 2013 and the Rules made there under, 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 we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on
the standalone Ind AS financial statement.
I. Trade Receivables includes certain debtors in respect of which no provision has been made as per IND AS
109 on financial instruments by applying expected credit loss method on receivables for getting fair value of
assets.
II. Inventories have been taken as Certified by the management. We have not verified the same.
• No assessment to determine whether or not a material uncertainity exists related to events or conditions that
may cast significant doubt on the entity's ability to continue as a going concern has been given to us.
Accordingly, we are unable to comment upon the going concern of the entity.
• Trade receivables, Loan and Advances and Trade payables are subject to confirmation and reconciliation.
• Actuarial Valuation report has not been provided to us which is non-compliance of IND AS-19 “Employee
Benefits”. In the absence of the same we are not able to ascertain the impact on the financial statements.
• In respect of Property, plant & equipment. As per IND AS 36 “Impairment of Assets” company should
recognize impairment loss if the carrying value of the assets in the books of account is more than
recoverable amount of the assets. Further IND AS specifies that enterprise should access at the end of each
financial year whether there is any indication that an asset may be impaired.
No such assessment has been done by the management, In the absence of the same we are unable to comment
upon the fair value of the property, plant & equipment in the books of account.
Emphasis of Matter
We draw attention to the following:
• Accounts of the company have been categorized as NPA. Aaccordingly, all bank balances are subject to
confirmation.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
standalone Ind AS financial statements of the current period. These matters were addressed in the context of our
audit of the Standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
We have not come across with any key audit matter to be communicated in our report.
Information other than the financial statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the
information included in the Directors Report, including annexure thereto, Report on Corporate Governance and
Management Discussion & Analysis Report, but does not include the Standalone Ind AS Financial Statements and our
auditor's 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 Standalone Ind AS financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the standalone Ind
AS financial statements or our knowledge obtained during the course of 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.
Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of the financial position,
financial performance including Other Comprehensive Income, changes in equity and the cash flows of the Company
in accordance with the accounting principles generally accepted in India, including the Ind AS specified under Section
133 of the Act, read with 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 Ind AS 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 Ind AS 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' Responsibility for the Audit of Standalone Ind AS 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 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 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:
i. Identify and assess the risks of material misstatement of the standalone Ind AS 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.
ii. 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 Act, we are also responsible for explaining
our opinion on whether the Company has adequate internal financial controls with reference to the financial
statements in place and the operating effectiveness of such controls.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
iv. 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 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.
v. Evaluate the overall presentation, structure and content of the Ind AS 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 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 Ind AS 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 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 that:
a) Except for the matters described in the Basis of Qualified Section, 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, except for the matters stated in the Basis of Qualified Section, proper books of account as
required by law have been kept by the Company so far as appears from our examination of those books.
c) Except for the matters stated in the Basis of Qualified Section, 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) Except for the matters stated in the Basis of Qualified Section, the aforesaid Standalone Ind AS financial
statements comply with the Indian Accounting Standards (Ind AS) specified under section 133 of the Act;
e) On the basis of written representations received from the directors as on March 31, 2024, and taken on
record by the Board of Directors, none of the directors is disqualified as on March 31, 2024, 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 modified opinion on the adequacy and operating effectiveness of the Company's
internal financial controls over financial reporting.
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, we report that the
managerial Remuneration for the year ended 31st March, 2024 has not been paid to its directors. Accordingly, this
clause is not applicable.
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 Ind AS financial statements.
ii. The Company do not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses.
iii. 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) by the Company to or in any other person(s) or entity(ies), including
foreign entities (“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, no funds have been received by
the Company from any person(s) or entity(ies), including foreign entities (“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 such 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 (a) and (b)
above, contain any material misstatement.
v. Since the Company has not declared or paid any dividend during the year, accordingly, commenting
on whether dividend declared or paid is in accordance with Section 123 of the Companies Act, 2013
is not applicable.
For K.R. Aggarwal & Associates
Chartered Accountants
FRN: 030088N
CA Vivek Aneja
Place: Ludhiana (Partner)
Date: 30/05/2024 Membership No: 544757
UDIN: 24544757BKACCW4955
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