We have audited the accompanying Ind AS financial statements of Niraj Ispat Industries
Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2025, the
Statement of Profit and Loss (including Other Comprehensive Income), Statement of Cash
Flow and the Statement of Changes in Equity for the year then ended and Notes to the
Financial Statements including a summary of significant accounting policies and other
explanatory 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 Ind AS 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, 2025, its profit including other comprehensive income, its cash flows and changes in
equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the Ind AS 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 ‘Auditor’s Responsibilities for the Audit of the Ind AS
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 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 audit opinion on the Ind AS 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 Ind AS financial statements for the financial year ended March
31, 2025. These matters were addressed in the context of our audit of the Ind AS financial
statements as a whole, and in forming our opinion thereon, 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. We have fulfilled the responsibilities described in the Auditor’s
responsibilities for the audit of the Ind AS financial statements section of our report, including
in relation to these matters. Accordingly, our audit included the performance of procedures
designed to respond to our assessment of the risks of material misstatement of the Ind AS
financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the accompanying Ind AS
financial statements.
1. Property, Plant & Equipment and Capital Work in progress
Valuation and existence of property, plant and equipment including assessment of useful lives
and residual value. Property, plant and equipment represents a significant proportion of the
Company’s asset base. The estimates and assumptions made to determine the carrying
amounts, including whether and when to capitalize or expense certain costs, and the
determination of depreciation charges are material to the Company’s financial position and
performance. The charges in respect of periodic depreciation are derived after estimating an
asset’s expected useful life and the expected residual value. Changes to asset’s carrying
amounts, expected useful lives or residual value could result in a material impact on the
financial statements and hence considered as key audit matter.
How our audit addressed the Key Audit Matter
Our audit procedures included the following:
Our audit approach consisted evaluation of design and implementation of controls, and testing
the operating effectiveness of the internal controls over valuation of property, plant and
equipment and review of useful lives; Periodic physical verification of property, plant and
equipment for adequacy and appropriateness of the accounting and disclosure by the
Management:
• We obtained an understanding of the Company’s capitalization policy and assessed for
compliance with the relevant accounting standards;
• We carried out substantive tests on random sampling for all the major additions,
deletions to the assets by applying all the characteristics of capital expenditure, proper
classification of the same, with reference to the company’s policy and accounting
standards;
• We obtained an understanding on management assessment relating to progress of
projects and their intention to bring the asset to its intended use.
• We obtained certificates relating to useful lives of assets where, required.
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 Annual report, but does not include the
Ind AS financial statements and our auditor’s report thereon.
Our opinion on the Ind AS 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 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 financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information; we are required to report that fact.
We have nothing to report in this regard.
Responsibility of Management and Those Charged with Governance for the Ind AS
Financial Statements
The Company’s 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 Ind AS financial
statements that give a true and fair view of the financial position, financial performance
including other comprehensive Income, cash flows and changes in the equity of the Company
in accordance with the accounting principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) 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 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 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 is also responsible for overseeing the Company’s financial reporting
process.
Auditor's Responsibilities For The Audit of the Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS 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 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.
• 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 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 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.
• Evaluate the overall presentation, structure and content of the Ind AS financial
statements, including the disclosures, and whether the Ind AS financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the Ind AS financial statements for the
financial year ended March 31, 2025 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 sub-section (11) of section 143 of the Act, and
on the basis of such checks of the books and record of the Company as we considered
appropriate and according to the information and explanations given to us, 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, 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 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, the statement of Cash Flow and Statement of Changes in Equity dealt with
by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian
Accounting Standards specified under section 133 of the Act, read with Companies
(Indian Accounting Standards) Rules, 2015, as amended.
e. On the basis of written representations received from the directors as on March 31,
2025, taken on record by the Board of Directors, none of the Directors is disqualified
as on 31st 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” to this report.
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 Ind AS financial statements.
(ii) The Company has made provision, as required under the applicable law or
accounting standards, for material foreseeable losses, if any, on long-term
contracts including derivative contracts.
(iii) There has been no delay in transferring amount, 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 it’s knowledge and
belief, as disclosed in Note 34 to the financial statements, 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, 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 it’s knowledge and
belief, as disclosed in Note 34 to the financial statements, 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, 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 performed 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) Based on our examination, which included test checks, the Company has used
accounting software for maintaining its books of account for the financial year ended
31st March 2025 which has a feature of recording audit trail (edit log) facility and the
same was operated from 10th August, 2024 for all relevant transactions recorded in the
accounting software. Further during the course of our audit, we did not come across any
instance of the audit trail feature being tempered with. Further, the audit trail, to the
extent maintained in the prior year, has been preserved by Company as per the statutory
requirements for record retention.
For SANJEEV ANAND & ASSOCIATES
Chartered Accountants
Firm Reg. No. 007171C
Sd/-
(S. Agarwal)
Place: Ghaziabad Partner
Date : 28th May 2025 M.NO. 072907
UDIN 25072907BMJMNZ5119
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