We have audited the accompanying Ind AS financial statements of Niruj Ispat Industries
Limited ("the Company"), which comprises the Balance Sheet as at March 31, 2( 24. the
Statement of Profit and Loss (including Other Comprehensive Income), Statement if 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 lo as the “financial statements'7).
In our opinion and to the best of our information and according to the explanations given to
us, the uforesaid 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 stale of affairs of the
Company as at March 31, 2024, its profit including other comprehensive income, is cash
flows and changes in equity for the year ended on that dale.
Basis for Opinion
We conducted our audit of the lnd AS financial statements in accordance with the Stuidards
on Auditing (SAs), as specified andcr section 143(10) of the Act. Our responsibilities under
those Standards are further described in the 'Auditor's Responsibilities lor the Audi; of the
lnd AS Financial Statements1 section of our report. Wc are independent of the Germany In
accordance with the 'Code of Ethics1 issued by the Institute of Chartered Accountants of
India together with the ethical requirements that arc relevant to our audit of the financial
statements under the provisions of the Act and the Rules there under, and wc have fulfilled
our other ethical responsibilities in accordance with these requirements and the ICAl’s Code
ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our uudil opinion on the Ind AS financial statements.
Key Audit Matters
Key audit matters arc those matters that, in our professional judgment, were of most
significance in our audit of the Ind AS financial statements for the financial yetn ended
March 31, 2024, These matters were addressed in the context of our audit of the Ind AS
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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.
Wc have determined die matters described below to be the key audit matteri 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,
ineluding in relation to these matters. Accordingly, our audit included the perforrc ancc 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. I
I. Properly, Plant & Equipment and Capital Work m progress I
Valuation and existence of property, plant and equipment including assessment o' 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, imd 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 dairying
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 lor adequacy and appropriateness of the accounting and disclosure by the
Management;
* We obtained an understanding of the Company’s capitalization policy and a ssessed
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 prog ress of
projects and their intention to bring the asset to its intended use.
Ý We obtnined 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 lor the other information. Th< other
in format j on comprises the information included In the Annual report, hut docs not include the
Ind AS financial statements artd our auditor’s report thereon. !
Our opinion on the Ind AS financial statements docs 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 woric we have performed, we aonclude
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 i*s responsible for the matters slated in Section 134(5) of
the Companies Act, 2015 (“the Act*1) 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 th: Indian
Accounting Standards (Ind AS) specified under Section 133 of the Act read vnth 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 app'opriate
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,
rclcvanl to the preparation and presentation of the ind AS financial statements that give a true
and fair view and arc free from material misstatement, whether due to fraud or error*
In preparing the Ind AS financial statements* management is responsible for assessing the
Company^ ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basts of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic altematt\4 hut to
do so.
The Board of Directors is also responsible for overseeing the Company's financial reporting
process. 1
Auditor’s Responsibilities Fur The Audit uf the Ind AS Financial Statements
Our objectives arc to obtain reasonable assurance about whether the Ind AS financial
statements as a whole are free from material misstatement, whether due to fraud or errsr, and
to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of
assurance, hut is not a guarantee that an audit conducted In accordance with SAs will always
detect a material misstatement when il exists. Misstatements cun arise from fraud or cn or and
are considered material i£ individually or in the aggregate, they couid reasonably be ex reeled
to influence the economic decisions of users taken on the basis or these lnd AS financial
statements*
As part of an audit in accordance with SAs. we exercise professional judgment and ijtialnlam
professional skepticism throughout the audit* Wc also:
Ý Identify and assess the risks of material misstatement or the hid AS (mandat
statements, whether duo 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 delecting 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 tc design
audit procedures that are appropriate in the circumstances* Under section 143 3X*) of
the Act, wc are also responsible for expressing our opinion on whether the Grnipun)
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 msjs of
accounting and, based on tbe audit evidence obtained, whether a material unc ertainly
exists related to events or conditions that may cast significant doubt on tbc
Company's ability to continue as a going concern. If we conclude that a material
uncertainty exists* wc are required to draw attention in our auditor's report to the
related disclosures in the linancial statements or. If such disclosures are inadequate, to
modify our opinion. Our conclusions are hosed 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 us ti going concent.
• Evaluate the overall presentation, structure and content of the lnd AS financial
statements, including the disclosures, and whether the lnd 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 wc identify during our audit, j
We also provide those charged with governance with a statement that wfo have complied with
relevant ethical requirements regarding independence, and to communicate with djem 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 deiermhe those
matters that were of most significance in the audit of die Ind AS financial statement ? for the
financial year ended March 31, 2024 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
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not be communicated In our report because the adverse consequences of doing so would
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reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
L As required by the Companies {Auditor's Report) Order, 2020 ("the Order") issued by
the Central Government of India in terms of sub-section (II) of section 143 of ihe 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 usT
we give in ‘Anncxurc A’ a statement on the matters specified in paragraphs 3 f nd 4 of
the Order,
2. As required by section 143(3) of Ihe Act, wc report that:
a. Wc 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.
h, In our opinion, proper books of account as required by lawr have been kepi 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.
2024, taken on record by the Board of Directors, none of the Directors is
disqualified as on 31st March, 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 fiianclaJ
reporting of the company and the operating effectiveness of such controls, ^cfer to
our separate report in “Anncxure B41 to this report.
g. With respect to the other matters to be included m 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 out information and according 10 the explanations given
to us, the remuneration paid by the Company to its directors during the ytar is in
accordance with the provisions of section 197 of the Acl;
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 imd to the best of our information and according to the
explanations given to us :
(i) Thu 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 loig-tcrm
contracts inclnding derivative contracts.
(iii) There has been no delay in transferring amount, required lo be transferred, IP
the Investor Education and Protection Fund by the Company
(iv) (a) The Management has represented that, lo the best of it's knowledge and
belief, as disclosed in Note 34 lo the financial statements, no fundL^ have been
advanced or loaned or invested (either from borrowed funds or share p:emium
or any other sources or kind of funds) by ibe Company to or In any other
personfs) or entity(ies), including foreign entities ("Intermediaries”), vrith the
understanding, whether recorded in writing or otherwise, that the Intemediary
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
Benefiejaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries,
(b) The Management has represented, that, lo the best of it's knowledge and
belief os disclosed in Note 34 to the financial statements, no funds haje 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, ^end or
invest in other persons or entities identified in any manner whaLsoevg " 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 conic to our
notice that has caused us to believe that the representations under sub-clause
(i) and (ii) of Rule 11(c), as provided under (a) and <b) above, contain any
material misstatement
(v) Based on our examination, which included lest checks, the Company hits used
accounting soflwure for maintaining its books of account for ihc financial your ended
3111 March 2034 which did not has a feature of recording audit trail (edit log) facility
and the same was not operated throughout the year for all retevani tran actions
recorded in the accounting software.
As proviso 1u Rule 3(1) of die Companies (Accounts) Rules. 2014 is applicable from
OP' April 2023, reporting under Rule 11(g) of tbe Companies (Audit and Auditors)
Rules. 2014 on preservation of audit trail as per the statutory requirements I* »r record
retention is not applicable for the financial year ended 3 \>[ March 2024.
Ý For SANJEEV ANAND & ASSOCIATES
Chartered Accountants
Firm Reg. No. 007171C
(Sumit Gup a)
Place; Ghaziahud Partner
Date : May 2024 M.NO. 423453
L'DIN 24423453BKBX NOt 610
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