We have audited the accompanying financial statements of Victoria Enterprises Limited ("the
Company"), which comprise the balance sheet as at March 31, 2024, the Statement of Profit and
Loss, including the statement of Other Comprehensive income, statement of cash flows, and the
Statement of Changes in Equity for the year then ended for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies and other explanatory
information.
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements give the information required by the Companies Act, 2013 ('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, 2024, its Profit /
Loss and cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the standards on auditing specified under section 143
(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in
the auditor's responsibilities for the audit of the 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 we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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 of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
|
Key audit matters
|
How the matter was addressed in our Audit
|
|
Expected credit loss allowances- Recognition and
|
We evaluated management's process and
|
|
measurement of impairment of financial assets involve
|
tested key controls around the
|
|
significant management judgement. With the
|
determination of extent of requirement of
|
|
applicability of Ind AS 109, credit loss assessment is now
|
expected credit loss allowances, including
|
|
based on expected credit loss (ECL) model. The
|
recovery process & controls implemented in
|
|
Company's impairment allowance is derived from
|
the company for loans and advances and
|
|
estimates including the historical default and loss ratios.
|
other financial assets. It was explained to us
|
|
Management exercises judgement in determining the
|
by the management that the control exists
|
|
quantum of loss based on a range of factors. The most
|
relating to the recovery of loans & advances
|
|
significant areas are loan staging criteria, calculation of
|
and other assets and in the opinion of the
|
|
probability of default / loss and consideration of
|
board there is no requirement making
|
|
probability weighted scenarios and forward looking
|
expected credit loss allowance. We have also
|
|
macroeconomic factors. There is a large increase in the
|
reviewed the management response and
|
|
data inputs required by the ECL model. This increases the
|
representation on recovery process initiated
|
|
risk of completeness and accuracy of the data that has
|
for sample receivables, and based on the
|
|
been used to create assumptions in the model. In some
|
same we have place reliance on these key
|
|
cases, data is unavailable and reasonable alternatives
have been applied to allow calculations to be performed.
|
controls for the purposes of our audit.
|
|
As per management opinion, there is no expected credit
loss in several financial assets including the trade
receivables of the Company and all are on fair value,
based on the assessment and judgement made by the
board of the company.
|
|
|
Balances of Various Financial Assets and Liabilities:
|
We evaluated the management procedure
and tested key controls employed by the
|
|
Refer Note No. 42 to the financial statements which
|
management to review over the
|
|
describes that 5% Non-Cumulative Redeemable
|
reconciliation and recoverability of the long
|
|
Preference Shares issued by the company are due for
|
outstanding assets and payability of long
|
|
refund as on as on 31st March 2024 (as well as on 31st
|
outstanding liabilities. Based on the
|
|
March 2020, 31st March 2021, 31st March 2022 & 31st
|
explanations and representations provided
|
|
March 2023). The management is in the process of
|
by the management, it was explained to us
|
|
negotiation with the respective investor to restructure
|
that the Board is carrying out a regular
|
|
the terms of issue of Preference Shares. Hence the same
|
review of balances of all outstanding assets
|
|
are appropriately recognised as Non-Current Liability in
|
and liabilities, based on the formal/ informal
|
|
the opinion of the Board.
|
agreements/ arrangements with the
respective parties involved. As per their
|
|
Refer Note No. 35 to the financial statements which
|
opinion, there will be no substantial impact
|
|
describes that the balance of Receivables and Payables,
|
on their reconciliation with their balance
|
|
including borrowings taken, loans & advances given,
|
confirmations. Based on the same we have
|
|
payable to vendors, security deposits given, other
|
placed reliance on these key controls for the
|
|
advances given, other liabilities, advances from
customers, etc, are subject to confirmation and
consequent reconciliation and adjustments, if any.
Hence, the effect thereof, on Profit/ Loss, Assets and
Liabilities, if any, is not ascertainable.
|
purposes of our audit.
|
|
Refer Note No. 36 to the financial statements which
describes that balance appearing in the financial
statements are subject to reconciliation with the returns
and submissions made with statutory authorities,
including GST department. Hence, the effect thereof, on
Profit/ Loss, Assets and Liabilities, if any, is not
ascertainable.
|
|
|
Inventories- Inventories comprising of construction work
|
Our audit procedures to assess the net
|
|
in progress represent majority of the Company's total
|
realisable value (NRV) of inventories
|
|
assets. Till financial year 2023-24, all the projects of the
company were in the stage of construction, since a long
|
included the following:
|
|
period, except for part completion of one of the project
|
• As explained by the management, the Net
|
|
achieved in FY 2019-20. As per the accounting policies,
|
Realisable Value is derived by the
|
|
the construction work in progress and finished goods are
|
company based on the estimated project
|
|
valued at lower of cost or net realisable value. Cost
|
completion, as per the internal
|
|
includes cost of land, development rights, rates and
|
assessment. As informed to us, the board
|
|
taxes, construction costs, borrowing costs, other direct
|
is periodically reviewing the progress of
|
|
expenditure, allocated overheads and other incidental
|
the each project and is of the opinion that
|
|
expenses. Since the assessment of the net realisable
|
the Net Realisable Value of all the projects
|
|
value of the construction inventories is matter of
|
of the company is much higher than their
|
|
technical nature, which is also subjective to the various
|
cost.
|
|
underlying assumptions. As such inappropriate
|
• Since the assessment of the net realizable
|
|
assumptions in these forecasts can impact the
|
value of the construction inventories is of
|
|
assessment of the carrying value of inventories. Further
|
purely technical nature, we have relied on
|
|
estimation uncertainty and exposure to cyclicality exists
|
the management representation regarding
|
|
within the long term projects. Forecast of future market
|
the process and management
|
|
conditions is difficult to predict and be influenced by
|
understanding explained to us. The matter
|
|
political and economic factors.
|
of evaluation of the net realizable value of
such inventories is totally based on the
|
|
Further, due to their materiality in the context of total
|
forecast of future market conditions, and
|
|
assets of the Company this is considered significant to
|
assessment of the future selling prices and
|
|
our overall audit strategy and planning.
|
costs of completion for all the projects.
We further suggest to further improve the
management's valuation methodology
including assessing the key estimates, data
inputs and assumptions adopted,
comparing expected future average selling
prices with available market data such as
recently transacted prices for similar
properties located in the nearby vicinity of
each project and the sales budget plans
maintained by the Company.
|
|
Deferred Tax Assets- Recognition and measurement of
|
In view of the significance of the matter we
|
|
deferred tax assets. The Company has deferred tax assets
|
applied the following audit procedures in
|
|
in respect of temporary differences and Carried Forward
|
this area, among others to obtain reasonable
|
|
Losses.
|
audit assurance:
|
|
The recognition of deferred tax assets involves judgment
|
• Through discussions with management,
|
|
regarding the likelihood of the reasonable certainty of
|
we understood the Company's process for
|
|
realisation of these assets, in particular whether there
|
recording deferred tax assets;
|
|
will be taxable profits in future periods that support
|
• Performed study and inquired into the
|
|
recognition of these assets.
|
basis of the management estimations of
|
|
Management records deferred tax assets in respect of
|
the future revenue for the reasonable
certainty of utilisation of the Carried
|
|
temporary differences and carried forward business
|
Forward Losses and therefore recognition
|
|
losses in cases where it is reasonably certain based on the
|
of deferred tax assets; and
|
|
presumed profitability determined on the basis of
|
• Tested the underlying data for the key
|
|
management estimation that sufficient taxable income
|
deferred tax and tax provision
|
|
will be available to absorb the differed tax assets in
|
calculations.
|
|
future.
Loans to group companies
|
In view of the significance of the matter we
|
|
The Company has given loans to various group entities
|
applied the following audit procedures in
this area, among others to obtain reasonable
|
|
which are considered to be associated with significant
|
audit assurance:
|
|
risk in respect of recovery of such loans. These loans are
carried at cost. Management has given us confirmation
|
• Understanding the return prospects from
|
|
that the loans are reviewed for impairment at each
|
the group entities, based on our discussion
|
|
reporting date. This assessment is based on the
|
with the management regarding the
|
|
presumed future financial performance of these
|
markets in which the group entities
|
|
underlying entities, which involve significant estimates
|
operate; and
|
|
and judgment, due to the inherent uncertainty involved
|
• Review of the controls in place for issuing
|
|
in forecasting future cash flows. There is significant
|
new loans and evidenced the board
|
|
judgment in estimating the timing of the cash flows and
|
approval obtained.
|
|
the appropriate discount rate.
|
• We obtained management's assessment
|
|
In addition, considering the materiality of the loans in
|
of the recoverability of the loans
• Obtained independent confirmations to
|
|
group companies, vis-a-vis the total assets of the
|
ensure completeness and existence of
|
|
Company, this is considered to be significant to our
|
loans and advances held by related parties
|
|
overall audit strategy and planning.
|
as on reporting date.
|
Information other than the financial statements and auditors' report thereon
The Company's board of directors is responsible for the preparation of the other information. The
other information comprises the information included in the Board's Report including Annexures to
Board's Report, Business Responsibility Report but does not include the 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 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 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 financial statements
The Company's board of directors are responsible for the matters stated in section 134 (5) of the Act
with respect to the preparation of these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the accounting standards specified under
section 133 of the Act. This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding of 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 financial statement that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the 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.
Auditor's responsibilities for the audit of the 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 SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the 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
Companies Act, 2013, 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 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 financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the
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 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 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 sub-section (11) of section 143 of the Companies
Act, 2013, we give in the Annexure "A", a statement on the matters specified in paragraphs
3 and 4 of the Order, to the extent applicable.
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 the Statement of Other
Comprehensive income, the Cash Flow Statement 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 financial statements comply with the accounting standards
specified under section 133 of the Act, read with rule 7 of the Companies (Accounts)
Rules, 2014, subject to the non-compliance by the company of the IND AS 19 (relating to
non-provision of gratuity on actuarial assessment basis, as per Note 24 to Financial
Statements) and IND AS 109 (relating to measurement requirements for all the financial
assets and liabilities, as per Note 43 to Financial Statements)
(e) On the basis of the 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 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 unmodified 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 Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to
the best of our information and according to the explanations given to us;
a. The Company does not have any pending litigations which would impact its financial
position, other than those mentioned in Note 28 (Contingent Liabilities) to the
Financial Statements;
b. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses; and
c. There has been no delay in transferring amounts, required to be transferred, to the
Investor Education and Protection Fund by the Company
d. (i) 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 or entity, 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;
(ii) The management has represented that, to the best of its knowledge and belief,
no funds have been received by the Company from any person or entity,
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; and
(iii) Based on such audit procedures that were 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) contain any
material misstatement.
e. No dividend has been declared or paid during the year by the Company.
f. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is
applicable from 1 April 2023.
a) Based on our examination which included test checks, the company has used
accounting software for maintaining its books of account which has a feature of
recording audit trail (edit log) facility but the same has not been operated
throughout the year for all relevant transactions recorded in the software. The
feature of recording audit trail (edit log) facility was enabled during the mid of the
financial year under consideration.
b) Further, during the course of our audit we did not come across any instance of audit
trail feature being tampered with. Additionally, the audit trail has been preserved by
the company as per the statutory requirements for record retention.
For Parekh Shah & Lodha
Chartered Accountants
Firm Registration No..: 107487W
Sd/-
CA. Ravindra Chaturvedi
(Partner)
M. No.:048350
UDIN: 24048350BKFCLQ4072
Place: Mumbai
Date: May 29, 2024
|
