We have audited the financial statements of INDIA STEEL WORKS LIMITED (Hereinafter referred to as company), which comprise
the balance sheet as at 31 st March 2025, and the statement of profit and loss (including other comprehensive income), statement of
changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatoryinformation (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 financial statements give
the information required by the Companies Act, 2013 ( Act ") in the manner so required and does not 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 at31st March2025, of its
profit and other comprehensive income, changes in equity and cash flows for the year then ended.
Going Concern
The Company’s current liabilities exceeded its current assets as of the previous year balance sheet date. Operations of the company
has ceased since long and the company is not in the position to discharge its liabilities. These events or conditions, along with other
matters indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going
concern. However, the books of the company are still prepared on historical cost basis. In our opinion the accounts of the company
should not be prepared on going concern basis i.e., the assets and liabilities of the company should be stated at net realizable value.
The financial statements do not adequately disclose this fact We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our adverse opinion.
Basis for Adverse Opinion
a. We have been informed that during the period. Kotak Mahindra Bank Limited has taken the possession of the factory premises of
the company situated at Zenilh Compound, Village Vihari, Kahalapur District, Raigad. The primary software used for
bookkeeping, namely SAP. was not accessible due to the above. The company has prepared the books of accounts in different
software taking the balancesof earlier year's audited financials. We were provided with alternative sources and backup books of
accounts to facilitate our audit procedures. Our conclusion is based on the information contained in the backup books that we re
made available to us. Due to the limited availability of sufficient and appropriate evidence, we are unable to definitively verify or
comment on the accessibility of the books of accounts stored on SAP and their potential impact on the financial statements.
Consequently, considering this limitation, wehave conducted the audit using alternative proceduresto the extent feasible.
b. Inventories amounting to 713,534 32 Lakhs have not been valued at lower of cost or Net realisable value which is against the
significant accounting policies of the company and is not consistent with Ind AS 2 “Inventories" These Inventories held by the
company include obsolete and non-moving stock which are valued at cost and is inconsistent with provisions of Ind AS 2. As per
the information and documents provided to us, we are of the opinion that work-in-progress amounting to 710,608.94 Lakhs and
Raw Matenal amounting to 71,705.78 Lakhs held by the company can only fetch scrap value. In the absence of quantitative
information and supporting documents of Finished Goods. Stockin Trade and Stores and Spares amounting to?1,219.60 lakhs,
we are unable to comment on carrying value of the same and its effect on the financial statements fortheyear Accordingly, we
believe that the Net-worth of the company isoverstated by the said amount
c. The Company has not provided us with the requisite information and details relating to transactions with related parties as
required under Indian Accounting Standard (Ind AS) 24 - Related Party Disclosures. In the absence of such information, we
were unable to obtain sufficient appropriate audit evidence to determine whether the Company has appropriately identified,
disclosed, and accounted for related party transactions in accordance with Ind AS 24. Accordingly, we are unable to comment on
whether such transactions, if any, were conducted at arm's length and their possible effects on the financial statements of the
Company for the year ended
d. Company has not done physical verification or valuation of inventories On account of the same we are unable to comment on
the physical status and/ or recoverable value of such inventories.
e. The company has shown insurance claim receivable amounting to ? 1.997.69 Lakhs. The said claim has been outstanding since
longbackand the same has notbcen approved by appropriate authority till date. In conclusion, showing the said insurance claim
as receivable is not showing true and fair view, On account of the same assets of the company are overstated by ?1,997.69
Lakhs.
f. Confirmations of the balances of sundry creditors and debtors, loans and advances, Advances given to suppliers and advances
received from customers have not been obtained and they are subject to reconciliations and subsequent adjustments if any. As
such we are unable to express any conclusion as to the effect on the financial statements for the year
g. Sufficient and appropriate documentary audit evidence in respect of Contingent liabilities was not provided to us. As such we are
unabletodraw any conduslonasto the effect on the financial statements for the year.
h. The company has not assessed the impact of various disputed statutory liabilities/ liabilities on account of lawsuits as per the
requirement of Ind AS 37 "Provision. Contingent Liabilities, Contingent Asset" and hence the effect of the same, if any, on the
financial results. The cases are pending with multiple taxauthontiesand the said claims have not been acknowledged as debt by
the company, income booked on account of certain lawsuits/ disputes are not as per the order passed. Accordingly, we are
unable to comment on the effect of the same.
i. Thecompany has not assessed the Pair Value of various Assets and Liabilities as per the requirement of Ind AS 103 "Fair Value
Measurement ', the effect of the same, if any, on the financial results is not identifiable. Therefore, we are unable to comment on
its impact on thefinanclal results for the year ended March 31,2025.
j. The company has not reviewed the impairment of its tangible assets and other financial and non-financial assets as of March 31
2025. Hence, no provision in the books of account has been made by the Company. In the absence of assessment of
impairment/ provisions by the Company, we are unable to comment on the recoverable amount regarding said items.
k. Thecompany does not have an internal audit system to commensurate with the size and nature of its business. In absence of the
same we are unable to comment whether an adequate internal financial controls system over financial reporting and such
internal financial controls overfinancial reporting were operating effectively as of March 31,2025.
I The statement of proper records maintained in India related to Foreign Branch, the Financial Statement of Foreign Branch is not
audited by us. Our conclusion is based on unaudited figures provided by the management.
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
informingour opinion thereon, and we do not provide a separate opinion on these matters. During the year under consideration, wedo
not have any key audit matters to report.
Emphasis of Matter
a. In absence of information of investee company, we are unable to determine the value of the investments hence the same are
carried at cost and no provision for diminution, if any in value of such investments in made
b. The company does not have Internal audit system to commensurate with the size and nature of Its business. In absence of the
same we are unable to comment whether an adequate internal financial controls system over financial reporting and such
internal financial controls over financial reporting were operating effectively asofMarch31,2025.
c. In absence of proper records maintained In India related to Foreign Branch, the Financial Statement of Foreign Branch is not
audited by us Ouropinion is based on unaudited figures provided bythe management
d. In the absence of uncertainties of making profit in immediate future the company has decided not to create Asset/ Liability on
account of Deferred Tax.
e. Fire Insurance Policy of the company is pending renewal as on the date. The risk on account of the same is not ascertainable.
f. Assessment of the Impairment of Assets has not been done bythe company, which is inconsistent with Ind AS-36 "Impairment of
Assets".
Other Information
The Company s management and Board of Directors are responsible for the other i nformation. The other information comprises the
information included in the Company's annual report but does not include the financial statements and our auditors’ 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 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.
Management’s Responsibilitiesforthe Financial Results
These Financial Results have been prepared on the basis of the annual financial statements. The Company’s Board of Directors are
responsible for the preparation and presentation of these Financial Results that give a true and fair view of the net profit and other
comprehensive income and other financial information of the Company and the balance sheet and the statement of cash flows in
accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section
133 of the Act read with relevant rules issued (hereunder and other accounting principles generally accepted in India and in
compliance with Regulation 33 and Regulation 52 of the Listing Regulations The Board of Directors of the Company are responsible
for 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 the design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting
records, relevant to the preparation and presentation ofthe financial statements that givea trueand fair view andare free from material
misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Financial Results by the
Direct ors of the Comp an y, a s aforesaid.
In preparing the Financial Results, the Board of Directors of the Company are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Board of Directors either in tends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
TheBoard of Directors ofthe Company are responsible for overseeing the financial reporting process of the Company.
Auditor's Responsibilities forthe Audit of the Financial Results
Our objectives are to obtain reasonable assurance about whether the Financial Results as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes 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 andare 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 Results.
As part of an audit in accordance with SAs. we exercise professional judgment and maintain professional scepticism throughout the
audit. We also:
a. Identify and assess the risks of material misstatement ofthe Financial Results, whetherdue 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 far one resulting from error, asfraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
b. 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 with reference to financial statements in place and the operating effectiveness of such
controls.
c. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Board of Di rectors.
d. Conclude on the approprlatenessofthe Board of Directors' 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 Results or, if such disclosures are Inadequate, to
modify our opinion. Our conclusions are based on the auditevidenoe obtained up tothedateofourauditor s report.
e. Evaluate the overall presentation, structure and content of the Financial Results Including the disclosures, and whether the
Financial Results re presentthe underlying transactions and eventsin a manner that achieves fair presentation
f. 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
Report on Other Legal and RegulatoryRequirements
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 and4 of the Order
2. As required by Section 143(3) of the Act. we report that:
a) We have not been provided with 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 accounts as required by law have not been kept by the Company sofar as it appears from
our exa min at ion of those boo ks.
c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the statement of change in
equity and the Cash Flow Statement dealt with by this Report are not in agreement with the relevant books of accounL
d) With reference to matters stated in basis of adverse opinion and going concern paragraph, In our opinion, the aforesaid
fi nandal statements do not comply with Ind AS specified under Section 133 of the Act
e) On the basisofthe written representations received from the directors and taken on record by the Board of Directors, none
of the directors is disqualified as on March 31.2025, 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 finanaal reporting of the Company and the operating
effectivenessofsuch controls, refer to our separate report in “Annexure B" to this report
g) With respect to the other matters tobe 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 Expectforthe matters as described in basis of adverse opinion, the Company has disclosed the impact of pending
litigations as of March 31,2025, on its financial position in its financial statements.
ii) The Company did not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the
Company.
iv) 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 cither 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; 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 Based on such audit
procedures that were considered reasonable and appropriate in thecircumstances, 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.
3. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Holding Company or any of its subsidiary
companies incorporated in India only with effect from 1 April 2025, reporting under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014 is not applicable.
4. With respect to the other matters to be included in the Audi tor s Report in accordance with the requirements of section 197(16) of
theAct In our opinion and to the best of our information and according to the explanation given to us, the remuneration paid/
provided by the company to its directors during the year is in accordance with the provisions of Section 197 of the Act. The
remuneration paid to any directors is not in excess of the limit laid down U/s 197 of the IT Act The Ministry of Corporate Affairs
has not prescribed otherdetailsU/s 197(16) which requires to be commented by us
5. Based on our examination which included test checks, the company has not used an accounting software for maintaining its
books of account which has a feature of recording audit trail (edit log ) facility Accordingly, we are unable to comment on any
instance of audittrai I feature being tampered
For Laxmikant Kabra & Co LLP
Chartered Accountants
Firm Reg. No.: 117183W/W100736
Place: Thane CA Laxmikant Kabra
Date: 21st May 2025 Partner
Membership No.: 101839
UDIN: 25101839BMULLC3556
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