We have audited the Standalone financial statements of Swastik Pipe Limited ("the Company"), which comprise
the Balance Sheet as at 31st March 2025, the Statement of Profit and Loss, Statement of Cash Flows 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 standalone 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 matter described in the Basis for Qualified Opinion section of our report, the aforesaid standalone
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 31st March 2025 and its loss and its cash flows for the year ended on
that date.
Basis for Qualified Opinion
We draw attention to the following matters:
•Attention is invited to Note No. 58 of notes to accounts, which states that the during the year Company has
recognized interest income under "Other Operating Revenues" within the head "Revenue from Operations" in
the Statement of Profit and Loss amounting to ^ 3,280.49 Lakhs, instead of showing under other income as per
Schedule III and also company has paid GST on the interest charged to Govt. Departments. This Interest Income
is included in other operating income of ^ 3,492.14 lakhs under note no 21 of financial statement. This interest
amount has increased the revenue income and resulted reduced the loss during the year with the same amount.
This interest was charged from Jal Shakti, PHE Department, Jammu; PHE M & P Division, Sri Nagar and Jal Shakti
Vibhag, Shimla which relates to the earlier years. Since we have not received confirmation for the same from
the Govt departments, accordingly, we are unable to verify the same.
•Attention is invited to Note No. 41 and 35 of notes to accounts which contains the details of Trade receivable,
Trade payables, other long & short term liabilities, long & short terms loans and advances (Advance to supplier)
are subject to confirmation and reconciliation. Further, company has made provisions only for disputed trade
receivable and not made the provision on trade receivable which are undisputed outstanding since a long time.
The consequential impact thereof, if any, on the financial statements remains unascertained. In these
circumstances.
We conducted our audit in accordance with the Standards on Auditing (SAs) 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 Companies Act, 2013 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 qualified opinion.
Emphasis of Matter
We draw attention to Note No. 31 (a) to the Financial Statements, in respect of LADT (Entry Tax) of Rs. 1,949.76
Lakhs (without Interest) considered as contingent liabilities the matter is pending with Hon'ble High Court of
Punjab & Haryana at Chandigarh, Punjab. The matter is currently sub-judice.
Our opinion is not modified in respect of the above matters.
Responsibilities of Management and Those Charged with Governance for the Standalone 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 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 statements that give a true and fair view and are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors 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 the Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone 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 judgement 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 the 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 with reference to
Financial Statements 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 contents of the Financial Statements, including the
disclosures, and whether the Financial Statements representing the underlying transactions and events in a
manner that achieves fair representation.
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 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 except for the effects/possible effects of the matters described in the Basis for Qualified
Opinion section of our Report, 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, except for the effects/possible effects of the matters described in the Basis for Qualified
Opinion section of our Report, 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 and the Statement of Cash Flow dealt with by this Report
except for the effects/possible effects of the matters described in the Basis for Qualified Opinion section of our
Report are in agreement with the books of account.
(d) In our opinion, except for the effects/possible effects of the matters described in the Basis for Qualified
Opinion section of our Report the aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with relevant rules issued thereunder.
(e) On the basis of the written representations received from the directors as on 31st March, 2025 taken on the
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".
(g) With respect to the matter to be included in the Auditor's Report under section 197(16) of the Act: In our
opinion and according to the information and explanations given to us, the remuneration paid by the Company
to its directors during the current year is in accordance with the provisions of section 197 of the Act. The
remuneration paid to any director is not in excess of the limit laid down under section 197 of the Act. The
Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are
required to be commented upon by us.
(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, 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 financial statements
- Refer Note 31 to the 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. (a) The Management has represented that, to the best of its knowledge and belief , no funds ( which are
material either individually or in aggregate) 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 entity ( "intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediaries 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 (which are material
either individually or in aggregate) 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
Intermediaries shall, weather directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the 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 (i) and
(ii) of Rule 11(e) as provided under (a) and (b) above, contain any material misstatement.
v. The company has not declared or paid dividend during the year under audit, Hence, compliance of section
123 of the Companies Act, 2013 is not applicable in the case of the company.
vi. According to information and explanation provided by management, the company has used an accounting
software Navision having provision for Audit Log and the audit log is configured in the Navision system. But the
company has not produced before us documentary evidence in respect of the edit log report, hence we are
unable to comment upon whether the audit trail feature in the software was enabled and operated throughout
the year for all the transactions recorded in the software or whether there were any instances of the audit trail
feature been tampered with. In absence of documentary evidence for edit log we are unable to comment that
whether the preservation of audit trail as statutory requirement for record retention is maintained or not
For O. Aggarwal & Co.
Chartered Accountants
FRN:005755N
CA Shubham Gupta
Partner
Membership no.: 539733
UDIN-25539733BMJBC42953
Place: New Delhi
Date: 28-05-2025
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