We have audited the accompanying standalone financial statements of M/s Viksit
Engineering Limited, (“the Company”), which comprise the Standalone Balance Sheet as at
31st March 2024, the Standalone Statement of Profit and Loss (including standalone other
comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone
Cash Flow Statement for the year ended on that date, and notes to the Standalone financial
statements, including a summary of significant accounting policies and other explanatory
information (herein after 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, the aforesaid standalone financial statements give the information required by the
Companies Act, 2013, as amended (“the Act”) in the manner so required and give a true
and fair view in conformity with the Indian Accounting Standards prescribed under section 133
of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended,
(“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs
of the Company as at March 31, 2024 and its Loss including other comprehensive income,
changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards
on Auditing (“SA”s) as specified under section 143(10) of the Companies Act, 2013 as
amended (“the Act”). Our responsibilities under those Standards are further described in the
“Auditor's Responsibilities for the Audit of the Standalone 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 Code of Ethics. We believe that the audit evidence obtained by
us is sufficient and appropriate to provide a basis for our opinion on the standalone financial
statements.
Emphasis of matter
We draw attention to-
Note No. 1(A) and Note No. 30 of the financial statements, wherein, it has been provided that
the Honourable NCLT, Mumbai bench has admitted the Corporate Insolvency Resolution
Process (CIRP) against the company vide an order dated 08th December 2023. Pursuant to
this order, the power of the Board of Directors was suspended and were exercisable by Shri
Dinesh Kumar Deora, the interim resolution professional appointed by the Honourable NCLT
who was consequently confirmed to be continue as a resolution professional (RP) by the
committee of creditors in their meeting held on 05th January 2024.
Further, we draw attention that, on account of CIRP being initiated as mentioned above, on
account of continuous losses, on account of no regular operations of the Company and on
account of companies net worth being eroded further, are the factors which has raised doubt
whether the company will be continue as the going concern. However, the financial results
have been prepared on the assumption that the company will continue as the going concern.
ii) Note No. 3 (i) of the financial statement and the line item of extraordinary items of the statement
of profit and loss of the financial statement, wherein the company has provided/charged in the
statement of Profit and Loss Account for the diminution in the value of investments by Rs
84.55 lakhs during the current financial year in respect of investment in equity shares of Benco
Finance Investment Private Limited.
However, our opinion is not modified in respect of the above matters
Key audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the standalone financial statements for the financial year ended
March 31, 2024. These matters were addressed in the context of our audit of the standalone
financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Other information
The Company's Board of Directors/ Resolution Professional is responsible for preparation
of the other information. The other information comprises the information included in the
Management Discussion and Analysis, Board's Report including annexures to Board's
Report, Business Responsibility Report, Corporate Governance and Shareholder's
Information, but does not include the Standalone 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 standalone financial statements, our responsibility is to read
the other information and, in doing so, consider whether such 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.
Responsibilities of Management and Those Charged with governance for the Standalone
Financial Statements
In accordance with the applicable provisions of the Insolvency and Bankruptcy Code 2016, (IBC),
M/s Epoch Mercantile Private Limited, in its capacity as financial creditor has filed a petition
under IBC with the Honourable NCLT, Mumbai Bench. The NCLT vide its order dated 08th
December, 2023 admitted the Corporate Insolvency Resolution Process (CIRP) in respect of
the Company and appointed Mr. Dinesh Kumar Deora, as the Resolution Professional (RP) in
terms of the IBC. Further, the Committee of Creditors of the company confirmed his appointment
as a resolution professional (RP) in their meeting held on 05th January 2024
The Company's Board of Directors / Resolution Professional is responsible for the matters stated
in sub section (5) of Section 134 of the Companies Act, 2013 ("the Act") with respect to the
preparation of these standalone financial statements that give a true and fair view of the
financial position, financial performance including other comprehensive income, cash flows
and changes in equity of the Company in accordance with the Accounting Principles generally
accepted in India, including the Indian Accounting Standards 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 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 the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the
standalone financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management/Resolution Professional 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.
Those Board of Directors are also responsible for overseeing the Company's financial reporting
process.
Auditor's Responsibility for audit of the standalone financial statements
Our objectives are to obtain reasonable assurance about whether the standalone 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
standalone 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 standalone 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 financial 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 standalone 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 the 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 standalone financial
statements, including the disclosures, and whether the standalone 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 standalone financial statements 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 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 issued by the Central Government
of India in terms of sub-section (11) of Section 143 of the Companies Act, 2013, we provide
"Annexure-A”, a statement on the matters specified in paragraphs 3 and 4 of the said 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 appears from our examination of those books.
c) The Standalone Balance Sheet and Standalone Statement of Profit and Loss (including
Standalone Other Comprehensive Income), Standalone Cash Flow Statement and Standalone
Statement of Changes in Equity dealt with by this Report are in agreement with the books
of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting
Standards specified under section 133 of the Act, read Companies (Indian Accounting
Standards) Rules, 2015, as amended.
e) On the basis of written representations received from the directors as on March 31, 2024,
and 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 term of sub-section (2) of section
164 of the Companies Act, 2013.
f) With respect to the adequacy of the internal financial controls over financial reporting of
the Company with reference to these standalone financial statements and the operating
effectiveness of such controls, refer to our separate Report in "Annexure B” to this report.
g) According to the information and explanations given by the management and audit
procedures performed by us, the remuneration paid/provided by the company to its
directors is in accordance with the provisions of Section 197 read with Schedule V of the
Act.
h) With respect to the other matter to be included in the Auditor's report in accordance with
Rule 11 of the Companies (Audit and Auditors) Rule,2014, as amended, in our opinion and
to the best of our information and according to explanation given to us:
(a) According to the information provided by the management, there is no pending litigation
which may impact the financial position of the Company. (Except reference is made to Note
No. 30 of the standalone financial statements).
(b) The company does not have long term contracts including derivative contracts for which there
are any material foreseeable losses.
(c) There has been no delay in transferring amount, 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, other
than as disclosed in the notes to accounts to the Standalone Financial Statements, no funds
(which are material either individually or in the 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 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 (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("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;
(iii) 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 Rule11(e), as provided under (i)and (ii)
above, contain any material misstatement.
(e) The company has not declared any interim or final dividend during the year.
(f) Based on our examination, which included test checks and on the basis of management
representation, the Company has used accounting software's for maintaining its books of
account for the financial year ended 31 March 2024 which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant
transactions recorded in the software's. Further, during the course of our audit we did not
come across any instance of the audit trail feature being tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from 1 April 2023,
reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation
of audit trail as per the statutory requirements for record retention is not applicable for the
financial year ended 31 March 2024
For AKB Jain & Co
Chartered Accountants
FRN:003904C
RAHUL DEWANI
(Partner)
M.No:435066
UDIN: 24435066BKFOHK7087
Place: Bhopal
Date: 28.05.2024
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