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VSF Projects Ltd.

BSE: 519331 Sector: Infrastructure
NSE: N.A. ISIN Code: INE923K01014
BSE 00:00 | 02 Dec 55.55 -0.45
(-0.80%)
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54.95

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56.00

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NSE 05:30 | 01 Jan VSF Projects Ltd
OPEN 54.95
PREVIOUS CLOSE 56.00
VOLUME 7076
52-Week high 61.60
52-Week low 19.50
P/E
Mkt Cap.(Rs cr) 33
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 54.95
CLOSE 56.00
VOLUME 7076
52-Week high 61.60
52-Week low 19.50
P/E
Mkt Cap.(Rs cr) 33
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

VSF Projects Ltd. (VSFPROJECTS) - Auditors Report

Company auditors report

To The Members of VSF PROJECTS LIMITED

Report on Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of VSF PROJECTS LIMITED(“the Company”) which comprise the Balance Sheet as at March 31 2022 and theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and a summary ofthe significant accounting policies and other explanatory information

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2022 and its profit total comprehensive income the changes in equity and its cashflows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Key Audit Matters

Key audit matters (‘KAM') are those matters that in our professional judgmentwere 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 awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters. We have determined that there are no key audit matters to be communicatedin our report.

Other Information

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the financialstatements and our auditors' reportthereon.

Our opinion on the financial statements does not cover the other information and we donot express anyform of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in d o ing so consider whether the o ther information ismaterially inconsistent with the financialstatements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based onthe work we haveperformed we conclude that there is a material misstatement of this other information wearerequired 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 is responsible for the matters stated in Section134(5) of the Companies Act 2013 (“the Act”) with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the Indian Accounting Standards (Ind AS)prescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and other accounting principles generally accepted inIndia.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error. In preparing the financial statements management and Board ofDirectors are responsible for assessingthe Company's ability to continue as a goingconcern disclosing as applicable matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company orto cease operations or has no realistic alternative but to do so. Board of Directors isalso responsible for overseeing the Company's financial reporting process

Auditor's Responsibilityfor the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a wholeare free from material misstatement whether due to fraud or errorand to issue an auditor's report that includesour opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted inaccordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud orerror and are considered material if individually or in the aggregate they couldreasonably be expected to influencethe economic decisions of users taken on the basis ofthese financial statements As part of an audit in accordance with SAs we exerciseprofessional judgment and maintain professional skepticism throughout the audit.

We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 auditors'report. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the keyaudit matters. We describe these matters in ourauditors' report unless law or regulation precludes public disclosureabout the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicatedin our report because the adverse consequences of doing so would reasonably beexpected to outweigh the publicinterest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 issued by thedepartment of company affairs in terms of section 143 (11) of the companies Act 2013and on the basis of our examination of the books and records as we considered appropriateand according to the information and explanation given to us we give in the“Annexure A” a statement on the matters specified in paragraph 3 and 4 of theOrder to the extent applicable.

2. As required by Section 143(3) of the Act based on our audit we report that:

a) We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the Indian AccountingStandards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors of theCompany as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in “Annexure B”. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements and for that Refer Note 2.29 in notes to financialstatements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

iv) The management has represented to the best of their knowledge and belief otherthan as disclosed in the notes to the accounts no funds have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind offunds) by the company to o r in any other person(s) o r entity(ies) including foreignentities (“Intermediaries”) with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever b y or on b ehalf o f thecompany (“Ultimate Beneficiaries”) or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries; v) The management has represented to thebest of their knowledge and belief other than as disclosed in the notes to the accountsno funds have been received by the company from any person(s) or entity(ies) includingforeign entities (“Funding Parties”) with the understanding whether recordedin writing or otherwise that the company shall whether directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party (“Ultimate Beneficiaries”) or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries; and

vi) Based on the audit procedures performed by us which has considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (iv) and (v) contain any materialmiss-statement.

vii) The dividend declared or paid during the year by the company is in compliance withsection 123 of the Companies Act 2013. Or The company hasn't declared any Dividend forthe current year.

viii) The company has used “Tally” accounting software for maintaining itsbooks of account which has a feature of recording audit trail (edit log) facility and thesame has been operated throughout the year for all transactions recorded in the softwareand the audit trail feature has not been tampered with and the audit trail has beenpreserved by the company as per the statutory requirements for record retention.

h) With respect to the matter to be included in the Auditors' Report under section197(16) of the Act as amended in our opinion and to the best of our information andaccording to the explanations given to us the remuneration paid/provided by the companyto its directors during the year is in accordance with the provisions of the section197 ofthe Act.

For NSVR &ASSOCIATES LLP. Chartered Accountants (FRN No.008801S/S200060) VenkataRatnam.P

Partner M.no:219486

UDIN:22230675AJVSHY7654

Place: Hyderabad

Date:30-05-2022

ANNEXURE “A” TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of VSFPROJECTS LIMITED (“the Company”) as of March 31 2022 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the “Guidance Note”) issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance withgenerally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2022 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. . For NSVR &ASSOCIATES LLP. Chartered Accountants (FRN No.008801S/S200060)

Venkata Ratnam.P Partner M.no:219486 UDIN:22230675AJVSHY7654

Place:Hyderabad

Date:30-05-2022

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Kaveri Engineering Projects PrivateLimited of even date)

To the best of our information and according to the explanations provided to us by theCompany and the books of account and records examined by us in the normal course of auditwe state that

i. In respect of the Company's Property Plant and Equipment:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment including leasedassets.

(b) Maintenance of Proper records for Intangible records is not applicable to thecompany.

(c) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.

(d) According to the information and explanations given to us the company does not ownany immovable Properties at the balance sheet date hence the clause of reporting whetherthe title deeds are held in the name of company is not applicable.

(e) The Company has not revalued any of its Property Plant and Equipment includingright of use assets during the year.

(f) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

ii. (a) As explained to us the physical verification of inventories excluding stockslying with third parties have been conducted at reasonable intervals by the Managementduring the year. In case of inventories lying with third parties certificates of stocksholding have been received.

b) In our opinion and according to the information and explanation given to us theprocedures of physical verification of inventories followed by the Management werereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification of stocks as compared to book records. d) Thecompany has been sanctioned working capital limits in excess of five crore rupees inaggregate from banks or financial institutions on the basis of security of currentassets. There is no material discrepancy found between quarterly returns or statementsfiled by the company with such banks or financial institutions and books of account of theCompany.

iii. According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms Limited Liability Partnerships or other parties listed inthe register maintained under Section 189 of the Companies Act 2013. Consequently theprovisions of clauses iii (a)(b)(c)(d)(e)(f) of the order are not applicable to theCompany. iv. The company has not advanced any loans guarantees to directors of thecompany. Hence this clause is not applicable to the company.

v. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

vi. Maintenance of cost records as specified by central government under subsection (1)of section 148 is not applicable to the company.

vii. In respect of statutory dues:

(a) In our opinion the Company has generally been regular in depositing undisputedstatutory dues including Goods and Services tax Provident Fund Employees' StateInsurance Income Tax Sales Tax Service Tax duty of Custom duty of Excise Value AddedTax Cess and other material statutory dues applicable to it with the appropriateauthorities. There were no undisputed amounts payable in respect of Goods and Service taxProvident Fund Employees' State Insurance Income Tax Sales Tax Service Tax duty ofCustom duty of Excise Value Added Tax Cess and other material statutory dues in arrearsas at March 31 2022 for a period of more than six months from the date they becamepayable.

(b) There are no disputed dues Pending as on March 312022.

viii. There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

ix. The Company has not defaulted in repayment of Loans or borrowings from any lender.Hence reporting under clause 3(ix)(a) of the Order is not applicable.

(a) The Company has not been declared willful defaulter by any bank or financialinstitution or government or any government authority. (b) The Company has not taken anyterm loan during the year and there are no outstanding term loans at the beginning of theyear and hence reporting under clause 3(ix)(c) of the Order is not applicable. (c) On anoverall examination of the financial statements Company has not raised fund any fundsduring the Year. Hence this clause is not applicable. (d) On an overall examination ofthe financial statements of the Company the Company has not taken any funds from anyentity or person on account of or to meet the obligations. (e) The Company has not raisedany loans during the year and hence reporting on clause 3(ix)(f) of the Order is notapplicable. x. The Company has not raised moneys by way of initial public offer or furtherpublic offer (including debt instruments) during the year and hence reporting under clause3(x)(a) of the Order is not applicable. During the year the Company has not made anypreferential allotment or private placement of shares or convertible debentures (fully orpartly or optionally) and hence reporting under clause 3(x)(b) of the Order is notapplicable.

xi. No fraud by the Company and no material fraud on the Company has been noticed orreported during the year. No report under sub-section (12) of section 143 of the CompaniesAct has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government during the year and up to the date ofthis report. No whistle blower complaints received by the Company during the year (andupto the date of this report).

xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

xiii. In our opinion the Company is in compliance with Section 177 and 188 of theCompanies Act 2013 with respect to applicable transactions with the related parties andthe details of related party transactions have been disclosed in the financial statementsas required by the applicable accounting standards.

xiv. In our opinion the Company has an adequate internal audit system commensurate withthe size and the nature of its business.

xv. In our opinion during the year the Company has not entered into any non-cashtransactions with its directors or persons connected with its directors. and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

xvi. In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Hence reporting under clause 3(xvi)(a) (b) and(c) of the Order is not applicable. In our opinion there is no core investment companywithin the Group (as defined in the Core Investment Companies (Reserve Bank) Directions2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

xvii. The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.

xviii.There has been no resignation of the statutory auditors of the Company during theyear.

xix. On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements the auditor's knowledge of the Board of Directors and managementplans we are Opinion that no material uncertainty exists as on the date of the auditreport that company is capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date;xx. Transfer to fund specified under Schedule VII of Companies Act 2013 is not applicableto the company.

For NSVR &ASSOCIATES LLP. Chartered Accountants (FRN No.008801S/S200060)

Venkata Ratnam.P Partner M.no:219486 UDIN:22230675AJVSHY7654

Place:Hyderabad

Date:30-05-2022

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