Vaxfab Enterprises Initiates Forensic Audit Over Missing Records

Independent Forensic Audit appointed for FY23-FY25; Fee set at Rs 3.00 lakh.

Reader Takeaway: Management transition triggered investigation into missing documentation and active GST regulatory scrutiny for the company.

What just happened

Vaxfab Enterprises Ltd has officially appointed M/s. ASGM & Co., Chartered Accountants, to conduct a forensic audit covering the financial years 2022-23, 2023-24, and 2024-25. The company will pay a professional fee of Rs 3.00 lakh plus applicable taxes and out-of-pocket expenses to complete this engagement.

Why this matters

The investigation follows the management transition that occurred on April 1, 2025. During the handover, the company reported that critical historical records—including primary accounting, purchase, and statutory documents—were not fully provided to the new management. The company is simultaneously dealing with queries from GST authorities regarding historical transactions and input tax credit claims, necessitating an independent review to ensure financial integrity.

The scope of the audit

The auditors are tasked with a comprehensive review of the company's financial ecosystem. The scope includes:

• Validating the integrity of Tally data and supporting ledgers.
• Reconciling bank, purchase, and sales transactions.
• Investigating related-party transactions and significant loan movements.
• Reviewing purchase patterns specifically linked to GST input tax credit claims.

What to track next

The Board and Audit Committee will review the forensic findings once concluded. Shareholders should track future exchange filings for updates on potential financial discrepancies or regulatory risks identified during this process, as these could influence the company’s compliance status and future financial reporting.