We have audited the standalone financial statements of ShreeDigvijay Cement Company Limited (the "Company") whichcomprise the standalone balance sheet as at 31 March 2025,and the standalone statement of profit and loss (including othercomprehensive income), standalone statement of changesin equity and standalone statement of cash flows for the yearthen ended, and notes to the standalone financial statements,including material accounting policies and other explanatoryinformation.
In our opinion and to the best of our information and according tothe explanations given to us, the aforesaid standalone financialstatements give the information required by the CompaniesAct, 2013 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generallyaccepted in India, of the state of affairs of the Company as at31 March 2025, and its profit and other comprehensive loss,changes in equity and its cash flows for the year ended on thatdate.
We conducted our audit in accordance with the Standardson Auditing (SAs) specified under Section 143(10) of the Act.Our responsibilities under those SAs are further described inthe Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independentof the Company in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Actand the Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements andthe Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for ouropinion on the standalone financial statements.
Key Audit Matter
Key audit matters are those matters that, in our professionaljudgment, were of most significance in our audit of thestandalone financial statements of the current period. Thesematters were addressed in the context of our audit of thestandalone financial statements as a whole, and in forming ouropinion thereon, and we do not provide a separate opinion onthese matters.
Revenue recognition
See Note 2.04, 28 and 42 to standalone financial statements
The key audit matter
How the matter was addressed in our audit
• Revenue is recognised when the control over theunderlying products has been transferred to thecustomer and is measured at the transaction price i.econsideration, after deduction of discounts.
• We consider a risk of misstatement of the FinancialStatements related to revenue recognised during theyear and as at year end which may include:
i. overstatement of revenues by recording revenuesin the current reporting period which should berecognised in a subsequent year based on thedelivery terms as per customer agreement; or
ii. risk of recording fictitious revenue to achieve thetargets.
• Accordingly, revenue recognition during the year and asat year end is considered as a key audit matter.
Our audit procedures include:
• Assessing the Company's revenue recognition policy forcompliance with Ind AS.
• Testing the design, implementation and operatingeffectiveness of the Company's manual and automatedcontrols around recording of revenue.
• Verifying the appropriateness of revenue recognitionwhich included evaluating the Company's transit timeassessment and quantification of any sales reversalsbased on the delivery terms as per customer agreement.
• Performing testing on selected statistical samples ofrevenue transactions recorded and checking deliverydocuments for ascertaining the actual delivery of goods.
• Assessing high risk journals posted to revenue toidentify any unusual items.
• Assessing and testing the adequacy of presentation anddisclosures.
The Company's Management and Board of Directors areresponsible for the other information. The other informationcomprises the information included in the annual report, butdoes not include the financial statements and auditor's report(s)thereon. The annual report is expected to be made available tous after the date of this auditor's report.
Our opinion on the standalone financial statements does notcover the other information and we will not express any form ofassurance conclusion thereon.
In connection with our audit of the standalone financialstatements, our responsibility is to read the other informationidentified above when it becomes available and, in doingso, consider whether the other information is materiallyinconsistent with the standalone financial statements or ourknowledge obtained in the audit, or otherwise appears to bematerially misstated.
When we read the annual report, if we conclude that there is amaterial misstatement therein, we are required to communicatethe matter to those charged with governance and take necessaryactions, as applicable under the relevant laws and regulations.
The Company's Management and Board of Directors areresponsible for the matters stated in Section 134(5) of the Actwith respect to the preparation of these standalone financialstatements that give a true and fair view of the state of affairs,profit / loss and other comprehensive income, changes inequity and cash flows of the Company in accordance with theaccounting principles generally accepted in India, including theIndian Accounting Standards (Ind AS) specified under Section133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; anddesign, implementation and maintenance of adequate internalfinancial controls, that were operating effectively for ensuringthe accuracy and completeness of the accounting records,relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are freefrom material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, theManagement and Board of Directors are responsible forassessing the Company's ability to continue as a going concern,disclosing, as applicable, matters related to going concern andusing the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
Our objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and toissue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guaranteethat an audit conducted in accordance with SAs will alwaysdetect a material misstatement when it exists. Misstatementscan arise from fraud or error and are considered material if,individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken onthe basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professional skepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatement ofthe standalone financial statements, whether due to fraudor error, design and perform audit procedures responsiveto those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraudmay involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant tothe audit in order to design audit procedures that areappropriate in the circumstances. Under Section 143(3)
(i) of the Act, we are also responsible for expressing ouropinion on whether the company has adequate internalfinancial controls with reference to financial statementsin place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates andrelated disclosures made by the Management and Boardof Directors.
• Conclude on the appropriateness of the Managementand Board of Directors use of the going concern basisof accounting in preparation of standalone financialstatements and, based on the audit evidence obtained,whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on theCompany's ability to continue as a going concern. Ifwe conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to therelated disclosures in the standalone financial statementsor, if such disclosures are inadequate, to modify ouropinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However,future events or conditions may cause the Company tocease to continue as a going concern.
• Evaluate the overall presentation, structure and contentof the standalone financial statements, including thedisclosures, and whether the standalone financialstatements represent the underlying transactions andevents in a manner that achieves fair presentation.
We communicate with those charged with governance regarding,among other matters, the planned scope and timing of theaudit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statementthat we have complied with relevant ethical requirementsregarding independence, and to communicate with them allrelationships and other matters that may reasonably be thoughtto bear on our independence, and where applicable, relatedsafeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were of mostsignificance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters.We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when,in extremely rare circumstances, we determine that a mattershould not be communicated in our report because the adverseconsequences of doing so would reasonably be expected tooutweigh 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 ("the Order") issued by the Central Government ofIndia in terms of Section 143(11) of the Act, we give inthe "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order, to the extent applicable.
2 A. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the informationand explanations which to the best of our knowledgeand belief were necessary for the purposes of ouraudit.
b. In our opinion, proper books of account as requiredby law have been kept by the Company so far asit appears from our examination of those booksexcept for the matters stated in the paragraph2B(f) below on reporting under Rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014.
c. The standalone balance sheet, the standalonestatement of profit and loss (including othercomprehensive income), the standalone statementof changes in equity and the standalone statementof cash flows dealt with by this Report are inagreement with the books of account.
d. In our opinion, the aforesaid standalone financialstatements comply with the Ind AS specified underSection 133 of the Act.
e. On the basis of the written representations receivedfrom the directors as on 1 April 2025 taken on recordby the Board of Directors, none of the directorsis disqualified as on 31 March 2025 from beingappointed as a director in terms of Section 164(2)of the Act.
f. The modification relating to the maintenance ofaccounts and other matters connected therewithare as stated in the paragraph 2A(b) above onreporting under Section 143(3)(b) of the Act andparagraph 2B(f) below on reporting under Rule11(g) of the Companies (Audit and Auditors) Rules,2014.
g. With respect to the adequacy of the internal financialcontrols with reference to financial statementsof the Company and the operating effectivenessof such controls, refer to our separate Report in"Annexure B".
B. 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:
a. The Company has disclosed the impact of pendinglitigations as at 31 March 2025 on its financialposition in its standalone financial statements- Refer Note 27 to the standalone financialstatements.
b. The Company did not have any long-term contractsincluding derivative contracts for which there wereany material foreseeable losses.
c. There were no amounts which were required to betransferred to the Investor Education and ProtectionFund by the Company.
d. (i) The management has represented that, to the
best of its knowledge and belief, as disclosedin the Note 37(d) to the standalone financialstatements, no funds have been advanced
or loaned or invested (either from borrowedfunds or share premium or any other sourcesor kind of funds) by the Company to or inany other person(s) or entity(ies), includingforeign entities ("Intermediaries"), with theunderstanding, whether recorded in writing orotherwise, that the Intermediary shall directlyor indirectly lend or invest in other persons orentities identified in any manner whatsoeverby or on behalf of the Company ("UltimateBeneficiaries") or provide any guarantee,security or the like on behalf of the UltimateBeneficiaries.
(ii) The management has represented that, to thebest of its knowledge and belief, as disclosedin the Note 37(d) to the standalone financialstatements, no funds have been received bythe Company from any person(s) or entity(ies),including foreign entities ("Funding Parties"),with the understanding, whether recorded inwriting or otherwise, that the Company shalldirectly or indirectly, lend or invest in otherpersons or entities identified in any mannerwhatsoever by or on behalf of the FundingParties ("Ultimate Beneficiaries") or provideany guarantee, security or the like on behalfof the Ultimate Beneficiaries.
(iii) Based on the audit procedures that have beenconsidered reasonable and appropriate inthe circumstances, nothing has come to ournotice that has caused us to believe that therepresentations under sub-clause (i) and (ii)of Rule 11(e), as provided under (i) and (ii)above, contain any material misstatement.
e. The final dividend paid by the Company during theyear, in respect of the same declared for the previousyear, is in accordance with Section 123 of the Act tothe extent it applies to payment of dividend.
As stated in Note 17 to the standalone financialstatements, the Board of Directors of the Companyhas proposed final dividend for the year whichis subject to the approval of the members at the
ensuing Annual General Meeting. The dividenddeclared is in accordance with Section 123 of theAct to the extent it applies to declaration of dividend.
f. Based on our examination which included testchecks, the Company has used an accountingsoftware for maintaining its books of account,which has a feature of recording audit trail (edit log)facility and the same has been operated throughoutthe year for all relevant transactions recorded inthe software except that: the feature of recordingaudit trail (edit log) facility was not enabled at thedatabase level to log any direct data changes andfor certain non-editable fields/tables pertaining torevenue, inventory and other processes.
Further, where audit trail (edit log) facility wasenabled and operated throughout the year, we didnot come across any instance of the audit trailfeature being tampered with. Additionally, other thanthe periods where the audit trail was not enabled inthe previous year, the audit trail has been preservedby the Company as per the statutory requirementsfor record retention.
C. With respect to the matter to be included in the Auditor'sReport under Section 197(16) of the Act:
In our opinion and according to the information andexplanations given to us, the remuneration paid by theCompany to its directors during the current year is inaccordance with the provisions of Section 197 of theAct. The remuneration paid to any director is not inexcess of the limit laid down under Section 197 of theAct. The Ministry of Corporate Affairs has not prescribedother details under Section 197(16) of the Act which arerequired to be commented upon by us.
For B S R and Co
Chartered AccountantsFirm's Registration No.:128510W
Jeyur Shah
Partner
Place: Digvijaygram Membership No.: 045754
Date: 28 April 2025 ICAI UDIN:25045754BMIWCE5046