We have audited the accompanying Standalonefinancial statements of ITD Cementation IndiaLimited ("the Company”), which comprise theStandalone Balance Sheet as at 31 March 2025,and the Standalone Statement of Profit and Loss(including Other Comprehensive Income), theStandalone Statement of Cash Flows and theStandalone Statement of Changes in Equity forthe year then ended, and notes to the Standalonefinancial statements, including a summary ofmaterial accounting policies and other explanatoryinformation (hereinafter referred to as "theStandalone financial statements”).
I n our opinion and to the best of our informationand according to the explanations given to us, theaforesaid Standalone financial statements givethe information required by the Companies Act,2013 ("the Act”) in the manner so required andgive a true and fair view in conformity with theIndian Accounting Standards prescribed undersection 133 of the Act read with the Companies(Indian Accounting Standards) Rules, 2015, asamended, ("Ind AS”) and other accounting principlesgenerally accepted in India, of the state of affairsof the Company as at 31 March 2025, and itsprofit (including other comprehensive income), itscash flows and the changes in equity for the yearended on that date.
We conducted our audit of the Standalone financialstatements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards arefurther described in the "Auditor's Responsibility forthe Audit of the Standalone Financial Statements”section of our report. We are independent of theCompany in accordance with the "Code of Ethics”issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirementsthat are relevant to our audit of the Standalonefinancial statements under the provisions of the Actand the Rules made thereunder, and we have fulfilledour other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics.We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for ouraudit opinion on the Standalone financial statements.
Key audit matters are those matters that, in ourprofessional judgement, were of most significancein our audit of the Standalone financial statementsof the current year. These matters were addressed inthe context of our audit of the Standalone financialstatements as a whole, and in forming our opinionthereon, and we do not provide a separate opinionon these matters.
We have determined the matters described below tobe the keyaudit mattersto be communicated inour report.
No Key Audit Matter
How our audit addressed the key audit matter
A Revenue recognition - accounting for construction contracts
There are significant accounting judgements inestimating revenue to be recognised on contractswith customers, including estimation of costs tocomplete (CTC). The Company recognises revenueon the basis of stage of completion in proportionof the contract costs incurred at balance sheetdate, relative to the total estimated costs of thecontract at completion. The recognition of revenue istherefore dependent on estimates in relation to totalestimated costs of each such contract.
We selected sample of contracts with customers andperformed the following procedures:
a. Obtained and read contract documents for eachselection, change orders, and other documents thwere part of the agreement.
b. Identified significant terms and deliverables inthe contract to assess management's conclusionsregarding the
(i) changes to costs to complete as work
progresses and as a consequence of changeorders;
Sr.
No.
Key Audit Matter
Significant judgements are involved in determining
(ii) the impact of change orders on the transaction
the expected losses, when such losses become
price; and
probable based on the expected total contract cost.
(iii) the evaluation of the adjustment to the
Cost contingencies are included in these estimates
transaction price on account of variable
to take into account specific risks of uncertainties or
consideration.
disputed claims against the Company, arising withineach contract. These contingencies are reviewed by
c. Obtaining an understanding of and evaluatingthe reasonableness of the assumptions applied in
the Management on a regular basis throughout thelife of the contract and adjusted where appropriate.The revenue on contracts may also include variable
determining the forecasted revenue and cost tocomplete.
consideration (variations and claims). Variable
d. Reviewing legal and/or contracting experts reports
consideration is recognised when the recovery of
received on certain contentious matters.
such consideration is highly probable.
e. for cost incurred to date, testing samples to
Refer to Note No. 2(xvi)(a) to the Standalone
appropriate supporting documents and performing
Financial Statement.
cut-off procedures.
f. Tested the estimate for consistency with the statusof delivery of milestones and customer acceptanceto identify possible delays in achieving milestones,which require changes in estimated costs or effortsto complete the remaining performance obligation.
B
Recoverability of Trade Receivables and Measurement of contract assets in respect of overdue milestonesand overdue receivables
The Company, in its contract with customers,
Our audit procedures to address this key audit matter
promises to transfer distinct services to its
included, but were not limited to the following:
customers, which may be rendered in the form of
Ý Obtaining an understanding of the Company's
engineering, procurement, and construction (''EPC”)
processes, evaluating the design and testing the
services through design-build contracts, and other
effectiveness of key internal financial controls
forms of construction contracts. The recognition of
over the recoverability of the trade receivables and
revenue is based on contractual terms, which could
contract assets;
be based on agreed unit price or lump-sum revenue
Ý We have been provided certification of the work by
arrangements. At each reporting date, revenue is
customer for selected sample;
accrued for costs incurred against work performed
Ý Circulating and obtaining confirmations for trade
that may not have been invoiced. Identifying whether
receivables, on sample basis, with respect to
the Company's performance has resulted in a service
outstanding balances;
that would be billable and collectable where the
Ý Performing additional procedures, in respect of
works carried out have not been acknowledged
material trade receivables and contract assets such
by customers as of the reporting date, involves
as testing subsequent payments / certifications
a significant amount of judgement. Assessing
from customers;
the recoverability of contract assets related to
Ý Performing inquiry procedures with senior
overdue milestones and amounts overdue against
management of the Company regarding the
invoices raised which have remained unsettled
recoverability of the receivables;
for a significantly long period after the end of the
Ý Verifying contractual arrangements to evaluate
contractual credit period also involves a significant
management's assessment on the tenability and
amount of judgement.
recoverability of these receivables;
Ý Reviewing the legal opinions obtained by themanagement from independent legal counsel
Refer to Note Nos. 2(xvi)(a), 2(x) to the Standalone
in respect of certain contentious matters
under litigations;
Ý Assessing the allowance for impairment made by themanagement. and
Ý Evaluating the appropriateness and adequacy of thedisclosures related to trade receivables and unbilledrevenue (contract assets) in the Standalone financialstatements in accordance with the applicableaccounting standards.
4. Information Other than the StandaloneFinancial Statements and Auditor's Reportthereon
The Company's Management and Board of Directorsare responsible for the other information. The otherinformation comprises the information included inCompany's Annual Report, but does not include theStandalone financial statements and our auditor'sreport thereon.
Our opinion on the Standalone financial statementsdoes not cover the other information and we donot and will not express any form of assuranceconclusion thereon. The Annual Report is expectedto be made available to us after the date of thisauditor's report.
I n connection with our audit of the Standalonefinancial statements, our responsibility is to read theother information and, in doing so, consider whetherthe other information is materially inconsistentwith the Standalone financial statements or ourknowledge obtained during the course of our audit,or otherwise appears to be materially misstated.When we read the Annual report, if we concludethat there is a material misstatement therein, weare required to communicate the matter to thosecharged with governance.
5. Responsibilities of Management and ThoseCharged with Governance for the StandaloneFinancial Statements
The accompanying Standalone financial statementshave been approved by the Company's Board ofDirectors. The Company's Management and ThoseCharged with Governance are responsible for thematters stated in section 134(5) of the Act withrespect to the preparation and presentation ofthese Standalone financial statements that give atrue and fair view of the financial position, financialperformance including other comprehensiveincome, changes in equity and cash flows of theCompany in accordance with the Ind AS and otheraccounting principles generally accepted in India.This responsibility also includes maintenance ofadequate accounting records in accordance with theprovisions of the Act for safeguarding the assets ofthe Company and for preventing and detecting fraudsand other irregularities; selection and application ofappropriate accounting policies; making judgementsand estimates that are reasonable and prudent;and design, implementation and maintenance ofadequate internal financial controls, that wereoperating effectively for ensuring the accuracy andcompleteness of the accounting records, relevant tothe preparation and presentation of the Standalonefinancial statement that give a true and fair view andare free from material misstatement, whether due tofraud or error.
I n preparing the Standalone financial statements,Management and Board of Directors are responsiblefor assessing the Company's ability to continue asa going concern, disclosing, as applicable, mattersrelated to going concern and using the goingconcern basis of accounting unless managementeither intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.
Those Charged with Governance is alsoresponsible for overseeing the Company's financialreporting process.
6. Auditors' Responsibility for the Audit of theStandalone Financial Statements
Our objectives are to obtain reasonable assuranceabout whether the Standalone financial statementsas a whole are free from material misstatement,whether due to fraud or error, and to issuean auditors' report that includes our opinion.Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted inaccordance with SAs will always detect a materialmisstatement when it exists. Misstatements canarise from fraud or error and are considered materialif, individually or in the aggregate, they couldreasonably be expected to influence the economicdecisions of users taken on the basis of theseStandalone financial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgement and maintain professionalskepticism throughout the audit. We also:
Ý Identify and assess the risks of materialmisstatement of the Standalone financialstatements, whether due to fraud or error, designand perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion.The risk of not detecting a material misstatementresulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or theoverride of internal control.
Ý Obtain an understanding of internal financialcontrol relevant to the audit in order to designaudit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act,we are also responsible for expressing our opinionon whether the Company has adequate internalfinancial controls with reference to Standalonefinancial statement in place and the operatingeffectiveness of such controls.
Ý Evaluate the appropriateness of accountingpolicies used and the reasonableness ofaccounting estimates and related disclosures inthe Standalone financial statement made by theManagement and those charged with Governance.
Ý Conclude on the appropriateness of thosecharged with Governance and Management's useof the going concern basis of accounting and,based on the audit evidence obtained, whethera material uncertainty exists related to events orconditions that may cast significant doubt on theCompany'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'sreport to the related disclosures in the Standalonefinancial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up tothe date of our auditors' report. However, futureevents or conditions may cause the Company tocease to continue as a going concern.
Ý Evaluate the overall presentation, structure andcontent of the Standalone financial statements,including the disclosures, and whether theStandalone financial statements represent theunderlying transactions and events in a mannerthat achieves fair presentation.
We communicate with those charged withgovernance regarding, among other matters, theplanned scope and timing of the audit and significantaudit findings, including any significant deficienciesin internal control that we identify during our audit.
We also provide those charged with governance witha statement that we have complied with relevantethical requirements regarding independence, andto communicate with them all relationships andother matters that may reasonably be thought tobear on our independence, and where applicable,related safeguards.
From the matters communicated with those chargedwith governance, we determine those mattersthat were of most significance in the audit of theStandalone financial statements of the currentperiod and are therefore the key audit matters.We describe these matters in our auditors' reportunless law or regulation precludes public disclosureabout the matter or when, in extremely rarecircumstances, we determine that a matter shouldnot be communicated in our report because theadverse consequences of doing so would reasonablybe expected to outweigh the public interest benefitsof such communication.
a. As required by the Companies (Auditors'Report) Order, 2020 ("the Order”) issued by theCentral Government of India in terms of Section143(11) of the Companies Act, 2013, we give inthe "Annexure A”, a statement on the mattersspecified in paragraphs 3 and 4 of the Order, tothe extent applicable.
b. As required by Section 143(3) of the Act,
we report that:
i. We have sought and obtained all theinformation and explanations which tothe best of our knowledge and belief werenecessary for the purposes of our audit.
ii. I n our opinion, proper books of accountas required by law have been kept bythe Company, in electronic mode sofar as it appears from our examinationof those books.
iii. The Standalone Balance Sheet, theStandalone Statement of Profit and Lossincluding Other Comprehensive Income,Standalone Statement of Changes inEquity and the Standalone Cash FlowStatement dealt with by this Report are inagreement with the books of account.
iv. I n our opinion, the aforesaid Standalonefinancial statements comply with the Ind ASspecified under Section 133 of the Act readwith the Companies (Indian AccountingStandards) Rules, 2015, as amended.
v. On the basis of the written representationsreceived from the directors as on31st March, 2025 taken on record by theBoard of Directors, none of the directorsis disqualified as on 31st March, 2025 frombeing appointed as a director in terms ofSection 164 (2) of the Act.
vi. With respect to the adequacy of theinternal financial controls with referenceto Standalone financial statement of theCompany and the operating effectivenessof such controls, refer to our separateReport in "Annexure B” to this report.
vii. With respect to the other matters tobe included in the Auditor's Report inaccordance with Rule 11 of the Companies(Audit and Auditors) Rules, 2014, asamended, in our opinion and to the bestof our information and according to theexplanations given to us:
a) The Company has disclosed the impactof pending litigations on its financialposition in its Standalone financialstatement in Note 32.
b) The Company did not have any longterm contracts including derivativecontracts for which there wereany material foreseeable losses asat 31 March 2025.
c) There were no amounts which wererequired to be transferred to the
Investor Education and Protection
Fund by the Company for the year
ended 31 March 2025.
d) (i) The management has represented
that, to the best of its knowledgeand belief and as disclosed inthe Note 45 to the Standalonefinancial statements, no fundshave been advanced or loaned orinvested (either from borrowedfunds or share premium or anyother sources or kind of funds)by the company to or in anyother person(s) or entity(ies),including foreign entities("Intermediaries”), with theunderstanding, whether recordedin writing or otherwise, that theIntermediary shall, directly orindirectly lend or invest in otherpersons or entities identifiedin any manner whatsoever byor on behalf of the company("Ultimate Beneficiaries”) orprovide any guarantee, securityor the like on behalf of theUltimate Beneficiaries;
(ii) The management has representedthat, to the best of its knowledgeand belief and as disclosed inthe Note 45 to the Standalonefinancial statements, no fundshave been received by thecompany from any person(s)or entity(ies), including foreignentities ("Funding Parties”), withthe understanding, whetherrecorded in writing or otherwise,that the company shall, directly orindirectly, lend or invest in otherpersons or entities identified inany manner whatsoever by oron behalf of the Funding Party("Ultimate Beneficiaries”) orprovide any guarantee, security orthe like on behalf of the UltimateBeneficiaries; and
(iii) Based on such audit proceduresperformed and informationand explanation given, nothinghas come to our notice thathas caused us to believe thatthe representations undersub-clause (i) and (ii) contain anymaterial mis-statement.
e) The final dividend paid by the
Company during the year in respect
of the same declared for the previousyear is in accordance with section 123of the Act to the extent it applies topayment of dividend.
As stated in Note 44 to the Standalonefinancial statements, the Boardof Directors of the Company haveproposed final dividend for the yearwhich is subject to the approvals ofthe members at the ensuing AnnualGeneral Meeting. The dividenddeclared is in accordance with section123 of the Act to the extent it appliesto declaration of dividend.
f) The reporting under Rule 11(g)of the Companies (Audit andAuditors) Rules, 2014
Based on the audit procedureperformed that have been consideredreasonable and appropriate in thecircumstances by us, which includedtest checks, the Company has a widelyused ERP as its accounting softwarefor maintaining its books of accountwhich has a feature of recording audittrail (edit log) facility and that hasoperated throughout the financial yearfor all relevant transactions recordedin the said software. During the courseof performing our procedures, we didnot notice any instance of audit trailfeature being tampered with, for theperiod the audit trail feature wasenabled. The audit trail, where enabledin previous year, has been preservedby the company as per the statutoryrequirements for record retention.
c. With respect to the other matters to be includedin Auditor's Report in accordance with therequirements of section 197 (16) of the Act, asamended, in our opinion and to the best of ourinformations and according to the explanationsgiven to us, the remuneration paid by theCompany to its directors during the year is inaccordance with the provisions of the Section197 of the Act.
For T R Chadha & Co LLP
Chartered AccountantsFirm Regn. No: 006711N/N500028
Pramod Tilwani
Partner
Place: Mumbai Membership No. 076650
Date: 13th May 2025 UDIN: 25076650BMJFYN4393