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AUDITOR'S REPORT

ITD Cementation India Ltd.

You can view full text of the latest Auditor's Report for the company.
Market Cap. (₹) 13448.39 Cr. P/BV 8.24 Book Value (₹) 94.96
52 Week High/Low (₹) 944/467 FV/ML 1/1 P/E(X) 36.07
Bookclosure 31/07/2025 EPS (₹) 21.70 Div Yield (%) 0.26
Year End :2025-03 

We have audited the accompanying Standalone
financial statements of
ITD Cementation India
Limited ("the Company”)
, which comprise the
Standalone Balance Sheet as at 31 March 2025,
and the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), the
Standalone Statement of Cash Flows and the
Standalone Statement of Changes in Equity for
the year then ended, and notes to the Standalone
financial statements, including a summary of
material accounting policies and other explanatory
information (hereinafter referred to as "the
Standalone financial statements”).

I n 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 ("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 31 March 2025, and its
profit (including other comprehensive income), its
cash flows and the changes in equity for the year
ended on that date.

2. Basis for Opinion

We conducted our audit of the Standalone financial
statements in accordance with the Standards on
Auditing (SAs) specified under section 143(10) of the
Act. Our responsibilities under those Standards are
further described in the "Auditor's Responsibility 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 (ICAI) together with the ethical requirements
that are relevant to our audit of the Standalone
financial statements under the provisions of the Act
and the Rules made thereunder, and we have fulfilled
our other ethical responsibilities in accordance with
these requirements and the ICAI's Code of Ethics.
We believe that the audit evidence obtained by us is
sufficient and appropriate to provide a basis for our
audit opinion on the Standalone financial statements.

3. Key Audit Matters

Key audit matters are those matters that, in our
professional judgement, were of most significance
in our audit of the Standalone financial statements
of the current year. 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.

We have determined the matters described below to
be 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 in
estimating revenue to be recognised on contracts
with customers, including estimation of costs to
complete (CTC). The Company recognises revenue
on the basis of stage of completion in proportion
of the contract costs incurred at balance sheet
date, relative to the total estimated costs of the
contract at completion. The recognition of revenue is
therefore dependent on estimates in relation to total
estimated costs of each such contract.

We selected sample of contracts with customers and
performed the following procedures:

a. Obtained and read contract documents for each
selection, change orders, and other documents th
were part of the agreement.

b. Identified significant terms and deliverables in
the contract to assess management's conclusions
regarding the

(i) changes to costs to complete as work

progresses and as a consequence of change
orders;

Sr.

No.

Key Audit Matter

How our audit addressed the 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 within
each contract. These contingencies are reviewed by

c. Obtaining an understanding of and evaluating
the reasonableness of the assumptions applied in

the Management on a regular basis throughout the
life of the contract and adjusted where appropriate.
The revenue on contracts may also include variable

determining the forecasted revenue and cost to
complete.

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 status
of delivery of milestones and customer acceptance
to identify possible delays in achieving milestones,
which require changes in estimated costs or efforts
to complete the remaining performance obligation.

B

Recoverability of Trade Receivables and Measurement of contract assets in respect of overdue milestones
and 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 the
management from independent legal counsel

Refer to Note Nos. 2(xvi)(a), 2(x) to the Standalone

in respect of certain contentious matters

Financial Statement.

under litigations;

Ý Assessing the allowance for impairment made by the
management. and

Ý Evaluating the appropriateness and adequacy of the
disclosures related to trade receivables and unbilled
revenue (contract assets) in the Standalone financial
statements in accordance with the applicable
accounting standards.

4. Information Other than the Standalone
Financial Statements and Auditor's Report
thereon

The Company's Management and Board of Directors
are responsible for the other information. The other
information comprises the information included in
Company's Annual Report, but does not include the
Standalone financial statements and our auditor's
report thereon.

Our opinion on the Standalone financial statements
does not cover the other information and we do
not and will not express any form of assurance
conclusion thereon. The Annual Report is expected
to be made available to us after the date of this
auditor's report.

I n connection with our audit of the Standalone
financial statements, our responsibility is to read the
other information and, in doing so, consider whether
the other information is materially inconsistent
with the Standalone financial statements or our
knowledge obtained during the course of our audit,
or otherwise appears to be materially misstated.
When we read the Annual report, if we conclude
that there is a material misstatement therein, we
are required to communicate the matter to those
charged with governance.

5. Responsibilities of Management and Those
Charged with Governance for the Standalone
Financial Statements

The accompanying Standalone financial statements
have been approved by the Company's Board of
Directors. The Company's Management and Those
Charged with Governance are responsible for the
matters stated in section 134(5) of the Act with
respect to the preparation and presentation of
these Standalone financial statements that give a
true and fair view of the financial position, financial
performance including other comprehensive
income, changes in equity and cash flows of the
Company in accordance with the Ind AS and other
accounting principles generally accepted in India.
This responsibility also includes maintenance of
adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of
the Company and for preventing and detecting frauds
and other irregularities; selection and application of
appropriate accounting policies; making judgements
and estimates that are reasonable and prudent;
and 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 statement that give a true and fair view and
are free from material misstatement, whether due to
fraud or error.

I n preparing the Standalone financial statements,
Management and Board of Directors are 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 Charged with Governance is also
responsible for overseeing the Company's financial
reporting process.

6. Auditors' Responsibility for the 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 auditors' 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 judgement and maintain professional
skepticism throughout the audit. We also:

Ý 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.

Ý 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 Act,
we are also responsible for expressing our opinion
on whether the Company has adequate internal
financial controls with reference to Standalone
financial statement in place and the operating
effectiveness of such controls.

Ý Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures in
the Standalone financial statement made by the
Management and those charged with Governance.

Ý Conclude on the appropriateness of those
charged with Governance and 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 Standalone
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 as a going concern.

Ý 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 of the current
period and are therefore the key audit matters.
We describe these matters in our auditors' 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.

7. Report on Other Legal and Regulatory
Requirements

a. As required by the Companies (Auditors'
Report) Order, 2020 ("the Order”) issued by the
Central Government of India in terms of Section
143(11) of the Companies Act, 2013, we give in
the
"Annexure A”, a statement on the matters
specified in paragraphs 3 and 4 of the Order, to
the extent applicable.

b. As required by Section 143(3) of the Act,

we report that:

i. We have sought and obtained all the
information and explanations which to
the best of our knowledge and belief were
necessary for the purposes of our audit.

ii. I n our opinion, proper books of account
as required by law have been kept by
the Company, in electronic mode so
far as it appears from our examination
of those books.

iii. The Standalone Balance Sheet, the
Standalone Statement of Profit and Loss
including Other Comprehensive Income,
Standalone Statement of Changes in
Equity and the Standalone Cash Flow
Statement dealt with by this Report are in
agreement with the books of account.

iv. I n our opinion, the aforesaid Standalone
financial statements comply with the Ind AS
specified under Section 133 of the Act read
with the Companies (Indian Accounting
Standards) Rules, 2015, as amended.

v. On the basis of the written representations
received from the directors as on
31st March, 2025 taken on record by the
Board of Directors, none of the directors
is disqualified as on 31st March, 2025 from
being appointed as a director in terms of
Section 164 (2) of the Act.

vi. With respect to the adequacy of the
internal financial controls with reference
to Standalone financial statement of the
Company and the operating effectiveness
of such controls, refer to our separate
Report in
"Annexure B” to this report.

vii. 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, as
amended, 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 pending litigations on its financial
position in its Standalone financial
statement in Note 32.

b) The Company did not have any long
term contracts including derivative
contracts for which there were
any material foreseeable losses as
at 31 March 2025.

c) There were no amounts which were
required 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 knowledge
and belief and as disclosed in
the Note 45 to the Standalone
financial statements, no funds
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(s) or entity(ies),
including foreign entities
("Intermediaries”), with the
understanding, whether recorded
in writing or otherwise, that the
Intermediary shall, 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 and as disclosed in
the Note 45 to the Standalone
financial statements, no funds
have been received by the
company from any person(s)
or entity(ies), including foreign
entities ("Funding Parties”), with
the understanding, whether
recorded in writing or otherwise,
that the company shall, 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; and

(iii) Based on such audit procedures
performed and information
and explanation given, nothing
has come to our notice that
has caused us to believe that
the representations under
sub-clause (i) and (ii) contain any
material mis-statement.

e) The final dividend paid by the

Company during the year in respect

of the same declared for the previous
year is in accordance with section 123
of the Act to the extent it applies to
payment of dividend.

As stated in Note 44 to the Standalone
financial statements, the Board
of Directors of the Company have
proposed final dividend for the year
which is subject to the approvals of
the members at the ensuing Annual
General Meeting. The dividend
declared is in accordance with section
123 of the Act to the extent it applies
to declaration of dividend.

f) The reporting under Rule 11(g)
of the Companies (Audit and
Auditors) Rules, 2014

Based on the audit procedure
performed that have been considered
reasonable and appropriate in the
circumstances by us, which included
test checks, the Company has a widely
used ERP as its accounting software
for maintaining its books of account
which has a feature of recording audit
trail (edit log) facility and that has
operated throughout the financial year
for all relevant transactions recorded
in the said software. During the course
of performing our procedures, we did
not notice any instance of audit trail
feature being tampered with, for the
period the audit trail feature was
enabled. The audit trail, where enabled
in previous year, has been preserved
by the company as per the statutory
requirements for record retention.

c. With respect to the other matters to be included
in Auditor's Report in accordance with the
requirements of section 197 (16) of the Act, as
amended, in our opinion and to the best of our
informations and according to the explanations
given to us, the remuneration paid by the
Company to its directors during the year is in
accordance with the provisions of the Section
197 of the Act.

For T R Chadha & Co LLP

Chartered Accountants
Firm Regn. No: 006711N/N500028

Pramod Tilwani

Partner

Place: Mumbai Membership No. 076650

Date: 13th May 2025 UDIN: 25076650BMJFYN4393

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