1. We have audited the accompanying Standalone Financial Statements of ENGINEERS INDIA LIMITED ("the company"), whichcomprise the Balance Sheet as at 31st March 2025, the statement of Profit and Loss (including other comprehensive income),the Statement of Changes in Equity and Statement of Cash Flow for the year then ended, and a summary of material accountingpolicies and other explanatory information (hereinafter referred to as "the Standalone Financial Statements") which include twojoint operations accounted for on proportionate basis.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid StandaloneFinancial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and givea true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind As"), and other accounting principles generallyaccepted in India, of the state of affairs of the Company as at 31 March 2025, the profit and total comprehensive income,changes in equity and its cash flows for the year ended on that date.
3. We conducted our audit of Standalone Financial Statements in accordance with the Standards on Auditing ("SAs") specified undersection 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities forthe Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirementsthat 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 ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion onthe Standalone Financial Statements.
4. We draw reference to Note 52 of Standalone Financial Statements related to contractor's claim H 40960.75 Lakh and counterclaim by company H 12,907.15 Lakh, in litigation pending with Hon'ble Supreme Court in respect of termination of contract bycompany in 2016.
Our opinion is not modified in respect of above matter.
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the StandaloneFinancial Statements of the current period. These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We havedetermined the matters described below to be the key audit matters to be communicated in our report:
Sr.
No.
Key Audit Matter
How our audit addressed the key audit matter
A
Revenue Recognition from Construction Contracts (Refer
Our audit procedures included, but were not limited to the
Note 3B and 24 of Standalone Financial Statements)
following:
The Company's revenue primarily arises from construction
• Evaluating the appropriateness of the Company's
contracts which, may be rendered in the form of engineeringconsultancy services and engineering procurement and
accounting policy for revenue recognition.
construction (EPC) services through design-build contracts, and
• Obtaining an understanding of the Company's processes
cost plus forms of construction contracts which by their nature,
and evaluating the design and testing the effectiveness of
are complex given the significant judgments involved in the
key internal financial controls, including those related to
assessment of current and future contractual performance
review and approval of contract estimates.
obligations. The Company recognizes revenue relying on the
• For a sample of contracts, testing the appropriateness
estimates in relation to forecast contract revenue and forecast
of amount recognized as revenue, basis percentage
contract costs on the basis of stage of completion which is
of completion method by evaluating key management
determined based on the proportion of contract costs incurred
judgments inherent in determining forecasted contract
at balance sheet date, relative to the total estimated costs ofthe contract at completion.
revenue and costs to complete the contract, including:
• verifying the underlying documents such as original
These contract estimates are reviewed by the management on
contract and its amendments, if any, for reviewing the
a periodic basis. In doing so, the management is required toexercise judgment in its assessment of the valuation of contract
significant contract terms and conditions;
variations, claims and liquidated damages as well as the
• evaluating the identification of performance obligationof the contract;
completeness and accuracy of forecast costs to complete and
the ability to deliver contracts within contractually determined
• testing the existence and valuation of variable consideration
timelines.
The revenue on contracts may also include variable
with respect to the contractual terms and inspecting therelated correspondences with customers; and
considerations which are recognized when the recovery of such
• testing the estimates for consistency with the status of
consideration is highly probable.
delivery of milestones and customers' acceptance to
Changes in these judgments, and the related estimates ascontracts progress can result in material adjustments to
identify possible delays in achieving milestones, whichrequire changes in estimated costs or efforts to complete
revenue. In view of the involvement of significant estimates
the remaining performance obligation.
by the management and material impact on the Financial
• for cost incurred to date, testing samples to appropriate
Statements, the matter has been determined as Key Audit
supporting documents and performing cut-off procedures;
Matter.
• Performing analytical procedures for reasonableness ofrevenue recognized; and
• Evaluating the appropriateness and adequacy of thedisclosures related to contract revenue and costs in theStandalone Financial Statements in accordance with theapplicable accounting standards.
B
Contingent liabilities (Refer note 40A and 53) of Standalone
Our audit procedures included but were not limited to:
Financial Statements)
• Obtaining a detailed understanding processes and controls
The Company is subject to number of commercial claims
of the Management with respect to claims or disputes.
including employees claims and tax & legal disputes, which
• Evaluation of the design of the controls relating to compilation
have been disclosed in the financial statements based on the
of the claims, assessment of probability of outcome, estimates
facts and circumstances of each case.
of the timing and the amount of the outflows, an appropriate
Taxation and litigation exposures have been identified as a key
reporting by the management and testing implementation
audit matter due to the complexities involved in these matters,time scales involved for resolution and the potential financialimpact of these on the financial statements.
and operating effectiveness of the key controls.
Key Audit MatterNo.
Further, significant management judgment is involved inassessing the exposure of each case and thus a risk that suchcases may not be adequately provided for or disclosed.
Performing following procedures on sample selected:
• Understanding the matters by reading thecorrespondences, communications, minutes of the AuditCommittee and or the Board meetings and discussionswith the appropriate management personnel.
•
Making corroborative inquiries with appropriate levelof the management personnel including status update,expectation of outcomes with the basis, and the futurecourse of action contemplated by the Company, andperusing legal opinions, if any, obtained by the management.
Considering their opinions of attorney wherever availableon probability assessment of the outcomes.
Evaluating the evidence supporting the judgment ofthe management about possible outcomes and thereasonableness of the estimates.
Evaluating appropriateness of adequate disclosures inaccordance with the applicable accounting standards.
6. The Company's Board of Directors is responsible for the preparation of other information. The other information comprisesthe information included in the Management Discussion and Analysis, Board's report including annexures to Board's Report,Business Responsibility & Sustainability Report, Corporate Governance and Shareholders' Information, but does not include theStandalone Financial Statements and our auditor's report thereon.
7. Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form ofassurance thereon.
8. In 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 ourknowledge obtained during the course of audit, or otherwise appears to be materially misstated.
9. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact to those charged with governance and review the steps taken by the management to communicateto those in receipt of the other information, if previously issued, to inform them of the revision.
The Other information is expected to be made available to us after the date of this auditor's report and if we conclude that thereis a material misstatement therein, we are required to communicate the matter to those charged with governance.
10. The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparationof these Standalone Financial Statements that give a true and fair view of the financial position, financial performance includingother comprehensive income, changes in equity and cash flows of the company in accordance with the Ind AS and accountingprinciples generally accepted in India. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimatesthat are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, thatwere operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparationand presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement,whether due to fraud or error.
11. In preparing the Standalone Financial Statements, Management is responsible for assessing the Company's ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accountingunless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
12. The Board of Directors are also responsible for overseeing the Company's financial reporting process.
13. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detecta material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individuallyor in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of theseStandalone Financial Statements.
14. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughoutthe audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the 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 our opinionon whether the Company has adequate internal financial controls system in place and the operating effectivenessof such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relateddisclosures made by management.
• Conclude on the appropriateness of Management's use of the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significantdoubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we arerequired 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 upto the date of our auditor's 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 Standalone Financial Statements, including the disclosures,and whether the Standalone Financial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.
15. Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makesit probable that the economic decisions of reasonably knowledgeable user of the financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the resultsof our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
16. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
17. We also provide those charged with governance with a statement that we have complied with relevant ethical requirementsregarding independence, and to communicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence, and where applicable, related safeguards.
18. From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance 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 auditor's 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 adverseconsequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
19. We did not audit the financial information of 2 joint operations which are unincorporated entities, whose financial informationreflect total assets of H 101.60 Lakh as at 31st March, 2025, total revenue of H 73.43 Lakh and net cash outflow of H 62.23 Lakhfor the year ended on that date, as considered in the Standalone Financial Statements. The financial information of thesejoint operations is unaudited and has been furnished to us by the Management and our opinion on the Standalone FinancialStatements, in so far as it relates to the amounts and disclosures included in respect of these joint operations and our report interms of sub-section (3) of section 143 of the Act in so far as it relates to the joint operations, is based solely on such unauditedfinancial information certified by management. In our opinion and according to the information and explanations given to usby the Management, this financial information is not material to the Company.
Our opinion is not modified in respect of the above said matter.
20. As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central Government of India in termsof sub-section (11) of section 143 of the Act, we give in the "Annexure A", a statement on the matters specified in paragraphs3 and 4 of the Order, to the extent applicable.
21. As required by Section 143(5) of the Act, we give in "Annexure B", a statement on the matters specified by the Comptroller andAuditor General of India for the company.
22. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief werenecessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the company so far as it appears from ourexamination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account.
d. In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards specified inthe Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
e. As per notification number G.S.R. 463(E) dated 5 June, 2015 issued by Ministry of Corporate Affairs, section 164(2) of theAct regarding the disqualifications of Directors is not applicable to the company, since it is a Government Company.
f. With respect to the adequacy of the internal financial controls with reference to financial statements of the company andthe operating effectiveness of such controls, refer to our separate Report in "Annexure C".
g. With respect to the other matters to be included in the Auditor's Report, as per notification number G.S.R. 463(E) dated5 June, 2015 issued by Ministry of Corporate Affairs, section 197 of the Act regarding the Managerial remuneration is notapplicable to the company, since it is a Government Company.
h. 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 theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone FinancialStatements - Refer Note 40A to the Standalone Financial Statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for materialforeseeable losses, if any, on long term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and ProtectionFund by the company.
iv (a) The Management has represented that, to the best of its knowledge and belief 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 persons or entities, including foreign entities ("Intermediaries"), with theunderstanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lendor invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or onbehalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented that, to the best of its knowledge and belief no funds have been received bythe Company from any persons or entities, 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 otherpersons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the FundingParties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that have been considered reasonable and appropriate in thecircumstances, nothing has come to our notice that has caused us to believe that the representations undersub-clause (i) and (ii) of Rule 11(e) contain any material mis-statement.
v The final dividend paid by the Company during the current year in respect of the same declared for the previousyear is in accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend. Theinterim dividend declared and paid by the Company during the year and until the date of this report is in compliancewith Section 123 of the Act. As stated in note 37 to the financial statements, the Board of Directors of the Companyhave proposed final dividend for the current year which is subject to the approval of the members at the ensuingAnnual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies todeclaration of dividend.
vi Based on our examination which included test checks, the company has used an accounting software for maintainingits books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughoutthe year for all relevant transactions recorded in the software. Further, during the course of our audit we did notcome across any instance of audit trail feature being tampered with. Additionally, the audit trail has been preservedby the company as per the statutory requirements for record retention.
Chartered AccountantsFirm's Registration No.: 006185N
VISHAKHA HARITPartner
Place: New Delhi Membership No.:096919
Date : 29th May 2025 UDIN: 25096919BMUHXX3035