We have audited the accompanying Standalone financial
statements of Ceigall India Limited ("the Company"),
which includes three Jointly controlled operations (which
were setup as unincorporated Association of persons)
consolidated on a proportionate basis (refer note no 47
of the standalone financial statements), which comprise
the Standalone Balance Sheet as at March 31, 2025, the
Standalone Statement of Profit and Loss including Other
Comprehensive Income, the Standalone Statement of
Changes in Equity and the Standalone Statement of Cash
Flows for the year then ended, and notes to the standalone
financial statements, including material accounting
policies and other explanatory information (hereinafter
referred to as the "standalone financial statements").
In 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, as amended ("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 March 31, 2025 and its profit including
other comprehensive income, the changes in equity and
its cash flows for the year ended on that date.
Basis of Opinion
We conducted our audit of the standalone financial
statements in accordance with the Standards on Auditing
(SAs), as specified under section 143(10) of the Companies
Act, 2013. Our responsibilities under those Standards are
further described in the Auditor's Responsibilities 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 together with
the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the
Companies Act, 2013 and the Rules made there under,
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 we have
obtained is sufficient and appropriate to provide a basis
for our opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements for the financial year
ended March 31, 2025.
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. For each matter below,
our description of how our audit addressed the matter is
provided in that context.
We have determined the matters described below to be
the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the
Auditor's responsibilities for the audit of the standalone
financial statements section of our report, including in
relation to these matters. Accordingly, our audit included
the performance of procedures designed to respond to
our assessment of the risks of material misstatement of
the standalone financial statements. The results of our
audit procedures, including the procedures performed
to address the matters below, provide the basis for our
audit opinion on the accompanying standalone financial
statements.
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Key Audit Matters
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Our audit procedures in respect of this area included the
following:
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Estimation of contract cost and revenue recognition. (Refer
to Note 1.2, 2.5(a), 31 and 43) of the Standalone Financial
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i. Evaluated
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Statements)
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(a) the accounting policy for revenue recognition and
assessed compliance of the policy with the principles
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Revenue from construction contracts is recognised over a
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enunciated under Ind AS 115 - ’Revenue from Contracts
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period of time in accordance with the requirements of Ind AS
115 ’Revenue from Contracts with Customers'. The contract
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with Customer'; and
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revenue amounts to Rs. 31,311.80 million for engineering,
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(b) internal financial controls related to review and approval of
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procurement and construction contracts, which usually
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estimated costs and provision for foreseeable losses, if any
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extends over a period of 2-3 years, and the contract prices
are fixed and, in few cases, subject to clauses with price
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by the authorised representatives.
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variances and variable consideration. In accordance with
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ii. We obtained the revenue workings (percentage
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method prescribed under Ind AS 115 ’Revenue from Contracts
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of completion calculations) from the Company's
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with Customers', the contract revenue is measured based on
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management, for all contracts, containing actual costs
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the proportion of contract costs incurred for work performed
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incurred, estimated costs (comprising of actual costs
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to date relative to the estimated total costs. This method
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and remaining costs to completion), estimated contract
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requires the Company to perform an initial assessment of total
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revenue and actual revenues recognised during the year
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estimated cost and reassess the total construction cost at the
end of each reporting period to determine the appropriate
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based on proportion of actual costs to estimated costs.
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percentage of completion.
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For sample of contracts, we agreed contract revenue with
key contractual terms, agreed actual costs with system
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The estimation of total cost to complete the contract involves
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generated reports and agreed estimated costs with costs
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significant judgement and estimation throughout the period of
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sheets for individual contracts approved by the authorised
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contract, as it is subject to revision as the contract progresses
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representatives. Reperformed the calculation of revenues
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- based on latest available information, changes in cost
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during the year using proportion of actual costs to
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estimates and need to accrue provision for onerous contracts,
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estimated costs and compared the results with workings
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if any. Besides recognition of revenues based on actual costs
and estimated costs to complete the work, at the period end,
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provided by the Company.
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the measurement and recognition of contract assets (unbilled
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iii. For actual costs incurred during FY 2024-25, we tested the
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revenue) and contract liabilities (unearned revenue) related
to each of the contracts is also dependent on cost estimates.
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samples to appropriate supporting documents.
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In view of above, we have considered the estimation of
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iv. Evaluated the reasonableness of management's judgements
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construction contract costs as a key audit matter.
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and assumptions through comparison of actual margins
during the year with base margins estimated at the
beginning, comparison between financial progress
(proportion of actual costs to estimated costs).
v. Assessed the adequacy and appropriateness of the
disclosures made in standalone financial statements in
compliance with the requirements of Ind AS 115 ’Revenue
from Contracts with Customers'.
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Valuation of accounts receivable and contract assets
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i.
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In the absence of confirmations, if any, we have performed
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in view of risk of credit losses. (Refer Note 13 and 43(b) -
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alternate procedures through verification of Company's
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Trade Receivables and Note 12, 43(b) for contract asset to
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invoices approved by the respective customers which
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Standalone Financial Statements)
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represents acknowledgement of work delivered.
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Accounts receivable and Contract assets are significant items
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ii.
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Performed inquiry procedures with senior management
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in the Company's standalone financial statements aggregating
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of the Company regarding status of collectability of the
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to Rs. 16975.58 million as of March 31, 2025 and provision for
impairment of receivables and contract assets amounted to
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receivable and contract assets.
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Rs. 66.45 millions and Rs. NIL respectively as at March 31, 2025.
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iii.
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In respect of material contract balances, corroborated our
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The Company has a concentration of credit exposure on certain
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inquiry procedures with the correspondence between
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customers, which include government organisations, where
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the Company and the customers, contracts and other
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there are delays in collections due to various reasons. The
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documents.
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management periodically assess the adequacy of provisions
recognised, as applicable, on receivables and contract assets,
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iv.
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Assessed the inputs used by the Management to determine
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based on factors such as credit risk of the customer, status
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the amount of allowances by considering factors such as
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of the project, discussions with the customers and underlying
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cash collections, past history and status of the project, and
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contractual terms and conditions. This involves significant
judgement. Given the relative significance of these receivables
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correspondence with customers.
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and contract assets to the standalone financial statements and
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v.
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Assessed the adequacy and appropriateness of the
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the nature and extent of audit procedures involved to assess
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disclosures made in the standalone financial statements in
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the recoverability of receivables and contract assets, we
determined this to be a key audit matter.
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this regard.
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Assessment of impairment of investment in and loans/other
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1.
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Evaluated the design and implementation and verified, on
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receivables provided to subsidiaries and joint ventures
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a test check basis the operating effectiveness of key
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(refer Note 6 and 7 to the standalone financial statements)
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controls placed around the impairment assessment
process of the recoverability of the investments made,
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A) The carrying amount of the investments and Loans in
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including the estimation of future cash flows forecasts, the
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and/ or to subsidiaries and joint ventures held at cost
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process by which they were produced and discount rates
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less impairment as at March 31, 2025 is Rs. 4112.07 million.
These investments are associated with significant risk in
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used.
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respect of valuation. Changes in business environment
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2.
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Examined the key controls in place for making investments
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could also have a significant impact on the valuation. The
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in subsidiaries / joint ventures and evidenced the Board of
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investments are carried at cost less any impairment in value
of such investments. These investments are unquoted and
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Directors approval obtained.
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hence it is difficult to measure the recoverable amount. The
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3.
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Assessed the net worth of subsidiaries / joint ventures on
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Company performs an annual assessment of impairment for
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the basis of latest available financial statements. Further,
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its investments, to identify any indicators of impairment.
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Compared the carrying amount of investments with the
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which requires management to make significant estimates
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relevant subsidiaries/ joint ventures balance sheet to
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and assumptions.
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identify their net assets, being an approximation of their
minimum recoverable amount.
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4.
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Tested and verified some of the key assumptions such as
future revenue growth, concession period, operations
costs, the discount rate and assessments of the status of
the project and cost to complete balance work, which were
most sensitive to the recoverable value of the investments.
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5.
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Verified that the disclosures made in the Company's
standalone financial statements in respect of the investment
in the subsidiaries / joint ventures are adequate.
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Information other than the Standalone Financial
Statements and Auditors Report Thereon
The Company's Board of Directors is responsible for
the other information. The other information comprises
the information included in the Annual report but does
not include the standalone financial statements and our
auditor's report thereon. The annual report is expected
to be made available to us after the date of this Auditor's
report.
Our opinion on the standalone financial statements does
not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information identified above when it becomes available
and, in doing so, consider whether such other information
is materially inconsistent with the Standalone financial
statements, or our knowledge obtained in the 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 and describe actions applicable under the
applicable laws and regulations.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
The Company's Board of Directors is responsible for the
matters stated in Section 134(5) of the Companies Act,
2013 ("the Act") with respect to the preparation 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 other accounting principles generally accepted
in India, including the Indian Accounting Standards (Ind
AS) specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as
amended. 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; the selection and application of
appropriate accounting policies, making judgments and
estimates that are reasonable and prudent; and the 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 statements that give a true and
fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the standalone financial statements,
management is 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.
The Board of Directors are also responsible for overseeing
the company's financial reporting process.
Auditor's 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 auditor's 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 judgment and maintain professional
skepticism throughout the audit. We also:
• 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.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the company
has adequate internal financial controls with reference
to standalone financial statements in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of 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 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 auditor's report. However, future
events or conditions may cause the Company to cease
to continue as a 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 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 for the financial year ended March 31, 2025 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
adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order,
2020 ("the Order''), issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Act,
we give in the "Annexure A” a statement on the matters
specified in paragraphs 3 and 4 of the Order
As required by section 143 (3) of the Act, we report, to the
extent applicable, that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purpose 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 our examination of those books;
c) The Standalone Balance Sheet, the standalone Statement
of Profit and Loss (including other Comprehensive
Income), Standalone Statement of Changes in Equity
and the Standalone Statement of Cash Flows dealt
with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid Standalone financial
statements comply with the Accounting Standards
specified under section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules, 2015,
as amended;
e) On the basis of written representations received from
the directors as on March 31, 2025 taken on record by the
Board of Directors, none of the directors is disqualified
as on March 31, 2025 from being appointed as a director
in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial
controls with reference to standalone financial
statements and the operating effectiveness of such
controls, refer to our separate Report in "Annexure B”
to this report;
g) With respect to other matters to be included in the Audit
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:
i. The Company has disclosed the impact of pending
litigations on its financial position in its standalone
financial statements; Refer Note No. 42 to the
Financial Statements; and
ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses; and
iii. There were no amounts which were required to be
transferred to the Investor Education and Protection
Fund by the Company.
iv. (i) The management has represented that, to the best
of it's knowledge and belief, other than as disclosed
in the note 64 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, whether, 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 it's knowledge and belief, as disclosed in
the note 64 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, whether, 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 that
have been considered reasonable and appropriate in
the circumstances, nothing has come to our notice
that has caused us to believe that the representations
under sub-clause (i) and (ii) contain any material
misstatement.
v. The dividend declared or paid during the year by
the company is in compliance with section 123 of the
Companies Act, 2013.
vi. Based on our examination, which included test
checks, the Company has used accounting software
for maintaining its books of account for the financial
year ended March 31, 2025, which has a feature of
recording audit trail (edit log) facility and the same
has operated throughout the year for all relevant
transactions recorded in the software. Further, during
the course of our audit we did not come across any
instance of the audit trail feature being tampered
with in respect of the accounting software where
audit trail has been enabled. Additionally, the audit
trail has been preserved by the company as per the
statutory requirements for record retention.
h) With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements of
section 197(16) of Act, the remuneration paid/provided
by the company to its directors during the current year
is in accordance with the provisions of Section 197 of the
Act read with Schedule V to the Act.
For B D Bansal & Co
Chartered Accountants
Firm Regn.No. 000621N
Anil Kumar Gupta
Partner
M. No.: 089988
UDIN: 25089988BMINIV9667
Place: Ludhiana
Date: 08.05.2025
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