We have audited the accompanying Standalone Financial
Statements of Sangam (India) Limited ("the Company"),
which comprise 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 the Statement of Cash Flows 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
"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 ("the Act") in the
manner so required and give a true and fair view in
conformity with the Indian Accounting Standards ("Ind
AS") prescribed under Section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015
as amended and other accounting principles generally
accepted in India, of the state of affairs of the Company
as at 31st March, 2025, and its profit including other
comprehensive income, changes in equity and its cash
flows for the year ended on that date.
BASIS FOR 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 Act.
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 ("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 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 opinion on the Standalone Financial
Statements.
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 for the financial year
ended 31st March, 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
Auditors' 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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The key audit matters
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How our audit addressed the key audit matter
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Key audit matter description
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Principal Audit Procedures
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Capital Work In Progress (CWIP) - Rs. 17035 lakhs (Refer Note 5 to the Standalone Financial Statements)
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The Company has two projects under progress for expansion
of business. During the year there was addition of Rs.
12762 Lakhs to CWIP and projects of Rs. 17186 Lakhs were
capitalised.
Since the CWIP is of a substantial amount and material in
nature, we have considered the audit of the above area to be
a key audit matter for reporting purpose
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Principal Audit Procedures performed
Our audit procedures included the following:
i. Examined the minutes of the Board of Directors'
meetings to verify the approval of the expansion
projects and any related decisions made during the
year.
ii. Reviewed the terms and conditions of contracts and
purchase orders issued for the CWIP projects to ensure
that the work performed aligns with the agreed scope
and specifications.
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The key audit matters
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How our audit addressed the key audit matter
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iii.
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Conducted site visits by the audit team to physically
verify the progress of the projects under progress,
confirming the existence and stage of completion of
the assets under construction.
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iv.
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Evaluated the company's processes for recording CWIP,
including the review of bills submitted by contractors
and vendors, and the certification process by the
project team.
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v.
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Assessed the effectiveness of internal controls related
to the issuance of contracts and purchase orders,
including the identification of distinct performance
obligations by the company and its contractors/
vendors, ensuring compliance with Ind AS 16.
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vi.
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Selected a sample of contracts, vendor invoices, and
bills, and compared them with the certifications by
the project team. Verified subsequent payments by
the accounts department against the terms of the
contracts/purchase orders and approvals by authorized
personnel.
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vii.
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Traced the payments on a test check basis with the
amounts recorded in the books of account, based on
certified bills, to the corresponding bank statements to
confirm the accuracy and occurrence of transactions.
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viii.
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Evaluated whether the percentage of completion of
contract costs recorded in the books corresponds
to the liabilities recognized and/or payments made,
including performing reconciliations where necessary.
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ix.
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Held discussions with the management, accounts, and
finance teams to address issues and observations
related to CWIP, including the allocation of pre¬
operative expenses (3,884 lakhs yet to be allocated,)
and borrowing costs capitalized (Note 39).
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x.
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Assessed the adequacy of disclosures in Note 5
regarding CWIP, including the breakdown of pre¬
operative expenses and borrowing costs, to ensure
compliance with Ind AS 16 and Schedule III of the
Companies Act, 2013.
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INFORMATION OTHER THAN THE 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 the Management
Discussion and Analysis, Board's Report including
annexures to Board's Report, Business Responsibility
and Sustainability Report, Corporate Governance Report
and Shareholder's Information, but does not include the
standalone financial statements, and our auditor's report
thereon.
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 our knowledge obtained in the
audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that
there is a material misstatement of this other information,
we are required to report that fact. We have nothing to
report in this regard.
RESPONSIBILITY OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR THE
STANDALONE FINANCIAL STATEMENTS
The Company's Management and Board of Directors are
responsible for the matters stated in section 134(5) of 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, the Statement of Changes in
Equity and the Statement of Cash Flows of the Company
in accordance with the accounting principles generally
accepted in India, including Indian Accounting Standards
(Ind AS) specified under section 133 of the Act. This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting
policies; making judgments 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
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 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. The Company's Board of Directors
is also responsible for overseeing the Company's financial
reporting process.
AUDITOR’S RESPONSIBILITIES 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 Standards on
Auditing (SAs), we exercise professional judgment and
maintain professional scepticism 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 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 Companies Act, 2013,
we are also responsible for expressing our opinion
on whether the company has adequate internal
financial controls system 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 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 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.
Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions
of a reasonably knowledgeable user of the Standalone
Financial Statements may be influenced. We consider
quantitative materiality and qualitative factors in (i)
planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any
identified misstatements in the financial statements.
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.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order,
2020 ("the Order"), issued by the Central Government
of India in terms of sub-section (11) of section 143 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.
2. 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 were necessary 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 our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and
Loss including Other Comprehensive Income,
the Statement of Changes in Equity and the
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 Indian Accounting
Standards (IND AS) specified under Section
133 of the Act, read with Companies (Indian
Accounting Standards) Rule, 2015, as amended.
(e) On the basis of the written representations
received from the directors as on 31 st 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.
(f) With respect to the adequacy of the internal
financial controls over financial reporting of the
Company with reference to these Standalone
Financial Statements and the operating
effectiveness of such controls, refer to our
separate Report in "Annexure B" to this report.
(g) In our opinion, the managerial remuneration for
the year ended 31st March, 2025 has been paid/
provided by the Company to its directors in
accordance with the provisions of Section 197
read with schedule V of the Act.
(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 the
explanations given to us.
(i) The company has disclosed the impact of
pending litigations as on 31 st March, 2025
on its financial position under note no. 50 of
Standalone Financial Statements.
(ii) The Company has made provision as at
31 st March 2025 as required under the
applicable Law or Accounting Standards for
foreseeable losses 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 Protection Fund by
the Company.
(i) (a) The management has represented to us
that, to the best of its knowledge and belief,
other than as disclosed in the notes to the
accounts, 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 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;
(b) The management has represented that,
to the best of its knowledge and belief,
as disclosed in the notes of accounts, 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
(c) Based on such audit procedures that we
considered reasonable and appropriate in
the circumstances, nothing has come to our
notice that has caused us to believe that the
representation given by the management
under paragraph (2)(i)(a) and (b) contain
any material misstatement.
(j) The Dividend declared and paid by the Company
during the year
(a) The final dividend proposed in the previous
year, declared and paid by the Company
during the year is in accordance with section
123 of the Act, as applicable.
(b) As stated in note 62 to the standalone
financial statements, the Board of Directors
of the Company has recommended a
dividend @ 20% on equity shares for the
year, subject to the approval from the
shareholders at the ensuing Annual General
Meeting. The proposal for dividend is in
accordance with section 123 of the Act, to
the extent it applies to payment of dividend.
(k) Based on our examination which included test
checks, the company has used accounting
software for maintaining its books of account
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 said software. Further, during the
course of our audit, we did not come across any
instance of audit trail feature being tampered
with and the audit trail has been preserved by the
company as per the statutory requirements for
record retention.
For R Kabra & Co. LLP For O.P. Dad & Co
Chartered Accountants Chartered Accountants
Firm Registration No: Firm Registration No:
104502W/W100721 002330C
Deepa Rathi Abhishek Dad
(Partner) (Partner)
Membership No:104808 Membership No: 409237
UDIN: UDIN:
25104808BMJHDL7738 25409237BMOVNS5871
Place: Bhilwara Place: Bhilwara
Date: 29th May, 2025 Date: 29th May, 2025
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