We have audited the standalone financial statements of Deccan Cements 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 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.
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 (“Act”) in the manner
so required and give a true and fair view in conformity with 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 the 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), changes in equity and its cash flows
for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of
the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit
of the 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 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 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 judgement, were of most significance in our audit
of the standalone financial statements of the current period. 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.
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Sr.
No.
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Key Audit Matter
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Auditor’s Response
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1.
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Revenue Recognition - Price Discounts
• Revenue is measured net of discounts earned by
customers on the Company's sales.
• Due to the Company's presence across different
marketing regions within the country and the
competitive business environment, price discounts
vary based on the customer and market it caters
to and recognised based on sales made during the
year. These discounts are calculated based on
the market study reports which reports are collated
periodically by the management and are prone to
manual interventions.
• Therefore, there is a risk of revenue being misstated
as a result of incorrect computation of price
discounts.
• Given the complexity involved in the assessment
of price discounts and their periodic recognition
against sales, the same is considered as key audit
matter.
Refer Note - 2(iv) of Material Accounting Policies
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Principal Audit Procedures
• Assessed the appropriateness of the Company's
accounting policy relating to price discounts by
comparing with applicable Indian Accounting
Standard.
• Assessed the design and tested the implementation
and operating effectiveness of Company's internal
controls over the approvals, calculation, accounting
and issuance of credit notes.
• Obtained and inspected, on a sample basis,
supporting documentation for price discounts
recorded and credit notes issued during the year
as well as credit notes issued after the year end
date to determine whether these were recorded
appropriately.
• Compared the historical trend of price discounts to
sales made to determine the appropriateness of
current year's discount charge.
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2.
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The Company has material litigations which involve
significant judgement to determine the possible
outcome of these litigations.
Refer Note 30 of the standalone financial statements.
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Principal Audit Procedures
• We understood from the management, assessed
and tested the design and operating effectiveness
of the Company's key controls surrounding
assessment of litigations relating to the relevant
laws and regulations.
• We have reviewed the legal and other professional
expenses and enquired with the management for
recent developments and the status of the material
litigations which were reviewed.
• Obtaining a litigation list and making inquiries,
circulating and reviewing legal confirmations from
external counsel.
• We performed our assessment on a test basis on the
underlying calculations supporting the contingent
liabilities/ other significant litigations disclosed in the
standalone financial statements.
• Obtaining a litigation list and making inquiries,
circulating and reviewing legal confirmations from
external counsel.
• Discussing the status of the cases with the legal
team regarding the progress and probability
assessment of the outcomes.
• We used auditor's experts/specialists to gain an
understanding and to evaluate the disputed tax
matters.
• Evaluating the evidence supporting the judgement
of the management about possible outcomes and
the reasonableness of the estimates.
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Sr.
No.
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Key Audit Matter
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Auditor’s Response
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• We evaluated management's assessments by
understanding precedents set in similar cases and
assessed the reliability of the management's past
estimates/judgements.
• Evaluating appropriateness of adequate disclosures
in accordance with the applicable Indian accounting
standards.
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3.
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Inventories as disclosed in Note 6 to the standalone
financial statements include:
• Raw materials comprising iron-ore, gypsum,
limestone, laterite and fly ash;
• Work-in-progress mainly comprising clinker
• Coal
The above items of inventory are stored in sheds, stockpiles
and silos. As the weighing of these inventories is not
practicable, management assesses the reasonableness
of the quantities on hand by obtaining measurements of
stockpiles and converting these measurements to unit of
volumes by using angle of repose and bulk density. The
Company involves its team in the inventory count process.
Due to the significance of inventory balances and related
estimations involved, this is considered as a key audit
matter.
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Principal Audit Procedures
The Company performs annual inventory counts at the
year end and issues prior notification of procedures
to be performed for such inventory counts. Our audit
procedures to assess the existence of such items of
inventory included the following:
• Assessed the management's process of
measurement of stockpiles and the determination of
values using conversion of volumes and density to
total weight and the related yield.
• Obtained and reviewed the inventory count report of
the management's team and assessed its accuracy
on a sample basis.
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Other Information
The Company's Board of Directors is responsible for the other information. The other information comprises the
information included in the Company's annual report, but does not include the standalone financial statements
and our auditor's report thereon. The Company's 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 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.
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.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is 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, total comprehensive income, changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including Indian Accounting Standards
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 financial
statement 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.
Those Board of Directors are 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 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 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 standalone 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 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
1. 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 except for the matter stated in the paragraph 1(i) (vi)
below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income),
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 prescribed under Section 133 of the Act.
(e) On the basis of the 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) The modification relating to the maintenance of accounts and other matters connected therewith are
as stated in the paragraph 1(b) above and paragraph (i)(vi) below on reporting under Rule 11(g) of
the Companies (Audit and Auditors) Rules, 2014.
(g) With respect to the adequacy of the internal financial controls with reference to the standalone
financial statements of the Company and the operating effectiveness of such controls, refer to our
separate Report in “Annexure A”.
(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 the Act, as amended, in our opinion and to the best of our
information 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 provision of section 197 of the Act.
(i) 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, 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 30 of the standalone financial statements);
ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses;
iii. There has been no delay in transferring the amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented (Refer Note 41 of the standalone financial statements)
that, to the best of its knowledge and belief, no funds (which are material either individually
or in the aggregate) 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 or entity, including foreign entity (“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 (Refer Note 41 of the standalone financial statements)
that, to the best of its knowledge and belief, no funds (which are material either individually
or in the aggregate) have been received by the Company from any person or entity,
including foreign entity (“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;
(c) Based on the audit procedures 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) of Rule 11(e), as provided under (a) and (b)
above, contain any material misstatement.
v. As stated in Note 35(B) to the standalone financial statements,
(a) the final dividend paid by the Company during the year declared for the previous year is in
accordance with Section 123 of the Act to the extent it applies to payment of dividend.
(b) The Board of Directors of the Company have proposed final dividend for the year which
is subject to the approval of the members of the Company 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.
vi. Based on our examination which included test checks, the Company has used an 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 software impacting books of account at application level.
The database of the accounting software is operated by third party service provider and based on
the information and explanations given to us the feature of recording audit trail (edit log) facility
was not enabled at the database level. (Refer Note 42 to the standalone financial statements).
Further, during the course of our audit, we did not come across any instance of audit trail feature
being tampered with.
Further, the audit trail in respect of the previous year has been preserved by the Company as
per the statutory requirements for record retention.
2. As required by the Companies (Auditor's Report) Order, 2020, ('the Order') issued by the Central
Government of India in terms of Section 143 (11) of the Act, we give in “Annexure B” a statement on the
matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
For M. Anandam & Co.,
Chartered Accountants
(Firm's Registration No. 000125S)
Sd/-
B.V.Suresh Kumar
Partner
Place: Hyderabad Membership No. 212187
Date: 27th May, 2025 UDIN: 25212187BMKXYQ6715
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