We have audited the accompanying standalone financial
statements of Sangam (India) Limited ("the Company"),
which comprise the Balance Sheet as at 31st March,
2026, 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 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 31st March, 2026, 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.
EMPHASIS OF MATTER
Your attention is drawn to Note no. 3(3) of the standalone
financial statements regarding the revised estimated useful
life of certain plant and machinery and solar power plant
during the year effective 1st April 2025, based on a technical
evaluation and assessment of operating conditions, with
prospective effect in accordance with Ind As 8 - Accounting
Policies, changes in Accounting Estimates and Errors" and
the impact thereof on the standalone financial statements.
Our opinion is not modified as a result of the above.
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 year ended 31 st
March, 2026. These matters were addressed in the context
of our audit of the standalone financial statements as a
whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
We have determined the matters described below to be
the 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 described 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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Revenue from Operations - Rs. 3,18,950 Lakhs
(Refer Note 33 to the standalone financial statements)
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Revenue is a key performance indicator
for the Company and is required to be
recognized, measured and disclosed in
accordance with Ind As 115 - "Revenue
from Contracts with Customers". The
Company earns revenue from sale
of goods/services, which involves
assessments, estimates and judgments
in identifying performance obligations,
timing of revenue recognition, and
measurement of transaction price and
provisioning for uncertainties in collection
of the contracts amounts Considering
the materiality of revenue, volume of
transactions and risk of misstatement in
recognition, measurement and disclosure
and cut-off procedures, we have
considered revenue as a Key Audit Matter.
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Principal Audit Procedures performed:
Our audit procedures included the following:
i. Assessed the Company's accounting policies for revenue recognition and
compliance with Ind AS 115.
ii. Evaluated the design and operating effectiveness of internal controls over
revenue recognition, including controls over order processing, deliveries,
dispatches, invoicing, e-invoicing and recording of revenue from sale of
goods and services.
iii. Performed test of details by selecting samples of sales transactions and
verifying supporting documents such as sales orders, invoices, delivery
challans, dispatch orders and customer confirmations for receipt of goods
and services.
iv. Verified the timing of revenue recognition by testing transactions recorded
before and after the year-end to ensure proper cut-off.
v. Verified the revenue as per books with GST returns and their reconciliation as
well as other statutory filings on a sample basis.
vi. Performed analytical procedures to identify unusual trends or fluctuations in
revenue.
vii. Verified credit/debit notes, sales returns, and discounts and their impacts to
assess completeness and accuracy of revenue recognised.
viii. Held discussions with management regarding revenue recognition policies
and significant judgments applied.
ix. Verified the disclosures made relating to revenue in the standalone financial
statements as per Ind As 115 and Schedule III, Division ii.
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Property, Plant and Equipment - Rs. 1,41,728 Lakhs (Refer Note 3 to the standalone financial statements)
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The Company has significant investments
in Property, Plant and Equipment (PPE),
which involve judgment in determining
capitalisation of costs, estimation of
useful lives, depreciation, and impairment
assessment.
During the year additions of Rs 33,406
lakhs and deletion of Rs. 11,510 lakhs
had been made. Depreciation of Rs 8,763
lakhs is charged to the revenue.
Considering the materiality of balances,
additions/deletions during the year, and
complexity involved in capitalisation and
computation of depreciation, we have
considered Property, Plant and Equipment
as a Key Audit Matter.
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Principal Audit Procedures performed
Our audit procedures included the following:
i. Evaluated the Company's accounting policy for Property, Plant and Equipment
and ensured compliance with Ind AS 16. Verified the relevant records
including the report of technical experts for revised estimate of useful life of
certain plant and machineries and solar plant.
ii. Verified additions made during the year by examining supporting documents
such as invoices, contracts, and purchase orders, and capitalisation from
CWIP on completion of the construction/project and the assets put to use.
iii. Assessed whether expenses have been appropriately capitalised or expensed,
including review of directly and indirectly attributable costs.
iv. Conducted physical verification of selected Property, Plant and Equipment
and reviewed the accounting records for existence and operating condition
of assets.
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The key audit matters
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How our audit addressed the key audit matter
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v. Verified capitalisation of assets from CWIP and ensured appropriate
classification.
vi. Checked depreciation calculations, including useful lives and residual values,
and assessed consistency with Schedule II of the Companies Act.
vii. Evaluated whether there are any indicators of impairment and reviewed
management's assessment, if any.
viii. Verified disposals/scrapping of assets, if any, and ensured proper accounting
treatment.
ix. Tested internal controls over fixed asset register, tagging, and tracking of
assets.
x. Assessed the adequacy of disclosures in the financial statements as per Ind
AS 16 and Schedule III Division ii.
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Capital Work In Progress (CWIP)-Rs. 8,157 lakhs
(Refer Note 5 to the standalone financial statements)
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The Company have two projects under
progress for expansion. During the year
there were additions of Rs. 5,290 Lakhs
to CWIP and projects of Rs. 14,168 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.
iii. Conducted site visits by the audit team to physically verify the status of the
projects under progress, confirming the existence of the CWIP and stage of
completion of the assets under construction.
iv. 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.
v. 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.
vi. 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.
vii. 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.
viii. 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. Held discussions with the management, accounts, and finance teams to
address issues and observations related to CWIP, including the allocation of
pre-operative expenses (Rs. 399 lakhs yet to be allocated,) and borrowing
costs capitalized for qualified assets, if any. (Note 39).
x. 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, Division ii.
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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.
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 and, in doing so, consider whether the other
information is materially inconsistent with the standalone
financial statements or our knowledge obtained during the
course of our audit or otherwise appears to be materially
misstated. 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 changes in equity
and the Cash Flows of the Company in accordance with
the accounting principles generally accepted in India,
including 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 Management and
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
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 Act, 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 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 REGULATORYREQUIREMENTS
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 Act, 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 IND AS specified
under Section 133 of the Act.
(e) On the basis of the written representations
received from the directors as on 31st March,
2026 taken on record by the Board of Directors,
none of the directors is disqualified as on 31st
March, 2026 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, 2026 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 31st March, 2026
on its financial position under note no. 50 of
Standalone Financial Statements.
(ii) The Company has made provision as at
31 st March 2026 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 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 ended 31st March 2026, 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: 104502W/W100721 Firm Registration No: 002330C
Deepa Rathi Abhishek Dad
(Partner) (Partner)
Membership No:104808 Membership No: 409237
UDIN:26104808ZVWLGL3647 UDIN:26409237QAYAHO2499
Place: Bhilwara Place: Bhilwara
Date: 22nd April, 2026 Date: 22nd April, 2026
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