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Shree Digvijay Cement Co. Ltd.

BSE: 502180 Sector: Industrials
NSE: SHREDIGCEM ISIN Code: INE232A01011
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PREVIOUS CLOSE 59.75
VOLUME 10416
52-Week high 97.70
52-Week low 52.10
P/E 15.27
Mkt Cap.(Rs cr) 847
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 60.00
CLOSE 59.75
VOLUME 10416
52-Week high 97.70
52-Week low 52.10
P/E 15.27
Mkt Cap.(Rs cr) 847
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shree Digvijay Cement Co. Ltd. (SHREDIGCEM) - Auditors Report

Company auditors report

To the Members of

Shree Digvijay Cement Company Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Shree DigvijayCement Company Limited ("the Company") which comprise the standalone balancesheet as at 31 March 2022 and the standalone statement of profit and loss (includingother comprehensive income) standalone statement of changes in equity and standalonestatement of cash flows for the year then ended and notes to the standalone financialstatements including a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "standalone financial statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31 March 2022and profit and other comprehensive income changes in equity and its cash flows for theyear 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 arefurther described in the Auditor's Responsibilities for the audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence obtained by us issufficient and appropriate to provide a basis for our opinion on the standalone financialstatements. Key Audit Matter

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters.

Litigations and contingencies See note 25 to the standalone financialstatements

The key audit matter How the matter was addressed in our audit-
- The Company is required to comply with a variety of different Central and State laws including direct and indirect tax laws regulations and interpretations which exposes it to risk of litigations and claims. Our audit procedures include: - Making enquiries with Company's in-house Legal Counsel and other senior personnel about the current and potential significant claims and litigations on the Company
- Provisions and contingent liability disclosures for litigations and claims may arise from tax proceedings legal and regulatory proceedings other government/ department proceedings as well as investigations by authorities and commercial claims.
- The complex nature and magnitude of the litigation and claims involves application of significant judgment by the Company to estimate the possible outcome of each matter. Also the proceedings to these litigations and claims may span over multiple years and may involve protracted negotiation or litigation. These are also disclosed as critical estimates and judgements in preparing the standalone financial statements. - Testing the design implementation and operating effectiveness of the Company's controls over review of litigations and contingencies
- These estimates could change significantly over time as new facts emerge and each legal case progresses. - Obtained Company's assessment on key exposures and any related litigation. Reading and analyzing select key correspondences between the Company and various tax/ legal authorities or plaintiffs and attorneys where applicable and external legal opinions/ consultations obtained by the Company for key legal and tax matters
- Considering the complexity possible interpretations the magnitude of the potential exposures and the judgement necessary to estimate the amount of provisions required or to determine required disclosures this is a key audit matter. - Involving our internal tax experts to assess various tax positions taken by the Company with respect to complex tax matters
- Assessing and challenging the Company's estimate of the possible outcome of the disputed cases by considering legal precedence and other judicial rulings
- Assessing and testing the adequacy of presentation and disclosures

Revenue recognition See Note 26 to the standalone financial statements

The key audit matter How the matter was addressed in our audit-
- Revenue is recognised when the control over the Our audit procedures include:
underlying products has been transferred to the customer. - Assessing the Company's revenue recognition policy for compliance with Ind AS
- We consider a risk of misstatement of the Financial Statements related to revenue recognised during the year and as at year end which may include: - Testing the design implementation and operating effectiveness of the Company's manual and automated controls around recording of revenue
- inconsistencies with customer agreements; or - overstatement of revenues by recording revenues in the current reporting period which should be recognised in a subsequent year; or - Verifying the appropriateness of revenue recognition which included evaluating the Company's transit time assessment and quantification of any sales reversals based on the terms in sales contracts
- risk of recording fictitious revenue to achieve the targets - Performing testing on selected statistical samples of revenue transactions recorded throughout the year and at the year end and checking delivery documents
- Accordingly revenue recognition during the year and as at year end is considered as a key audit matter.
- Assessing and testing the adequacy of presentation and disclosures

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Management and Board of Directors are responsible for theother information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements and ourauditor's report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Management's and Board of Directors' Responsibilities for theStandalone Financial Statements

The Company's Management and Board of Directors are responsible for thematters stated in Section 134(5) of the Act with respect to the preparation of thesestandalone financial statements that give a true and fair view of the state of affairsprofit/loss and other comprehensive income changes in equity and cashflows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under Section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventing

and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements the Management andBoard of Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.

The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue 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 auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

- Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143 (3) (i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

- Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the Management andBoard of Directors.

- Conclude on the appropriateness of the Management and Board ofDirectors use of the going concern basis of accounting in preparation of standalonefinancial statements and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

- Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate

with them all relationships and other matters that may reasonably bethought to bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 Section 143(11) of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. (A) As required by Section 143(3) of the Act we report

that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The standalone balance sheet the standalone statement of profit andloss (including other comprehensive income) the standalone statement of changes in equityand the standalone statement of cash flows dealt with by this Report are in agreement withthe books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act.

e) On the basis of the written representations received from thedirectors as on 31 March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2022 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls withreference to financial

statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditor's) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous:

a) The Company has disclosed the impact of pending litigations as at 31March 2022 on its financial position in its standalone financial statements - Refer Note25 to the standalone financial statements.

b) The Company has long-term contracts as at 31 March 2022 for whichthere were no material foreseeable losses. The Company did not have any derivativecontracts as at 31 March 2022.

c) There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31 March 2022.

d) (i) The management has represented that to

the best of its knowledge and belief as disclosed in Note 35 to thestandalone financial statements no funds have been advanced or loaned or invested (eitherfrom borrowed funds or share premium or any other sources or kind of funds) by the Companyto or in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalfof the Company or

- provide any guarantee security or the like to or on behalf of theUltimate Beneficiaries.

(ii) The management has represented that to the best of its knowledgeand belief as disclosed in Note 35 to the standalone financial statements no funds havebeen received by the Company from any persons or entities including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall:

- directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalfof the Funding Party or

- provide any guarantee security or the like from or on behalf of theUltimate Beneficiaries.

(iii) Based on such audit procedures as considered reasonable andappropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause (d)

(i) and (d) (ii) contain any material mis- statement.

e) The dividend declared or paid during the year by the Company is incompliance with Section 123 of the Act.

(C) With respect to the matter to be included in the Auditor's Reportunder Section 197(16) of the Act:

In our opinion and according to the information and explanations givento us the remuneration paid by the Company to its directors during the current year is inaccordance with the provisions of Section 197 of the Act. The remuneration paid to anydirector is not in excess of the limit laid down under Section 197 of the Act. TheMinistry of Corporate Affairs has not prescribed other details under Section 197(16) ofthe Act which are required to be commented upon by us.

Annexure A to the report on the Audit of the Standalone FinancialStatements

With reference to the Annexure A referred to in the IndependentAuditors' Report to the members of the Company on the standalone financial statements forthe year ended 31 March 2022 we report the following:

(i) (a) (A) The Company has maintained proper records

showing full particulars including quantitative details and situationof Property Plant and Equipment.

(B) The Company has maintained proper records showing full particularsof intangible assets.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has a regularprogramme of physical verification of its Property Plant and Equipment by which allproperty plant and equipment are verified in a phased manner over a period of threeyears. In accordance with this programme certain property plant and equipment wereverified during the year. In our opinion this periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deeds of immovableproperties (other than immovable properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) disclosed in the standalonefinancial statements are held in the name of the Company.

(d) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not revaluedits Property Plant and Equipment (including Right of Use assets) or intangible assets orboth during the year.

(e) According to information and explanations given to us and on thebasis of our examination of the records of the Company there are no proceedings initiatedor pending against the Company for holding any benami property under the Prohibition ofBenami Property Transactions Act 1988 and rules made thereunder.

(ii) (a) The inventory except goods-in-transit has been physicallyverified by the management during the year. For goods-in-transit subsequent evidence ofdelivery has been verified. In our opinion the frequency of such verification isreasonable and procedures and coverage as followed by management were appropriate. Nodiscrepancies were noticed on verification between the physical stocks and the bookrecords that were more than 10% in the aggregate of each class of inventory.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has beensanctioned working capital limits in excess of five crore rupees in aggregate from banksor financial institutions on the basis of security of current assets. In our opinion thequarterly returns or statements filed by the Company with such banks or financial

institutions are in agreement with the books of account of the Company.

(iii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not providedany guarantee or security or granted any loans or advances in the nature of loans securedor unsecured to companies firms limited liability partnership or any other partiesduring the year. The Company has made investment in its wholly owned subsidiary companywhich prima facie is not prejudicial to the interest of the Company. The Company has notmade any investments in firms limited liability partnership or any other parties.Accordingly clause 3(iii)(a) and clause 3(iii)(c) to clause 3(iii)(f) of the Order arenot applicable to the Company.

(iv) According to the information and explanations given to us and onthe basis of our examination of the records the Company has not given any loans orprovided any guarantee or security as specified under section 185 and 186 of the CompaniesAct 2013. In respect of the investments made by the Company the provisions of section186 of the Companies Act 2013 have been complied with.

(v) The Company has not accepted any deposits or amounts which aredeemed to be deposits from the public. Accordingly clause 3(v) of the Order is notapplicable.

(vi) We have broadly reviewed the books of accounts maintained by theCompany pursuant to the rules prescribed by the Central Government for maintenance of costrecords under Section 148(1) of the Companies Act 2013 in respect of its manufacturedgoods and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. However we have not carried out a detailed examination of therecords with a view to determine whether these are accurate or complete.

(vii) (a) According to the information and explanations given

to us and on the basis of our examination of the records of theCompany amounts deducted / accrued in the books of account in respect of undisputedstatutory dues including Goods and Services Tax ('GST') Provident fund Income-Tax Dutyof Customs Cess and other statutory dues have been regularly deposited by the Companywith the appropriate authorities. According to the information and explanations given tous no undisputed amounts payable in respect of Goods and Services Tax ('GST') Providentfund Income-Tax Duty of Customs Cess and other statutory dues were in arrears as at 31March 2022 for a period of more than six months from the date they became payable. Asexplained to us the provisions of employee state insurance are not applicable to theCompany.

(b) According to the information and explanations given to usstatutory dues relating to Goods and Service Tax Provident Fund Income-Tax Duty ofCustoms or Cess or other statutory dues which have not been deposited on account of anydispute are as follows:

Name of the statute Nature of dues Amount demanded (Rs in lakhs) Amount under dispute not deposited (Rs. in lakhs) Period to which the amount relates Forum where dispute is pending
The Central Excise Act 1944 Excise duty 686.56 634.58 Financial year 2009-10 to 2010-11 The Customs Excise and Service Tax Appellate Tribunal
516.95 516.95 Financial year 2009-10 to 2012-13 Commissioner (Appeals) Rajkot
48.46 46.60 Financial year 2008-09 to 2012-13 Commissioner (Appeals) Ahmedabad
The Finance Act 1994 Service tax 2041.70 1907.59 Financial year 2005-06 to 2015-16 The Customs Excise and Service Tax Appellate Tribunal
27.45 27.45 Financial year 2005-06 Commissioner (Appeals) Rajkot
The Customers Act 1962 Customs duty 451.55 100.00 Financial year 2011-12 The Customs Excise and Service Tax Appellate Tribunal
Sales Tax Act of respective states Sales Tax 420.46 356.98 Financial year 2009-10 to 2017-18 Joint Commissioner (Appeal)
Octroi tax levied by local bodies Octroi Tax 33.23 33.23 Financial year 2000-01 Gram Panchayat Digvijaygram
Mines and Minerals (Development and Regulation) Act 1957 Surface Rent & Dead rent 15.95 15.95 Financial year 2006-07 to 2008-09 Mines department Gandhinagar

(viii) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has notsurrendered or disclosed any transactions previously unrecorded as income in the books ofaccount in the tax assessments under the Income Tax Act 1961 as income during the year.

(ix) (a) According to the information and explanations given

to us and on the basis of our examination of the records of theCompany the Company did not have any loans or borrowings from banks or financialinstitutions or any other lender during the year. Accordingly clause 3(ix)(a) of theOrder is not applicable to the Company.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not beendeclared a willful defaulter by any bank or financial institution or government orgovernment authority.

(c) According to the information and explanations given to us by themanagement the Company has not

obtained any term loans during the year. Accordingly clause 3(ix)(c)of the Order is not applicable to the Compa ny.

(d) According to the information and explanations given to us and on anoverall examination of the balance sheet of the company we report that no funds raised onshort-term basis have been used for long-term purposes by the company.

(e) According to the information and explanations given to us and on anoverall examination of the financial statements of the company we report that the companyhas not taken any funds from any entity or person on account of or to meet the obligationsof its subsidiary as defined under Companies Act 2013. The Company does not hold anyinvestment in any associate companies or joint ventures as defined under Companies Act2013.

(f) According to the information and explanations given to us andprocedures performed by us we report that the company has not raised loans during theyear on the pledge of securities held in its subsidiary

as defined under Companies Act 2013. The Company does not hold anyinvestment in any associate companies or joint ventures as defined under Companies Act2013.

(x) (a) The Company has not raised any moneys by way of

initial public offer or further public offer (including debtinstruments). Accordingly clause 3(x)(a) of the Order is not applicable.

(b) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly clause 3(x)(b) of the Order is not applicable.

(xi) (a) Based on examination of the books and records of

the Company and according to the information and explanations given tous no fraud by the Company or on the Company has been noticed or reported during thecourse of the audit.

(b) According to the information and explanations given to us noreport under sub-section (12) of Section 143 of the Companies Act 2013 has been filed bythe auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.

(c) As represented to us by the management there are no whistle blowercomplaints received by the Company during the year.

(xii) According to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the information and explanationsgiven to us the transactions with related parties are in compliance with Section 177 and188 of the Companies Act 2013 where applicable and the details of the related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) a) Based on information and explanations provided to

us and our audit procedures in our opinion the Company has aninternal audit system commensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the Company issuedtill date for the period under audit.

(xv) In our opinion and according to the information and explanationsgiven to us the Company has not entered into any non-cash transactions with its directorsor persons

connected to its directors and hence provisions of Section 192 of theCompanies Act 2013 are not applicable to the Company.

(xvi) (a) &(b) The Company is not required to be registered

under Section 45-IA of the Reserve Bank of India Act 1934.Accordingly clause 3(xvi)(a) and clause 3(xvi)(b) of the Order is not applicable.

(c) &(d) The Company is not a Core Investment Company (CIC) asdefined in the regulations made by the Reserve Bank of India. Accordingly clause3(xvi)(c) and clause 3(xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses in the current and inthe immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors duringthe year. Accordingly clause 3(xviii) of the Order is not applicable.

(xix) According to the information and explanations given to us and onthe basis of the financial ratios ageing and expected dates of realisation of financialassets and payment of financial liabilities other information accompanying the financialstatements our knowledge of the Board of Directors and management plans and based on ourexamination of the evidence supporting the assumptions nothing has come to our attentionwhich causes us to believe that any material uncertainty exists as on the date of theaudit report that company is not capable of meeting its liabilities existing at the dateof balance sheet as and when they fall due within a period of one year from the balancesheet date. We however state that this is not an assurance as to the future viability ofthe company. We further state that our reporting is based on the facts up to the date ofthe audit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the company as and when they fall due.

(xx) In our opinion and according to the information and explanationsgiven to us there is no unspent amount under sub-section (5) of section 135 of theCompanies Act 2013 pursuant to any project. Accordingly clauses 3(xx)(a) and 3(xx)(b) ofthe Order are not applicable.

Annexure B to the report on the Audit of the Standalone FinancialStatements of Shree Digvijay Cement Company Limited for the year ended 31 March 2022

Report on the internal financial controls with reference to theaforesaid financial statements under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act 2013 ("the Act")

(Referred to in paragraph 2 (A) (f) under 'Report on Other Legal andRegulatory Requirements' section of our report of even date)

Opinion

We have audited the internal financial controls with reference tofinancial statements of Shree Digvijay Cement Company Limited ("the Company") asof 31 March 2022 in conjunction with our audit of the standalone financial statements ofthe Company for the year ended on that date.

In our opinion the Company has in all material respects adequateinternal financial controls with reference to financial statements and such internalfinancial controls were operating effectively as at 31 March 2022 based on the internalfinancial controls with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India (the "Guidance Note").

Management's Responsibility for Internal Financial Controls

The Company's Management and the Board of Directors are responsible forestablishing and maintaining internal financial controls based on the internal financialcontrol with reference to financial statements criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 (hereinafterreferred to as "the Act").

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls with reference to financial statements

based on our audit. We conducted our audit in accordance with theGuidance Note and the Standards on Auditing prescribed under Section 143(10) of the Actto the extent applicable to an audit of internal financial controls with reference tofinancial statements. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements wereestablished and maintained and whether such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to financial statements andtheir operating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of such internal financialcontrols assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone financial statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols with reference to financial statements.

Meaning of Internal Financial Controls with Reference to FinancialStatements

A Company's internal financial controls with reference to financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A Company's internalfinancial controls with reference to financial statements include those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorisations of Management and directors of the Company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the Company's assets that could have a material effecton the standalone financial statements.

Inherent Limitations of Internal Financial Controls with Reference toFinancial Statements

Because of the inherent limitations of internal financial controls withreference to financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to financial statements to future periods are subject to the riskthat the internal financial controls with reference to the standalone financial statementsmay become inadequate because of changes in conditions or

that the degree of compliance with the policies or procedures maydeteriorate.

For B S R & Associates LLP
Chartered Accountants
Firm's Registration No. 116231W/W-100024
ICAI UDIN: 22045754AHWJUF4982
Jeyur Shah
Place : Digvijaygram Partner
Date : 27 April 2022 Membership No. 045754

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