ఆడిటర్ నివేదిక Shankara Buildpro Ltd.

Mar 31, 2026

We have audited the accompanying Standalone
Financial Statements (“the financial statements”) of
Shankara Buildpro Limited (“the Company”), which
comprise the balance sheet as at March 31, 2026,
the statement of profit and loss (including other
comprehensive income), the statement of changes
in equity, the statement of cash flows for the year
then ended, and notes to the 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 as amended (the “Act”) in the manner so
required and give a true and fair view in
conformity with the Indian Accounting Standards
prescribed under Section 133 of the Act read with
the Companies (Indian Accounting Standards)
Rules, 2015, as amended (“Ind AS”) and other
accounting principles generally accepted in India,
of the state of affairs of the Company as at March
31, 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 in accordance with the
Standards on Auditing (“SA”s) 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 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 we have obtained
is sufficient and appropriate to provide a basis for
our opinion on the Standalone Financial
Statements.

Key Audit Matters

Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the Standalone Financial Statements
for the year ended March 31, 2026. These matters
were addressed in the context of our audit of the
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
matter described below to be the key audit matter
to be communicated in our report.

Sl. No.	Key audit matter	How our audit addressed the key audit matter
1	Recognition of Revenue For the year ended March 31, 2026 the Company has recognized revenue from operations of ^ 6,824.65 Crores. Revenue of the Company mainly arises from trading of structural steel, cement, TMT bars, pipes and tubes, roofing solutions, welding accessories, primers, plumbing materials, tiles, sanitaryware, water tanks, kitchen sinks, lighting and other allied products to its customers. We have considered recognition of revenue as a key audit matter as there is a inherent risk and presumed fraud risk around accuracy and existence of revenue recognised.	(i) We assessed the Company''s accounting policy for revenue recognition by comparing with the applicable accounting standard. (ii) Testing the design, implementation and operating effectiveness of key internal controls over timing of recognition of revenue from sale of goods. (iii) Verification of selected samples of customer contracts / Purchase Orders to confirm the terms of delivery. (iv) Our test of details includes specific procedures focused on cut-off to verify only revenue pertaining to current year is recognized based on terms and conditions set out in sales contracts.

Sl. No.	Key audit matter	How our audit addressed the key audit matter
2	Inventories: The Company has inventory with the carrying value of T 475.30 Crores as at the year end. The inventory is valued at the lower of cost and net realizable value. We considered the value of the inventory as key audit matter given the relative size of the balance in the financial statements and significant judgement involved in determining the appropriate valuation of inventory based upon a detailed analysis of net realisable value below cost.	(i) We understood and tested the design, implementation and operating effectiveness of controls as established by the management in determination of cost and net realizable value of inventory. (ii) We have verified the closing stock valuation as at the year end. We considered various factors including the actual selling price prevailing around and subsequent to the year-end. Compared the cost of the traded goods with the estimated net realizable value and checked if the goods were recorded at net realizable value where the cost was higher than the net realizable value. (iii) Further, we have verified the physical verification working papers of the Company and performed physical verification independently on a sample basis.

Other Information other than the Financial
Statements and Auditor''s Report thereon

The Company''s Board of Directors is 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,
Report on Corporate Governance, Shareholder''s
Information and Business Responsibility and
Sustainability Report, but does not include the
Standalone Financial Statements and our
auditor''s report thereon. These reports are
expected to be made available to us after the
date of this auditor''s report.

Our opinion on the 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 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 financial statements or our knowledge
obtained during the course of audit, or otherwise
appears to be materially misstated.

When we read the other information, if we
conclude that there is a material misstatement
therein, we are required to communicate the
matter to those charged with governance and
take appropriate actions.

Responsibilities of the Management and Those
Charged with Governance for the Standalone
financial statements

The Company''s Board of Directors is responsible
for the matters stated in section 134(5) of the Act
with respect to the preparation of these
Standalone Financial Statements that give a true
and fair view of the financial position, financial
performance, including other comprehensive
income, changes in equity and cash flows of the
Company in accordance with the accounting
principles generally accepted in India, including
the Indian Accounting Standards (Ind AS)
specified under section 133 of the Act, read with
the Companies (Indian Accounting Standards)
Rules, 2015, as amended. This responsibility also
includes maintenance of adequate accounting
records in accordance with the provisions of the
Act for safeguarding 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, the management and the 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 the Board of
Directors either intends to liquidate the
Company or to cease operations, or has no
realistic alternative but to do so.

The 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 SAs, we
exercise professional judgement 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 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 with reference to
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 the
management''s use of the going concern basis of
accounting and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
significant doubt on the Company''s ability to
continue as a going concern. If we conclude that
a material uncertainty exists, we are required to
draw attention in our auditor''s report to the
related disclosures in the financial statements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our
auditor''s report. However, future events or
conditions may cause the Company to cease to
continue as a going concern.

• Evaluate the overall presentation, structure
and content of the Standalone Financial
Statements, including the disclosures, and
whether the Standalone Financial Statements
represent the underlying transactions and events
in a manner that achieves fair presentation.

We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and
significant audit findings, including any
significant deficiencies in internal control that
we identify during our audit.

We also provide those charged with governance
with a statement that we have complied with
relevant ethical requirements regarding
independence, and to communicate with them
all relationships and other matters that may
reasonably be thought to bear on our
independence, and where applicable, related
safeguards.

From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in the
audit of the 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 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 and 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, read with
the Companies (Indian Accounting Standards)
Rules, 2015, as amended;

(e) On the basis of the written
representations received from the directors as on
March 31, 2026 taken on record by the Board of
Directors, none of the directors is disqualified as
on March 31, 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 with reference to
financial statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in “Annexure B”. Our report
expresses an unmodified opinion on the
adequacy and operating effectiveness of the
Company''s internal financial controls with
reference to financial statements;

(g) With respect to the matters to be
included in the Auditor''s Report under Section
197(16) of the Act, 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 provisions of section 197
read with Schedule V of the Act, and

(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 at March 31, 2026 on its
financial statements - Refer Note No 38 to 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 were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Company.

iv. (a) The Management has represented that, to
the best of its knowledge and belief, as
disclosed in the Note No. 51 to the Standalone
Financial Statement, no funds have been
advanced or loaned or invested (either from
borrowed funds or share premium or any other
sources or kind of funds) by the Company to or
in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or
otherwise, that the Intermediary shall, directly
or indirectly lend or invest in other persons or
entities identified in any manner whatsoever
(“Ultimate Beneficiaries”) by or on behalf of the
Company or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.

(b) The Management has represented, that, to
the best of it''s knowledge and belief, as
disclosed in the Note No. 52 to the Standalone
Financial Statement, 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, 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) contain any material mis-statement.

v. The Board of Directors of the Company have
proposed final dividend for the year which is
subject to the approval of the members at the
ensuing Annual General Meeting. The amount of
dividend proposed is in accordance with section
123 of the Act, as applicable.

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. Further, during the
course of our audit we did not come across any
instance of audit trail feature being tampered
with. Additionally, the audit trial has been
preserved by the company as per the statutory
requirements for record retention.

For ASA & Associates LLP

Chartered Accountants

Firm Registration No. 009571N/N500006

G N Ramaswami

Partner

Membership No. 202363
UDIN:26202363TELAPZ1417

Place : Bengaluru
Date : May 19, 2026