We have audited the accompanying Financial Statements of CHEMCRUX ENTERPRISES LIMITED ("the
Company”) which comprise the Balance sheet as at 31st March, 2025, the Statement of Profit & Loss (Including
the Statement of Other Comprehensive Income), the Statement of Cash Flow and Statement of Changes in Equity
for the year then ended, and notes to the financial statements, including a summary of significant 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
March 31, 2025, and the profit, total 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 Companies Act, 2013. Our responsibilities under those Standards 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 financial statements under the provisions of
the Companies Act, 2013 and the Rules there under, 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.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. 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.
Description of the Key Audit Matter
During the course of our audit, a significant area of focus was the identification and bifurcation of certain
expenses incurred of similar nature between Revenue and Capital nature. This was particularly relevant due to
the ongoing expansion and modernization activities at the plant, which involved substantial expenditures. As
such, since the Company operates as Chemical Plant, the expenditure on Repairs and Maintenance is routinely
incurred. There is a lot of similarity in the nature of expenditure incurred for both the above purposes i.e.
expansion and repairs. Hence, the assessment of whether these expenses should be classified as revenue or
capital expenditures involves complex judgments.
The classification of expenses as either revenue or capital in nature is critical because it directly affects the
financial position and performance of the company. Revenue expenditures are expensed in the period they are
incurred, impacting the profit or loss for the year, while capital expenditures are capitalized and depreciated
over time, affecting both the balance sheet and future income statements. Given the significant judgment
involved in this area and the potential impact on the financial statements, we considered this to be a key audit
matter.
Auditor's Response
Our audit procedures included, but were not limited to, the following:
• Evaluation of Management's Process: We assessed the process used by management to identify and
bifurcate and segregate the expenses related to the expansion and modernization activities from expenses
of similar nature incurred for repairs. This included evaluating the criteria set by management for
classifying expenses as capital or revenue in nature.
• Testing of Sample Transactions: We selected a sample of expenses and traced them to supporting
documentation to verify whether the classification as revenue or capital expenditures was appropriate.
This included verifying the nature of the expenditure, the timing of the incurrence, and its alignment with
the company's capitalization policy.
• Review of Significant Contracts: We reviewed contracts related to major capital expenditure to
understand the nature of the work performed and the related expenses to ensure proper classification.
• Discussion with Management: We held discussions with management to understand the rationale
behind their judgments, particularly for expenses that were difficult to classify.
• Assessment of Consistency: We examined whether the approach to classifying expenses as revenue or
capital was consistent with prior periods and with applicable accounting standards.
Based on the procedures performed, we found that the management's classification of expenses between
revenue and capital nature was reasonable and in accordance with the applicable financial reporting framework.
Information Other than Standalone 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, Business Responsibility Report, Corporate Governance, Shareholder's Information and Other
Information included in the Company's Annual Report, but does not include the consolidated financial
statements, standalone financial statements and our auditor's reports 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 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 Companies Act,
2013 ("the Act") with respect to the preparation and presentation 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 Ind AS and other accounting principles generally
accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act, 2013
read with Rule 7 of the Companies (Account) Rules, 2014. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding 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 statements that give a true and fair view and are free from material misstatement, whether due
to fraud or error.
In preparing these 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 Responsibility for 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 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
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 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 financial statements, including the
disclosures, and whether the 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 (Auditors Report) Order, 2020 ("the Order") issued by the Central
Government in terms of section 143 (11) of the Companies Act, 2013, we enclose in the Annexure-A, a
statement on the matters specified in paragraph 3 & 4 of the said 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 purpose of our Audit;
b) In our opinion, proper books of accounts as required by the law have been kept by the Company, so far
as appears from our examination of the said books;
c) The Balance Sheet, Statement of Profit & Loss including Other Comprehensive Income, Statement of
Changes in Equity and Cash Flow Statement dealt with by this report are in agreement with the books of
accounts of the Company;
d) In our opinion, the Standalone Financial Statements comply with the Ind AS specified under Section 133
of the Act.
e) On the basis of written representations received from the directors, as on 31st March, 2025, and taken
on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,
2025 from being appointed as a director of the Company in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting and the operating
effectiveness of such controls; refer to our separate report in Annexure - B attached herewith.
g) With respect to the matter to be included in the Auditors Report u/s. 197(16) of the Act, in our opinion
and according to information and explanations given to us, the remuneration paid by company to its
directors is in accordance with the provisions of Section 197 of the Act read with Schedule V in terms of
requisite approvals obtained as mandated therein and is not in excess of the limits specified therein.
h) With respect to the other matters to be included in our 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) There are no pending litigations.
(ii) There are no long-term contracts for which there were material foreseeable losses for which
provision is required
(iii) There were no amounts which were required to be transferred to the Investor Protection Fund by
the Company.
(iv) (a) The Management has represented 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, 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) The Dividend declared and paid during the year by the Company is in compliance with Section 123
of the Act.
(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 and the audit trail has been preserved by the Company as per the
statutory requirements under Rule 3(1) of the Companies (Accounts) Rules, 2014.
for, Naresh & Co
Chartered Accountants
(F.R.N. 106928W)
Sd/-
CA Harin Parikh
Date: 20.05.2025 Partner
Place: Vadodara (M R N: 107606)
UDIN: 25107606BMOJDV5387
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