We have audited the accompanying Financial Statements of Alkyl Amines Chemicals Limited (“the Company”), which comprise
the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of
Cash Flows and the Statement of Changes in Equity for the year then ended, and material accounting policies and other explanatory
information (hereinafter referred to as “the Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, 2026, the profit and total comprehensive income, its cash flows and changes in equity
for the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (SAs) specified under section
143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI), together with the independence requirements that are relevant to our audit
of the Financial Statements under the provisions of the Act and the Rules made 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 audit opinion on the 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 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. We have determined the matters
described below to be the key audit matters to be communicated in our report.
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Sr.
No.
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Key Audit Matter
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Auditor Response
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1
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Litigations - Contingencies
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Audit Procedures
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The Company has litigations in respect of certain direct
and indirect tax and other litigations. In this regard, the
Company has recognised provisions and has disclosed
contingent liabilities (to the extent not provided for) as at
March 31, 2026.
Significant management judgment is required to assess
these matters and to determine the probability of material
outflow of economic resources and whether a provision
should be recognised, or a disclosure should be made.
Where considered relevant, management judgement is also
supported with legal advice in these cases.
We focused on this area as the ultimate outcome of these
matters are uncertain and the positions taken by the
management are based on the application of judgement,
related expert advice, including those relating to
interpretation of laws and regulations.
Refer Note 2(i)(d) and 36a to the Financial Statements.
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Our audit procedures involved the following:
• testing the effectiveness of controls around the recording
and re-assessment of contingent liabilities;
• discussing with management the status and recent
developments of these matters, including their views on
the likely outcome of each litigation and claim;
• performing our assessment of the underlying calculations
supporting the provisions or other disclosures made in
the Financial Statements;
• evaluating the management’s assessment of these matters
and monitoring changes in the disputes with reference
to subsequent orders passed, in order to establish the
appropriateness of the provisions / disclosures;
• obtaining information from the Company’s legal and tax
consultants to confirm the facts and circumstances and
assessment of the likely outcome;
• evaluating management’s assessment of the matters that
are not disclosed, as the probability of material outflow
is considered to be remote by the management; and
• assessing the adequacy of the Company’s disclosures.
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Sr.
No.
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Key Audit Matter
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Auditor Response
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2
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Provision for Expected Credit Losses (ECL) on trade
receivables
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Audit Procedures
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The Company determines the provision for credit losses
based on the Company’s historical observed default
rates, which are negligible over the years. The Company
considered current and anticipated future economic
conditions relating to industries the Company deals with, to
calibrate the provision matrix to adjust the historical credit
loss experience with forward-looking information.
While determining expected credit loss, the Company has
also considered credit reports and other related credit
information of its customers to estimate the probability of
default in future.
We focused on this area as the Company has exercised
significant judgment in determining the ECL and accordingly
has not provided for any such allowance for credit losses on
trade receivables as at the balance sheet date.
Refer to Note 2(ii)(f) to the Financial Statements.
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Our audit procedures involved the following:
• testing the effectiveness of controls over the development
of the methodology for the provision for expected credit
losses;
• discussing with management about their consideration
of the current and estimated future economic conditions;
• evaluating the completeness and accuracy of information
used in the estimation of probability of default by the
customers;
• performing our assessment of the past experience
supporting the non-provisioning or other disclosures
made in the Financial Statements;
• verifying subsequent collection from the customers after
the balance sheet date, with respect to the outstanding
trade receivables, in order to establish the appropriateness
for not making the provisions; and
• assessing the adequacy of the Company’s disclosures.
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3
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Revenue Recognition
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Audit Procedures
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Revenue from the sale of goods (hereinafter referred to as
“Revenue”) is recognized when the Company performs its
obligation to its customers and the amount of revenue can
be measured reliably and recovery of the consideration is
probable.
The timing of such recognition is when the control over
goods is transferred to the customers, which is mainly upon
dispatch / delivery. The timing of revenue recognition is
relevant to the reported performance of the Company.
The management considers revenue as a key measure for
evaluation of performance. There is a risk of revenue being
recorded before the control over goods is transferred.
Refer Note 1(d)(i) and note 28b to the Financial Statements.
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Our audit approach was a combination of tests of internal
controls and substantive procedures including:
• assessing the appropriateness of Company’s revenue
recognition in line with Ind AS 115 - Revenue from
Contracts with Customers.
• evaluating the design & implementation of Company’s
controls in respect of revenue recognition.
• testing the effectiveness of such controls over revenue
cut off at the year end.
• testing the supporting documentation for sales transactions
recorded during the period closer to the year-end and
subsequent to the year-end, including examination
of credit notes issued after the year end to determine
whether revenue was recognised in the correct period.
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Information Other than the Financial Statements and Auditor’s Report
The Company’s Board of Directors is responsible for the preparation of the Other Information. The Other Information comprises
the information included in the Report on Corporate Governance, Shareholder Information and Management Discussion and
Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance and
Shareholder’s Information, but does not include the Financial Statements, and our auditor’s report thereon.
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 and, in doing so,
consider whether the Other Information is materially inconsistent with the 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.
The Other Information has not been provided to us at the date of this report. When it is subsequently provided and if we
conclude that there is material misstatement therein, we shall communicate the matter to those charged with governance.
Responsibilities of Management and the Board of Directors for the 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 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. 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 the 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 relating to going concern and using the going concern
basis of accounting, unless the Board of Directors either intends to liquidate the Company or cease operations, or has no
realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the 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 judgement and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the 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 controls 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 an 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 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, Statement of Cash Flows
and Statement of Changes in Equity, dealt with by this Report, are in agreement with the books of account.
(d) In our opinion, the aforesaid Financial Statements comply with the Indian Accounting Standards specified under
Section 133 of the Act, as applicable.
(e) On the basis of the written representations received from the directors as on March 31, 2026, and 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 over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an unmodified
opinion on adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.
(g) With respect to the matter to be included in the Auditor’s Report under section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company
to its directors during the current year is 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 on its financial position in its Financial Statements
- Refer Note 36a to the Financial Statements;
ii. The Company did not have any material 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.
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; or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub-clause (i)
and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in Note 16.2 to the Financial Statements -
(a) The final dividend proposed in the previous year, declared and paid by the Company during the current year
is in accordance with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company has proposed final dividend for the current 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, and based on information and explanation provided by the
Company, the Company has used accounting software for maintaining its books of account, which have a feature of
recording audit trail (edit log), and the same has operated properly throughout the year for all relevant transactions
recorded in the software. In the course of our audit, we have not come across any instances of audit trail feature
being tampered with. Additionally, where the audit trail facility was enabled and operated in the previous years,
the audit trail has been preserved by the Company as per statutory requirements for record retention.
2. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India,
in terms of sub section (11) of section 143 of the Companies Act, 2013, we give in the ‘Annexure B” a statement on the
matters specified in paragraph 3 and 4 of the Order.
FOR N. M. RAIJI & CO.
Chartered Accountants
Firm Registration Number: 108296W
Vinay D. Balse
Partner
Place: Mumbai Membership Number: 039434
Date: May 5, 2026 UDIN: 26039434TUFSIS2620
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