We have audited the financial statements of CAMEX LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2026,
and the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and 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 (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, and its 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 thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAI Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion on financial statement.
Emphasis of Matter
We draw your attention to Note to 35 of the financial statements where the Company had earlier disclosed that a fire occurred at company's
wax plant located at Ankleshwar in July 2024, resulting in damage to certain property, plant and equipment and consequential losses.
The company has estimated loss of ^ 206.63 Lakhs was recognized based on the assessment carried out at that time. The affected assets
were insured, and an insurance claim amounting to ^ 206.63 Lakhs was duly lodged with the insurer.
During the current financial year, the company has successfully settled the insurance claim pertaining to the fire accident that occurred in
the previous year at the company's wax plant located at Ankleshwar. The company has received/recognized an amount of ^ 221.94 Lakhs.
from Insurance Company and ^ 9.12 Lakhs as realized through the disposal of damaged/scrapped machinery.
The surplus of ^ 24.42 Lakhs, representing the difference between the actual settlement and the earlier estimate, has been recognized
during the current financial year as Exceptional Item.
Our opinion is not modified in respect of this matter.
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 Matters
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How the Matter was addressed in our Audit
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1
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Revenue Recognition: -
Revenue from sale of goods is recognized when control is
transferred to the customers and when there are no other
unfulfilled obligations. This requires detailed analysis of each
sale agreement/ contract /customer purchase order regarding
timing of revenue recognition.
Inappropriate assessment could lead to a risk of revenue being
recognized on sale of goods before the control in the goods is
transferred to the customer.
Subsequent adjustments are made to the transaction price due
to grade mismatch/slippage of the transferred goods.
The variation in the contract price if not settled mutually
between the parties to the contract is referred to third party
testing and the Company estimates the adjustments required
for revenue recognition pending settlement of such dispute.
Such adjustments in revenue are made on estimated basis
following historical trend.
Inappropriate estimation could lead to a risk of revenue being
overvalued or undervalued.
Accordingly, timing of recognition of revenue and adjustments
for quality variances/Rate difference etc., involving critical
estimates is a key audit matter.
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Our audit procedures to assess the appropriateness of revenue
recognized included the following;
Our audit procedures, considering the significant risk of
misstatement related to revenue recognition, included amongst
other:
- Obtaining an understanding of an assessing the design,
implementation and operating effectiveness of the
Company's key internal controls over the revenue
recognition process.
- Examination of significant contracts entered into close to
year end to ensure revenue recognition is made in correct
period.
- Testing a sample of contracts from various revenue streams
by agreeing information back to contracts and proof of
delivery as appropriate and ensure revenue recognition
policy is in accordance with principles of Ind AS 115.
Our testing as described above showed that revenue has been
recorded in accordance with the terms of underlying contracts
and accounting policy in this area.
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2
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Inventory and Valuation of Inventories and Physical Verification
of Inventories:-
The carrying value of inventory as at 31st March 2026 is '
1,401.57 Lakhs. The inventory is valued at the lower of cost and
net realizable value.
We considered the value of inventory as a key audit matter given
the relative size of its balance in the financial statements and
significant judgment involved in the consideration of factors
in determination of selling prices such as fluctuation of raw
materials prices in the market and in determination of net
realizable value. (Refer Note 8 No. to the Financial Statement)
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Our audit procedures included the following;
- We understood and tested the design and operating
effectiveness of controls as established by the management
in determination of net realizable value of inventory.
- Assessing the appropriateness of Company's accounting
policy for valuation of stock-in-trade and compliance of
the policy with the requirements of the prevailing Indian
accounting standards.
- We considered various factors including the actual selling
price prevailing around and subsequent to the year-end.
- Compared the cost of the finished goods with the
estimated net realizable value and checked if the finished
goods were recorded at net realizable value where the cost
was higher than the net realizable value.
Based on the above procedures performed, the management's
determination of the net realizable value of the inventory as at
the year end and comparison with cost for valuation of inventory
is considered to be reasonable.
It is not possible for us to physically verify the Inventories
of Raw Materials, Inventory finished Goods , Stock In Trade
and Packing Materials at the year end. As per the information
given to us by the management, that the management of the
company physically verify the inventories at regular intervals.
We have relied on such verification and valuation done by the
management of the company.
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Sr.
No.
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Key Audit Matters
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How the Matter was addressed in our Audit
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3
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Carrying Value of Trade Receivables and Advances:-
The collectability of the company's Trade Receivables and
Advances (Including Trade Advances), the valuation of allowance
for impairment of trade receivables and provision for bad and
doubtful debt require significant management judgment. As per
the current assessment of the situation based on the Internal
and external information available up to the date of approval of
these financial results by the Board of Directors, the Company
believes that there is no indication of any material impact on
the carrying value.
Management uses this information to determine whether a
provision for impairment or for bad debt is required either
for a specific transaction or for a customer's balance overall.
Accordingly, it has been determined as a key audit matter.
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Our audit procedures included the following;
- We assessed a sample of trade receivables and advances.
- We assessed the ageing of trade receivables and advances,
the customer's historical payment patterns and whether
any post year-end payments have been received up to the
date of completing our audit procedures.
- We also discussed with the management regarding any
disputes between the parties involved, attempts by
management to recover the amounts outstanding and on
the credit status of significant counterparties wherever
available.
In assessing the appropriateness of the overall provision for
impairment, we considered the management's application of
policy for recognizing provisions.
We assessed the Company's provisioning policy and comparing
the Company's provisioning against historical collection data.
Based on our procedures, we also considered the adequacy of
disclosures in respect of trade receivables and advances in the
financial statements.
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4
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Assessment of litigations and related disclosure of contingent
liabilities: -
(Refer to Note 3.11, significant accounting policies to the
financial statements)
The provisions and contingent liabilities relate to ongoing
litigations and claims with various authorities. These relate
to direct tax, various indirect taxes, claims and general legal
proceedings arising in the regular course of business.
The assessment of a provision or contingent liability requires
significant judgement by the company because of the inherent
complexity in estimating future costs.
The amount recognized as a provision is the best estimate made
by the management. The provisions and contingent liabilities
are subject to changes in the outcomes of litigations and claims
and the positions taken by the company. It involves significant
judgement and estimation to determine the likelihood and
timing of the cash outflows and interpretations of the legal
aspects, tax legislations and judgments previously made by
authorities.
(Refer Note - 36 to the Financial Statements - "Contingent
Liabilities & Commitments")
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Our audit procedures included the following;
- Understanding the process followed by the company/
management for assessment and determination of the
amount for provisions and contingent liabilities relating to
taxation, litigations and claims.
- We understood, assessed and tested the design and
operating effectiveness of key controls surrounding
assessment of litigations relating to the relevant laws and
regulations;
- We discussed with management and those charged with
the governance, the recent developments and the status
of the material litigations which were reviewed and noted;
- We performed our assessment on a test basis on the
underlying calculations supporting the contingent
liabilities/other significant litigations disclosed in the
Standalone Financial Statements;
- We evaluated management's assessment around those
matters that are not disclosed or not considered as
contingent liability, as the probability of material outflow
is considered to be remote by the management; and
- We assessed the adequacy of the Company's disclosures.
Based on the above work performed, the assessment in respect
of litigations and related disclosures relating to contingent
liabilities/other significant litigations in the Standalone Financial
Statements is considered to be reasonable.
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Information Other than Financial Statements and Auditor's Report Thereon
The company's Board of Directors are responsible for the preparation and presentation of the other information. The other information
comprises the information included in the Management Discussion and Analysis, Board's Report including the Annexure to the board's
Report, Share Holder's Information etc., but does not include the financial statement and 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 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 material misstatement of this information; we are required to report
that fact. We have nothing to report in this regard.
Responsibility of the Management and those charged with the Governance for the Financial Statements
The Company's Management and Board of Directors of the Company are responsible for the matters stated in section 134(5) of the Act with
respect to the preparation and presentation of these financial statement that gives 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 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
of the assets of the company and for preventing and detecting fraud 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 statement that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
The Board of Directors are also responsible for overseeing the financial reporting process of the Company.
Auditor's Responsibilities for the Audit of the 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 a part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
(a) 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.
(b) 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 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.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
(d) Conclude 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.
(e) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the
economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality
and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the 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 Change in Equity and
the Statement of Cash Flow 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 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 31st March, 2026 taken on record by the Board
of Directors, none of the directors is disqualified as on 31st March, 2026 from being appointed as a director in terms of Section
164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure - A". Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the company's internal financial controls over financial reporting.
(g) According to Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, the company is maintaining books of accounts using
accounting software which has a feature of recording audit trail (edit log) facility of each and every transaction, creating an edit
log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail
is properly enabled.
Further, where audit trail (edit log) facility was enabled and operated throughout the year for the accounting software, we did
not come across any instance of the audit trail feature being tampered with. Additionally the audit trail has been preserved by
the Company as per the statutory requirements for record retention.
(h) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16)
of the Act, as amended:
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 of the Act.
(i) 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, 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 position in its Financial
Statements - Refer Additional 36 to the Financial Statements.
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material
foreseeable losses.
(Ill) 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 their 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 their 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 company has not declared or paid dividend during the year, hence compliance with section 123 of the Companies Act,
2013 Is not applicable.
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
paragraphs 3 and 4 of the Order, to the extent applicable.
For, Surana Maloo & Co.
Chartered Accountants
Firm Reg. No. 112171W
Per, Vidhan Surana
Partner
Place : Ahmedabad Membership No. - 041841
Date : May 12, 2026 UDIN - 26041841CSBFXU6610
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