We have audited the accompanying standalone
financial statements of Archean Chemical
Industries Limited (“the Company”), which
comprise the standalone balance sheet as at 31
March 2025, and the standalone statement of
Profit and Loss (including other comprehensive
income), standalone statement of changes in
equity and standalone statement of cash flows for
the year then ended, and notes to the standalone
financial statements, including a summary of
material 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 31 March 2025, the profit and
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 (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
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 standalone 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 Code of Ethics. We believe
that the audit evidence obtained by us 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 of
the current period. These matters were addressed
in the context of our audit of the standalone
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.

Information Other than the Standalone
Financial Statements and Auditors' Report
Thereon

The Company's Management and Board of
Directors are responsible for the preparation of the
other information. The other information comprises
the information included in the Company's Board
Report, Management Discussion and Analysis,
Report on Corporate Governance, Business
Responsibility and Sustainability Report but does
not include the financial statements and our
auditors' report 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 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.

Responsibilities of the Management and
Board of Directors for Standalone 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 standalone financial
statements that give a true and fair view of the state
of affairs, profit and 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. 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,
Management and 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.

Auditors' 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 auditors' 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 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 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 the
standalone 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 the Management.

• Conclude on the appropriateness of
Management and Board of Directors 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 auditors' report to
the related disclosures in the standalone
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 auditors' report.
However, future events or conditions may
cause the Company to cease to continue as a
going concern; and

• 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 standalone 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 of India in terms of
Section 143 (11) 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 except for the
matters stated in paragraph (h)(vi) below on
reporting under Rule 11(g) of the Companies
(Audit and Auditors) Rules,2014.

(c) The standalone Balance Sheet, the
standalone Statement of Profit and Loss
(including other comprehensive income), the
standalone Statement of Changes in Equity
and the standalone statement of cash flows
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 Indian

Accounting Standards (Ind AS) specified
under Section 133 of the Act.

(e) On the basis of the written representations
received from the directors as on 31 March
2025 taken on record by the Board of
Directors, none of the directors is disqualified
as on 31 March 2025 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 the
standalone financial statements of the
Company and the operating effectiveness of
such controls, refer to our separate Report in
“Annexure B”.

(g) The observation relating to the maintenance
of accounts and other matters connected
therewith are as stated in the paragraph (b)
above on reporting under Section 143(3)
(b) and paragraph (h)(vi) below on reporting
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014.

(h) With respect to the other matters to be
included in the Auditors' 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 31 March 2025 on
its financial position in its standalone financial
statements - Refer Note 37 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 during
the year ended 31 March 2025; and

iv. (a) The management has represented that,

to the best of its knowledge and belief,

other than as disclosed in the notes 40A
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, 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, as
disclosed in the notes to the accounts, 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, 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 such audit procedures that
we have 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 (a) and (b) contain any
material mis-statement.

v. The final dividend paid by the Company during

the year in respect of the same declared
for the previous year is in accordance with
Section 123 of the Act to the extent it applies
to payment of dividend.

As stated in Note 40H to the standalone
financial statements, the Board of Directors

of the Company has proposed final dividend
for the year which is subject to the approval
of the members at the ensuing Annual
General Meeting. The dividend declared is in
accordance with Section 123 of the Act to the
extent it applies to declaration of dividend.

vi. Relying on representations/explanations from
the company and based on our examination
which includes test checks on the software
application the Company has used accounting
software (ERP) 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 and we did not come
across any instance of audit trail feature being
tampered with during the course of our audit.

However, audit trail was not enabled to log
any direct data changes at database level
both in application layer and database layer of
the accounting software.

Additionally, the audit trail has been preserved
by the Company as per the statutory
requirements for record retention.

3. 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 of the Act. The
remuneration paid to any director is not in
excess of the limit laid down under Section
197 of the Act.

For PKF Sridhar & Santhanam LLP

Chartered Accountants
Firm's Registration No.003990S/S200018

S.Prasana Kumar

Partner

Membership No. 212354
UDIN: 25212354BMJMWC8299
Place of Signature: Chennai
Date: 2^nd May 2025