1. We have audited the accompanying standalone financial statements of CLC Industries Limited
having CIN: L74899DL1991PLC138153 (“the Company”), which comprise the Standalone Balance
Sheet as at 31st March 2025, the Standalone Statement of Profit and Loss (including other
comprehensive income), Standalone Statement of Cash Flows and Standalone Statement of Changes
in Equity for the year then ended, and notes to the Standalone financial statements, including a
summary of material accounting policies and other explanatory information.
2. 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 Indian
Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended (“Ind AS”) and the other accounting principles
generally accepted in India, of the state of affairs of the Company as at 31st March 2025 and its loss
(financial performance including other comprehensive income), the changes in equity and its cash
flows for the year ended on that date.
Basis for Qualified Opinion
3. We conducted our audit in accordance with Standards on Auditing (SAs) 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 Standalone financial statements under the provisions of the Act and the rules there under,
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 qualified opinion.
4. The company has not provided/ paid interest on delayed payment to parties covered under the
provisions of Micro, Small and Medium Enterprises Development Act, 2006. Amount presently not
ascertainable. Refer note no 21.3 to the financial statements.
Emphasis of Matter
5. The company has provided for ?4002.59 Lakhs in respect of Subsidy Receivable, Security Deposits,
Fixed Deposits including interest receivable and Current bank account balances considered doubtful of
recovery and for want of certain details/confirmation.
Key Audit Matter
6. Application of Ind AS 116 - Leases
Description of the Key Audit Matter
During the year, the Company has applied Ind AS 116, Leases, which significantly impacts the
accounting treatment of lease contracts. This standard requires recognition of right-of-use assets and
corresponding lease liabilities for leases.
The implementation involved a detailed assessment of lease agreements, determination of lease term
including renewal/termination options and recognition of right-of-use assets. Due to the complexity
and judgments involved in these assessments, evaluation of lease terms, we considered this area to
be a key audit matter.
How the matter was addressed in the audit
Our audit procedures included, among others:
• Obtaining an understanding of the Company's process for identifying and evaluating lease
contracts.
• Evaluating the accounting policies adopted for compliance with the requirements of Ind AS 116.
• Reviewing the lease agreements and verifying key terms including lease period, payment terms,
and renewal/termination options.
• Computing value of right-of-use assets for a lease to verify accuracy and appropriateness of the
calculations.
• Verifying the disclosures in the financial statements related to leases to assess compliance with
the disclosure requirements under Ind AS 116.
Information other than the Standalone Financial Statements and Auditor’s Report thereon
7. The Company’s Board of Directors is responsible for the other information. The other information
comprises the information included in the annual report but does not include the financial statements
and our auditor’s report thereon.
8. Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
9. 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 in the 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 other information; we are required to report that fact. We have nothing to report in this regard.
10. 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 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 financial
statement that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
11. In preparing the 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.
12. 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
13. 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 Standards on Auditing 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.
14. As part of an audit in accordance with Standard on Auditing, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
a. 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.
b. 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 and its subsidiary
companies which are companies incorporated in India, 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 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 ability of the Company 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 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 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 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.
Materiality is the magnitude of misstatements in the standalone financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the standalone 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 standalone financial statements
15. 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.
16. 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.
17. 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 matte? 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
18. 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 A” a statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable. As required by Section 143(3) of the Act, we report that:
(a) Subject to what is stated in qualified opinion paragraph, 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) Subj ect to what is stated in qualified opinion paragraph, and also paragraph (h) (vi) below, 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, 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 standalone financial statements comply with the Ind AS specified
under Section 133 of the Act, read with the Companies (Accounting Standard) Rules, 2015 as
amended.
(e) On the basis of the written representations received from the directors as on 31st March, 2025
taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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 over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
“Annexure B”.
(g) To the best of our information and according to the explanations given to us, the company has
paid remuneration to its directors during the year within the provisions of section 197 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, 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
standalone financial statements - Refer Note 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.
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, 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 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; and.
(c) Based on 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 mis-statement.
v. The company has not declared a dividend including interim dividend -
vi. Based on our examination, which included test checks, the Company has used accounting
software for maintaining its books of accounts for the financial year ended 31st March 2025
which has a feature of recording audit trail (edit log) facility and the same has been made
operational throughout the year for all relevant transactions recorded in the software. Further,
during our audit we did not come across any instance of the audit trail feature being tampered
with.
For Ashok R Majethia
Chartered Accountants
FRN: 127769W
Sd/-
Ashok Majethia
Proprietor
M No: 124781
UDIN: 25124781BMILIM1664
Place: Khopoli Dist Raigad
Dated: 30-05-2025
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