This is the revised Audit Report on the standalone financial statements of
HINDUSTAN ORGANIC CHEMICALS LIMITED (CIN:
L99999KL1960GOI082753) ("the Company”) which comprises of the
Balance Sheet as at 31st March, 2026, the Statement of Profit and Loss
(including Other Comprehensive Income) for the year ended 31st March
2026, the Cash Flow Statement, the Statement of Changes in Equity for the
year ended and notes to the Standalone Financial Statements including
material accounting policies and other explanatory information. Our
Independent Auditor's Report dated 15 May 2026 on the Standalone
Financial Statements of the Company for the year ended 31st March 2026
has been revised solely to correct certain typographical errors and omission
to include a point in the additional disclosure as per the directions of
Comptroller and Auditor General of India crept in the aforesaid audit report.
Except for the aforesaid corrections there is no change in the audited
Standalone Financial Statements, the audit procedures performed by us, or
the audit opinion expressed in our report dated 15 May 2026.

Opinion

1. We have audited the accompanying Standalone Financial
Statements of HINDUSTAN ORGANIC CHEMICALS LIMITED
(CIN: L99999KL1960GOI082753) ("the Company”) which
comprises of the Balance Sheet as at 31st March, 2026, the
Statement of Profit and Loss (including Other Comprehensive
Income) for the year ended 31st March 2026, the Cash Flow
Statement, the Statement of Changes in Equity for the year ended
and notes to the Standalone Financial Statements including material
accounting policies and other explanatory information (hereinafter
referred to as “the Standalone Financial Statements”).

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 the Indian Accounting Standards ('Ind AS')
specified under Section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015 and other accounting
principles generally accepted in India, of the state of affairs of the
Company as at 31st March, 2026, and its loss (including other
comprehensive income), its cash flows and the changes in equity for
the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the 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 together with the ethical
requirements that are relevant to our audit of the Standalone
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 Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion.

Emphasis of Matters.

4. Attention is drawn to note no. 32(b) of the accompanying standalone
financial statements. The company has advanced loan amounting to
Rs. 453.01 lakhs to its subsidiary at an interest rate ranging from
10.25 to 14.50 %. As the subsidiary has failed to pay interest, the
company has stopped charging interest on the loan from the year
2023-24. During the year, the subsidiary company repaid Rs.
1,075.05 lakhs towards interest and Rs. 286.98 lakhs towards loan
repayment.

5. Attention is drawn to note no. 41 of the accompanying standalone
financial statements regarding composition of the Board of Directors
which is not in compliance with the provisions of the Companies Act
2013 and SEBI (LODR) Regulations, 2015.

6. Attention is drawn to note no. 42 of the accompanying standalone
financial statements detailing the status of implementation to the
Government approved restructuring plan.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

7. Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the Standalone
Financial Statements for the financial year ended 31st March, 2026.
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
Auditor's Report thereon:

8. The Company's management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the Company's annual report,
but does not include the Standalone Financial Statements and our
auditors' report thereon. The said other information is expected to be
made available to us after the date of this audit report.

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 when made
available to us and, in doing so, consider whether the other
information is materially inconsistent with the Standalone 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 a material misstatement of this
other information, we are required to report that fact.

Responsibility of Management and Those Charged with Governance
for Standalone Financial Statements:

9. The Company's 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 financial position, financial performance including other
comprehensive income, cash flows and change in equity of the
Company in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards
specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules, 2015. 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 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 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 the Audit of Standalone Financial
Statements:

10. 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 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 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 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 in preparation of Standalone
Financial Statements 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 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.

• 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.

11. 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;

(a) Planning the scope of our audit work and in evaluating the results
of our work and;

(b) To evaluate the effect of any identified misstatements in the
Standalone Financial Statements.

12. 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.

13. 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.

14. 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

15. As required by the Companies (Auditor's Report) Order, 2020 (“The
Order”) issued by the Central Government of India in terms of
Section 143(11) of the Act, we give a statement on the matters
specified in paragraphs 3 and 4 of the Order to the extent applicable
attached as “Annexure 1”.

16. As required by the directions and sub directions issued by the office
of the Comptroller & Auditor General of India under section 143 (5) of
the Act, we give in the “Annexure 2” a statement on the matters
referred in those directions.

17. 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 account as required by law have
been kept by the Company so far as appears from our
examination of those books;

c) The Balance Sheet, the Statement of Profit and Loss including
Other Comprehensive Income, the Statement of Cash Flows and
Statement of Changes in Equity dealt with by this Report are in
agreement with the relevant books of account.;

d) In our opinion, the aforesaid Standalone Financial Statements
comply with the Indian Accounting Standards specified under
Section 133 of the Act, read with Companies (Indian Accounting
Standards) Rules, 2015.

e) As per Notification No. G.S.R. 463(E) dated June 5, 2015, the
Government Companies are exempted from provisions of section
164(2) of the Act. Accordingly, we are not required to report
whether any directors are disqualified in terms of provisions
contained in the said section

f) The report on internal financial control as required under clause (i)
of sub section 3 of section 143 of the Act is attached as Annexure

3;

g) Being a Government company, the provisions of section 197 of
the Act with respect to the matters to be included in the Auditors
Report is not applicable vide notification no. G.S.R. 463(E) dated
June 5, 2015 and as amended by notification no. G.S.R. 582(E)
dated June 13, 2017 issued by the Ministry of Corporate Affairs.

h) With respect to other matters to be included in the Auditors Report

in accordance with Rule 11 of 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 financial statement.

(ii) The company did not have any long-term contracts including
derivative contracts for which there were any material
foreseeable losses.

(iii) The company has made provisions, as required under any law
or Indian accounting standard, for material foreseeable losses,
if any, on the long-term contracts including derivative contracts;

(iv) There were no amounts which were required to be transferred
to Investor Education and Protection Fund by the company.

(v)

• The management has represented that, to the best of its
knowledge and belief, 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 persons or entities, including foreign entities
(“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall

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 have been received by the
company from any persons or entities, including foreign
entities (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the company shall

• 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 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 (v)(a) and (v)(b) contain any material mis¬
statement.

(vi) The company has not declared or paid dividend during the year
2025-26. Hence, section 123 of companies Act, 2013 is not
applicable for the purpose.

(vii) Based on our examination, which included test checks, the
Company has used accounting software for maintaining its
books of account for the financial year ended 31st March, 2026
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 except that audit trail was
not enabled at the database level to log direct data changes, if
any. Further, during the course of our audit we did not come
across any instance of the audit trail feature being tampered
with.

For Balan & Co.Chartered Accountants
FRN 340SM. Venugopal
Partner

Membership No. 244882
UDIN: 26244882GDUBCK6852
Place: Ernakulam
Date: 08.07.2026