We have audited the accompanying standalone financial statements
of INDIAN ACRYLICS LIMITED (the “Company”), which comprise the
Balance Sheet as at March 31, 2025, the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement of Changes in
Equity and the Cash Flows Statement for the year ended on that date and
notes to the financial statements, including a summary of material ac¬
counting policies and other explanatory information (hereinafter referred
to as the “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,
and its loss, total comprehensive loss, the changes in equity and its cash
flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements in ac¬
cordance with the Standards on Auditing (“SA”s) 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 require¬
ments that are relevant to our audit of the Standalone Financial State¬
ments 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 obtained by us is sufficient and appropriate to provide a
basis for our audit 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 state¬
ments 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 that there are no key audit matters to
be communicated in our report.
Information Other than the Financial Statements and Auditor’s Report
Thereon
• The Company’s Board of Directors is responsible for the other in¬
formation. The other information comprises the information includ¬
ed in the Management Discussion and Analysis, Board’s Report
including Annexures to Board’s Report, Corporate Governance
and Shareholder’s Information, but does not include the consoli¬
dated financial statements, Standalone Financial Statements and
our auditor’s report thereon.
• Our opinion on the standalone financial statements does not cov¬
er the other information and we do not express any form of assur¬
ance conclusion thereon.
• In connection with our audit of the standalone financial state¬
ments, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially in¬
consistent with the standalone financial statements or our knowl¬
edge 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 re¬
quired to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Board of Directors for the Stan¬
dalone Financial Statements
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 Stan¬
dalone Financial Statements that give a true and fair view of the financial
position, financial performance, including other comprehensive income/
loss, changes in equity and cash flows of the Company in accordance
with the accounting principles generally accepted in India, including Ind
AS specified under section 133 of the Act. This responsibility also in¬
cludes 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 es¬
timates 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 ma¬
terial 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 Company’s Board of Directors is also responsible for overseeing the
Company’s financial reporting process.
Auditor’s Responsibility for the Audit of the Standalone Financial State¬
ments
Our objectives are to obtain reasonable assurance about whether the
Standalone Financial Statements as a whole are free from material mis¬
statement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of as¬
surance, but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it exists. Mis¬
statements 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 scepticism 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, misrep¬
resentations, 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 ap¬
propriate 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 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 relat¬
ed disclosures made by the 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 signifi¬
cant 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 State¬
ments 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, fu¬
ture 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 disclo¬
sures, and whether the Standalone Financial Statements
represent the underlying transactions and events in a man¬
ner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Finan¬
cial Statements that, individually or in aggregate, makes it probable that
the economic decisions of a reasonably knowledgeable user of the Stan¬
dalone 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 State¬
ments.
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 financial
controls 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 independ¬
ence, 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 conse¬
quences 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, based on our audit 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/loss, Statement of Changes in Equity and the
Cash Flow Statement dealt with by this Report are in agreement with the
relevant books of account.
d) In our opinion, the aforesaid standalone financial statements com¬
ply with the Ind AS specified under Section 133 of the Act.
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 31stMarch, 2025 from being appoint¬
ed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over fi¬
nancial 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) 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.
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:
1. The Company does not have any pending litigations which would impact
its financial position.
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 knowl¬
edge and belief, no funds (which are material either individually or in the
aggregate) have been advanced or loaned or invested (either from bor¬
rowed 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 aggre¬
gate) have been received by the Company from any person or entity, in¬
cluding 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 Ben¬
eficiaries”) 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/paid any dividend during the year.
vi. Based on our examination, which included test checks, the Compa¬
ny has used accounting software systems for maintaining its books of
account for the financial year ended March 31, 2025 which have the fea¬
ture of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the software
systems. Further, during the course of our audit we did not come across
any instance of the audit trail feature being tampered with and the audit
trail has been preserved by the Company as per the statutory require¬
ments for record retention
2. As required by the Companies (Auditor’s Report) Order, 2020 (“the
Order”) issued by the Central Government in terms of Section 143(l1) of
the Act, we give in “Annexure B” a statement on the matters specified in
paragraphs 3 and 4 of the Order.
For AKR & Associates
Chartered Accountants
Firm’s Registration No.: 021179N
CA Kailash Kumar
Partner
Place : Chandigarh Membership No.: 505972
Date : 30.05.2025 UDIN : 25505972BMKUTQ2329
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