We have audited the standalone financial
statements of Mahickra Chemicals Limited (“the
Company”), which comprise the balance sheet as
at 31st March 2025, and the statement of profit
and loss for the year then ended, statement of
cash flows and notes to the standalone financial
statements, including a summary of significant
accounting policies and other explanatory
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
in the manner so required and give a true and fair
view in conformity with the accounting principles
generally accepted in India, of the state of affairs
of the Company as at 31st March 2025 and its
profit and loss
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 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.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgement, were of most significance in
our audit of the Financial Statements of the current
year. 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 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 Standalone
Financial Statements and Auditor’s
Report Thereon
The Company’s Board of Directors are responsible
for the preparation of the other information. The
other information comprises the information included
in the Management Discussion and Analysis, Board’s
Report, Business Responsibility and Sustainability
Report, Corporate Governance and Shareholder’s
Information, but does not include the Standalone
Financial Statements, Consolidated 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 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.
We have nothing to report in this regard.
Responsibilities of Management and
Those Charged with Governance for
the Standalone Financial Statements
The Company’s Board of Directors is responsible for
the matters stated in section 134(5) of the Companies
Act, 2013 (“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, (changes in equity) of the Company in
accordance with the accounting principles generally
accepted in India, including the Accounting
Standards 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,
the Board of Directors 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 the Board of Directors
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 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 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 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
• 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 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.
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.
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.
* * ^ I V/ V I W Vw/ U V-/ I I W I y Vw/ W V V I VI I y W V I I IVII IW
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 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 and the Statement of Cash Flows dealt
with by this Report are in agreement with the
books of accounts.
d) In our opinion, the aforesaid Standalone Financial
Statements comply with the Accounting Standards
specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
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 A”. Our report expresses an
unmodified opinion on the adequacy and
operating effectiveness of the Company’s
internal financial control over with reference
to the Standalone Financial Statements of the
Company.
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 information 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 read
with Schedule V 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 litigation on its Financial
Statement. Refer Note 28 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. During the year, there were no amounts
which are required to be transferred, to the
Investor’s Education and Protection Fund
by the company.
iv. i) 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:
• directly or indirectly lend or invest in
other persons or entities identified
in any manner whatsoever
(“Ultimate Beneficiaries”) by or on
behalf of the Holding Company
or its subsidiary companies
incorporated in India or
• provide any guarantee, security
or the like to or on behalf of the
Ultimate Beneficiaries
ii) 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
to or any other person or entity,
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 (“Ultimate
Beneficiaries”) by or on behalf of
the Funding Parties or
• provide any guarantee, security or
the like from or on behalf of the
Ultimate Beneficiaries
iii) Based on such audit procedures
as 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 or its holding company
has not declared and paid any
dividend during the year:
vi. ) Based on our examination which
included test checks, the company
has used an accounting software
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 in the software. Further,
during the course of our audit we
did not come across any instance
of audit trail feature being tampered
with.
As provision to Rule 3(1) of the
Companies (Accounts) Rules, 2014
is applicable from April 1, 2023,
reporting under Rule 11 (g) of the
Companies (Audit and Auditors)
Rules, 2014 on preservation of audit
trail as per the statutory requirements
for record retention is not applicable
for the financial year ended March
31,2025.
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 Piyush J. Shah & Co.
Chartered Accountants
FRN: 121172W
Jainam K. Shah
Partner
M. No: 166122
UDIN: 25166122BMGUDW6960
Place: Ahmedabad
Date: 23rd May 2025
|