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Auditor Report of Chemplast Sanmar Ltd.
Mar 31, 2025
We have audited the standalone financial statements
of Chemplast Sanmar 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 material accounting policies
and other explanatory information.
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 ("Act") 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 31 March 2025, and
its loss 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 Auditorâs 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 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 we
have obtained 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.
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Timing of revenue recognition See Note 4 and 3.9 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
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The Companyâs revenue is derived primarily from sale of The Company and its external stakeholders focus on revenue Timing of revenue recognition has been identified as a key audit |
In view of the significance of the matter, we performed the ⢠Assessed the Companyâs accounting policy for revenue ⢠Tested the design, implementation and operating ⢠We used statistical sampling and performed substantive ⢠Tested manual journal entries posted to revenue based |
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Impairment assessment of long-term investments in subsidiary See Note 15 and 3.3.1 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
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The Company has a long-term investment in its subsidiary as The Companyâs subsidiary has a negative net-worth and The recoverable amount of the investment in subsidiary is |
In view of the significance of the matter, we performed the following key audit procedures, among others to obtain sufficient appropriate audit evidence: ⢠Assessed the Companyâs accounting policy for ⢠Assessed the design, implementation and operating ⢠Examined the valuation workings for the purpose of ⢠Involved our valuation specialists to examine and ⢠Challenged the assumptions used in valuation based on ⢠Performed sensitivity analysis considering possible ⢠Compared the carrying value of the Companyâs ⢠Assessed the adequacy of disclosures made in the |
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Revaluation of property, plant and equipment |
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See Note 14 and 3.4 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
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The Company has opted for revaluation model for measuring Independent valuations are undertaken by external registered Revaluation of property, plant and equipment is considered to |
In view of the significance of the matter we applied the following key audit procedures in this area, among others to obtain sufficient appropriate audit evidence: ⢠Assessed the Companyâs accounting policy for ⢠Tested the design, implementation and operating ⢠Obtained the independent registered valuerâs report on ⢠Involved our specialists to evaluate the valuation ⢠Challenged the valuation methodology, key assumptions ⢠Compared the revaluation of revalued assets as per ⢠Evaluated the Companyâs disclosures in the standalone |
Other Information
The Companyâs Management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the Companyâs
annual report, but does not include the financial statements
and auditorâs 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.
Management''s and Board of Directors'' Responsibilities
for the Standalone Financial Statements
The Companyâs 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 / loss 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, the
Management and Board of Directors are responsible for
assessing the Companyâs 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 Companyâs 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 auditorâs 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 with reference to 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 and
Board of Directors.
⢠Conclude on the appropriateness of the Management
and Board of Directors 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
Companyâs ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditorâs 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 auditorâs
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.
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 auditorâs
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 (Auditorâs 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 A. 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 the paragraph 2B(f)
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 Ind AS
specified under Section 133 of the Act.
e. On the basis of the written representations
received from the directors as on 01 April
2025, 14 April 2025 and 15 April 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. The modifications relating to the
maintenance of accounts and other matters
connected therewith are as stated in the
paragraph 2A (b) above on reporting under
Section 143(3)(b) of the Act and paragraph
2B(f) below on reporting under Rule 11(g) of
the Companies (Audit and Auditors) Rules,
2014.
g. With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Company and the
operating effectiveness of such controls,
refer to our separate Report in "Annexure B".
B. With respect to the other matters to be included in
the Auditorâs 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:
a. 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 41 to the
standalone financial statements.
b. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses.
c. There were no amounts which were required
to be transferred to the Investor Education
and Protection Fund by the Company.
d. (i) The management has represented
that, to the best of its knowledge and
belief, as disclosed in the Note 45 (ii)
to the standalone financial statements,
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 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.
(ii) The management has represented
that, to the best of its knowledge and
belief, as disclosed in the Note 45 (iii)
to the standalone financial statements,
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 directly or indirectly, lend or
invest in other persons or entities
identified in any manner whatsoever
by or on behalf of the Funding Parties
("Ultimate Beneficiaries") or provide
any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
(iii) 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
(i) and (ii) above, contain any material
misstatement.
e. The Company has neither declared nor paid
any dividend during the year.
f. 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
audit trail (edit log) facility and the same
has operated throughout the year for
all relevant transactions recorded in the
software except that the audit trail feature
at the database level to log any direct data
changes was enabled and operated from 14
May 2024 onwards. Further, where audit trail
(edit log) facility was enabled and operated
throughout the year, we did not come across
any instance of audit trail feature being
tampered with. Additionally, other than the
periods where audit trail (edit log) facility
was not enabled in the previous year, audit
trail has been preserved by the Company
as per the statutory requirements for record
retention.
C. With respect to the matter to be included in the
Auditorâs Report under Section 197(16) of the Act:
In our opinion and according to the information
and explanations given to us, the remuneration
paid / payable 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 / payable to any director is
not in excess of the limit laid down under Section
197 of the Act. The Ministry of Corporate Affairs
has not prescribed other details under Section
197(16) of the Act which are required to be
commented upon by us.
for B S R & Co. LLP
Chartered Accountants
Firmâs Registration No.:101248W/W-100022
S Sethuraman
Partner
Place: Chennai Membership No.: 203491
Date: 13 May 2025 ICAI UDIN:25203491 BMLJSB7777
Mar 31, 2024
Chemplast Sanmar Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Chemplast Sanmar Limited (the "Company") which comprise the standalone balance sheet as at 31 March 2024, 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 material accounting policies and other explanatory information.
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 ("Act") 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 31 March 2024, and its 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 Auditorâs 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 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 we have obtained 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.
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Timing of revenue recognition See Note 4 and 3.8 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
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The Companyâs revenue is derived primarily from sale of speciality chemicals. Revenue from the sale of goods is recognised upon the transfer of control of the goods to the customer. The Company and its external stakeholders focus on revenue as a key performance metric and the Company uses various shipment terms across its operating markets. Timing of revenue recognition has been identified as a key audit matter as there could be an incentive or external pressures to meet expectations resulting in revenue being overstated or recognized before control has been transferred |
In view of the significance of the matter, we performed the following key audit procedures, among others to obtain sufficient appropriate audit evidence: ⢠Assessed the Companyâs accounting policy for revenue recognition as per Ind AS. ⢠Tested the design, implementation and operating effectiveness of key controls relating to timing of revenue recognition. ⢠We used statistical sampling and performed substantive testing of selected samples of revenue transactions recorded during the year by verifying the underlying documents such as sale invoice, dispatch document and bill of lading and assessed the accuracy of the period in which revenue was recognised. ⢠Tested manual journal entries posted to revenue based on a specified risk-based criteria to identify unusual items. |
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Impairment assessment of long-term investments in subsidiary See Note 15 and 3.3 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
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The Company has a long-term investment in its subsidiary as at 31 March 2024. The Company performs impairment testing of its investment in subsidiary when any impairment indicator exists, based on internal or external sources of information. The Companyâs subsidiary has a negative net-worth and negative working capital as of 31 March 2024, and operated at loss during the year. The prices of the products dealt by the subsidiary were volatile, which impacts the budgets and forecasted performance of the subsidiary. These factors have triggered the testing for impairment of investment in the subsidiary. The recoverable amount of the investment in subsidiary is measured using a discounted cash flow model. As impairment assessment involves significant estimates and judgements, it is considered as a key audit matter. |
In view of the significance of the matter, we performed the following key audit procedures, among others to obtain sufficient appropriate audit evidence: ⢠Assessed the Companyâs accounting policy for impairment of investments in subsidiaries with Ind AS; ⢠Assessed the design, implementation and operating effectiveness of key controls in respect of the Companyâs impairment assessment process; ⢠Examined the valuation workings for the purpose of impairment testing prepared by the Company; ⢠Involved our valuation specialists to examine and evaluate the valuation methodology and assumptions; ⢠Challenged the assumptions used in valuation based on our understanding of the business and historical trends; ⢠Performed sensitivity analysis considering possible changes in key assumptions used such as the revenue forecasts, terminal growth rates and weighted average cost of capital; ⢠Compared the carrying value of the Companyâs investment in subsidiary with the value in use and assessed the need for impairment (if any). ⢠Assessed the adequacy of disclosures made in the standalone Ind AS financial statements |
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Write down of inventories |
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See Note 18 and 3.6 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
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The Company values its inventory at the lower of cost and net realizable value (NRV). NRV is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The prices of the products dealt by the Company were volatile during the year impacted by the international market conditions. This resulted in the Company recognizing write down of its inventories to NRV during the year. As NRV write downs of inventory involved significant estimates and complex computation, it is identified as a key audit matter. |
In view of the significance of the matter we applied the following key audit procedures in this area, among others to obtain sufficient appropriate audit evidence: ⢠Assessed the Companyâs accounting policy for measurement of inventories as per Ind AS. ⢠Tested the design, implementation and operating effectiveness of key controls relating to inventory measurement and NRV computation. ⢠Performed substantive testing of inventory measurement in line with the Companyâs accounting policy. ⢠Assessed the estimates of NRV of the inventory such as estimated selling price and estimated cost of completion considered in NRV computation. ⢠Assessed the adequacy of disclosures as per applicable Ind AS framework. |
Other Information
The Companyâs Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companyâs annual report but does not include the financial statements and auditorâs report(s) 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.
Management''s and Board of Directors'' Responsibilities for the Standalone Financial Statements
The Companyâs 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/ loss 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, the Management and Board of Directors are responsible for assessing the Companyâs 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 Companyâs 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 auditorâs 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 with reference to 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 and Board of Directors.
⢠Conclude on the appropriateness of the Management and Board of Directors 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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.
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 auditorâs 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 (Auditorâs 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 A. 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 the paragraph 2(B)(f) 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 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 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164(2) of the Act.
f. the modification relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2A(b) above on reporting under Section 143(3)(b) and paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
g. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
B. With respect to the other matters to be included in the Auditorâs 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:
a. The Company has disclosed the impact of pending litigations as at 31 March 2024 on its financial position in its standalone financial
statements - Refer Note 40 to the standalone financial statements.
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
d (i) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 45 to the standalone financial statements, 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 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.
(ii) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 45 to the standalone financial statements, 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 directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures performed 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 subclause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
e. The Company has neither declared nor paid any dividend during the year.
f. 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 audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that the audit trail feature was not enabled at the database level to log any direct data changes. Further, where audit trail (edit log) facility was enabled and operated throughout the year, we did not come across any instance of audit trail feature being tampered with.
B. With respect to the matter to be included in the Auditorâs Report under Section 197(16) of the Act:
I n our opinion and according to the information and explanations given to us, the remuneration paid/ payable 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/ payable to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
for B S R & Co. LLP
Chartered Accountants Firmâs Registration No.:101248W/W-100022
Nachiappan Subramanian
Partner
Place: Chennai Membership No.: 218727
Date: 20 May 2024 ICAI UDIN:24218727BKHGWX6967
Mar 31, 2023
Chemplast Sanmar Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Chemplast Sanmar Limited (the "Company") which comprise the standalone balance sheet as at 31 March 2023, 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 significant accounting policies and other explanatory information.
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 ("Act") 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 31 March 2023, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
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 Auditorâs 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 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 we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
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.
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Impairment assessment of long-term investments in subsidiary See Note 15 and 3.3 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
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The Company has a long-term investment in its subsidiary as at 31 March 2023. The Company performs impairment testing of its investment in subsidiary when any impairment indicator exists, based on internal or external sources of information. The Companyâs subsidiary has a negative net-worth and negative working capital as of 31 March 2023, and operated at reduced profitability during the year. The prices of the products dealt by the subsidiary were volatile, which impacts the budgets and forecasted performance of the subsidiary. These factors have triggered the testing for impairment of investment in subsidiary. The recoverable amount of the investment in subsidiary is measured using a discounted cash flow model. As impairment assessment involves significant estimates and judgements, it is considered as a key audit matter. |
In view of the significance of the matter, we performed the following key audit procedures, among others to obtain sufficient appropriate audit evidence: ⢠Assessed the Companyâs accounting policy for impairment of investments in subsidiaries with Ind AS. ⢠Assessed the design, implementation and operating effectiveness of key controls in respect of the Companyâs impairment assessment process. ⢠Examined the valuation report for the purpose of impairment testing obtained by the Company from the expert; Assessed the professional competence, experience and objectivity of the expert. ⢠Involved our valuation specialists to examine and evaluate the valuation methodology and assumptions. ⢠Challenged the assumptions used in valuation based on our understanding of the business and historical trends. ⢠Performed sensitivity analysis considering possible changes in key assumptions used such as the revenue forecasts, terminal growth rates and weighted average cost of capital. ⢠Compared the carrying value of the Companyâs investment in subsidiary with the value in use and assessed the need for impairment (if any). ⢠Assessed the adequacy of disclosures made in the standalone Ind AS financial statements. |
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Write down of inventories |
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See Note 18 and 3.6 to standalone financial statements |
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The key audit matter |
How the matter was addressed in our audit |
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The Company values its inventory at the lower of cost and net realizable value (NRV). NRV is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. The prices of the products dealt by the Company were volatile during the year impacted by the international market conditions. This resulted in the Company recognizing write down of its inventories to NRV during the year. As NRV write downs of inventory involved significant estimates and complex computation, it is identified as a key audit matter. |
In view of the significance of the matter, we applied the following key audit procedures in this area, among others to obtain sufficient appropriate audit evidence: ⢠Assessed the Companyâs accounting policy for measurement of inventories as per Ind AS. ⢠Tested the design, implementation and operating effectiveness of key controls relating to inventory measurement and NRV computation. ⢠Performed substantive testing of inventory measurement in line with the Companyâs accounting policy. ⢠Assessed the estimates of NRV of the inventory such as estimated selling price and estimated cost of completion considered in NRV computation. ⢠Assessed the adequacy of disclosures as per applicable Ind AS framework. |
The Companyâs Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Companyâs annual report, but does not include the financial statements and auditorâs report(s) 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.
Management''s and Board of Directors'' Responsibilities for the Standalone Financial Statements
The Companyâs 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/ loss 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, the Management and Board of Directors are responsible for assessing the Companyâs 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 Companyâs 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 auditorâs 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 with reference to 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 and Board of Directors.
⢠Conclude on the appropriateness of the Management and Board of Directors 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
Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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.
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 auditorâs 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.
a. The standalone financial statements of the Company for the year ended 31 March 2022 were audited by the predecessor auditor who had expressed an unmodified opinion in their report dated 10 May 2022.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs 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 A. 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 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 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 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2023 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 financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
B. With respect to the other matters to be included in the Auditorâs 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:
a. The Company has disclosed the impact of pending litigations as at 31 March 2023 on its financial position in its standalone financial statements - Refer Note 40 to the standalone financial statements.
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
d (i) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 46 to the standalone financial statements, 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 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.
(ii) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 46 to the standalone financial statements, 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 directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) Based on the audit procedures performed 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 subclause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
e. The Company has neither declared nor paid any dividend during the year.
f. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from 1 April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.
C. With respect to the matter to be included in the Auditorâs Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid/payable 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/payable to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
Chartered Accountants Firmâs Registration No.:101248W/W-100022
Partner
Place: Chennai Membership No.: 203491
ICAI
Date: 16 May 2023 UDIN:23203491BGYXXG4068
Mar 31, 2022
Chemplast Sanmar Limited
Report on the Audit of the Standalone Ind AS Financial StatementsOpinion
We have audited the accompanying Standalone Ind AS Financial Statements of Chemplast Sanmar Limited ("the Company"), which comprise the Standalone Balance sheet as at March 31 2022, the Standalone Statement of Profit and Loss, including the Statement of Other Comprehensive Income, the Standalone Cash Flow Statement and the Standalone Statement of Changes in Equity for the year then ended and notes to the Standalone Ind AS Financial Statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Ind AS Financial Statements give the information required by the Companies Act, 2013, as amended ("the Act") 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 March 31,2022, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
We conducted our audit of the Standalone Ind AS Financial Statements in accordance with the Standards on Auditing (SAs), as 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 Ind AS 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 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 we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Ind AS Financial Statements for the financial year ended March 31, 2022. These matters were addressed in the context of our audit of the Standalone Ind AS Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor''s responsibilities for the audit of the Standalone Ind AS Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the Standalone Ind AS Financial Statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying Standalone Ind AS Financial Statements.
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Key audit matters |
How our audit addressed the key audit matter |
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Revenue recognition (as described in Note 3.8 & Note 4 of the Standalone Financial Statements) |
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The Company recognizes revenues when control of the goods is transferred to the customers at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment. In determining the sales price, the Company considers the effects of rebates and discounts (variable consideration). The terms of arrangements in case of domestic and exports sales, including those relating to the timing of transfer of control, the nature of discount and rebates arrangements, and delivery specifications, require judgment in their application, for determining revenues. The risk of revenue being recognized without meeting the revenue recognition norms in accordance with Ind AS 115 ''Revenue from contracts with customers'', is determined to be a key audit matter. |
Our audit procedures included the following: ⢠We evaluated the Company''s order to cash processes, including design and implementation of controls and tested the operating effectiveness of such controls in relation to revenue recognition. ⢠On a sample basis, we tested revenue transactions to contracts with customers, purchase orders issued by customers, sales invoices raised by the Company and shipping records to determine the timing of transfer of control and the pricing terms, and the timing of revenue recognition in respect of such contracts. ⢠We performed substantive analytical procedures over disaggregated data of revenue transactions during the audit period to identify trends / patterns warranting additional audit procedures. |
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Key audit matters |
How our audit addressed the key audit matter |
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⢠We selected samples of rebates and discounts during the year, compared them with the supporting documents and performed re-calculations of those variable considerations on a sample basis. ⢠We read and understood, and evaluated the Company''s accounting policies pertaining to revenue recognition and assessed compliance thereof with the policies in terms of Ind AS 115 - ''Revenue from Contracts with Customers. ⢠We assessed the disclosures with applicable accounting standards. |
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Revaluation of property, plant and equipment (as described in Note 3.4 & Note 14 of the Standalone Ind AS Financial Statements) |
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The Company has opted for revaluation model for measuring freehold / leasehold land, buildings and plant and machineries (''PPE'') and these assets are carried in the books at the fair value less accumulated depreciation. Independent valuations are undertaken at least once in every three years, or more frequently if there is an indicator that the fair value has changed significantly. Pursuant to this policy, management undertook an independent valuation in the current year and as at March 31, 2022, the Company has recognised revaluation surplus of Rs. 1,210 Million (net of tax of Rs. 630 Million). Revaluation of PPE is considered to be a key audit matter due to the magnitude of the underlying amounts, and judgements involved in the assessment of the fair value of these assets. |
Our audit procedures included the following: ⢠We read and assessed the Company''s accounting policies with respect to PPE . ⢠We evaluated the design and tested the operating effectiveness of internal controls relating to revaluation of PPE including the use of management''s expert. ⢠We obtained the management''s expert''s report on valuation of PPE and evaluated the valuation methodology as well as key assumptions and estimates used in valuation. ⢠We have also involved our internal experts towards validating the key assumptions and estimates used in the aforesaid valuation. ⢠We assessed the competence, objectivity and independence of the management''s expert. ⢠We assessed the disclosures with the requirements of Ind AS. |
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 Standalone Ind AS Financial Statements and our auditor''s report thereon.
Our opinion on the Standalone Ind AS 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 Ind AS Financial Statements, our responsibility is to read the other information and in doing so, consider whether such 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 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 for the Standalone Ind AS 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 Standalone Ind AS Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity 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 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 the 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 Ind AS 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 Ind AS 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 Responsibilities for the Audit of the Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Ind AS 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 Ind AS 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 Ind AS 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 with reference to 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 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 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 Ind AS Financial Statements, including the disclosures, and whether the Standalone Ind AS 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 Ind AS Financial Statements for the financial year ended March 31, 2022 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 (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 Act, we give in the "Annexure 1" a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 accounts as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Standalone Cash Flow Statement and Standalone Statement of Changes in Equity dealt with by this Report are in agreement with the books of accounts;
(d) In our opinion, the aforesaid Standalone Ind AS Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2022 taken on record by the Board of Directors, none of the directors are disqualified as on March 31,2022 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 these Standalone Ind AS Financial Statements and the operating effectiveness of such controls, refer to our separate Report in "Annexure 2" to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2022 has been paid by the Company to
its directors in accordance with the provisions of Section 197 read with Schedule V to 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:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Ind AS Financial Statements - Refer Note 39 to the Standalone Ind AS 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 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, no funds 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 such audit procedures that were 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 misstatement.
v. No dividend has been declared or paid during the year by the Company.
For S.R. Batliboi & Associates LLP
Chartered Accountants ICAI Firm Registration Number: 101049W/E300004
per Aravind K
Partner
Place of Signature: Chennai Membership Number: 221268
Date: May 10, 2022 UDIN: 22221268AISVWR4688
Mar 31, 2012
1. We have audited the attached Balance Sheet of Chemplast Sanmar
Limited (the "company") as at March 31, 2012, and the related Statement
of Profit and Loss and Cash Flow Statement for the year ended on that
date annexed thereto, which we have signed under reference to this
report. These financial statements are the responsibility of the
company's Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub- section (4A) of Section 227 of 'The Companies Act, 1956'
of India (the 'Act') and on the basis of such checks of the books and
records of the company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. We draw your attention to recognition of net deferred tax assets as
at March 31, 2012 amounting to Rs.8137 lacs in view of unabsorbed tax
depreciation and carry forward tax losses of the company, instead of
writing down the deferred tax assets relating to earlier years
amounting to Rs.6041 lacs and not recognising deferred tax assets
during the year amounting to Rs.2096 lacs, in the absence of virtual
certainty supported by convincing evidence of sufficient tax profits as
required by Accounting Standard 22 - Accounting for Taxes on Income.
Had the aforesaid been affected the reported Deferred Tax Asset would
have been nil instead of the reported amount of Rs.8137 lacs and the
Tax Expense and the Loss after Tax for the year ended March 31, 2012
would have been higher by Rs.8137 lacs.
5. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have 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, except for the effect of the matter referred in
paragraph 4 above 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, Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(d) Except for the effect of the matter referred in paragraph 4 above,
in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of Section 211 of
the Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2012 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, except for the effect of
the matter referred in paragraph 4 above, give a true and fair view in
conformity with the accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2012;
(ii) in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors' Report
Referred to in paragraph 3 of the Auditors' Report of even date to the
members of Chemplast Sanmar Limited on the financial statements for the
year ended March 31, 2012.
1. (a) The company is maintaining proper records showing full
particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets of the company have been physically verified by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the company, and according to the information and
explanations given to us, no major weakness have been noticed or
reported.
5. According to the information and explanations given to us, there
have been no contracts or arrangements referred to in Section 301 of
the Act during the year that are required to be entered in the register
to be maintained under that section. Accordingly the question of
commenting on transactions made in pursuance of such contracts or
arrangements does not arise.
6. The company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the company examined by us, in our opinion, the company
is regular in depositing the undisputed statutory dues including
provident fund, investor education and protection fund, employees'
state insurance, income tax, sales tax/ value added tax, wealth tax,
service tax, customs duty, excise duty and other material statutory
dues, as applicable, with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the company examined by us, the particulars of dues of
income tax, sales tax/ value added tax, wealth tax, service tax,
customs duty and excise duty as at March 31, 2012 which have not been
deposited on account of a dispute are as follows:
Name of the Statute Nature of the Period to which
dues the amount relates
TN Value Added Tax, 2007 VAT/ Penalty 2004 to 2008
Central Sales Tax Act, Sales Tax/ Penalty 1994 to 1996
1956
Customs Act, 1962 Customs duty 2002
Customs Act, 1962 Customs duty 2011
Income Tax Act, 1961 Income Tax 2003 to 2008
Income Tax Act, 1961 Income Tax 2005 to 2006
Income Tax Act, 1961 Income Tax 2008 to 2009
Central Excise Act, 1944 Excise Duty/ Penalty 1994 to 1999
Central Excise Act, 1944 Excise Duty/ Penalty 2005 to 2007
Central Excise Act, 1944 Excise Duty 1979 to 1984
Central Excise Act, 1944 Excise Duty 1981 to 1984
Name of the Statute Amount Forum where dispute is pending
Rs. Lacs
TN Value Added Tax, 2007 71 Additional Commissioner -
Commercial Taxes
Central Sales Tax Act, 415 Assistant Commissioner -
1956 Commercial Taxes
Customs Act, 1962 12 Customs, Excise and Service
Tax Tribunal
Customs Act, 1962 3 Commissioner of Customs
(Appeals)
Income Tax Act, 1961 1210 Income tax Appellate
Tribunal
Income Tax Act, 1961 73 Commissioner of Income
Tax (Appeals)
Income Tax Act, 1961 15 Commissioner of Income
Tax (Appeals)
Central Excise Act, 1944 3005 Customs, Excise and Service
Tax Tribunal
Central Excise Act, 1944 30 Commissioner of Central
Excise (Appeals)
Central Excise Act, 1944 4 High Court of Madras
Central Excise Act, 1944 3 Deputy Commissioner of
Central Excise
10. The accumulated losses of the company as at March 31, 2012 have
exceeded fifty percent of its net worth. The company has not incurred
cash losses in the financial year ended on that date or in the
immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to the
company.
14. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion, and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, funds raised on a short term basis, being the
excess of current liabilities over current assets as at the balance
sheet date, aggregating Rs.85149 lacs have been used for long term
assets (i.e. non-current assets).
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The company has not issued any debentures during the year; and
does not have any debentures outstanding as at the year end.
20. The company has not raised any money by public issues during the
year.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For PRICE WATERHOUSE & CO
Firm Registration Number: 007567S
Chartered Accountants
SUBRAMANIAN VIVEK
Partner
Membership Number: 100332
Chennai
May 29, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Chemplast Sanmar
Limited (the "company") as at March 31, 2011, and the related Profit
and Loss Account and Cash Flow Statement for the year ended on that
date annexed thereto, which we have signed under reference to this
report. These financial statements are the responsibility of the
company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub- section (4A) of Section 227 of 'the Companies Act, 1956'
of India (the 'Act') and on the basis of such checks of the books and
records of the company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have 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 appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of accounts;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2011 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2011;
(ii) in the case of the Profit and Loss Account, of the loss for the
year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors' Report
Referred to in paragraph 3 of the Auditors' Report of even date to the
members of Chemplast Sanmar Limited on the financial statements for the
year ended March 31, 2011
1. (a) The company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets of the company have been physically verified by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management during the year. In respect of
inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the company, and according to the information and
explanations given to us, no major weakness have been noticed or
reported.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in Section 301 of the Act have been entered in the register
required to be maintained under that section.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of Rupees Five Lakhs in respect of
any party during the year have been made at prices which are reasonable
having regard to the prevailing market prices at the relevant time.
6. The company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the company examined by us, in our opinion, the company
is generally regular in depositing the undisputed statutory dues
including provident fund, investor education and protection fund,
employees' state insurance, income tax, sales tax/value added tax,
wealth tax, service tax, customs duty, excise duty, cess and other
material statutory dues as applicable with the appropriate authorities.
(b) According to the information and explanations given to us and the
records of the company examined by us, the particulars of dues of
income tax, sales tax/value added tax, wealth tax, service tax, customs
duty, excise duty and cess as at March 31, 2011 which have not been
deposited on account of a dispute, are as follows:
Name of the Statute Nature of the Amount Forum where dispute is
pending
dues Rs.Lacs
TN Value Added
Tax, 2007 VAT / Penalty 71 Additional Commissioner -
Commercial Taxes
Central Sales
Tax Act, 1956 Sales Tax /
Penalty 415 Assistant Commissioner -
Commercial Taxes
Customs Act, 1962 Customs duty 12 Customs, Excise and
Service Tax Tribunal
Central Excise Act,
1944 Excise Duty/
Penalty 2918 Customs, Excise and
Service Tax Tribunal
Central Excise
Act, 1944 Excise Duty/
Penalty 11 Commissioner of Central
Excise (Appeals)
Central Excise
Act, 1944 Excise Duty 4 Chennai High Court
Central Excise
Act, 1944 Excise Duty 3 Deputy Commissioner of
Central Excise
Income Tax Act, 1961 Income Tax 564 Commissioner of Income
Tax (Appeals)
10. The accumulated losses of the company as at March 31, 2011 have
not exceeded fifty percent of its net worth. The company has not
incurred cash loss in the financial year ended on that date however it
had incurred cash loss in the immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund/ societies are not applicable to the
company.
14. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
company, for loans taken by others from banks or financial
institutions, are not prejudicial to the interest of the company.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
17. On the basis of an overall examination of the balance sheet of the
company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The company has not issued any debentures during the year.
20. The company has not raised any money by public issues during the
year.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For PRICE WATERHOUSE & CO
Firm Registration Number: 007567S
Chartered Accountants
S DATTA
Chennai Partner
April 26, 2011 Membership Number: F14128
Mar 31, 2010
1. We have audited the attached Balance Sheet of Chemplast Sanmar
Limited ("the company") as at March 31, 2010, and the related Profit
and Loss Account and Cash Flow Statement for the year ended on that
date annexed thereto, which we have signed under reference to this
report. These financial statements are the responsibility of the
companys management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by Management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
(together the "Order"), issued by the Central Government of India in
terms of sub-section (4A) of Section 227 of The Companies Act, 1956
of India (the Act) and on the basis of such checks of the books and
records of the company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
(a) We have 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 appears from our examination of
those books;
(c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the Act;
(e) On the basis of written representations received from the
directors, as on March 31, 2010 and taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Act;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said financial statements together
with the notes thereon and attached thereto give, in the prescribed
manner, the information required by the Act, and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the
company as at March 31, 2010; (ii) in the case of the Profit and Loss
Account, of the loss for the year ended on that date; and (iii) in the
case of the Cash Flow Statement, of the cash flows for the year ended
on that date.
Annexure to the Auditors Report
Referred to in paragraph 3 of the Auditors Report of even date to the
members of Chemplast Sanmar Limited on the financial statements for the
year ended March 31, 2010
1. (a) The company is maintaining proper records showing full
particulars, including quantitative details and
situation, of fixed assets.
(b) The fixed assets of the company have been physically verified by
the Management during the year and no material discrepancies between
the book records and the physical inventory have been noticed. In our
opinion, the frequency of verification is reasonable.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets has not been disposed
of by the company during the year.
2. (a) The inventory (excluding stocks with third parties) has been
physically verified by the Management
during the year. In respect of inventory lying with third parties,
these have substantially been confirmed by them. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the company is maintaining proper records of inventory. The
discrepancies noticed on physical verification of inventory as compared
to book records were not material.
3. (a) The company has not granted any loans, secured or unsecured, to
companies, firms or other parties
covered in the register maintained under Section 301 of the Act.
(b) The company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
services. Further, on the basis of our examination of the books and
records of the company, and according to the information and
explanations given to us, no major weakness have been noticed or
reported.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of
contracts or arrangements referred to in Section 301 of the Act have
been entered in the register required to be maintained under that
section. (b) In our opinion and according to the information and
explanations given to us, the transactions made in pursuance of such
contracts or arrangements and exceeding the value of Rupees Five Lacs
in respect of any party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. The company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the rules framed
there under.
7. In our opinion, the company has an internal audit system
commensurate with its size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
company in respect of products where, pursuant to the Rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (1) of Section 209 of the
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. We have not, however, made a
detailed examination of the records with a view to determine whether
they are accurate or complete.
9. (a) According to the information and explanations given to us and
the records of the company examined
by us, in our opinion, the company is regular in depositing the
undisputed statutory dues including provident fund, investor education
and protection fund, employees state insurance, income tax, sales tax/
value added tax, wealth tax, service tax, customs duty, excise duty,
cess and other material statutory dues as applicable with the
appropriate authorities. .
(b) According to the information and explanations given to us and the
records of the company examined by us, the particulars of dues of
income tax, sales tax/ value added tax, wealth tax, service tax,
customs duty, excise duty and cess as at March 31, 2010 which have not
been deposited on account of a dispute, are as follows:
Name of the
Statute Nature of the Amount Forum where dispute
is pending
dues Rs.Lacs
TN Value Added
Tax, 2007 VAT/ Penalty 71 Additional Commissioner
- Commercial Taxes
Central Sales
Tax Act, 1956 Sales Tax/ Penalty 415 Assistant Commissioner
- Commercial Taxes
Customs Act,
1962 Customs duty 12 Customs, Excise and
Service Tax Tribunal
Central Excise
Act, 1944 Excise Duty/ Penalty 709 Customs, Excise and
Service Tax Tribunal
Central Excise
Act, 1944 Excise Duty/ Penalty 36 Commissioner of Central
Excise (Appeals)
Central Excise
Act, 1944 Excise Duty 4 Chennai High Court
Central Excise
Act, 1944 Excise Duty 3 Deputy Commissioner of
Central Excise
Income Tax
Act, 1961 Income Tax 988 Commissioner of Income
Tax (Appeals)
10. The accumulated losses of the company as at March 31, 2010 have
not exceeded fifty percent of its net worth. The company has incurred
cash loss in the financial year ended on that date and in the
immediately preceding financial year.
11. According to the records of the company examined by us and the
information and explanation given to us, the company has not defaulted
in repayment of dues to any financial institution or bank or debenture
holders as at the balance sheet date.
12. The company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
13. The provisions of any special statute applicable to chit fund/
nidhi/ mutual benefit fund/ societies are not applicable to the
company.
14. In our opinion, the company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and according to the information and explanations
given to us, the terms and conditions of the guarantees given by the
company, for loans taken by others from banks or financial
institutions, are not prejudicial to the interest of the company.
16. In our opinion, and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
1 7. On the basis of an overall examination of the Balance Sheet of the
company, in our opinion and according to the information and
explanations given to us, there are no funds raised on a short-term
basis which have been used for long-term investment.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Act during the year.
19. The company has not issued any debentures during the year.
20. The Management has disclosed the end use of money raised by public
issues (Refer Note [27] on Schedule 21) which has been verified by us.
21. During the course of our examination of the books and records of
the company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
fraud on or by the company, noticed or reported during the year, nor
have we been informed of such case by the Management.
For PRICE WATERHOUSE & CO
Firm Registration Number: 007567S
Chartered Accountants
S DATTA
Chennai Partner
April 30, 2010 Membership Number: F14128
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More Information on Chemplast Sanmar Ltd.
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Chemplast Sanmar Ltd. Tools
- Bulk Deals
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Chemplast Sanmar Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
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Company History
- BSE Price History
- NSE Price History
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Chemplast Sanmar Ltd. Key Financial Ratios
- Ratios
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Chemplast Sanmar Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
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Chemplast Sanmar Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
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Chemplast Sanmar Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
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Chemplast Sanmar Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
- Change of Name
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ഓഹരി വിപണി 11 മാസത്തെ താഴ്ചയില്, നിഫ്റ്റി, സെന്സെക്സ് കൂപ്പുകുത്തി, കാരണങ്ങളറിയാം -
പശ്ചിമേഷ്യന് സംഘര്ഷം; ഇന്ത്യന് ഓഹരി വിപണിയ്ക്ക് എന്ത് സംഭവിക്കും, എസ്ഐപി നിര്ത്തേണ്ടതുണ്ടോ? -
ഇന്ത്യന് ഓഹരി വിപണി വെള്ളിയാഴ്ച കൂപ്പുകുത്തി, കാരണങ്ങളും ഭാവി സൂചനകളും അറിയാം -
എയ്ഞ്ചല് വണ് ഓഹരി ഒറ്റ സെഷനില് നേരിട്ടത് 90 ശതമാനം ഇടിവ്? എന്താണ് സംഭവിച്ചതെന്നറിയാം -
590 കോടി രൂപയുടെ തട്ടിപ്പ്, ഐഡിഎഫ്സി ഫസ്റ്റ്ബാങ്ക് ഓഹരി കൂപ്പുകുത്തി, നിക്ഷേപകര് എന്തു ചെയ്യണം? -
1:2 ഓഹരി വിഭജനം, 1:2 ബോണസ് ഇഷ്യു, മൂന്നാംപാദ ഫലങ്ങള്: കുതിപ്പ് നടത്തി ടെക്സ്റ്റൈല് ഓഹരി -
ഇന്ത്യന് ഓഹരി വിപണിയില് കനത്ത ഇടിവ്, നിക്ഷേപകര്ക്ക് നഷ്ടം 6.5 ലക്ഷം കോടി രൂപ; കാരണങ്ങളും സാധ്യതകളുമറിയാം -
മുത്തൂറ്റ് ഫിനാന്സ് ഓഹരി കുറഞ്ഞ വിലയില്; ഇപ്പോള് വാങ്ങിയാല് ബംപര് നേട്ടം, ബ്രോക്കറേജ് നിര്ദ്ദേശങ്ങള് -
ഈ ഓഹരികള് ഇപ്പോള് വാങ്ങിയാല് ബംപര് ആദായം കീശയിലാക്കാം -
ഇന്ത്യയ്ക്കെതിരായ തീരുവ യുഎസ് കുറച്ചു: ഓഹരി വിപണിയില് കുതിപ്പ്, ഈ ഓഹരികള് നേട്ടമുണ്ടാക്കും -
കേന്ദ്രബജറ്റ് സെഷന് 2026: ഇടിവോടെ തുടങ്ങി നിഫ്റ്റിയും സെന്സെക്സും, നിക്ഷേപകര് പ്രതീക്ഷിക്കുന്നതെന്ത്? -
9 മാസത്തില് 314 ശതമാനം ഉയര്ന്ന് ഹിന്ദുസ്ഥാന് കോപ്പര് ഓഹരി, ഭാവി സാധ്യതകള് -
മികച്ച നേട്ടവുമായി നിഫ്റ്റിയും സെന്സെക്സും; നാളെ എന്ത് പ്രതീക്ഷിക്കാം -
1065 പോയിന്റ് ഇടിഞ്ഞ് സെന്സെക്സ്, നിഫ്റ്റി 25250 ന് താഴെ; ഭാവി പ്രവണതകള് -
2025 ലെ മികച്ച ഓഹരി; കുതിപ്പ് തുടരാൻ ശ്രീറാം ഫിനാൻസ്; ലക്ഷ്യവില ഇങ്ങനെ -
തളരുന്ന രൂപയും കൊഴിയുന്ന വിദേശ നിക്ഷേപവും: നിഫ്റ്റിക്ക് മുന്നേറ്റമോ? ഈ ആഴ്ച സ്വാധീനിക്കുന്ന ഘടകങ്ങൾ
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