We have audited the accompanying Financial Statements of Alkyl Amines Chemicals Limited (“the Company”), which comprisethe Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive Income), Statement ofCash Flows and the Statement of Changes in Equity for the year then ended, and material accounting policies and other explanatoryinformation (hereinafter referred to as “the Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statementsgive the information required by the Companies Act, 2013 (“the Act”), in the manner so required and give a true and fair view,in conformity with the Indian Accounting Standards prescribed under section 133 of the Act, read with the Companies (IndianAccounting Standards) Rules, 2015, as amended (“Ind AS”), and other accounting principles generally accepted in India, of the stateof affairs of the Company as at March 31, 2026, the profit and total comprehensive income, its cash flows and changes in equityfor the year ended on that date.
Basis for Opinion
We conducted our audit of the Financial Statements in accordance with the Standards on Auditing (SAs) specified under section143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI), together with the independence requirements that are relevant to our auditof the Financial Statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on the 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 FinancialStatements of the current period. These matters were addressed in the context of our audit of the Financial Statements as a whole,and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the mattersdescribed below to be the key audit matters to be communicated in our report.
Sr.
No.
Key Audit Matter
Auditor Response
1
Litigations - Contingencies
Audit Procedures
The Company has litigations in respect of certain directand indirect tax and other litigations. In this regard, theCompany has recognised provisions and has disclosedcontingent liabilities (to the extent not provided for) as atMarch 31, 2026.
Significant management judgment is required to assessthese matters and to determine the probability of materialoutflow of economic resources and whether a provisionshould be recognised, or a disclosure should be made.Where considered relevant, management judgement is alsosupported with legal advice in these cases.
We focused on this area as the ultimate outcome of thesematters are uncertain and the positions taken by themanagement are based on the application of judgement,related expert advice, including those relating tointerpretation of laws and regulations.
Refer Note 2(i)(d) and 36a to the Financial Statements.
Our audit procedures involved the following:
• testing the effectiveness of controls around the recordingand re-assessment of contingent liabilities;
• discussing with management the status and recentdevelopments of these matters, including their views onthe likely outcome of each litigation and claim;
• performing our assessment of the underlying calculationssupporting the provisions or other disclosures made inthe Financial Statements;
• evaluating the management’s assessment of these mattersand monitoring changes in the disputes with referenceto subsequent orders passed, in order to establish theappropriateness of the provisions / disclosures;
• obtaining information from the Company’s legal and taxconsultants to confirm the facts and circumstances andassessment of the likely outcome;
• evaluating management’s assessment of the matters thatare not disclosed, as the probability of material outflowis considered to be remote by the management; and
• assessing the adequacy of the Company’s disclosures.
2
Provision for Expected Credit Losses (ECL) on tradereceivables
The Company determines the provision for credit lossesbased on the Company’s historical observed defaultrates, which are negligible over the years. The Companyconsidered current and anticipated future economicconditions relating to industries the Company deals with, tocalibrate the provision matrix to adjust the historical creditloss experience with forward-looking information.
While determining expected credit loss, the Company hasalso considered credit reports and other related creditinformation of its customers to estimate the probability ofdefault in future.
We focused on this area as the Company has exercisedsignificant judgment in determining the ECL and accordinglyhas not provided for any such allowance for credit losses ontrade receivables as at the balance sheet date.
Refer to Note 2(ii)(f) to the Financial Statements.
• testing the effectiveness of controls over the developmentof the methodology for the provision for expected creditlosses;
• discussing with management about their considerationof the current and estimated future economic conditions;
• evaluating the completeness and accuracy of informationused in the estimation of probability of default by thecustomers;
• performing our assessment of the past experiencesupporting the non-provisioning or other disclosuresmade in the Financial Statements;
• verifying subsequent collection from the customers afterthe balance sheet date, with respect to the outstandingtrade receivables, in order to establish the appropriatenessfor not making the provisions; and
3
Revenue Recognition
Revenue from the sale of goods (hereinafter referred to as“Revenue”) is recognized when the Company performs itsobligation to its customers and the amount of revenue canbe measured reliably and recovery of the consideration isprobable.
The timing of such recognition is when the control overgoods is transferred to the customers, which is mainly upondispatch / delivery. The timing of revenue recognition isrelevant to the reported performance of the Company.
The management considers revenue as a key measure forevaluation of performance. There is a risk of revenue beingrecorded before the control over goods is transferred.
Refer Note 1(d)(i) and note 28b to the Financial Statements.
Our audit approach was a combination of tests of internal
controls and substantive procedures including:
• assessing the appropriateness of Company’s revenuerecognition in line with Ind AS 115 - Revenue fromContracts with Customers.
• evaluating the design & implementation of Company’scontrols in respect of revenue recognition.
• testing the effectiveness of such controls over revenuecut off at the year end.
• testing the supporting documentation for sales transactionsrecorded during the period closer to the year-end andsubsequent to the year-end, including examinationof credit notes issued after the year end to determinewhether revenue was recognised in the correct period.
Information Other than the Financial Statements and Auditor’s Report
The Company’s Board of Directors is responsible for the preparation of the Other Information. The Other Information comprisesthe information included in the Report on Corporate Governance, Shareholder Information and Management Discussion andAnalysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance andShareholder’s Information, but does not include the Financial Statements, and our auditor’s report thereon.
Our opinion on the Financial Statements does not cover the Other Information and we do not express any form of assuranceconclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read the Other Information and, in doing so,consider whether the Other Information is materially inconsistent with the Financial Statements or our knowledge obtainedduring the course of our audit, or otherwise, appears to be materially misstated. If, based on the work we have performed, weconclude that there is a material misstatement of this Other Information, we are required to report that fact.
The Other Information has not been provided to us at the date of this report. When it is subsequently provided and if weconclude that there is material misstatement therein, we shall communicate the matter to those charged with governance.
Responsibilities of Management and the Board of Directors for the Financial Statements
The Company’s Management and Board of Directors are responsible for the matters stated in section 134(5) of the Act, withrespect to the preparation of these Financial Statements that give a true and fair view of the financial position, financialperformance, total comprehensive income, changes in equity and cash flows of the Company, in accordance with the IndAS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgmentsand estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financialcontrols, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement,whether due to fraud or error.
In preparing the Financial Statements, the Management and the Board of Directors are responsible for assessing the Company’sability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concernbasis of accounting, unless the Board of Directors either intends to liquidate the Company or cease operations, or has norealistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements, as a whole, are free from materialmisstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance isa high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these FinancialStatements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughoutthe audit. We also:
• Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion onwhether the Company has an adequate internal financial controls system in place and the operating effectiveness of suchcontrols.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosuresmade by Management.
• Conclude on the appropriateness of Management’s use of the going concern basis of accounting and, based on the auditevidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt onthe Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are requiredto draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. 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 Financial Statements, including the disclosures, and whetherthe 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 theaudit 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 requirementsregarding independence, and to communicate with them all relationships and other matters that may reasonably be thoughtto 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 significancein the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe thesematters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremelyrare circumstances, we determine that a matter should not be communicated in our report because the adverse consequencesof doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which, to the best of our knowledge and belief,were necessary for the purposes of our audit.
(b) In our opinion, proper books of account, as required by law, have been kept by the Company, so far as it appearsfrom our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, including Other Comprehensive Income, Statement of Cash Flowsand Statement of Changes in Equity, dealt with by this Report, are in agreement with the books of account.
(d) In our opinion, the aforesaid Financial Statements comply with the Indian Accounting Standards specified underSection 133 of the Act, as applicable.
(e) On the basis of the written representations received from the directors as on March 31, 2026, and taken on record bythe Board of Directors, none of the directors is disqualified as on March 31, 2026, from being appointed as a directorin terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an unmodifiedopinion on adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.
(g) With respect to the matter to be included in the Auditor’s Report under section 197(16):
In our opinion and according to the information and explanations given to us, the remuneration paid by the Companyto its directors during the current year is in accordance with the provisions of section 197, read with Schedule V ofthe 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 tothe explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Financial Statements
- Refer Note 36a to the Financial Statements;
ii. The Company did not have any material foreseeable losses on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material
either individually or in the aggregate) have been advanced or loaned or invested (either from borrowedfunds or share premium or any other sources or kind of funds) by the Company to or in any other personor entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writingor otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) orprovide any guarantee, security or the like, on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are materialeither individually or in the aggregate) have been received by the Company from any person or entity, includingforeign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that theCompany shall, whether, directly or indirectly, lend or invest in other persons or entities identified in anymanner 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; or provide any guarantee, security or the like onbehalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances,nothing has come to our notice that has caused us to believe that the representations under sub-clause (i)and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. As stated in Note 16.2 to the Financial Statements -
(a) The final dividend proposed in the previous year, declared and paid by the Company during the current yearis in accordance with Section 123 of the Act, as applicable.
(b) The Board of Directors of the Company has proposed final dividend for the current year, which is subject tothe approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed isin accordance with section 123 of the Act, as applicable.
vi. Based on our examination which included test checks, and based on information and explanation provided by theCompany, the Company has used accounting software for maintaining its books of account, which have a feature ofrecording audit trail (edit log), and the same has operated properly throughout the year for all relevant transactionsrecorded in the software. In the course of our audit, we have not come across any instances of audit trail featurebeing tampered with. Additionally, where the audit trail facility was enabled and operated in the previous years,the audit trail has been preserved by the Company as per statutory requirements for record retention.
2. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India,in terms of sub section (11) of section 143 of the Companies Act, 2013, we give in the ‘Annexure B” a statement on thematters specified in paragraph 3 and 4 of the Order.
FOR N. M. RAIJI & CO.
Chartered AccountantsFirm Registration Number: 108296W
Vinay D. Balse
Partner
Place: Mumbai Membership Number: 039434
Date: May 5, 2026 UDIN: 26039434TUFSIS2620