We have audited the accompanying standalone Ind-AS financial statements of CAMLIN FINE SCIENCESLIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2025, the Statement of Profitand Loss (including Other Comprehensive Income), the Statement of Changes in Equity, Statement of CashFlows for the year then ended, and the Notes to the standalone Ind-AS financial statements, including asummary of material accounting policies and other explanatory information (hereinafter referred to as“standalone Ind-AS financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaidstandalone Ind-AS financial statements give the information required by the Companies Act, 2013, (“theAct”) in the manner so required and give a true and fair view in conformity with the Indian AccountingStandards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standard)Rules, 2015, as amended, (“Ind-AS”) and with accounting principles generally accepted in India, of the stateof affairs of the Company as at March 31, 2025, the loss, total comprehensive income, changes in equity andits cash flows for the year ended on that date.
We conducted our audit of the standalone Ind-AS financial statements in accordance with the Standardson Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit of the StandaloneInd-AS Financial Statements section of our report. We are independent of the Company in accordancewith the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the standalone Ind-AS financial statements under theprovisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the standalone Ind-AS financial statements of the current period. These matters were addressedin the context of our audit of the standalone Ind-AS financial statements as a whole, and in forming ouropinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in ourreport.
Key Audit Matter Description
Auditor’s Response
Exposure in group entities
The exposure within the group entities i.e. carryingamount of the Parent Company's investments,loans and advances, trade & other receivables (netof payables) accounts for March 31, 2025: 26%(March 31, 2024: 28%) of the total assets of theCompany.
Principal Audit Procedures Performed
We compared the carrying value of theseinvestments, loans, advances, trade receivables,other receivables and trade payables with therespective subsidiary's financial statements toidentify whether their net assets were in excess oftheir carrying amount and assessed whether thosesubsidiaries have historically been profit-making.
Their recoverability is dependent on these groupcompanies generating enough cash flows infuture, estimation of which requires significantmanagement judgement.
We do not consider valuation of these investmentsand recovery of intercompany receivables, payablesto be at a high risk of significant misstatement.However, due to their materiality in the contextof the Company's financial statements, this isconsidered to be the area that had a significanteffect on the company audit.
Refer Note 6(i), Note 7, Note 13, Note 16, Note 17,Note 26 and Note 44 forming part of the notes tothe standalone Ind-AS financial statements.
For those subsidiaries where carrying amountexceeds the net asset value of the respectivesubsidiaries, we evaluated the relevant subsidiary'sprojected statement of profit and loss and projectedstatement of cash flows with managementassumptions relating to key inputs such asprojected long term growth and discount rates andassessing the management's assumptions over therecoverability of intercompany receivables againstour own knowledge of the performance and netassets of the relevant counterparty.
Assessed the appropriateness of the disclosurein the standalone Ind-AS financial statements inaccordance with the applicable financial reportingframework.
The Company's Board of Directors is responsible for the other information. The other information comprisesthe information included in the Annual Report, namely Financial Highlights, Directors' Report, Report onCorporate Governance and Business Responsibility and Sustainability Report but does not include thestandalone Ind-AS financial statements and our auditor's report thereon which we obtained prior to thedate of this auditor's report.
Our opinion on the standalone Ind-AS financial statements does not cover the other information and wedo 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 theother information and, in doing so, consider whether the other information is materially inconsistent withthe standalone Ind-AS financial statements or our knowledge obtained in the audit or otherwise appearsto be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act, withrespect to the preparation of these standalone Ind-AS financial statements that give a true and fair viewof the financial position, financial performance, changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India, including the Accounting Standardsspecified under section 133 of the Act. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; and design,implementation and maintenance of adequate internal financial controls, that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records, relevant to the preparation andpresentation of the standalone Ind-AS financial statements that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.
In preparing the standalone Ind-AS financial statements, the Board of Directors is responsible for assessingthe Company's ability to continue as a going concern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accounting unless Board of Directors either intends toliquidate 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.
Our objectives are to obtain reasonable assurance about whether the standalone Ind-AS financialstatements as a whole are free from material misstatement, whether due to fraud or error, and to issuean auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is nota guarantee that an audit conducted in accordance with SAs will always detect a material misstatementwhen it exists. Misstatements can arise from fraud or error and are considered material if, individually or inthe aggregate, they could reasonably be expected to influence the economic decisions of users taken onthe basis of these standalone Ind-AS financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(a) 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, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot 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 ofinternal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013 we arealso responsible for expressing our opinion on whether the Company has adequate internal financialcontrols system in place and the operating effectiveness of such controls.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.
(d) Conclude on the appropriateness of Management's use of the going concern basis of accountingand based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions 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'sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However, future events or conditions may cause the Company to cease to continueas a going concern.
(e) Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or inaggregate, makes it probable that the economic decisions of the users of the financial statementsmay be influenced. We consider quantitative materiality and qualitative factors in (i) planning thescope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the standalone Ind-AS financial statements.
We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationships andother 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 mattersthat were of most significance in the audit of the standalone Ind-AS financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in our auditor'sreport 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 becausethe adverse consequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.
1. As required by the Companies (Auditor's Report) Order, 2020 (“the Order”), issued by the CentralGovernment of India in terms of sub-section (11) of section 143 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. 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 ourknowledge 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 sofar as it appears from our examination of those books except the matters stated in para 2(g)(vi)below on reporting under Rule 11(g) Companies (Audit and Auditors) Rules, 2014.
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income),the Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Reportare in agreement with the books of account.
(d) I n our opinion, the aforesaid standalone Ind-AS financial statements comply with the AccountingStandards specified under Section 133 of the Act, read with relevant rules issued thereunder.
(e) On the basis of the written representations received from the Directors of the Company as onMarch 31, 2025, taken on record by the Board of Directors, none of the Directors of the Companyis disqualified as on March 31,2025 from being appointed as a Director in terms of Section 164(2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to financialstatements of the Company and the operating effectiveness of such controls, refer to ourseparate Report in Annexure “B".
(g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules, 2014 (“the Rules”), in our opinion and to the bestof 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 itsstandalone Ind-AS financial statements - Refer Note 43 to the standalone Ind-AS financialstatements.
ii. The Company did not have any long-term contracts during the year ended March 31, 2025,for which there were any material foreseeable losses. Derivative contracts are appropriatelydealt with in the books of account.
iii. There has been no delay in transferring amounts, required to be transferred, to the InvestorEducation and Protection Fund by the Company.
iv. The Management has represented that;
(a) to the best of its knowledge and belief, no funds have been advanced or loanedor invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other person or entity, including foreignentity (“Intermediaries”), with the understanding, whether recorded in writing orotherwise, that the Intermediary shall, whether, directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of theCompany (“Ultimate Beneficiaries”) or provide any guarantee, security or the like onbehalf of the Ultimate Beneficiaries.
(b) to the best of its knowledge and belief, no funds have been received by the Companyfrom any person or entity, including foreign entity (“Funding Parties”), with theunderstanding, whether recorded in writing or otherwise, that the Company shall,whether, directly or indirectly, lend or invest in other persons or entities identified inany 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
Based on such audit procedures performed by us that have been considered reasonableand appropriate in the circumstances, nothing has come to our notice that has caused usto believe that the representations under sub-clause (i) and (ii) of Rule 11(e) of the Rules asprovided under (a) and (b) above, contain any material mis-statement.
v. The Company has not declared or paid any dividend during the year.
vi. Based on our examination, which included test checks performed by us, the Company hasused accounting software for maintaining its books of account for the year ended March31, 2025, which includes a feature for recording an audit trail (edit log) that was operationalthroughout the year for all relevant transactions recorded in the software, except for theaudit trail at the database level which was not enabled for both accounting and payrollsoftware to capture any direct data changes. Further, during the course of our audit, we didnot come across any instance of the audit trail feature being tampered with.
Additionally, the audit trail has been preserved by the Company, as per the statutoryrequirements for record retention, except in case payroll software for which the audit trailhas been preserved from October 18, 2023.
3. In our opinion and according to information and explanations given to us and based on our examinationof the records of the Company, the Company has paid / provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of Section 197 of the Act.
Chartered Accountants
Firm Registration No.: 104607W/W100166
Partner
Membership No.: 047576
UDIN: 25047576BMKXJM5938
Place : Mumbai
Date : May 23, 2025