Balaji Amines Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the standalone financial statements of Balaji Amines Limited (“the Company"), which comprise the Standalone Balance sheet as at March 31,2026, and the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the 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 material accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act") in the manner so required and give a true and fair view in conformity with Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2026, and its profit (including 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 Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics issued by the Institute of Chartered Accountants of India. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the 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. We have determined the matters described below to be the key audit matters to be communicated in our report.
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Sr.
No. Key Audit Matter
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Auditor's Response
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1. Revenue Recognition
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Principal Audit Procedures
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Revenue from the sale of goods (hereinafter referred
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Our audit approach was a combination of tests of internal controls
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to as “Revenue") is recognised when the Company
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and substantive procedures including:
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performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition
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Assessing the appropriateness of Company's revenue recognition in line with Ind AS 115 - Revenue from Contracts with Customers.
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is when the control over goods is transferred to the
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Evaluating the design and implementation of Company's controls
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customers, which is mainly upon delivery.
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in respect of revenue recognition.
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Sr.
No Key Audit Matter
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Auditor's Response
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The timing of revenue recognition is relevant to the
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Testing the effectiveness of such controls over revenue cut off at
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reported performance of the Company. The management
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the year end.
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considers revenue as a key measure for evaluation of
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performance. There is a risk of revenue being recorded before the control over goods is transferred.
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Testing the supporting documentation for sales transactions recorded during the period closer to the year-end and subsequent to the year-end, including examination of credit notes issued after
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Refer Note 1.3A of the standalone financial statements -
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the year end to determine whether revenue was recognised in the
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Material Accounting Policies.
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correct period.
Compared revenue with historical trends and where appropriate, conducted further inquiries and testing.
Assessed disclosures in financial statements in respect of revenue as specified in Ind AS 115.
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2. Appropriateness of capitalisation of costs as per Ind
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Principal Audit Procedures
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AS 16 Property, Plant and Equipment
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We have performed the following procedures in relation to testing
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During the year, the Company capitalised Rs 45.07 Crores
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of capitalisation of costs:
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as part of the new solar plant and Rs 22.88 Crores as part . ...
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of expansion of Unit IV.
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• Understood, evaluated and tested the design and operating effectiveness of key controls relating to capitalisation of various
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Given the significance of the capital expenditure, there
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costs incurred in relation to Property, Plant and Equipment.
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is a risk that elements of costs that are ineligible for _ _....._
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capitalisation in accordance with the recognition criteria
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• Performed test of details with focus on those items that we
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considered significant due to their amount or nature and
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provided in Ind AS 16 - Property, Plant and Equipment are capitalised.
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tested a number of items capitalised during the year against
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underlying supporting documents to ascertain nature of costs
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Refer Note 1.3B of the standalone financial statements -
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and whether they meet the recognition criteria provided in Ind
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Material Accounting Policies.
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AS 16 in this regard.
• Reviewed the other costs which are debited to Statement of Profit and Loss, to ascertain whether these meet the criteria for capitalisation.
• Assessed disclosures in financial statements in respect of Property, Plant and Equipment as specified in Ind AS 16.
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Information Other than Financial Statements (Other
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If, based on the work we have performed, we conclude that there is
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Information)
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a material misstatement of this other information, we are required
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The Company's Board of Directors is responsible for the other
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to report that fact. We have nothing to report in this regard.
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information. The other information comprises the information
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Responsibilities of Management and Those Charged
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included in the Annual Report but does not include the standalone
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with Governance for the Standalone Financial
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financial statements and our auditor's report thereon.
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Statements
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Our opinion on the standalone financial statements does not
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The Company's Board of Directors is responsible for the matters
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cover the other information and we do not express any form of
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stated in section 134(5) of the Act with respect to the preparation
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assurance conclusion thereon.
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of the standalone financial statements that give a true and fair view of the financial position, financial performance, changes
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In connection with our audit of the standalone financial
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in equity and cash flows of the Company in accordance with
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statements, our responsibility is to read the other information and,
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the accounting principles generally accepted in India, including
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in doing so, consider whether the other information is materially
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the accounting standards specified under section 133 of the
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inconsistent with the standalone financial statements or our
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Act. This responsibility also includes maintenance of adequate
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knowledge obtained in the audit or otherwise appears to be
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accounting records in accordance with the provisions of the
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materially misstated.
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Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection
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and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement 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 standalone financial statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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
Place: Hyderabad Date: May 13, 2026
to the approval of the members of the Company at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.
vi. Based on our examination which included test checks, the Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. we did not come across any instance of
of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the 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 Indian Accounting Standards prescribed under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31,2026 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2026 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 standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A".
g) In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 financial statements (Refer Note 38 of the standalone financial statements);
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
iii. 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 (Refer note 47
of the standalone financial statements), to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 (Refer Note 47 of the standalone financial statements), to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.
v. The final dividend paid by the Company during the year declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend.
As stated in Note 41c of the standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year which is subject
audit trail feature being tampered with. Further, the audit trail has been preserved by the Company as per the statutory requirements for record retention. (Refer Note 48 of the standalone financial statements).
2. As required by the Companies (Auditor's Report) Order, 2020, (“the Order") issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in “Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order.
For M. Anandam & Co., Chartered accountants (Firm Registration No.000125S)
M V Ranganath
Partner
Membership No.028031 UDIN: 26028031EMVATT8443
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