We have audited the accompanying standalone financial statements
of Tatva Chintan Pharma Chem Limited ("the Company") which
comprises the balance sheet as at 31 March 2026, and the statement
of profit and loss (including other comprehensive income), the
statement of changes in equity and the statement of cash flows for
the year ended on that date, and notes to the standalone financial
statements, including summary of material accounting policies and
other explanatory information. (hereinafter referred as "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 the 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 31 March 2026 and
total comprehensive income (comprising of profit and other
comprehensive income), its cash flows and the changes in equity
for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements
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 ("ICAI") 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 made thereunder, and
we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI's 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. We have
determined the matters described below to be the key audit matters
to be communicated in our report:
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S.
No.
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Key Audit Matters
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Audit procedures
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1.
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Cut off risk in Revenue Recognition
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Due to the sales being under various contractual terms
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We have assessed the revenue recognition policies of the Company
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and across geographies, delivery to customers in different
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including accounting for sales returns and discounts in accordance
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regions might take different time periods and may result in
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with Ind AS 115 "Revenue from Contracts with Customers".
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undelivered goods at the period end. We consider there to
be a risk of misstatement of the financial statements related
to transactions occurring close to the year end and is not in
accordance with Ind AS-115 "Revenue from Contracts with
Customers, as transactions could be recorded in the wrong
financial period.
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Whe Company has manual and automated (information technology
- IT) controls on recording revenue and accruals for sales returns
and discounts. We tested the design, implementation and
operating effectiveness of these controls. In respect of cut-off, we
focused on controls around the timely and accurate recording of
year-end sales transactions.
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Accordingly, cut-off risk in revenue recognition is a key audit
matter.
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We have performed substantive testing on sample check basis on
revenue transactions recorded during the year end.
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We verified contractual terms of the invoice and tested the transit
time to deliver the goods.
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2.
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Capital Expenditure in respect of property, plant and
equipment and capital work in progress
The Company has incurred significant expenditure on capital
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We have obtained an understanding of the Company's capitalization
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projects, as reflected by the total value of additions in
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policy and assessed for compliance with the relevant accounting
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property plant and equipment and capital work in progress
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standards.
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in notes 3 and 5 of the standalone financial statements.
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We have obtained understanding, evaluated the design and
tested the operating effectiveness of controls related to capital
expenditure and capitalization of assets.
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S.
No.
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Key Audit Matters
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Audit procedures
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We considered Capital expenditure as a Key audit matter
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We have performed substantive testing on a sample check basis
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due to:
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for each element of capitalized costs including inventory issued
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• Significance of amount incurred on such items during
the year ended 31 March 2026.
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to contractors for the purpose of these projects and physical
verification performed by management along with reconciliation
and directly attributable cost, including verification of underlying
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• Judgement and estimate required by management in
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supporting evidence and understanding nature of the costs
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assessing assets meeting the capitalization criteria set
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capitalized.
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out in Ind AS 16 "Property, plant and equipment."
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We have obtained understanding on management assessment
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• Judgement involved in determining the eligibility of costs
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relating to progress of projects and their intention to bring the
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including borrowing cost and other directly attributable
costs for capitalization as per the criteria set out in Ind
AS 16 "Property, plant and equipment" and Ind AS 23
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asset to its intended use.
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"Borrowing cost".
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3.
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Valuation, Accuracy, Completeness and disclosures
pertaining to Inventories with reference to Ind AS 2
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Inventories constitutes material component of standalone
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Our audit approach consisted testing of the design and operating
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financial statement. Correctness, Completeness and
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effectiveness of the internal controls and substantive testing as follows:
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Valuation are critical for reflecting true and fair financial
results of operations. Further due to continuous nature of
plan operations and the raw materials which are basically
chemicals, management has to exercise judgement in
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We have assessed the Company's process regarding maintenance
of records, Valuation and accounting of transactions relating to
Inventory in accordance with Ind AS 2.
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assessing stage of the product and its valuation.
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We have evaluated the design of Internal Controls relating to
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Also refer note 13 to the standalone financial statement.
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recording and valuation of Inventory.
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We have carried out substantive audit procedures to verify the
allocation of overheads to Inventory.
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We have attended the physical verification of Inventories
performed by the Management and also performed stock count
on sample check basis. We have also checked reconciliation of
inventories as per physical inventory verification and book records
on a sample check basis.
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For sample selected, we have also obtained confirmation of
Inventories held with third parties.
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We have verified the consistency in respect of valuation process
and methodology followed by the Company.
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4.
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Assessment of recoverability of Deferred tax assets on
unutilised tax credits with reference to Ind AS 12
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The Company has recognised deferred tax assets on
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Our audit procedures in relation to management's assessment of
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unutilised tax credits amounting to ' 411.33 million as at 31
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recoverability of Deferred tax assets on unutilised tax credits included
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March 2026 which represents Minimum Alternate Tax (MAT)
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the
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following:
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(Refer note 23 (ii) of the standalone financial statements)
paid on accounting profit in the earlier years under the
provisions of the Income Tax Act, 1961 in which the Company
did not have normal taxable profits. The deferred tax asset
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Assessed and tested the design and operating effectiveness of
the Company's controls over recognition and assessment of
recoverability of deferred tax assets on unutilised tax credits.
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has been recognised based on management's assessment
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Assessed the Company's accounting policy in respect of
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that sufficient future taxable profits will be available against
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recoverability of deferred tax assets on unutilised tax credits.
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which such tax credits can be utilised under the provisions of
the Income Tax Act, 2025.
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Enquired with senior management personnel, the justification for
the key assumptions underlying the projections and assessed the
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The assessment of recoverability of the deferred tax assets
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reasonableness of the assumptions underlying profit projections
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involves significant management judgement and estimation
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made by management, by verifying the past trends, available tariff
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regarding future taxable profits. The forecast of future
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orders and relevant economic and industry indicators. Further,
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taxable profits is dependent on several key assumptions,
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performed sensitivity analysis over the assumptions used in
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including projected sales volumes of chemical products,
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determining the projected taxable profits, within a reasonable
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expected market demand across end-user industries,
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range.
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anticipated selling prices, raw material and energy costs,
production capacity utilisation levels, operating margins,
planned capital expenditures, and the impact of prevailing
and expected regulatory requirements affecting the
chemical industry.
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Evaluated whether the tax credit entitlements are legally available
to the Company for the forecast recoupment period, considering
the provisions of Income Tax Act, 2025.
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S.
Key Audit Matters
No.
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Audit procedures
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We considered this a Key Audit Matter because the carrying
value of deferred tax assets on unutilised tax credits is material
to the standalone financial statements and the assessment
of their recoverability requires significant management
judgement regarding future taxable profitability and the
assumptions used in the underlying financial projections.
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• Checked the arithmetic accuracy of the underlying calculations of
the profit projections.
• Assessed the adequacy of disclosures in the standalone financial
statements.
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Other Information
The Company's Management and Board of Directors are responsible
for the other information. The other information comprises the
information included in the Board's Report including Annexures to
Board's Report, Management Discussion and Analysis, Report on
Corporate Governance, Business Responsibility and Sustainability
Report, but does not include the accompanying standalone
financial statements and our auditor's report thereon. The Annual
Report is expected to be made available to us after the date of this
auditor's report.
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 accompanying standalone
financial statements, our responsibility is to read the other
information and, in doing so, consider whether such other
information is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. When we read the Annual
Report, if we conclude that there is a material misstatement therein,
we are required to report that fact. We have nothing to report in
this regard.
Responsibilities of the Management and Those
Charged with Governance for the Standalone Financial
Statements
The Company's 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 standalone financial position,
standalone financial performance including other comprehensive
income, standalone changes in equity and standalone 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 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
of the appropriate accounting software for ensuring compliance
with applicable laws and regulations including those related to
retention of audit logs; selection and application of appropriate
implementation and maintenance of 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
statement 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, 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.
The Company's Board of Directors are also responsible for overseeing
the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether
the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor's report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these standalone
financial statements.
As part of an audit in accordance with SAs, we exercise professional
judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the
standalone financial statements, whether due to fraud or
error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal controls relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Companies
Act, 2013, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial
controls with reference to financial statements in place and
the operating effectiveness of such controls.
iii. There were no amounts which were required to be
transferred to 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;
iv. (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(s) or entity(ies), 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
• 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 ability of the Company 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 financial
statements that, individually or in aggregate, makes it probable that
the economic decisions of a reasonably knowledgeable user of the
financial statements may be influenced. We consider quantitative
materiality and qualitative factors (i) in 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 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 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 - 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 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), the statement
of change in equity, the statement of cash flows and
notes to the standalone financial statements 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 Accounting Standards
specified under section 133 of the Act, read with the
Companies (Indian Accounting Standards) Rules, 2015,
as amended.
e) On the basis of the written representations received from
the directors as on 31 March 2026 taken on record by the
Board of Directors, none of the directors is disqualified
as on 31 March 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 B".
Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Company's
internal financial controls over financial reporting.
g) With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements of
section 197(16) of the Act, as amended, in our opinion
and to the best of our information and according to
the explanations given to us, the remuneration paid/
provided by the Company for managerial remuneration
during the year is 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
financial statements - Refer Note 46 to the
standalone financial statements.
ii. The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses.
iv. (c) Based on such audit procedures that we
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)
above contain any material misstatement.
iv. (d) The dividend declared and paid, if any, during
the year by the Company is in compliance
with section 123 of the Act.
v. Based on our examination which included test
checks, the Company has used accounting software
for maintaining its books of account for the financial
year ended 31 March 2026 which has a feature
of recording audit trail (edit log) facility and the
same has been operated throughout the year for
all relevant transactions recorded in the software.
Further, during the course of our audit, we did
not come across any instance of audit trail feature
being tampered with. Furthermore, the audit trail
has been preserved by the Company as per the
statutory requirements for record retention.
For NDJ & Co.,
Chartered Accountants
Firm's Registration Number: 136345W
CA Basant Chandak
Partner
Date: 16 May 2026 Membership No.: 434585
Place: Vadodara UDIN No: 26434585CUJJVV8920
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