1. We have audited the accompanying standalone financial statements of Subam Papers Limited (“the Company”),
which comprise the Balance Sheet as at March 31, 2026, 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 a summary of significant accounting
policies and other explanatory information (herein referred to as “the standalone financial statements).
2. 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, 2021, as amended,
(”Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at
31st March 2026, and its profit, total comprehensive income, changes in equity and its cash flows for the year
ended on that date.
Basis for Opinion
3. We conducted our audit of the standalone financials 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 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
4. 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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Sr.
No.
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Key Audit Matter
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Auditor's Response
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1
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Assessment and Disclosure of Contingent Liability
relating to Ongoing Litigation
The Company has challenged an order passed by the
MSME authority before the Hon'ble High Court in
relation to a dispute with Jeyam Chemicals. The
MSME authority directed the Company to pay
^1,36,39,326 towards the claim raised by Jeyam
Chemicals. The Company has deposited ^25,00,000
with the Hon'ble High Court and the matter is
pending adjudication.
The assessment involves significant management
judgement in determining whether the matter should
be recognized as a liability or disclosed as a
contingent liability in accordance with the applicable
accounting standards. Considering the materiality and
judgement involved, the matter was considered
significant to our audit.
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Our audit procedures included and were not
limited to the following:
- Reviewed the MSME order, writ petition
and related legal documents.
- Discussed with management regarding
assessment and accounting treatment of
the litigation.
- Verified supporting documents relating to
the deposit of ^25,00,000 with the
Hon'ble High Court.
- Assessed the appropriateness of
disclosure as contingent liability under
applicable accounting standards.
- Evaluated adequacy and completeness of
disclosures in the financial statements.
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2
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Assessment of Carrying Value of Property, Plant
and Equipment
The Company is in the process of preparing/restating
its financial statements in accordance with Indian
Accounting Standards (Ind AS). As part of the
transition process, management is evaluating the
accounting treatment and presentation of Property,
Plant and Equipment ("PPE") under the applicable
financial reporting framework.
During the course of the audit, it was noted that
management is considering carrying out a revaluation
of Land, Plant and Machinery by the during of F.Y.
2026-27 to ensure appropriate presentation and
measurement of fixed assets under Ind AS.
The transition to Ind AS involves significant
management judgement in assessing the carrying
value of fixed assets, identification of appropriate
accounting policies and evaluation of the impact of
revaluation on the financial statements. Considering
the materiality of the fixed asset balances and the
judgement involved in the transition process, the
matter was considered significant to our audit and
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Our audit procedures included and were not
limited to the following:
- Obtained an understanding of
management's Ind AS transition plan and
assessed the progress of financial
statement restatement activities;
- Discussed with management the proposed
approach for evaluation and possible
revaluation of Land, Plant and
Machinery;
- Reviewed the carrying values of
Property, Plant and Equipment and
assessed management's basis for
evaluating the need for revaluation under
Ind AS requirements;
- Evaluated the appropriateness of
accounting policies adopted / proposed to
be adopted for Property, Plant and
Equipment under Ind AS;
- Assessed management's judgement
regarding the impact of transition
adjustments on the presentation and
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Sr.
No.
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Key Audit Matter
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Auditor's Response
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accordingly identified as a Key Audit Matter.
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measurement of fixed assets;
- Evaluated the adequacy and completeness
of disclosures relating to the Ind AS
transition and fixed asset presentation in
the financial statements.
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3
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Capital Work-in-Progress (CWIP)
As at the reporting date, the Company has Capital
Work-in-Progress (CWIP) amounting to ^92.92
Lakhs. The assessment of CWIP involves
management judgement relating to the stage of
project completion, the expected timeline for
capitalization, and the determination of asset
readiness for their intended use.
Further, the future capitalization of these projects is
expected to contribute towards enhancement of
operational capacity and may have an impact on
future revenue generation and operations of the
Company.
Considering the materiality of the CWIP balance and
the judgement involved in assessing the timing of
capitalization and expected operational benefits
arising from the projects, the matter was considered
significant to our audit and accordingly identified as a
Key Audit Matter.
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Our audit procedures included and were not
limited to the following:
- Obtained an understanding of
management's process relating to
identification, recognition and monitoring
of Capital Work-in-Progress;
- Reviewed the nature and composition of
CWIP balances and verified supporting
documents relating to project expenditure
incurred;
- Discussed with management the status of
ongoing projects, expected timelines for
completion and anticipated dates of
capitalization;
- Evaluated management's assessment
regarding readiness of assets for intended
use and appropriateness of classification
under CWIP;
- Assessed management's expectations
regarding increase in operational capacity
and future revenue generation arising
from completion of the projects;
- Evaluated the adequacy and completeness
of disclosures made in the financial
statements relating to CWIP balances.
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Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the preparation of other information. The other
information comprises the information included in the director’s report Management Discussion and Analysis,
Board’s Report including Annexures to Board’s Report, Corporate Governance and Shareholder’s
Information, but does not include the Standalone Financial Statements and our auditor’s 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 Responsibility for the Standalone Financial Statements
5. 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 financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the Company in
accordance with the Indian Accounting Standards and other accounting principles generally accepted in India. 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, 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 management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditors’ responsibilities for the audit of the standalone financial statements
6. 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.
7. 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 financial controls 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 the 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
8. 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.
9. 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 matter 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
matter. 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
benefit of such communication.
Report on other legal and regulatory requirements
10. As required by Section 143(3) of the Act, based on our audit 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 of the aforesaid standalone financial statements.
(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
Cash Flow and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books
of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133
of the Act. Act, read with Rule 7 of the Companies (Accounts) Rules,2021.
(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 are disqualified as on March 31, 2026 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 (b) on reporting under Section 143(3)(b) and paragraph (i)(vi) below on reporting under Rule 11(g);
(g) 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”. Our
report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal
financial controls over financial reporting with reference to standalone financial statements.
(h) With respect to other matters to be included in Auditor’s Report in accordance with the requirements of section
197(16) of the Act, as amended:
In our opinion and best of our information and according to the explanation given to us, the remuneration
paid/provided by the company to its directors during the year is in accordance with the provisions of section 197 of
the Act.
(i) 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, 2021, 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 37 to the standalone financial statements;
(ii) The Company has entered into a long-term derivative contract denominated in USD with HDFC Bank. As of
March 31, 2026, there is a foreseeable loss 4597520/- during the year which arises from the contract.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by
the Company during the year ended March 31, 2026.
(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 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, 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) There is no dividend declared or paid during the year by the company. Hence, reporting of compliance with
section 123 of the Companies Act, 2013 does not arise.
Based on our examinations which include test checks performed by us on the Company, the company has
accounting software’s for maintaining their books of accounts for the financial year ended March 31, 2026,
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. Further during the course of audit, we did not come across
any instances of the audit trail feature being tamperedwith and the audit trail has been preserved by the
Company as per the statutory requirements for record retention.
11. 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 B a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
for CNGSN & Associates LLP
Chartered Accountants
Firm Registration Number: 004915S/S200036
E K Srivatsan
Partner
Membership Number: 225064
Place: Chennai
Date: 26th May 2026
UDIN: 26225064NOBLYH8554
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