PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

135 Annual Report 2020-21 CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS INDEPENDENT AUDITORS’ REPORT To the Members of Privi Speciality Chemicals Limited (formerly known as Fairchem Speciality Limited) Report on the Audit of Consolidated Financial Statements Opinion We have audited the consolidated financial statements of Privi Speciality Chemicals Limited (hereinafter referred to as the ‘Holding Company”) and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), which comprise the consolidated balance sheet as at March 31, 2021, and the consolidated statement of profit and loss (including other comprehensive income), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”). In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of other auditors on separate financial statements of such subsidiaries, were audited by the other auditors, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and in the context of the overriding effect of the provision in the Scheme of Merger and De-merger as approved by the National Company Law Tribunal (‘NCLT’), regarding accounting of De-merger from the specified retrospective appointed date and consequential restatement of comparatives give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at March 31, 2021 of its consolidated profit and other comprehensive income, consolidated changes in equity and consolidated cash flows for the year then ended. Basis for Opinion We conducted our audit in accordance with the Standards onAuditing (SAs) specified under Section 143(10) of theAct. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence obtained by us along with the consideration of audit reports of the other auditors referred to in sub paragraph (a) of the “Other Matters” paragraph below, is sufficient and appropriate to provide a basis for our opinion on the consolidated financial statements. Emphasis of matter We draw attention to Note 44 of the consolidated financial statements which describes the Scheme of Merger and De-merger (‘Scheme’) between the Holding Company, Privi Organics India Limited and Fairchem Organics Limited (both being wholly owned subsidiaries). The Scheme has been approved by the National Company Law Tribunal (‘NCLT’) vide its order dated June 30, 2020 and a certified copy has been filed by the Company with the Registrar of Companies, Maharashtra, on August 12, 2020. Since the appointed date as per the NCLT approved Scheme is March 31, 2019 the de-merger has been accounted for with effect from that date. Accordingly, the amounts relating for the year ended March 31, 2021 include the impact of the de-merger for the entire year and the corresponding amounts for the previous year ended March 31, 2020 have been restated after recognising the effect of the de-merger as above. The aforesaid note also describes in detail the impact of the de-merger on the consolidated financial statements. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.