PRIVI SPECIALITY CHEMICALS LIMITED Annual Report 2020-21

78 PRIVI SPECIALITY CHEMICALS LIMITED (Formerly known as Fairchem Speciality Limited) INDEPENDENT AUDITORS’ REPORT To the Members of Privi Speciality Chemicals Limited (formerly known as Fairchem Speciality Limited) Report on the Audit of the Standalone Financial Statements Opinion We have audited the standalone financial statements of Privi Speciality Chemicals Limited (formerly known as Fairchem Speciality Limited) (“the Company”), which comprise the standalone balance sheet as at March 31, 2021, and the standalone statement of profit and loss (including other comprehensive income), 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 the significant accounting policies and other explanatory information (hereinafter referred to as ‘standalone financial statements’). In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the 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 Merger and 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 state of affairs of the Company as at March 31, 2021, and 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 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 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. Emphasis of matter We draw attention to Note 42 of the standalone financial statements which describes the Scheme of Merger and De-merger (‘Scheme’) between the 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 April 1, 2019, the merger and 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 merger and de-merger for the entire year and the corresponding amounts for the previous year ended March 31, 2020 have been restated by the Company after recognising the effect of the merger and de-merger as above. The aforesaid note also describes in detail the impact of the merger and de-merger on the standalone financial statements. Our opinion is not modified in respect of this matter. Other Matter The comparative financial statements of the Company for the year ended March 31, 2020 included in these standalone financial statements, are based on the previously issued standalone financial statements audited by the predecessor auditor whose report for the year ended March 31, 2020 dated June 23, 2020 expressed an unmodified opinion on those standalone financial statements, as adjusted for the impact of effect of merger of Privi Organics India Limited and demerger of the existing business of the Holding Company to Fairchem Organics Limited, which have been audited by us. Our opinion is not modified in respect of this matters. 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.