INDEPENDENT AUDITOR S EXAMINATION REPORT ON RESTATED CONSOLIDATED SUMMARY STATE MENTS
To,
The Board of Directors,
Chemkart India Limited
("Formerly known as Chemkart India Private limited")
Office No. 403/404, 4th Floor,
K.L. Accolade, 6th Road, Santacruz (East),
Mumbai-400055, Maharashtra
Dear Sirs,
1. We Bagaria & Co LLP, Chartered Accountants, have examined attached Restated Consolidated Summary Statements of Chemkart India Limited (Formerly known as Chemkart India Private limited) (hereinafter referred as "the Company") and its subsidiaries (the Company and its subsidiaries together referred to as the "Group") comprising the Restated Consolidated Summary Statement of Assets and Liabilities as at March 31,2025, March 31,2024 and March 31,2023, the Restated Consolidated Summary Statements of Profit and Loss, the Restated Consolidated Summary Cash Flow Statements for the financial year ended March 31, 2025, March 31, 2024, and March 31, 2023, the Summary statement of Significant Accounting Policies and other explanatory Information (collectively, the "Restated Consolidated Summary Statements) annexed to this report for the purpose of inclusion in the Red Herring Prospectus ("RHP") and Prospectus (RHP and Prospectus collectively referred to as "Offer Documents"), prepared by the Company in connection with its proposed Initial Public Offer of equity shares ("Offer"). The Restated Consolidated Summary Statements, has been approved by the board of directors of the Company (the "Board of Directors") at their meeting held on June 20, 2025 and have been prepared by the Company in accordance with the requirements of:
a) the Sub-section (1) of Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act");
b) the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the "SEBI ICDR Regulations"); and
c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute Chartered Accountants of India (" ICAI"), as amended from time to time (the "Guidance Note").
2. The Companys Board of Directors are responsible for the preparation of Restated Consolidated Summary Statements for the purpose of inclusion in the Offer Documents to be filed with the SME platform of BSE limited ("BSE SME) ("the Stock Exchange") and Registrar of Companies, Mumbai in connection with the Issue. The Restated Consolidated Summary Statements have been prepared by the management of the Company in accordance with the basis of preparation stated in Note 2 to Annexure IV of the Restated Consolidated Summary Statements. The Board of Directors of the Company is responsible for designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of the Restated Consolidated Summary Statements. The respective Board of Directors are also responsible for identifying and ensuring that the Group complies with the Act, the SEBI ICDR Regulations and the Guidance Note.
3. We have examined the Restated Consolidated Summary Statements taking into consideration:
a) the terms of reference and our engagement agreed with you vide our engagement letter dated June 02, 2025, in connection with the Issue;
b) The Guidance Note also requires that we comply with the ethical requirements as stated in the Code of Ethics issued by the ICAI;
c) the concepts of test check and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Consolidated Summary Statements; and
d) the requirements of Section 26 of the Act and the SEBI ICDR Regulations.
Our work was performed solely to assist you in meeting your responsibilities in relation to compliance with the Act, the SEBI ICDR Regulations and the Guidance Note in connection with the Issue.
4. These Restated Consolidated Summary Statements have been compiled by the management from:
a) Audited Special Purpose Financial Statements of the Company for the year ended March 31, 2025 prepared in accordance with the applicable accounting standards, specified under section 133 of the Act and other accounting principles generally accepted in India and approved by the Board of Directors at their meeting held on June 20, 2025.
b) Audited Special Purpose Financial Statements of the Company for the year ended March 31, 2024 prepared in accordance with the applicable accounting standards, specified under section 133 of the Act and other accounting principles generally accepted in India and approved by the Board of Directors at their meeting held on March 7, 2025.
c) Audited Financial Statements of the Company for the year ended March 31, 2023 prepared in accordance with the applicable accounting standards, specified under section 133 of the Act and other accounting principles generally accepted in India and approved by the Board of Directors at their meeting held on September 01,2023.
5. For the purpose of our examination report, we have relied on:
a) Auditors report issued by us dated June 20, 2025 and March 7, 2025 on the Special Purpose Financial Statements of the Company for the financial year ended March 31, 2025 and March 31,2024 respectively, as referred to in para 4(a) and 4(b) above. We have audited these special purpose financial information of the Company for the limited purpose of complying with the requirement of getting its financial statements audited by an audit firm holding a valid peer review certificate issued by the "Peer Review Board" of the ICAI as required by ICDR Regulations in relation to proposed IPO.
b) Auditors report issued by the Statutory Auditor i.e. M/s Mehta & Associates (the "Statutory Auditors") dated September 1, 2023 for the financial years ended March 31,2023, as referred to in para 4(c) above.
c) The audit was conducted by the Companys statutory auditor, and accordingly reliance has been placed on the statement of assets and liabilities and statement of profit and loss, the Significant Accounting Policies, and other explanatory information and (collectively, the "Audited Consolidated Financial Statement") examined by them for the said year and is based solely on the audit report submitted by the Statutory Auditor. They have also confirmed that the March 31,2023 Restated Consolidated Summary Statements:
i. have been prepared after incorporating adjustments for the changes in accounting policies, material errors and regrouping/ reclassifications retrospectively in the financial years ended March 31,2023 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at and for the financial year ended March 31, 2025;
ii. do not require any adjustment for modification as there is no modification in the underlying audit reports; and
iii. have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.
6. The audit reports on Consolidated Financial Statements of the Group for the financial year ended March 31, 2025 referred to in paragraph 5(a) above include the financial statements of M/s Easy Raw Material Private Limited and M/s Vinstar Biotech Private Limited ("the subsidiaries") which have become subsidiaries of the Company with effect from September 01,2024, whose financial statements reflect total assets of Rs. 384.71 lakhs and Rs. 4.60 lakhs respectively, total income/(loss) of Rs. (12.68) lakhs and Rs. (10.96) lakhs respectively, and net cash outflows of Rs. (4.38) lakhs and Rs. 2.76 lakhs respectively which have been audited by M/s Mehta & Associates, Chartered Accountants (also referred to as the "other auditor"), whose report have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of the subsidiary and our report in terms of sub-sections (3) and (11) of Section 143 of the Act in so far as it relates to the aforesaid subsidiaries is based solely on such audited financial statements as provided by the other auditor.
The Other Auditor have examined the Restated Standalone Summary Statements in respect of the subsidiaries. The Other Auditor have also confirmed that the Restated Standalone Summary Statements of the subsidiaries for the financial year ended March 31,2025:
i. Adjustment in relation to changes in accounting policies, material errors and regrouping / reclassifications is not applicable since the subsidiaries have acquired during the financial year ended March 31,2025.
ii. do not require any adjustment for modification as there is no modification in the underlying audit reports; and
iii. have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.
7. Based on our examination and according to the information and explanations given to us and also as per the reliance placed on the examination report submitted by (a) the Statutory Auditor as at and for the year ended March 31,2023 and (b) Other Auditor as at and for the financial year ended March 31,2025 in respect of the Companys subsidiaries, we report that Restated Consolidated Summary Statements of the Group:
a) have been prepared after incorporating adjustments for changes in accounting policies, material errors and regrouping/ reclassifications retrospectively in the financial years ended March 31, 2024 and March 31, 2023 to reflect the same accounting treatment as per the accounting policies and groupings/classifications followed as at and for the financial year ended March 31,2025;
b) do not require any adjustment for modi fication as there is no modification in the underlying audit reports; and
c) have been prepared in accordance with the Act, ICDR Regulations and the Guidance Note.
8. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
9. The Restated Consolidated Summary Statements do not reflect the effects of events that occurred subsequent to the respective dates of the reports on the audited special purpose interim financial statements and audited financial statements mentioned in paragraph 4.
10. We have not audited any financial statements of the Company as of any date or for any period subsequent to March 31,2025. Accordingly, we express no opinion on the financial position, results of operations, cash flows of the Company as of any date or for any period subsequent to March 31,2025.
11. This report should not in any way be construed as a reissuance or re-dating of any of the previous auditors reports issued by us or by Previous Statutory Auditors nor should this report be construed as a new opinion on any of the financial statements referred to herein.
12. We have no responsibility to update our report for events and circumstances occurring after the date of this report.
13. Our report is intended solely for use of the Board of Directors for inclusion in the Offer Document to be filed with the Stock exchange and the ROC in connection with the proposed. Our report should not be used, referred to, or distributed for any other purpose except with our prior consent in writing. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent inwriting.
For Bagaria & Co LLP |
Chartered Accountants |
FRN : 113447W/W-10001 9 |
Mohak Goel |
Partner |
Membership No: 159883 |
UDIN: 25159883BMITDB1828 |
Place: Mumbai |
Date: June 20, 2025 |
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