Phyto Chem (India) Ltd Auditor Reports

To

The Members of Phyto Chem (India) Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying financial statements of Phyto Chem (India) Limited (‘the Company), which comprise the Balance Sheet as at 31 March, 2024, 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 then ended, and notes forming part of financial statements, including a summary of Material Accounting Policies and other explanatory information (hereinafter referred to as ‘the financial statements). In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, 2024 and its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for opinion

We conducted our audit of the 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 Auditors Responsibilities for the Audit of the 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 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 ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Key audit matters

Key audit matters (‘KAM) are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and informing 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.

Key Audit Matter	Auditors Response
1 Timing of Revenue recognition in the proper period as per Ind AS 115.	1)Our audit procedures included the following:
	i) We evaluated the design and tested operating effectiveness of the relevant controls with respect to revenue recognition including those relating to cut off at year end;
Refer to Note-2.18 (Material Accounting Policies on Revenue Recognition).	ii. We assessed the appropriateness of the revenue recognition accounting policies in line with Ind AS 11o Revenue fiom Contracts with Cuslomeis ,
Contracts with Customers, revenue from sale of goods is recognized when control of the products being sold is transferred to the customer based on terms of sale. Revenue is measured at consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. The transaction price of the goods sold is net of variable consideration on account of various discounts offered by the Company as part of contract.	iii. We performed substantive testing of revenue transactions, recorded during the year by testing the underlying documents which included customer order and directions, goods dispatch notes, shipping documents and customer acknowledgments as applicable;
We identified timing of revenue recognition in the proper period as a key audit matter since it involves higher assessed risk of material misstatement and is required to be recognized as per the requirements of applicable accounting framework.	iv. We tested a sample of manual journal entries posted to revenue and assessed their appropriateness;
	v. We tested, on a sample basis, specific revenue transactions recorded before and after the financial year end date including examination of credit notes issued after the year end to determine whether the revenue has been Based on the above stated procedures, no significant exceptions were noted in revenue recognition.
2 Trade Receivables:	2)Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
2) The trade iceivables stands at i \s. 1 568.7 6 turnover for the financial year 2023-24. profile of the trade receivables indicates that 61.08% of trade receivables are over dues months.	We have evaluated the methodology for age-wise bucketing of trade receivables and key assumptions underlying the probability of default estimates on the same, to ascertain that the same were broadly in-line with the Corporations historical default rates.
Against the outstanding trade receivables, the Company made a provision for doubtful debts at (ECL) Rs.5.95 lakhs. The Company considered current and anticipated future economic conditions relating to industries the Company deals with and the areas where it operates, in calculating expected credit losses, the Company also considered credit reports and other related credit information for its customers to estimates the probability of default in future.	We tested the effectiveness of controls over the
The estimation of realisable debts involves amount involved is material and significant one of the key audit matters.	(1) development of the methodology for the allowance for credit losses, including consideration of the current and estimated future economic conditions, (2) completeness and accuracy of information used in the estimation of probability of default, and (3) computation of the allowance for credit losses.
	For a sample of customers we tested the input data such as credit reports and other credit related information used in estimating the probability of default by comparing them to external and internal sources of information.
	We evaluated the incorporation of the applicable assumptions into the estimate of expected credit losses and tested the mathematical accuracy and computation of the allowances by using the same input data used by the Company.
3 Downfall of Turnover and incurring of heavy losses:	3)Our Audit procedures included and were not limited to the following.
3)Drastic reduction in turnover of the Company and incurring heavy losses during the financial year 2023-24. Refer to note no.21 of enclosed Standalone financial statements of the Company.	Reviewed the selling prices of the main products of the Company with that of the previous year rates to know the reason for low turnover.
During the financial year 2023-24 the Company has incurred heavy loss of Rs.333.93 Lakhs due to drastic reduction in the turnover of the Company.	Reviewed the percentage of credit period allowed to the buyers and noted that it is 100% higher to that of credit period allowed by the bankers of the Company.
Rs 2561 77 Lakhs in the FY 2022-23	Reviewed the trend of the industry by verifying online the turnovers and profitability of the Giant Companies of the industry and the medium sized Companies of the industry and noted that there was huge downfall in both turnover and profitability.
Management asserts that the reduction of turnover is due to reduction in prices of stated that consumption of pesticides products reduced globally in the recent past and as a result export trade of the pesticide industry has gone down. In order to liquidate the shelf life based products produced, the Giant Companies of the Industry had dumped the domestic market with their material due to lack of export trade	Reviewed the minutes of the Board meetings and Committee meetings to observe the stage of alternative business efforts and noted that the activity has been commenced before the signing of the audit report after the balance sheet date. Assesed the competence of internal and external specialists involved in the process.
The retail buyers utilised this situation and bargained for lower prices and higher credit period. Both these factors contributed in reduction of turnover and mounting of trade receivables of the Company. As a result of this situation, Company could not lessen the bank credit burden and reduce the financial cost for this year even though Low activity during this year. In addition to the finance cost the fixed expenses like staff salaries, travelling expenses, depreciation etc., have not been reduced despite of low production activity and resulted in heavy loss.	Reviewed the alternative business disclosures made by the Board reports. Our procedures as mentioned above has proved the indication of downfall of pesticide industry in the country.
Since it is felt by the Management that the situation is permanent in nature and affects the Going Concern Status of the Company in the long run, the management has decided to switch over to alternative avenues and started Ferro Alloys business to save the existence of the Company. As the losses incurred and turnover reduced are material in nature, it is considered to treat this area as a Key Audit Matter.

The Companys management and Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility and sustainable Report, Corporate Governance and Shareholders information, but does not include the consolidated financial statements and financial statements and our auditors report thereon.

Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained during the course of our 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.

Responsibility of Management and those charged with Governance for the Financial Statement

The Companys 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 financial statements that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Indian Accounting Standard (‘Ind AS) and other accounting principle generally accepted in India, including Ind AS specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgements 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Companys 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 and Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors of the Company are responsible for overseeing the Companys financial reporting process.

Auditors Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors 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 financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

* Identify and assess the risks of material misstatement of the 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 controls.

* 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 financial statements in place and the operating effectiveness of such controls.

* Evaluate the appropriateness of accounting policies used and reasonableness of accounting estimates and related disclosures made by management.

* Conclude on the appropriateness of managements 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 Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the 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 Auditors 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 financial statements, including the disclosures, and whether the 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 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 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 financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors 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

As required by the Companies (Auditors 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 ‘Annexure-A a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.

d. In our opinion, the aforesaid financial statements comply with the Ind AS specified under section 133 of the Act.

e. On the basis of the written representations received from the directors as on March 31, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2024 from being appointed as a director in terms of section 164 (2) of the Act.

f. With respect to the adequacy of the internal controls over financial reporting 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 the operating effectiveness of the Companys internal financial controls with reference to Financial Statements.

g. With respect to other matters to be included in the Auditors Report in accordance with requirements of section 197(6) of the Act, as amended:

In our opinion and to the best of our information and according to the explanation given to us, the remuneration paid by the Company to its directors during the year is within the limits prescribed as per the provisions of section 197 of the Act.

h. With respect to the other matters to be included in the Auditors 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 financial statements. Refer note.38 to the Financial Statements.

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts (including derivative contracts).

iii. There has been no delay in transferring amounts, required to be transferred, to the 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 (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. No dividend is declared or paid during the year by the Company and accordingly, compliance with section 123 of the Act is not applicable to the Company.

vi. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from 1 April 2023.

Based on our examination which included test checks, the Company has used accounting software for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective software. Further, we did not come across any instance of the audit trail feature being tampered with.

	For M/s. Yelamanchi & Associates
	Chartered Accountants
	Firm Regn. No. 000041S
	Y. P. Rao
Place : Hyderabad	Partner, M.No.25266
Date : 29th May 2024	ICAI UDIN: 24025266BKEIYK7420

Annexure-A to the Independent Auditors Report (Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of Phyto Chem (India) Limited of even date)

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that:

i. In respect of the Companys property, plant and equipment, right-of-use assets and intangible assets:

(a) (A) The Company has maintained records showing full particulars including quantitative details and

situation of Property, Plant and Equipment and relevant details of right-of-use assets. However, the register is under updation.

(B) The Company has no intangible assets, accordingly provisions of clause 3(i)(a)(B) are not applicable to the Company for the period under review.

(b) The Company has a regular programme of physical verification of its Property, Plant and Equipment, and right-of-use assets so to cover all the assets are verified over a period of three years, in our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, applicable portion of fixed assets for the current year were physically verified. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties disclosed in the standalone financial statements are held in the name of the Company.

(d) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible assets during the year. Hence the reporting under clause 3(i)(d) is not applicable to the Company for the period under review.

(e) According to the information and explanation given to us and on the basis of our examination of the records of the Company, there are no Proceeding have been initiated during the year or are pending against the Company as at 31 March 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder, and therefore the question of our commenting on whether the Company has appropriately disclosed the details in its standalone financial statements does not arise.

ii.

(a) The inventories have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The Company has maintained proper records of inventory. There were no material discrepancies noticed on verification between the physical stock and the book records.

(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks on the basis of security of current assets. The Company has filed quarterly returns or statements with such banks, which are in agreement with the books of account other than those as set out below. The Company has not been sanctioned any working capital limit from the financial institutions.

(Rs. In lakhs)

Name of the Bank	working capital limits	Nature of current asset offered as security	Quarter ended	Value of Stock, Debtors & Creditors disclosed as per bank quarterly return/statement (CA - CL)	Amount as per books of accounts at the end of each quarter (CA - CL)	Difference
1 The Federal Bank Ltd.	1,200.00	Refer Note below	30th Jun, 2023	2,498.89	2,554.57	(55.68)
2 The Federal Bank Ltd.	1,140.00	Refer Note below	30th Sep, 2023	2,308.66	2,398.11	(89.45)
3 The Federal Bank Ltd.	1,110.00	Refer Note below	31st Dec, 2023	2,322.75	2,493.59	(170.84)
4 The Federal Bank Ltd.	1,080.00	Refer Note below	31st Mar, 2024	2,300.46	2,398.33	(97.87)

Note on differences in values:

The Company has declared less values of stock, debtors and creditors to the bankers when compared to the values of books of accounts. As such there is no violation.

iii. According, to the information and explanation given to us and on the basis of our examination of the records of the Company, the Company has not made investments in other companies and has not given any loans or advances in the nature of loans. Company also has not provided any security or corporate guarantees to any Companies, Firms, LLPs are any other parties. Hence furnishing of details relating to guarantees securities and loans etc., as required under this clause does not arise.

iv. In our opinion and according to the information and explanation given to us, the Company has no transactions to be complied with the provisions of sections 185 and 186, the Company has not made any investment and given any loans as stated in those sections during the year under review.

v. The Company has not accepted any deposits or amounts during the year as per provisions of section 73 or 76 of the Act and relevant rules framed thereunder. However, the Company has accepted some loans which are exempted under the relevant Deposit Rules. Accordingly, the clause 3 (v) of the Order are not applicable to the Company for the year under review.

vi. The maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 for the business activities carried out by the Company. Hence, reporting under clause (vi) of the order is not applicable to the Company.

vii. In respect of statutory dues:

(a) According to the information and explanation given to us by the Company and records of the Company examined by us, the Company has generally been regular in depositing undisputed statutory dues, including Goods and Services Tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities though there has been slight delays in few cases on some occasions.

There were no undisputed amounts payable in respect of Goods and Service tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues in arrears as at March 31,2024 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us and on the basis of our examination of the records of the Company, there were no dues with respect to statutory payments like Income tax, Sales tax, Goods and service tax, Customs duty, Execise duty, Value added tax, Cess and other dues that have not been deposited by the Company on account of any dispute.

viii. There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961 (43 of 1961).

ix.

(a) According to the information and explanation given to us by the Company and records of the Company examined by us, the Company has not defaulted in repayment of loans or other borrowings or in the payment of interest to any lender during the year. Accordingly, Clause 3(ix)(a) of the order is not applicable to the Company for the period under review.

(b) The Company has not been declared a willful defaulter by any bank or financial institution or government or any government authority.

(c) The Company has not obtained any term loans. Accordingly reporting under clause 3(ix)(c) of the Order is not applicable to the Company for the period under review.

(d) According to the information and explanation given to us by the Company and based on the procedures performed by us and on overall examination of Financial Statements of the Company, we report that no funds raised on short-term basis have been used for long-term purpose of the Company.

(e) The Company does not have any Subsidiary, Joint Venture or Associate Companies. As such commenting on the fund raised by the Company for the purpose of those entities does not arise.

(f) The Company has no Subsidiaries, Joint Ventures or Associate concerns on the books of the Company. As such raising of funds on pledge of the securities of those concerns does not arise. Hence nothing to comment.

x.

(a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year and hence reporting under clause 3(x)(a) of the Order does not arise.

b) According to the information and explanation given to us and on the basis of our examination of the records of the Company, the Company has not made any preferential allotment or private placement of share or fully or partly convertible debentures during the year. Accordingly, provisions of clause 3(x)(b) of the Order are not applicable to the Company for the year under review.

xi.

(a) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.

(b) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, a report under section 143(12) of the Act, in Form ADT-4, as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 was not required to be filed with the Central Government. Accordingly, the reporting under clause 3(xi)(b) of the Order does not arise.

(c) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us. The Company has not received any whistle blower complaints during the year.

xii. The Company is not a Nidhi Company as prescribed under section 406 of the Act and accordingly, nothing to comment on this clause.

xiii. In our opinion, and according to the information given to us, the Company is in compliance with sections 177 and 188 of the Companies Act, 2013 with respect to applicable transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.

xiv

(a) In our opinion and according to the information given to us, the Company has an adequate internal audit system commensurate with the size and the nature of its business.

(b) We have considered the reports issued by the Internal Auditors of the Company till date for the period under audit.

xv. In our opinion during the year the Company has not entered into any non-cash transactions with its Directors or persons connected with its directors and hence nothing to comment on this clause.

xvi.

(a) In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order does not arise.

(b) In our opinion, there is no core investment Company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order does not arise.

J,

xvii. The Company has incurred cash losses of Rs.299.69 lakhs during the financial year 202324 and it has not incurred any cash loss for the financial year 2022-23.

xviii. There has been no resignation of the statutory auditors of the Company during the year. As per the provisions of Rotation vide Sec.139 (2) earlier auditor retired and new auditor has been appointed after a gap of five years.

xix. On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

xx. According to the information and explanation given to us by the Company and on verification of records, the provisions of section 135 (Corporate Social Responsibility) of the Act are not applicable to the Company for the period under review.

xxi. The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements as the Company is not having any subsidiary Company. Accordingly, no comment in respect of the said clause has been included in this report.

	For M/s. Yelamanchi & Associates
	Chartered Accountants
	Firm Regn. No. 000041S
	Y. P. Rao
Place : Hyderabad	Partner, M.No.25266
Date : 29th May 2024	ICAI UDIN: 24025266BKEIYK7420

Annexure-B to the Independent Auditors Report

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of Phyto Chem (India) Limited of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls with reference to financial statements of Phyto Chem (India) Limited (“the Company”) as of 31 March 2024 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the Orderly and efficient conduct of its business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls over to financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls with reference to Financial Statements

A Companys internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial control with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2024, based on the criteria for internal financial control over financial reporting established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

	For M/s. Yelamanchi & Associates
	Chartered Accountants
	Firm Regn. No. 000041S
	Y. P. Rao
Place : Hyderabad	Partner, M.No.25266
Date : 29th May 2024	ICAI UDIN: 24025266BKEIYK7420