We have audited the accompanying standalone financial
statements of M/S. NGL FINE-CHEM 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 the Cash Flow for the year
ended on that date, notes to the Financial Statements
and a summary of the material accounting policies and
other explanatory information (hereafter referred to as “the
standalone financial statements").
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, 2015, as amended, (“Ind AS") and other
accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2026, the
profit and 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 standalone 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 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 (ICAI) together with the independence
and ethical requirements that are relevant to our audit of the
standalone financial statements under the provisions of the
Act and the Rules made there under, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the ICAI's 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
standalone financial statements.
KEY AUDIT MATTERS
Key audit matters (“KAM") 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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Key Audit Report
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How was the matter addressed in our audit
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Revenue Recognition
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Our audit procedures, among other things, included
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Revenue is recognized upon transfer of control of promised
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the following:
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goods to customers in an amount that reflects the consideration
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• Considered the appropriateness of the Company's
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which the Company expects to receive in exchange for those
goods. Revenue is measured based on transaction price, which is
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accounting policies regarding revenue recognition.
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the consideration, adjusted for rebates, discounts and incentives
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• Testing controls, automated and manual, around
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as also estimated sales returns.
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dispatches/deliveries/shipments inventory
reconciliations and process of confirmation of
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Revenue is one of the key profit drivers and therefore, accounting
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receivable balances, testing for cut-offs and
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of revenue is considered as a key audit matter.
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analytical review procedures.
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[Refer Note 3(a) to the financial statements]
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• Assessed the disclosures in accordance with the
requirements of Ind AS 115 on “Revenue from
Contracts with Customers".
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Key Audit Report
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How was the matter addressed in our audit
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Valuation of inventories
The Company has complex product manufacturing process
and thus, the overhead absorption over each process is quite
complex and more particularly, to have the basis of absorption.
The Company has worked out the overhead absorption cost rate
based on the consumption of electricity of each process and
apply the same for all other overheads.
Due to significance of arriving at the overhead absorption rate
for the valuation of inventories, it is considered to be a key audit
matter.
[Refer Note 3(d) to the financial statements]
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Our audit procedures, among other things, included
the following:
• Evaluated the appropriateness of the basis applied
to arrive at the overhead absorption rate.
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• Examined the workings of the absorption of over
heads to arrive at the cost of inventories.
• Our audit methodology involves process adopted
to ascertain and evaluate the methods used
are reasonable and absorbs overheads in an
appropriate & logical manner.
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• Assessed the disclosures in accordance with the
requirements of Ind AS 2 on "Inventories".
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Allowance for Expected Credit Loss of Trade Receivables
Provision for impairment by way of Allowance for Expected
Credit Loss (ECL) of Trade Receivables require:
• the appropriateness of accounting policies for determination
of Allowance for ECL;
• operational procedures and systems of internal control in
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Our audit procedures included, among others, the
following:
• Obtained sufficient and appropriate audit evidence
about whether policies, operational procedures,
internal control systems and other relative
assumptions for estimation and determination of
Allowance for ECL are reasonable.
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estimation of ECL;
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• Objectively evaluated the estimates made in the
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• estimation of expected losses and appropriate assumptions
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broader context of the financial statements as a
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and significant judgments on the recoverability of
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whole.
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receivables;
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• Assessed the estimates and assumptions adopted
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• the completeness, accuracy, relevance and reliability of
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by the Company in determining the need to
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historical information;
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recognize a provision and, where applicable, its
amount.
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• the Company's overall review of the estimate; and
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• the clarity and reasonableness of related ECL disclosures.
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• Evaluated the completeness of disclosures in
respect of Allowance for Expected Credit Loss.
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In view of the determination of the basis and quantum of
Allowance of ECL, it is a significant item in the financial statements
and hence, considered to be a key audit matter.
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[Refer Note 3(n) to the standalone financial statements]
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Capital Work-in-Progress relating to Greenfield Project at
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Our audit procedures included, among others, the
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S-18, Tarapur.
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following:
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The Company is in the process of implementing its Greenfield
Project at S-18, Tarapur. During the year, the Company
partially capitalized certain assets pertaining to operationalized
production lines on 22nd June, 2025 and accordingly an amount
aggregating to ' 8,818.73 Lakhs was capitalized in the books of
account. The balance components of the project are proposed
to be commissioned in a phased manner. Subsequent to such
capitalization, the Company incurred further capital expenditure
amounting to ' 6,609.60 Lakhs, which has been disclosed
under Capital Work-in-Progress in Note 4(c) to the standalone
financial statements. Further, the Company has disclosed capital
commitments amounting to ' 3,822.76 Lakhs in Note 39 to the
standalone financial statements.
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• Obtained sufficient and appropriate audit
evidence about whether all documents are in place
and proper approval methodology is followed and
adequate internal controls are ensured at all levels.
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• Objectively evaluated the estimates made on an
overall basis of the financial statements as a whole.
• Assessed the estimates and also obtained project
reports to analysis the future estimates and cash
outflows related to the expansion project.
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• Evaluated the completeness of disclosures in
respect of capital commitment.
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Considering the significance of the ongoing capital expenditure,
phased commissioning of project assets, and the substantial
capital commitments involved, the matter was considered
significant to the standalone financial statements and accordingly
identified as a Key Audit Matter.
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INFORMATION OTHER THAN THE
STANDALONE FINANCIAL STATEMENTS AND
AUDITOR'S REPORT THEREON
The Company's 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, Board's Report including Annexures
to Board's Report, Business Responsibility 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 identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the standalone 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.
RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR
THE STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the
matters stated in Section 134(5) of the Companies Act,
2013 ("the Act") with respect to preparation of these
standalone financial statements that give a true and fair view
of the financial position, financial performance including
other comprehensive income, cash flows and changes in
equity of the Company in accordance with the accounting
principles generally accepted in India, including the Indian
Accounting Standards (Ind AS) prescribed under Section
133 of the Act, read with the Companies (Indian Accounting
Standard) Rules, 2015 as amended, 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 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 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, the
management 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 respective Board of Directors are responsible for
overseeing the Company's financial reporting process.
AUDITOR'S RESPONSIBILITIES FOR THE
AUDIT OF THE STANDALONE FINANCIAL
STATEMENTS
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.
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 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 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 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 standalone financial
statements of the current period and are therefore the key
audit matters. 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 benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. 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.
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,
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 standalone financial
statements comply with the Indian Accounting
Standards prescribed under section 133 of the
Act, read with Rule 7 of the Companies (Indian
Accounting Standards) Rules, 2015.
e) On the basis of the written representations
received from the directors as on March 31st,
2026 taken on record by the Board of Directors,
none of the directors are disqualified as on March
31st, 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
in relation to audit trail are as stated in paragraph
1(b) of Para Report on Other Legal and Regulatory
Requirements above on reporting under Section
143(3)(b) of the Act and paragraph 1(iv)(vi) below
on reporting under Rule 11(g) of the Companies
(Audit and Auditors) Rules, 2014 (as amended).
g) With respect to the adequacy of the internal
financial controls over financial reporting 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.
h) With respect to the other matters to be included
in the Auditor's Report in accordance with the
requirements of section 197(16) of the Act, as
amended:
In our opinion and according to the information and
explanations given to us, the remuneration paid by
the Company to its directors during the year is in
accordance with the provisions of Section 197
read with Schedule V to the Companies Act, 2013
and the requisite approvals mandated thereunder
have been obtained by the Company.
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, 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 Standalone Financial Statements-
Refer Note 40 to the Standalone 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 were no amounts which were 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 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 entities, including
foreign entities ("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 have been
received by the Company from any
person or entities, including foreign
entities ("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) As stated in Note 63 to the standalone
financial statements:
(a) The final dividend proposed in the
previous year, declared and paid by
the Company during the year is in
accordance with Section 123 of the
Act, as applicable.
(b) The Board of Directors of the Company
have proposed final dividend for the
year which is subject to the approval
of the members at the ensuing Annual
General Meeting. The amount of
dividend proposed is in accordance with
section 123 of the Act, as applicable.
(vi) Based on our examination, which included test
checks, the Company has used accounting
software systems for maintaining its books of
account for the financial year ended March
31, 2026 which have the feature of recording
audit trail (edit log) facility and the same has
operated throughout the year for all relevant
transactions recorded in the software
systems. Further, during the course of our
audit we did not come across any instance
of the audit trail feature being tampered with
and the audit trail has been preserved by the
Company as per the statutory requirements
for record retention.
2. As required by the Companies (Auditor's Report) Order,
2020 ("the Order") issued by the Central Government
in terms of Section 143(11) of the Act, we give in
"Annexure B" a statement on the matters specified in
paragraphs 3 and 4 of the Order.
For MANEK & ASSOCIATES
Chartered Accountants
Firm's registration number: 0126679W
Place: Mumbai (MITTUL B DALAL)
Date: 21st May, 2026 Partner
Membership number: 172676
UDIN: 26172676SZNQIU2689
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