We have audited the accompanying Standalone Financial
Statements of Fine Organic Industries Limited (“the
Company”), which comprise of the Standalone Balance Sheet
as at March 31,2026, the Standalone Statement of Profit and
Loss (including other comprehensive income), the Standalone
Statement of Changes in Equity and the Standalone
Statement of Cash Flows for the year then ended, and notes
to the Standalone Financial Statements, including a summary
of significant accounting policies and other explanatory
information (herein after 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 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, its profit including other
comprehensive loss, changes in equity and its cash flows for
the year ended on that date.
BASIS FOR OPINION
We conducted our audit of 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 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 requirements that are relevant to
our audit of the Standalone 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 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 MATTER
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.
We have determined the matter described below to be the key audit matter to be communicated in our report:
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Key Audit Matter
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Auditor’s Responses
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Information Technology (IT) Systems and controls over
financial reporting, including manual controls over financial
reporting.
The information system forms a critical component of the
Company's operations, enabling efficient transaction processing,
safeguarding of information, and supporting informed decision¬
making. The Company uses key applications to process their
financial information from various modules which get integrated
into Oracle EBS for maintaining books of accounts, automated
accounting processes and preparation of Standalone Financial
Statements.
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Our key audit procedures in this area included, but were not
limited to, the following:
• Obtained an understanding of the IT control environment
and IT policies during the audit period.
• Evaluated the extent to which the controls are designed and
implemented to mitigate the risk of material misstatement
in financial reporting.
• Obtained an understanding of the Company's information
processing systems, IT General Controls and automated
IT controls for select applications and databases relevant
to our audit.
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Key Audit Matter
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Auditor’s Responses
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Financial Reporting depends on the robustness of IT systems
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• Involved our internal IT experts to carry out verification
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to handle large volumes of transactions that are processed
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and audit of the IT systems including test of controls and
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automatically for revenue recognition, inventory valuation,
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general controls. Conducted inquiries with the Company's
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accounting for property plant and equipment and depreciation
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IT team and walkthrough to the overall security architecture
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thereon, payroll accounting, banking transactions, journal entry
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of the company's IT system in order to determine the flow
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postings and others which can be prone to a risk of unauthorized
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of financial data and the handling of any key IT related
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access and fraud risk.
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threats during the year.
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As such, it is important for us to evaluate the effectiveness of
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• IT General Controls tested, including those relating
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information system controls to ensure the correctness, integrity,
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to access management, change management, log
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availability and confidentiality of data and certain manual
controls and reconciliations. These have a material impact on
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management, backup management.
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the accuracy of data extracted for the preparation of Standalone
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• Assessed the operating effectiveness of IT application
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Financial Statements by the management and carry a greater
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controls including for audit trail (audit log) in the key
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risk of material misstatements.
Automated accounting procedures and IT environment controls,
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processes impacting financial reporting of the Company
on test check basis.
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which include IT governance, IT general controls over program
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• We also tested key automated and manual controls and
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development and changes, access to program and data and
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logic for system generated reports relevant to the audit;
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IT operations, IT application controls and interfaces between IT
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including testing compensating controls or alternate
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applications are required to be designed to operate effectively to
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procedures performed to assess whether there were any
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ensure accurate financial reporting.
We identified IT systems and controls as key audit matter
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unaddressed IT risks that would materially impact on the
Standalone Financial Statements.
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because of the pervasive nature of IT environment.
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• We have also carried out independent verification of
the manual entries posted due to system issues/ errors
either identified by us during audit or identified by the
management as part of their review.
• Assessed the digital logs maintained for audit trail of books
of account data through system logins and role-based
access permissions. Additionally, the controls surrounding
user access management were reviewed and evaluated.
• Reviewed backup policy and procedure over financial
reporting and conducted detailed discussion over data
backup system plan in case of any uncertain event
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INFORMATION OTHER THAN STANDALONE FINANCIAL
STATEMENTS AND AUDITOR’S REPORT THEREON
The Company's Board of Directors and Management is
responsible for the preparation of the other information.
The other information comprises the information included
in the Board's Report including Annexures to Board's
Report, Management Discussion and Analysis, Business
Responsibility Report, 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
and, in doing so, consider whether the other information
is materially inconsistent with the Standalone Financial
Statements or our knowledge obtained in the 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 STANDALONE
FINANCIAL STATEMENTS
The Company's Board of Directors and Management is
responsible for the matters stated in section 134(5) of the act
with respect to the preparation of these Standalone Financial
Statements that give a true and fair view of the financial
position, financial performance, changes in equity and cash
flows of the Company in accordance with the accounting
principles generally accepted in India, including the Indian
Accounting Standards specified under section 133 of the Act,
read with relevant rules there under.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding of 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 Standalone 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, Board of
Directors and 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 Board of Directors are also responsible for overseeing the
Company's financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE
STANDALONE FINANCIAL STATEMENTS
1. 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.
2. 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 the Financial
Statements 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.
3. 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
Standalone 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 Standalone Financial
Statements.
4. 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.
5. 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.
6. 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
disclosures about the matters 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
OTHER MATTER
The Standalone Financial Statements of the Company for
the previous year ended March 31, 2025, were audited by
the predecessor auditors. The auditors have expressed
unmodified opinion vide their report dated May 8, 2025, on
such Standalone Financial Statements. Accordingly, we do not
express any opinion on the same.
Our opinion on the Standalone Financial Statements is not
modified in respect of the above matter.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. 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 (hereinafter referred
to as the “Order”), and on the basis of such checks of
the books and records of the Company as we considered
appropriate and according to the information and
explanations given to us, we give in the “Annexure A” a
statement on the matters specified in paragraphs 3 and 4
of the Order.
2. As required by section 143(3) of the Act, 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 purpose 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 Standalone Balance Sheet, the Standalone
Statement of Profit and Loss including Other
Comprehensive Income, Standalone Statement of
Changes in Equity and the Standalone Statement
of Cash Flows dealt with by this Report are in
agreement with the books of accounts.
d. I n our opinion, the aforesaid Standalone Financial
Statements comply with the Indian Accounting
Standards specified under Section 133 of the Act,
read with Companies (Indian Accounting Standards)
Rules, 2015, as amended, specified under section
133 of the Act.
e. On the basis of written representations received
from the directors as on March 31,2026, and taken
on record by the Board of Directors, none of the
directors are disqualified as on March 31, 2026,
from being appointed as a director in terms of
section 164(2) of the Act.
f. With respect to adequacy of the Internal Financial
Controls with reference to Standalone Financial
Statements of the Company and the operating
effectiveness of such controls, refer to our separate
Report in “Annexure B’.’
g. I n our opinion, the managerial remuneration for the
year ended March 31,2026 has been paid/ provided
by the Company to its directors in accordance with
the provisions of section 197 read with Schedule V
to the Act.
h. 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, in
our opinion and to the best of our information and
according to the explanations given to us:
a. The Company has disclosed the impact of
pending litigations on its financial position
in its Standalone Financial Statements in
accordance with the generally accepted
accounting practice. Refer Note 41 to the
Standalone Financial Statements.
b. The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses as at March 31,2026.
c. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by the
Company.
d. (i) The Management has represented that,
to the best of it's 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(s) or entity(ies), 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;
(ii) The Management has represented, that,
to the best of it's knowledge and belief, no
funds have been received by the company
from any person(s) or entity(ies), 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; and
(iii) Based on such audit procedures that
we have 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) contain any
material mis-statement.
e. The final dividend paid by the Company during
the year in respect of FY 2024-2025 is in
accordance with section 123 of the Act to the
extent it applies to payment of dividend.
As stated in Note 22 of the Standalone
Financial Statements, 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 dividend declared is in
accordance with section 123 of the Act to the
extent it applies to declaration of dividend.
f. Based on our examination which included test checks, the Company has used an accounting software for maintaining its
books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the
year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any
instance of the audit trail feature being tampered with. Additionally, the audit trail has been preserved by the Company as per
the statutory requirements for record retention.
For C N K & Associates LLP
Chartered Accountants
Firm Registration No. 101961W/W100036
Manish Sampat
Partner
Membership No. 101684
UDIN: 26101684AJHCBE4159
Place: Mumbai
Date: May 19, 2026.
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