1. We have audited the accompanying standalone
financial statements of Finolex Industries
Limited (the ‘Company’), which comprise the
Standalone Balance Sheet as at March 31, 2026,
the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), the
Standalone Statement of Cash Flow and the
Standalone Statement of Changes in Equity
for the year then ended, and notes to the
standalone financial statements, including
material accounting policy information and other
explanatory information.

2. In our opinion and to the best of our information
and according to the explanations given to us,
and based on the consideration of the reports of
the other auditor of Finolex Industries Employees’
Welfare Trust (the ‘Welfare Trust’) as referred to
in paragraph 15 below, 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
(‘Ind AS’) specified under section 133 of the Act
read with the Companies (Indian Accounting
Standards) Rules, 2015 and other accounting
principles generally accepted in India, of the state
of affairs of the Company as at March 31, 2026, and
its profit (including other comprehensive income),
its cash flows and the changes in equity for the
year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the
Standards on Auditing 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
ethical requirements that are relevant to our audit
of the standalone financial statements under the
provisions of the Act and the rules thereunder, and
we have fulfilled our other ethical responsibilities
in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence
we have obtained together with the audit evidence
obtained by the other auditor of the Welfare Trust,
in terms of their report referred to in paragraph 15
of the Other Matter section below is sufficient and
appropriate to provide a basis for our opinion.

Key Audit Matter

4. Key audit matters are those matters that, in
our professional judgment, and based on the
consideration of the report of the auditor of the
Welfare Trust as referred to paragraph 15 below, 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.

5. We have determined the matter described below
to be the key audit matter to be communicated in
our report.

Information other than the
Standalone Financial Statements
and Auditor’s Report thereon

6. The Company’s Board of Directors are responsible
for the other information. The other information
comprises the information included in the Annual
Report, but does not include the standalone
financial statements and our auditor’s report
thereon. The Annual Report is expected to be made
available to us after the date of this auditor's report.

Our opinion on the standalone financial
statements does not cover the other information
and we will not express any form of assurance
conclusion thereon.

I n 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 in the audit
or otherwise appears to be materially misstated.

When we read the Annual Report, if we conclude
that there is a material misstatement therein, we
are required to communicate the matter to those
charged with governance.

Responsibilities of Management and
Those Charged with Governance for
the Standalone Financial Statements

7. The accompanying standalone financial
statements have been approved by the Company’s
Board of Directors. The Company’s Board of
Directors are responsible for the matters stated
in section 134(5) of the Act with respect to the
preparation and presentation of these standalone
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 I nd AS specified under section
133 of the Act 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 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 financial statements that
give a true and fair view and are free from material
misstatement, whether due to fraud or error.

8. In preparing the standalone financial statements,
the Board of Directors 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 the Board of Directors
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to
do so.

9. The Board of Directors is also responsible
for overseeing the Company’s financial
reporting process.

Auditor’s Responsibilities for the
Audit of the Standalone Financial
Statements

10. 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 Standards on Auditing 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.

11. As part of an audit in accordance with Standards
on Auditing, specified under section 143(10) of
the Act 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 control
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 the reasonableness of
accounting estimates and related disclosures
made by management;

• Conclude on the appropriateness of Board of
Directors’ 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; and

• Obtain sufficient appropriate audit evidence
regarding the business activities and financial
statements of the Company which includes
financial information of the Welfare Trust, to
express an opinion on the standalone financial
statements. We are responsible for the direction,
supervision and performance of the audit of
financial statements of the Company, of which
we are the independent auditor. For the Welfare
Trust included in the standalone financial
statements, which has been audited by the other
auditor, such other auditor remains responsible
for the direction, supervision and performance
of the audit carried out by them. We remain
solely responsible for our audit opinion.

12. 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.

13. 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.

14. 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.

Other Matter

15. We did not audit the financial statements of the
Welfare Trust included in the standalone financial
statements of the Company whose financial
statements reflects total assets of I 41.35 crore as at
March 31, 2026, and the total revenues of I Nil and
net cash inflows of I 0.45 Crores for the year ended
on that date. These financial statements have been
audited by the other auditor whose report has
been furnished to us by the management, and our
opinion on the standalone financial statements, in
so far as it relates to the amounts and disclosures
included in respect of the Welfare Trust, and our

report in terms of sub-section (3) of section 143
of the Act in so far as it relates to the aforesaid
Welfare Trust, is based solely on the report of the
Welfare Trust’s auditor.

Our opinion above on the standalone financial
statements, and our report on the legal and
regulatory requirements below, are not modified
in respect of the above matters with respect to our
reliance on the work done by and the reports of the
Welfare Trust’s auditor.

Report on Other Legal and
Regulatory Requirements

16. As required by section 197(16) of the Act, based
on our audit, we report that the Company has paid
remuneration to its directors during the year in
accordance with the provisions of and limits laid down
under section 197 read with Schedule V to the Act.

17. As required by the Companies (Auditor’s Report)
Order, 2020 (‘the Order’) issued by the Central
Government of India in terms of section 143(11)
of the Act we give in the Annexure A, a statement
on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.

18. Further to our comments in Annexure A, as
required by section 143(3) of the Act based on our
audit, and on the consideration of the report of the
other auditor as referred to in paragraph 15 above,
we report, to the extent applicable, 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 of the accompanying
standalone financial statements;

b) Except for the matters stated in paragraph
18(h)(vi) below on reporting under Rule 11(g)
of the Companies (Audit and Auditors) Rules,
2014 (as amended), 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 financial statements dealt
with by this report are in agreement with the
books of account;

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

e) On the basis of the written representations
received from the directors and taken on
record by the Board of Directors, none of the
directors is disqualified as on March 31, 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 are as stated in paragraph 18(b)
above on reporting under section 143(3)(b)
of the Act and paragraph 18(h)(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 with reference to financial
statements of the Company as on March
31, 2026 and the operating effectiveness of
such controls, refer to our separate report in
Annexure B wherein we have expressed an
unmodified opinion; and

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 (as amended), in our
opinion and to the best of our information and
according to the explanations given to us and
based on the consideration of the report of
the auditor referred to in paragraph 15 above:

i. The Company, as detailed in note 38.2
to the standalone financial statements,
has disclosed the impact of pending
litigations on its financial position as at
March 31, 2026;

ii. 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;

iii. There has been no delay in transferring
amounts, required to be transferred, to
the Investor Education and Protection
Fund by the Company during the year
ended March 31, 2026;

iv. a. The management has represented

that, to the best of its knowledge and
belief, as disclosed in note 45(i) to the
standalone financial statements, no
funds have been advanced or loaned
or invested (either from borrowed
funds or securities premium or any
other sources or kind of funds) by
the Company to or in any person(s)
or entity(ies), including foreign

entities (‘the 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 (‘the
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, as disclosed in note
45(ii) to the standalone financial
statements, no funds have been
received by the Company from any
person(s) or entity(ies), including
foreign entities (‘the 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

c. Based on such audit procedures
performed as considered
reasonable and appropriate in the
circumstances, nothing has come
to our notice that has caused us
to believe that the management
representations under sub-clauses
(a) and (b) above contain any
material misstatement.

v. The final dividend paid by the Company
during the year ended March 31, 2026
in respect of such dividend declared for
the previous year is in accordance with
section 123 of the Act to the extent
it applies to payment of dividend. As
stated in note 15 to the accompanying
standalone financial statements, the
Board of Directors of the Company have
proposed final dividend for the year

ended March 31, 2026 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; and

vi. As stated in Note 53 to the standalone
financial statements and based on our
examination which included test checks,
except for matter mentioned below, the
Company, in respect of financial year
commencing on April 1, 2025, 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 have been 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
audit trail feature being tampered with
other than the consequential impact of
the exception given below. Furthermore,
the audit trail has been preserved
by the Company as per the statutory
requirements for record retention.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm’s Registration No.: 001076N/N500013

Rajni Mundra

Partner

Membership No.: 058644
UDIN: 26058644BURMET8746
Place: Mumbai
Date: May 26, 2026