We have audited the accompanying standalone financialstatements of Neogen Chemicals Limited (“the Company”),which comprise the standalone balance sheet as at March31, 2026, and the standalone statement of profit and loss(including other comprehensive income), the statement ofchanges in equity and the standalone statement of cash flowsfor the year then ended and notes to the standalone financialstatements including a summary of material accountingpolicies and other explanatory information (hereinafter referredto as “standalone financial statements”).
In our opinion and to the best of our information and accordingto the explanations given to us, the aforesaid standalonefinancial statements give the information required by theCompanies Act, 2013 (“the Act”) in the manner so requiredand give a true and fair view in conformity with the IndianAccounting Standards prescribed under section 133 of theAct, (“Ind AS”) and other accounting principles generallyaccepted in India, of the state of affairs of the Company as atMarch 31,2026 and its profit (including other comprehensiveincome), its changes in equity and its cash flows for the yearended on that date.
Basis for Opinion
We conducted our audit in accordance with Standardson Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are furtherdescribed in the Auditor’s Responsibilities for the Audit of theStandalone Financial Statements’ section of our report. Weare independent of the Company in accordance with the Codeof Ethics issued by the Institute of Chartered Accountants ofIndia (“ICAI”) together with the ethical requirements that arerelevant to our audit of the standalone financial statementsunder the provisions of the Act and Rules thereunder and wehave fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on thestandalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professionaljudgement, were of most significance in our audit of thestandalone financial statements of the current period.
These matters were addressed in the context of our audit ofthe standalone financial statements as a whole and in formingour opinion thereon, and we do not provide a separate opinionon these matters.
We have determined the matters described below to be thekey audit matters to be communicated in our report.
Sr.
No.
Key Audit Matter
How our audit addressed the Key audit matter
1.
Revenue Recognition
Our audit procedures included the following:
Revenue is recognised when the significant risks and
- Obtained an understanding of the Company’s
rewards of ownership have been transferred to the customer
revenue recognition policies and assessed their
in accordance with Ind AS 115 - Revenue from Contracts
compliance with Ind AS 115
with Customers. This requires assessing when control ofthe goods is transferred, which may vary depending on thespecific terms of customer contracts.
- Evaluated the design and tested the
implementation and operating effectiveness of
relevant controls over revenue recognition.
Revenue recognition involves significant judgment in:
- Examined a sample of customer contracts and
• Determining the timing of revenue recognition (i.e., whether
invoices to assess the identification of performance
control transfers at a point in time or over time).
obligations, allocation of transaction price, and the
• The identification of performance obligations in
timing of revenue recognition based on transfer ofcontrol.
customer contracts.
- Performed cut-off procedures near the year-end to
There is also a presumed fraud risk in revenue recognition,
verify that revenue was recognised in the correct
particularly around the risk of overstating revenue through
accounting period.
early recognition or fictitious sales, especially around theyear-end.
- Tested journal entries related to revenue to identifyany unusual or potentially fraudulent transactions.
Given the materiality of revenue, the significant judgmentsand estimates involved in applying Ind AS 115 and theinherent fraud risk, we considered this area to be a key auditmatter in our audit.
- Assessed adequacy of revenue related disclosuresin the financial statements.
Emphasis of Matter
We draw attention to Note 31 of the standalone financialstatements with regard to incident of Fire at Dahej SEZPlant of the Company on March 5, 2025. This incident led todamage of certain property, plant and equipment, inventoryand it also interrupted business. The Company intimatedinsurance company about the fire incident and submitted lossestimate to the Insurance Company in terms of the insurancepolicy. The Company had appointed Independent Surveyorfor ascertaining the loss caused by fire and the claim that theCompany is entitled from the Insurance Company vis-a-visits insurance policy. The Company simultaneously appointedIndependent Chartered Accountant Firm seeking opinionon accounting treatment for the Loss caused and the Claimmade to the Insurance Company. Based on the IndependentSurveyor’s Report and Independent Chartered AccountantFirm’s opinion:
(i) the Company had recognised Loss caused by fire as' 348.16 crores and Insurance Claim receivable fromInsurance Company as ' 334.60 crores during theprevious year ended March 31,2025; and
(ii) the aforementioned losses of ' 348.16 crores andcorresponding insurance claim credit of ' 334.60 croreshas been presented on a net basis of ' 13.56 crores
under Exceptional Items in the standalone financialstatements for the year ended March 31,2025.
The assessment of the loss claim submitted to the insurancecompany is in process. However, the Company has received' 140.00 crores during the current year as on account paymentfrom the insurance company and realized ' 705 crores fromsale of scrap. Further, the Company has also incurred andclaimed additional expenses of ' 1.41 crores during the currentyear towards the said incident. After considering the above, thebalance insurance claim receivable outstanding as on March31,2026 is ' 188.96 crores. In the opinion of the management,the aforesaid balance of claim is fully recoverable.
Our opinion is not modified in respect of this matter.
Information Other than the Standalone FinancialStatements and Auditor’s Report Thereon (“OtherInformation”)
The Company’s Board of Directors is responsible for theother information. The other information comprises theinformation included in the annual report but does not includethe consolidated financial statements, standalone financialstatements and our auditor’s report thereon. The annual reportis expected to be made available to us after the date of thisauditor’s report.
Our opinion on the standalone financial statements does notcover the other information and we do not express any formof assurance conclusion thereon.
In connection with our audit of the standalone financialstatements, our responsibility is to read the other informationidentified above when it becomes available and, in doingso, consider whether the other information is materiallyinconsistent with the standalone financial statements or ourknowledge obtained in the audit, or otherwise appears to bematerially misstated.
When we read the annual report, if we conclude that thereis a material misstatement therein, we are required tocommunicate the matter to those charged with governanceand take necessary actions as applicable under the relevantlaws and regulations.
Responsibilities of Management and Those Chargedwith Governance for the Standalone FinancialStatements
The Company’s Management and Board of Directors areresponsible for the matters stated in section 134(5) of the Actwith respect to the preparation of these standalone financialstatements that give a true and fair view of the financialposition, financial performance (including other comprehensiveincome), changes in equity and cash flows of the Company inaccordance with the accounting principles generally acceptedin India, including Ind AS specified under section133 of theAct, read with relevant rules issued thereunder.
This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company andfor preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies;making judgments and estimates that are reasonable andprudent; and design, implementation and maintenance ofadequate internal financial controls, that were operatingeffectively for ensuring the accuracy and completenessof the accounting records, relevant to the preparation andpresentation of the standalone financial statements that givea true and fair view and are free from material misstatement,whether due to fraud or error.
In preparing the standalone financial statements, theManagement and Board of Directors are responsible forassessing the Company’s ability to continue as a goingconcern, disclosing, as applicable, matters related to goingconcern and using the going concern basis of accountingunless the Board of Directors either intends to liquidate theCompany or to cease operations, or has no realistic alternativebut to do so.
Those Board of Directors are also responsible for overseeingthe Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of theStandalone Financial Statements
Our objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a wholeare free from material misstatement, whether due to fraudor error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, theycould reasonably be expected to influence the economicdecisions of users taken on the basis of these standalonefinancial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgment and maintain professional scepticismthroughout the audit. We also:
• Identify and assess the risks of material misstatementof the standalone financial statements, whether dueto fraud or error, design and perform audit proceduresresponsive to those risks, and obtain audit evidence thatis sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override ofinternal control.
• Obtain an understanding of internal control relevant tothe audit in order to design audit procedures that areappropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing ouropinion on whether the company has adequate internalfinancial controls with reference to standalone financialstatements in place and the operating effectiveness ofsuch controls.
• Evaluate the appropriateness of accounting policies usedand the reasonableness of accounting estimates andrelated disclosures made by management and Boardof Directors.
• Conclude on the appropriateness of management’s useof the going concern basis of accounting and, basedon the audit evidence obtained, whether a materialuncertainty exists related to events or conditions thatmay cast significant doubt on the Company’s abilityto continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to drawattention in our auditor’s report to the related disclosuresin the standalone financial statements or, if suchdisclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtainedup to the date of our auditor’s report. However, futureevents or conditions may cause the Company to ceaseto continue as a going concern.
• Evaluate the overall presentation, structure and contentof the standalone financial statements, including thedisclosures, and whether the standalone financialstatements represent the underlying transactions andevents in a manner that achieves fair presentation.
We communicate with those charged with governanceregarding, among other matters, the planned scope andtiming of the audit and significant audit findings, includingany significant deficiencies in internal control that we identifyduring our audit.
We also provide those charged with governance with astatement that we have complied with relevant ethicalrequirements regarding independence, and to communicatewith them all relationships and other matters that mayreasonably be thought to bear on our independence, andwhere applicable, related safeguards.
From the matters communicated with those charged withgovernance, we determine those matters that were of mostsignificance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters.We describe these matters in our auditor’s report unless lawor regulation precludes public disclosure about the matter orwhen, in extremely rare circumstances, we determine that amatter should not be communicated in our report becausethe adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits ofsuch communication.
Report on Other Legal and Regulatory Requirements
(1) As required by the Companies (Auditor’s Report) Order,2020 (“the Order”) issued by the Central Governmentof India in terms of section 143(11) of the Act, we givein ‘Annexure A” a statement on the matters specified inparagraphs 3 and 4 of the Order, to the extent applicable.
(2) As required by section 143(3) of the Act, we report, to theextent applicable, that:
a. We have sought and obtained all the informationand explanations which to the best of our knowledge
and belief were necessary for the purposes ofour audit;
b. In our opinion, proper books of account as requiredby law have been kept by the Company so far as itappears from our examination of those books;
c. The standalone balance sheet, the standalonestatement of profit and loss (including othercomprehensive income), the standalone statementof changes in equity and the standalone statementof cash flows dealt with by this report are inagreement with the books of account;
d. In our opinion, the aforesaid standalone financialstatements comply with the Ind AS specified undersection 133 of the Act;
e. On the basis of the written representations receivedfrom the directors as on March 31,2026, and takenon record by the Board of Directors, none of thedirectors is disqualified as on March 31,2026 frombeing appointed as a director in terms of section164(2) of the Act;
f. With respect to the adequacy of the internal financialcontrols with reference to standalone financialstatements of the Company and the operatingeffectiveness of such controls, refer to our separateReport in ‘Annexure B” to this report;
g. With respect to the other matters to be includedin the Auditor’s Report in accordance with therequirements of section 197(16) of the Act, asamended, in our opinion and to the best of ourinformation and according to the explanationsgiven to us, the remuneration paid / provided bythe Company to its directors during the year is inaccordance with the provisions of section 197 ofthe Act;
h. With respect to the other matters to be included inthe Auditor’s Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014, inour opinion and to the best of our information andaccording to the explanations given to us:
(i) The Company has disclosed the impact ofpending litigations as at March 31, 2026 onits financial position in its standalone financialstatements - Refer Note 35 to the standalonefinancial statements.
(ii) The Company has made provision, as requiredunder the applicable law or accountingstandards for material foreseeable losses,if any, on long term contracts includingderivative contracts.
(iii) There has been no delay in transferringamounts, required to be transferred, to theInvestor Education and Protection Fund by theCompany during the year.
(iv) (a) The management has represented that,
to the best of it’s knowledge and belief,as disclosed in the Note 42 (iv) to thestandalone financial statements, nofunds have been advanced or loaned orinvested (either from borrowed funds orshare premium or any other sources orkind of funds) by the company to or in anyother person(s) or entity(ies), includingforeign entities (“Intermediaries”), withthe understanding, whether recorded inwriting or otherwise, that the Intermediaryshall, whether, directly or indirectly lendor invest in other persons or entitiesidentified in any manner whatsoever byor on behalf of the company (“UltimateBeneficiaries”) or provide any guarantee,security or the like on behalf of theUltimate Beneficiaries;
(b) The management has represented, that,to the best of it’s knowledge and belief,as disclosed in the Note 42 (iii) to thestandalone financial statements, no fundshave been received by the company fromany person(s) or entity(ies), includingforeign entities (“Funding Parties”), withthe understanding, whether recorded inwriting or otherwise, that the companyshall, whether, directly or indirectly, lendor invest in other persons or entitiesidentified in any manner whatsoeverby or on behalf of the Funding Party(“Ultimate Beneficiaries”) or provide anyguarantee, security or the like on behalfof the Ultimate Beneficiaries;
(c) Based on such audit procedures thatwe have considered reasonable andappropriate in the circumstances, nothinghas come to our notice that has causedus to believe that the representationsunder sub-clause (a) and (b) contain anymaterial mis-statement.
(v) The final dividend proposed for the previousyear, declared and paid by the Companyduring the current year is in accordance withSection 123 of the Act to the extent it appliesto payment of dividend.
As stated in Note 48 to the standalonefinancial statements, the Board of Directorsof the Company has proposed final dividendfor the year which is subject to the approvalof the members at the ensuing AnnualGeneral Meeting. The dividend declared is inaccordance with Section 123 of the Act to theextent it applies to declaration of dividend.
(vi) On the basis of information and explanationsgiven to us and based on our examinationwhich included test checks, the company hasused accounting softwares for maintainingits books of account which has a feature ofrecording audit trail (edit log) facility and thesame has been operated throughout the yearfor all relevant transactions recorded in thesoftware. Further, during the course of ouraudit, we did not come across any instanceof audit trail feature being tampered with andthe audit trail has been preserved by thecompany as per the statutory requirementsfor record retention.
For Chandabhoy & Jassoobhoy
Chartered AccountantsFirm Registration No. 101647W
Bhupendra T. Nagda
Partner
Membership No. 102580UDIN: 26102580UAHMKJ3591
Place: MumbaiDate: May 16, 2026