1. We have audited the accompanying standalone financialstatements of Navin Fluorine International Limited (“theCompany”), which comprise the Standalone BalanceSheet as at March 31,2025, and the Standalone Statementof Profit and Loss (including Other ComprehensiveIncome), the Standalone Statement of Changes inEquity and the Standalone Statement of Cash Flowsfor the year then ended, and notes to the standalonefinancial statements, including material accounting policyinformation and other explanatory information.
2. In our opinion and to the best of our information andaccording to the explanations given to us, the aforesaidstandalone financial statements give the informationrequired by the Companies Act, 2013 (“the Act”) inthe manner so required and give a true and fair viewin conformity with the accounting principles generallyaccepted in India, of the state of affairs of the Companyas at March 31, 2025, and total comprehensiveincome (comprising of profit and other comprehensiveincome), changes in equity and its cash flows for theyear then ended.
3. We conducted our audit in accordance with the Standardson Auditing (SAs) specified under Section 143(10) ofthe Act. Our responsibilities under those Standardsare further described in the “Auditor’s Responsibilitiesfor the Audit of the Financial Statements” section ofour report. We are independent of the Company inaccordance with the Code of Ethics issued by theInstitute of Chartered Accountants of India together withthe ethical requirements that are relevant to our audit ofthe standalone financial statements under the provisionsof the Act and the Rules thereunder, and we have fulfilledour other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
4. Key audit matters are those matters that, in ourprofessional judgement, were of most significance in ouraudit of the standalone financial statements of the currentperiod. These matters were addressed in the contextof our audit of the standalone financial statements as awhole and in forming our opinion thereon, and we do notprovide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Assessment of Carrying Value of:
Our procedures included the following:
a) 1 nvestment in Wholly Owned Subsidiaries i.e. NFIL (UK) Limited,
Understood the management process for assessment of carrying
UK and Manchester Organics Limited, UK; and
values of investments and PP&E and also evaluated the design
b) Identified Property, Plant and Equipment (PP&E)relating to Dewas Unit.
and tested the operating effectiveness of the Company’s internalcontrols surrounding such assessment.
(Refer to Note 5A, 8, 53 and 57(h) in the standalone financial statements)
Reviewed the Company’s accounting policy in respect ofimpairment assessment of investments and PP&E.
The carrying value of the investment in above mentioned subsidiariesand the property, plant and equipment (PP&E) relating to theCompany’s manufacturing facility at Dewas as at March 31, 2025 is
Assessed whether the Company’s determination of CGUs wasconsistent with our knowledge of the Company’s operations.
' 93.90 crores and ' 214.28 crores respectively, which in aggregate
Compared the previous year cash flow forecasts made by the
represents approximately 10.39% of the total assets of the Company.
management to actual results to assess the historical accuracy
The said investments and PP&E are carried at cost less depreciation
of forecasting.
and accumulated impairment losses, if any. The Company reviews
To assess the reasonableness of the key assumptions used, in
their carrying values at every balance sheet date and performs
particular those relating to discount rates, cash flow forecasts and
impairment assessment in accordance with Ind AS 36 'Impairment of
terminal growth rates applied:
Assets’, where there is any indication of impairment to the carryingvalue. As mentioned in the note 53, the Management considers theseinvestments and the said PP&E as part of one cash generating unit(CGU) for the purpose of assessment of their recoverable value.
- Engaged with auditors’ valuation experts to determine arange of acceptable discount rates and terminal growth rates,with reference to valuations of similar companies and otherrelevant external data.
Management estimates recoverable value of the CGU based ondiscounted cash flows forecast, requiring judgements in respectcertain key inputs like determining an appropriate discount rate, futurecash flows and terminal growth rate - Changes in these assumptionscould lead to an impairment to the carrying values of the investments
- Performed sensitivity analysis on the forecasts by varying thekey assumptions within a foreseeable range.
- Tested the cash flow forecasts used and assessed whetherthose were consistent with our understanding of the business.
and PP&E forming part of the CGU.
Checked the arithmetic accuracy of the computations included in
We have considered this to be a key audit matter as the carrying value
the discounted cash flow projections.
of these investments and PP&E is significant to the balance sheet and
Evaluated the adequacy and appropriateness of disclosures made
significant management judgement is involved in considering theseinvestments and the said PP&E as part of one CGU and calculationof recoverable amount for the purpose of assessment of theappropriateness of the carrying amount.
in the standalone financial statements.
5. The Company’s Board of Directors is responsible for theother information. The other information comprises theinformation included in the Director’s report, Businessresponsibility and sustainability reporting format reporton corporate governance and management discussionand analysis report, but does not include the standalonefinancial statements and our auditor’s report thereon.
Our opinion on the standalone financial statements doesnot cover the other information and we do not expressany form of assurance conclusion thereon.
I n connection with our audit of the standalone financialstatements, our responsibility is to read the otherinformation and, in doing so, consider whether the otherinformation is materially inconsistent with the financialstatements, or our knowledge obtained in the audit orotherwise appears to be materially misstated. If, basedon the work we have performed, we conclude that thereis a material misstatement of this other information, weare required to report that fact.
We have nothing to report in this regard.
6. The Company’s Board of Directors is responsible for thematters stated in Section 134(5) of the Act with respect tothe preparation of these standalone financial statementsthat give a true and fair view of the financial position,financial performance, changes in equity and cash flowsof the Company in accordance with the accountingprinciples generally accepted in India, including theIndian Accounting Standards specified under Section 133of the Act. This responsibility also includes maintenanceof adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets ofthe Company and for preventing and detecting fraudsand other irregularities; selection and application ofappropriate accounting policies; making judgmentsand estimates that are reasonable and prudent; anddesign, implementation and maintenance of adequateinternal financial controls, that were operating effectivelyfor ensuring the accuracy and completeness of theaccounting records, relevant to the preparation andpresentation of the standalone financial statementsthat give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
7 I n preparing the standalone financial statements, Boardof Directors is responsible for assessing the Company’sability to continue as a going concern, disclosing,as applicable, matters related to going concern andusing the going concern basis of accounting unlessBoard of Directors either intends to liquidate theCompany or to cease operations, or has no realisticalternative but to do so.
8. Those Board of Directors are also responsible foroverseeing the Company’s financial reporting process.
9. 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 includesour opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conductedin accordance with SAs will always detect a materialmisstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individuallyor in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken onthe basis of these standalone financial statements.
10. As part of an audit in accordance with SAs, we exerciseprofessional judgement and maintain professionalscepticism throughout 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 evidencethat is sufficient and appropriate to provide a basisfor our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, orthe override of internal control.
Obtain an understanding of internal control relevantto the audit in order to design audit proceduresthat are appropriate in the circumstances . UnderSection 143(3)(i) of the Act, we are also responsiblefor expressing our opinion on whether the Companyhas adequate internal financial controls with referenceto standalone financial statements in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policiesused and the reasonableness of accounting estimatesand related disclosures made by management.
Conclude on the appropriateness of management’suse of the going concern basis of accounting and,based on the audit evidence obtained, whethera material uncertainty exists related to events orconditions that may cast significant doubt on theCompany’s ability to continue as a going concern.If we conclude that a material uncertainty exists, weare required to draw attention in our auditor’s reportto the related disclosures in the standalone financialstatements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of ourauditor’s report. However, future events or conditionsmay cause the Company to cease to continue asa 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.
11. 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 weidentify during our audit.
12. We also provide those charged with governancewith a statement that we have complied with relevantethical requirements regarding independence, andto communicate with them all relationships and othermatters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.
13. From the matters communicated with those charged withgovernance, we determine those matters that were ofmost significance in the audit of the standalone financialstatements of the current period and are therefore thekey audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rarecircumstances, we determine that a matter should notbe communicated in our report because the adverseconsequences of doing so would reasonably beexpected to outweigh the public interest benefits ofsuch communication.
14. As required by the Companies (Auditor’s Report) Order,2020 (“the Order”), issued by the Central Governmentof India in terms of sub-section (11) of Section 143 ofthe Act, we give in the Annexure B a statement on thematters specified in paragraphs 3 and 4 of the Order, tothe extent applicable.
15. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information andexplanations which to the best of our knowledge andbelief were necessary for the purposes of our 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, exceptfor the matters stated in paragraph 15(h)(vi) belowon reporting under Rule 11(g) of the Companies(Audit and Auditors) Rules, 2014 (as amended).
(c) The Standalone Balance Sheet, the StandaloneStatement of Profit and Loss (including othercomprehensive income), the Standalone Statementof Changes in Equity and the Standalone Statement
of 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 Indian AccountingStandards specified under Section 133 of the Act.
(e) On the basis of the written representations receivedfrom the directors as on April 01, 2025, takenon record by the Board of Directors, none of thedirectors is disqualified as on April 01, 2025, frombeing appointed as a director in terms of Section164(2) of the Act.
(f) With respect to the maintenance of accounts andother matters connected therewith, reference ismade to our remarks in paragraph 15(b) above onreporting under Section 143(3)(b) and paragraph15(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 financialcontrols with reference to standalone financialstatements of the Company and the operatingeffectiveness of such controls, refer to our separateReport in “Annexure A”.
(h) With respect to the other matters to be includedin the Auditor’s Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules,2014 (as amended), in our opinion and to thebest of our information and according to theexplanations given to us:
i. The Company has disclosed the impact ofpending litigations on its financial positionin its standalone financial statements - ReferNote 47 to the standalone financial statements.
ii. The Company did not have any long¬term contracts including derivativecontracts for which there were any materialforeseeable losses.
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 its knowledge and belief,other than as disclosed in Note 56 to
the standalone 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 inany other persons or entities, 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, tothe best of its knowledge and belief, otherthan as disclosed in the Note 56 to thestandalone financial statements, no fundshave been received by the Companyfrom any persons or entities, 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; and
(c) Based on such audit procedures that weconsidered reasonable and appropriatein the circumstances, nothing hascome to our notice that has causedus to believe that the representationsunder sub-clause (a) and (b) contain anymaterial misstatement.
v. The dividend declared and paid by theCompany during the year is in compliance withSection 123 of the Act.
vi. Based on our examination, which included testchecks, the Company has used accountingsoftware for maintaining its books of accountwhich has a feature of recording audit trail (editlog) facility and that has operated throughoutthe year for all relevant transactions recordedin the software, except:
a) In the case of the primary accountingsoftware, the audit log does not capturethe log for changes made by certainusers with specific access at theapplication layer.
b) Further, the log for capturing directdatabase changes for the said softwarewas enabled only during the year. Thelog is enabled only for specific users andthe log does not capture the value priorto modification.
c) In respect of direct database changesfor the software used for processingpayroll records, which is operated by athird-party software service provider, theISAE 3402 Type 2 report is not availablewith the software service provider andaccordingly, we are unable to comment
whether the audit trail feature of theaforesaid software was enabled andoperated throughout the year.
Further, the audit trail, to the extent maintainedin the prior year, has been preserved by thecompany as per the statutory requirements forrecord retention.
16. The Company has paid/ provided for managerialremuneration in accordance with the requisite approvalsmandated by the provisions of Section 197 read withSchedule V to the Act.
For Price Waterhouse Chartered Accountants LLP Firm
Registration Number: 012754N/N500016
Nitin Khatri Partner
Mumbai Membership Number: 110282
May 09, 2025 UDIN : 25110282BMOGGZ8027