Heritage Foods Limited

Heritage Foods Limited 146 Independent Auditor’s Report To the Members of Heritage Foods Limited Report on the Audit of the Standalone Financial Statements Opinion 1. We have audited the accompanying standalone fi nancial statements of Heritage Foods Limited (‘the Company’), which comprise the Balance Sheet as at 31 March 2021, the Statement of Pro fi t and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the signi fi cant accounting policies and other explanatory information. 2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone fi nancial statements give the information required by the Companies Act, 2013 (‘Act’) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Indian Accounting Standards (‘Ind AS’) speci fi ed under section 133 of the Act, of the state of a ff airs of the Company as at 31 March 2021, and its pro fi t (including other comprehensive income), its cash fl ows 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 speci fi ed 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 fi nancial statements under the provisions of the Act and the rules thereunder, and we have ful fi lled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is su ffi cient and appropriate to provide a basis for our opinion. Key Audit Matter 4. Key audit matters are those matters that, in our professional judgment, were of most signi fi cance in our audit of the standalone fi nancial statements of the current period. These matters were addressed in the context of our audit of the standalone fi nancial 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. Key audit matter How our audit addressed the key audit matter Revenue recognition Revenue from sale of goods is recognised when control of the products being sold is transferred to the customer and when there are no longer any unful fi lled obligations. The performance obligations in the contracts are ful fi lled at the time of dispatch, delivery or upon formal customer acceptance depending on terms. Majority of the Company’s sales arrangements are on a point of sale basis and requires little judgement to be exercised. Our audit included, but was not limited to, the following procedures: • Assessed the appropriateness of the revenue recognition accounting policies, including those relating to discounts in accordance with Ind AS 115 – Revenue from contracts with customers (‘Ind AS 115’). • Evaluated the integrity of the general information and technology control environment and tested the operating e ff ectiveness of key IT application controls.