Heritage Foods Limited

FINANCIAL STATEMENTS Standalone 29 th Annual Report 2020-21 | 153 Annexure B to the Independent Auditor’s Report of even date to the members of Heritage Foods Limited on the standalone fi nancial statements for the year ended 31 March 2021 Independent Auditor’s Report on the internal fi nancial controls with reference to the standalone fi nancial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’) 1. In conjunction with our audit of the standalone fi nancial statements of Heritage Foods Limited (‘the Company’) as at and for the year ended 31 March 2021, we have audited the internal fi nancial controls with reference to standalone fi nancial statements of the Company as at that date. Responsibilities of Management and Those Chargedwith Governance for Internal Financial Controls 2. The Company’s Board of Directors is responsible for establishing and maintaining internal fi nancial controls based on internal control over fi nancial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (“Guidance Note”) issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design,implementation and maintenance of adequate internal fi nancial controls that were operating e ff ectively for ensuring the orderly and e ffi cient conduct of the Company’s business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable fi nancial information, as required under the Act. Auditor’s Responsibility for the Audit of the Internal Financial Controls with Reference to Standalone Financial Statements 3. Our responsibility is to express an opinion on the Company’ sinternal fi nancial controls with reference to standalone fi nancial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (‘ICAI’) prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal fi nancial controls with reference to standalone fi nancial statements, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (‘the Guidance Note’) issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal fi nancial controls with reference to standalone fi nancial statements were established and maintained and if such controls operated e ff ectively in all material respects. 4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal fi nancial controls with reference to standalone fi nancial statements and their operating e ff ectiveness.Our audit of internal fi nancial controls with reference to standalone fi nancial statements includes obtaining an understanding of such internal fi nancial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating e ff ectiveness o fi nternal control based on the assessed risk. The procedures selected depend on the auditor’sjudgement, including the assessment of the risks of material misstatement of the standalone fi nancial statements, whether due to fraud or error. 5. We believe that the audit evidence we have obtained is su ffi cient and appropriate to providea basis for our audit opinion on the Company’s internal fi nancial controls with reference to standalone fi nancial statements. Meaning of Internal Financial Controls with Reference to Standalone Financial Statements 6. A company’s internal fi nancial controls with reference to standalone fi nancial statements is a process designed to provide reasonable assurance regarding the reliability of fi nancial reporting and the preparation of standalone fi nancial statements for external purposes in accordance with generally accepted accountingprinciples. A company’s internal fi nancial controls with reference to standalone fi nancial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly re fl ect the transactions and dispositions of the assets of the company; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone fi nancial statements in accordance with generally accepted accounting principles, and thatreceipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material e ff ect on the standalone fi nancial statements.