Heritage Foods Limited

Heritage Foods Limited 206 INDEPENDENT AUDITOR’S REPORT To the Members of Heritage Foods Limited Report on the Audit of the Consolidated Financial Statements Opinion 1. We have audited the accompanying consolidated fi nancial statements of Heritage Foods Limited (‘the Holding Company’) and its subsidiaries (the Holding Company and its subsidiaries together referred to as ‘the Group’), its associate and joint venture, as listed in Annexure 1, which comprise the Consolidated Balance Sheet as at 31 March 2021, the Consolidated Statement of Pro fi t and Loss (including Other Comprehensive Income), the Consolidated Cash Flow Statement and the Consolidated 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 and based on the consideration of the report of the other auditor on separate fi nancial statements and on the other fi nancial information of a subsidiary, the aforesaid consolidated 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 consolidated state of a ff airs of the Group, its associate and joint venture, as at 31 March 2021, and their consolidated pro fi t (including other comprehensive income), consolidated cash fl ows and the consolidated 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 Consolidated 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 consolidated 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 and the audit evidence obtained by the other auditor in terms of its report referred to in paragraph 15 of the Other Matters section below, 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 consolidated fi nancial statements of the current period. These matters were addressed in the context of our audit of the consolidated 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 Our audit included, but was not limited to, the following procedures: 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. • 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’). Majority of the Holding Company’s sales arrangements are on a point of sale basis and requires little judgement to be exercised. • Evaluated the integrity of the general information and technology control environment and tested the operating e ff ectiveness of Key IT application controls.