Heritage Foods Limited

Heritage Foods Limited 212 Annexure A to the Independent Auditor’s Report of even date to the members of Heritage Foods Limited on the consolidated fi nancial statements for the year ended 31 March 2021 INDEPENDENT AUDITOR’S REPORT ON THE INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO CONSOLIDATED FINANCIAL 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 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 at and for the year ended 31 March 2021, we have audited the internal fi nancial controls with reference to consolidated fi nancial statements of the Holding Company, its subsidiary company and its associate company, which are companies covered under the Act, as at that date. Responsibilities of Management and Those Chargedwith Governance for Internal Financial Controls 2. The respective Board of Directors of the Holding Company, its subsidiary company and its associate company, which are companies covered under the Act, are responsible for establishing and maintaining internal fi nancial controls based on internal control over fi nancial reporting criteria established by the Holding Company, its subsidiary company and its associate 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 Consolidated Financial Statements 3. Our responsibility is to express anopinionon the internal fi nancial controlswith reference to consolidated fi nancial statements of the Holding Company, its subsidiary company and its associate company, as aforesaid, based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the ICAI prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal fi nancial controls with reference to consolidated fi nancial statements, and 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 to obtain reasonable assurance about whether adequate internal fi nancial controls with reference to consolidated 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 consolidated fi nancial statements and their operating e ff ectiveness. Our audit of internal fi nancial controls with reference to consolidated 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 of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated 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 provide a basis for our audit opinion on the internal fi nancial controls with reference to consolidated fi nancial statements of the Holding Company, its subsidiary company and its associate company as aforesaid. Meaning of Internal Financial Controls with Reference to Consolidated Financial Statements 6. A company’s internal fi nancial controls with reference to consolidated fi nancial statements is a process designed to provide reasonable assurance regarding the reliability of fi nancial reporting and the preparation of consolidated fi nancial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal fi nancial controls with reference to consolidated fi nancial statements include those policies and procedures that (1) pertain to themaintenance 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 consolidated fi nancial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the