171 HERITAGE FOODS LTD | 32ND ANNUAL REPORT 2023-24 Standalone STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS To the Members of Heritage Foods Limited Report on the Audit of the Standalone Financial Statements Opinion 1. We have audited the accompanying standalone financial statements of Heritage Foods Limited (‘the Company’), which comprise the Standalone Balance Sheet as at 31 March 2024, the Standalone Statement of Profit and Loss (including Other Comprehensive Loss), the Standalone Statement of Cash Flow and the Standalone Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including material accounting policy information 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 financial statements give the information required by the Companies Act, 2013 (‘the Act’) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, and its profit (including other comprehensive income/(loss)), its cash flows 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 specified 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 financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters 4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the financial 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 matters described below to be the key audit matters to be communicated in our report. Independent Auditor’s Report Key audit matter How our audit addressed the key audit matter Revenue recognition Refer Note 3(c) to the accompanying standalone financial statements for material accounting policy on revenue recognition and Note 24 for details of revenue from operations. Revenue from sale of goods is recognised in accordance with the principles of Ind AS 115, “Revenue from Contracts with Customers” (‘Ind AS 115’), at a point in time when control of the products being sold is transferred to the customer and when there are no longer any unfulfilled obligations. The Company also focuses on revenue as a key performance measure, which could create an incentive for overstating revenue resulting from the pressure on management to achieve performance targets at the reporting period end. Considering the significance of amount, multiplicity of Company’s products, volume of transactions including discounts offered, size of distribution network, nature of customers Our audit procedures relating to revenue recognition included, but was not limited to, the following: • Understood the process of revenue recognition and assessed the appropriateness of the revenue recognition accounting policies adopted by the management in accordance with Ind AS 115; • Evaluated the design, integrity of the general information and technology control environment and tested the operating effectiveness of Company’s manual and IT application controls in respect of revenue recognition, including discounts; • Performed substantive testing on a sample of revenue transactions recorded during the year by verifying the underlying documents, such as trip sheets, invoices, shipping documents and evidence of collection of receipts, as appropriate to ensure the accuracy of revenue recorded during the year; • Performed substantive testing on a sample of discount transactions recorded during the year by verifying the terms and conditions of the underlying approved scheme and credit notes, basis which the discount was granted; • Performed analytical procedures such as customer group ratio analysis, price volume variance analysis, geographical
RkJQdWJsaXNoZXIy NTE5NzY=