We have audited the accompanying standalone financial
statements of Hindustan Foods Limited ("the Company"),
which comprise the Balance Sheet as at March
31, 2025, and the Statement of Profit and Loss, including
Other Comprehensive Income, Statement of Changes
in Equity and Statement of Cash Flows for the year then
ended, and notes to the standalone financial statements,
including material accounting policy information and other
explanatory information (hereinafter referred to as the
"standalone financial statements").
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 prescribed under section
133 of the Act read with Companies (Indian Accounting
Standards) Rules, 2015, as amended ("Ind AS") and other
accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2025, and
profit (including other comprehensive income), changes in
equity and its cash flows for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the standalone financial
statements in accordance with the Standards on
Auditing (SAs) 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 standalone 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 obtained by us is sufficient and appropriate
to provide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional
judgment, were of most significance in
Our audit of the standalone financial statements for the
year ended March 31, 2025. These matters were addressed
in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
We have determined the matters described below to be
the key audit matters to be communicated in our report.
KEY AUDIT MATTERS
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Key Audit Matter
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How the Key Audit Matter was addressed in our audit
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Revenue is one of the key profit drivers and is
therefore susceptible to misstatement. Cut-off is
the key assertion insofar as revenue recognition
is concerned, since an inappropriate cut-off can
result in material misstatement of results for the
year.
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Our audit procedures in respect of this area included:
1. Obtained an understanding of the management's process
and controls around revenue recognition.
2. Evaluated and tested the design and operating effectiveness
of controls addressing this risk.
3. Performed substantive testing on selected samples of
revenue transactions recorded during the year by testing
the underlying documents including invoices and obtaining
independent balance confirmation from the customers at
the balance sheet date.
4. Obtained a listing of goods delivered prior to and post year end
and performed procedures to test completeness of revenue
from operations to conclude there has not been overstatement/
understatement of revenue recorded for the year
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Key Audit Matter
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How the Key Audit Matter was addressed in our audit
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5. Scrutinized manual journals posted to revenue to identify
unusual items.
6. Obtained evidence on the existence and accuracy of unbilled
revenue recognized, on sample basis, from underlying
supporting documents, including customer approvals and
acceptance.
7. Performed Analytical procedures on revenue recognized
during the year to identify and inquire on unusual variances,
if any and getting the reasons for variances confirmed from
the management of the Company.
8. Assessed the adequacy and appropriateness of the
disclosures made in the financial statements to ensure they
are accurate, complete, and comply with the requirements
of Ind AS 115 - ' Revenue from contracts with customer'.
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INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
THEREON
The Company's Board of Directors is responsible for the
other information. The other information comprises the
information included in the Company's annual report, but
does not include the standalone financial statements and
our auditor's report thereon. The annual report is expected
to be made available to us after the auditor's report.
Our opinion on the standalone financial statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information identified above and, in doing so, consider
whether the other information is materially inconsistent
with the standalone financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially
misstated.
When we read the Annual Report, if we conclude that
there is a material misstatement therein, we are required
to communicate the matter to those charged with
governance under SA 720 'The Auditor's responsibilities
Relating to Other Information' and take necessary actions
under the relevant laws and regulations.
RESPONSIBILITIES OF MANAGEMENT AND THOSE
CHARGED WITH GOVERNANCE FOR THE STANDALONE
FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these standalone financial statements
that give a true and fair view of the financial position,
financial performance, changes in equity and cash flows of
the Company in accordance with the accounting principles
generally accepted in India, including the Accounting
Standards specified under section 133 of the Act. This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and
presentation of the standalone financial statement that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the standalone financial statements, the
Management and Board of Directors are responsible for
assessing the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless the Board of Directors either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors is also responsible for overseeing
the Company's financial reporting process.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE
STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted
in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these standalone financial statements.
We give in "Annexure A" a detailed description of Auditor's
responsibilities for Audit of the Standalone Financial
Statements.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order,
2020 ("the Order"), issued by the Central Government
of India in terms of sub-section (11) of section 143 of
the Act, we give in "Annexure B" a statement on the
matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by Section 143(3) of the Act, we report
that:
(a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination of
those books except for the matters stated in the
paragraph 2(g)(vi) below on reporting under Rule
11(g).
(c) The Balance Sheet, the Statement of Profit and
Loss including other comprehensive income,
the Statement of Changes in Equity and the
Statement of Cash Flow dealt with by this Report
are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial
statements comply with the Accounting
Standards specified under Section 133 of the Act.
(e) On the basis of the written representations
received from the directors as on March 31, 2025
taken on record by the Board of Directors, none
of the directors are disqualified as on March 31,
2025 from being appointed as a director in terms
of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal
financial controls with reference to standalone
financial statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in "Annexure C".
(g) With respect to the other matters to be included
in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, in our opinion and to the best of our
information and according to the explanations
given to us:
(i) The Company does not have any pending
litigations which would impact its financial
position.
(ii) The Company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses.
(iii) There were no amounts which were
required to be transferred to the Investor
Education and Protection Fund by the
Company.
(iv) 1) The Management has represented
that, to the best of its knowledge and
belief, no funds have been advanced
or loaned or invested (either from
borrowed funds or share premium or
any other sources or kind of funds)
by the Company to or in any other
person(s) or entity(ies), including
foreign entities ("Intermediaries"),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, directly
or indirectly lend or invest in other
persons or entities identified in any
manner whatsoever by or on behalf of
the Company ("Ultimate Beneficiaries")
or provide any guarantee, security
or the like on behalf of the Ultimate
Beneficiaries.
2) The Management has represented,
that, to the best of its knowledge and
belief, no funds have been received
by the Company from any person(s)
or entity(ies), including foreign
entities (Funding Parties), with the
understanding, whether recorded in
writing or otherwise, as on the date
of this audit report, that the Company
shall, directly or indirectly, lend or
invest in other persons or entities
identified in any manner whatsoever
by or on behalf of the Funding Party
("Ultimate Beneficiaries") or provide
any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
3) Based on the audit procedures
performed that have been considered
reasonable and appropriate in the
circumstances, and according to the
information and explanations provided
to us by the Management in this regard
nothing has come to our notice that
has caused us to believe that the
representations under sub-clause (i)
and (ii) of Rule 11(e) as provided under
(1) and (2) above, contain any material
mis-statement.
v) The Company has neither declared nor paid
any dividend during the year.
(vi) Based on our examination which included
test checks, the Company has used Focus 7
accounting software for 2 locations namely
Pondicherry and Mumbai and Focus 9
accounting software for other locations
for maintaining its books of account during
the year ended March 31, 2025 which has
a feature of recording audit trail (edit log)
facility, except that no audit trail feature was
enabled at an application level for Focus 9
accounting software and at the database
level in respect of Focus 7 and Focus 9
accounting software to log any direct data
changes.
Further, for Focus 7 Accounting Software,
audit trail feature has been operated for
all relevant transactions recorded in the
accounting software. Also, during the
course of our audit, we did not come
across any instance of audit trail feature
being tampered with in respect of Focus 7
accounting software. Additionally, the audit
trail of prior years for Focus 7 accounting
software has been preserved at application
level by the Company as per the statutory
requirements for record retention to the
extent it was enabled and recorded in
respective years.
3. In our opinion, according to information, explanations
given to us, the remuneration paid by the Company
to its directors is within the limits laid prescribed under
Section 197 read with Schedule V of the Act and the
rules thereunder.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Virendra Kanak
Partner
Membership No. 110811
UDIN: 25110811BMKWBU1999
Place: Mumbai
Date: May 19, 2025
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