We have audited the accompanying standalone financial
statements of LT Foods Limited ("the Company"), which
comprise the Standalone Balance Sheet as at March 31,
2025, and the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), Standalone
Statement of Changes in Equity and Standalone
Statement of Cash Flows for the year then ended, and
notes to the standalone financial statements, including
material accounting policies 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 its profit and 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 (Refer Annexure 'A'). 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 judgement, were of most significance
in our audit of the standalone financial statements
for the year ended March 31, 2025. These matters are
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.
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Sr.
No
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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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1
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Revenue recognition - Sale of goods
Refer Note 1 to the standalone financial
statements with respect to the accounting
policies followed by the Company for recognizing
revenue from sale of products.
The Company recognised revenues amounting
to f 4,08,531.69 lakhs for the year ended March
31,2025, as disclosed in Note 30 and Note 52 to
the standalone financial statements.
Revenue comprises of sale of manufactured
goods (rice), traded goods and by products -
which is recognized when control of such goods
is transferred to the customers and there is no
unfulfilled obligation in accordance with the
requirements of Ind AS 115 - Revenue from
Contracts with Customers.
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Our audit procedures in respect of this area, among others,
included the following:
® Understood the business process of revenue and
receivables process for evaluating the design effectiveness
of internal financial controls;
® Validated the operating effectiveness of internal financial
controls in revenues and receivables process;
® Assessed the appropriateness of the accounting policies
relating to revenue recognition by ensuring their
compliance with Ind AS 115 -Revenue from Contracts
with Customers;
® Performed substantive analytical procedures on revenue
which includes margins analysis (corroboration between
revenues and costs for current year and its comparison
with last year), analysis for key customers etc.;
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Sr.
No
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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 towards satisfaction of a performance
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®
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Performed substantive analytical procedures on revenue
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obligation is measured at the amount of
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which includes margins analysis (corroboration between
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transaction price (net of variable consideration)
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revenues and costs for current year and its comparison
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allocated to that performance obligation. The
transaction price of goods sold and services
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with last year), analysis for key customers etc.;
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rendered is net of variable consideration on
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®
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Evaluated the terms and conditions of the key contracts,
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account of various discounts and schemes
offered by the company as part of the contract.
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including incoterms, with customers to ensure that
the revenue recognition criteria are assessed by
the management in accordance with the Indian
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In accordance with Standards on Auditing, there
is a presumed fraud risk relating to revenue
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Accounting Standards;
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recognition. Accordingly, occurrence of revenue
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®
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Performed substantive testing on test check basis
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is a key focus area on account of the multiplicity
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for revenue transactions recognised during the year
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of Company's products, multiple channels for
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by testing their underlying documents which include
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sales, transactions with subsidiaries and the
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purchase orders from customers, proof of deliveries
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volume of the sales made to them.
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(bill of lading for export sales and lorry receipts etc. for
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Due to the above factors, we have identified
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domestic sales), invoices and collection of money from
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testing of revenue recognition as a key audit
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the customers (as applicable). Considering different
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matter.
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categories of customers, the nature of documents
supporting accuracy and occurrence of transactions
varies. Our testing methodology was designed and
implemented considering these facts and circumstances;
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®
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Reviewed reconciliation of revenues between books and
revenues disclosed in statutory returns (i.e., GST returns);
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®
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Performed other substantive audit procedures including
obtaining debtor confirmations on a sample basis,
reviewed the subsequent collection of payment and proof
of deliveries document of such selected debtors; and
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Assessed the adequacy and appropriateness of the
disclosures made in standalone financial statements
in compliance with the requirements of Ind AS 115 -
Revenue from contracts with customer.
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2
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Inventory - existence and valuation
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Our audit procedures in respect of this area, among others,
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Refer Note 1 to the standalone financial
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included the following:
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statements which includes the accounting
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Existence:
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policies followed by the Company for valuation
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®
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Assessed the appropriateness of the accounting policies
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of inventory.
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relating to valuation of Inventory by ensuring their
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The Company's inventory is valued at the lower
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compliance with Ind AS 2 ("Inventories") and Ind AS 23
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of cost and Net Realizable Value (NRV).
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("Borrowing Costs");
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The Company is engaged in the business
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®
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Obtained inventory reports (retrieved from SAP) and
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of manufacturing and selling rice and the
Company's inventory primarily comprises of raw
material i.e., paddy, semifinished rice, finished
rice, stores and spares and packing material. Such
inventory is stored in plant, rented warehouses,
silos and storage bags. Inventory holding is
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results of management conducted count and reviewed
reconciliation of differences, if any, between management
physical count and inventory records. Verify the necessary
adjustments made in the inventory records by the
management on test check basis;
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generally significant at the end of the financial
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®
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Reviewed reconciliation of inventory quantitative details
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year considering seasonality of the agricultural
produce of paddy and natural ageing process
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in valuation workings with inventory reports obtained
from the management, as retrieved from SAP i.e., the
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followed by the Company for getting desired
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integrated ERP used by the company. Understood and
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level of quality. High quantity of inventory at the
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verified the reconciling items on test check basis;
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year-end makes inventory physical verification
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Obtained independent confirmations, on sample basis,
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an extensive procedure for the management.
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for inventory lying with third parties as at year-end;
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Sr.
Key Audit Matter
No
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How the Key Audit Matter was addressed in our audit
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The valuation of raw material, semi-finished and
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®
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Observed physical verification done by the management
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finished rice is a comprehensive exercise and
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as at year-end and also, independently verified few items
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is carried out manually. The valuation process
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physically on sample basis for locations scoped-in, basis
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involves estimation around determination of:
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materiality of stock lying at such locations to overall
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® Allocable overheads and their
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inventory balance of the company as at year-end;
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absorption rates;
® Determination of net realisable value
of by-products;
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®
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Corroborated the results of our physical verification
procedures, on test check basis, with valuation workings
obtained from the management; and
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®
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Presented our approach and results of physical
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® Capitalisation of borrowing costs to
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verification, including but not limited to scoped-in
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paddy, semi-finished and finished rice,
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locations, methodology followed for verification of
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given significant holding period between
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inventory stored in bags and silos and confirmation
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acquisition and production. Period and rate
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procedures, to the audit committee.
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of finance costs to be capitalised.
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Valuation:
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Accordingly, existence and valuation of the year-
end inventory balance, which is significant with
respect to the total assets held by the Company,
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®
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Obtained an understanding of management process of
inventory valuation;
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it is considered to be one of the areas which
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Evaluated design effectiveness of controls over inventory
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requires significant auditor attention owing to
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valuation process and tested key controls for their
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the complexity and judgements involved in the
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operating effectiveness;
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process of physical count and valuation.
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Verified inputs into the valuation process from source
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Hence, we have identified Inventory existence
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documents/ general ledger accounts on test check basis;
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and valuation as a key audit matter.
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®
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Verified, on test check basis, quantitative reconciliation of
opening inventory, purchase/ production, sales and year-
end inventory to validate the rice yield during the year
and to identify any abnormal production loss. Compared
the yield between current year and prior year to identify
abnormalities, if any;
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®
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Compared basis of key estimates, including those
involved in computation of allocable overheads and
borrowing costs, to prior year and enquired reasons for
any significant variations;
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®
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Verified net realisable value of by-products from
supporting documents and arithmetical accuracy of
valuation calculations on test check basis; and
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®
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Assessed the adequacy and appropriateness of the
disclosures made in the standalone financial statements
with respect to Inventory in compliance with the
requirements of applicable Indian Accounting Standards
and applicable financial reporting framework.
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Information Other than the Standalone
Financial Statements and Auditor's Report
Thereon
The Company's Management and Board of Directors
are responsible for the other information. The other
information comprises the information included in the
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 date of this auditor's report.
)ur opinion on the standalone financial statements does
lot cover the other information and we will not express
iny form of assurance conclusion thereon.
n connection with our audit of the standalone financial
;tatements, our responsibility is to read the other
nformation identified above when it becomes available
nd, in doing so, consider whether the other information
s materially inconsistent with the standalone financial
tatements or our knowledge obtained in the audit, or
itherwise 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 and take necessary actions, as applicable
under the relevant laws and regulations.
Responsibilities of Management and Board
of Directors for the Standalone Financial
Statements
The Company's Management and Board of Directors are
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 Indian 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 are 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
paragraph 2(h)(vi) below on reporting under
Rule 11(g). Also, in the absence of sufficient
and appropriate audit evidence, we are unable
to comment on whether back-up of the books
of account and other records, maintained
in electronic mode, have been maintained
on a daily basis.
(c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone
Statement of Changes in Equity and the
Standalone 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 Indian
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 is disqualified as on March
31, 2025 from being appointed as a director in
terms of Section 164(2) of the Act.
(f) The modifications relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph 2(b) above
on reporting under Section 143(3)(b) of the
Act and paragraph 2(h)(vi) below on reporting
under Rule 11(g) of the Companies (Audit and
Auditors) Rules, 2014.
(g) 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".
(h) 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 has disclosed the impact of
pending litigations on its financial position
in its standalone financial statements
- Refer Note 41 to the standalone
financial statements.
ii. The Company did not have any long-term
contracts including derivative contracts
for which there were any material
foreseeable losses.
iii. There has been no delay in transferring
amounts, required to be transferred, to
the Investor Education and Protection
Fund by the Company during the year
ended March 31,2025.
iv. (a) 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.
(b) 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.
(c) 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 sub clause
(iv)(a) and (iv)(b) above, contain any
material mis-statement.
v. The dividend declared and paid by the
Company during the year is in compliance
with Section 123 of the Act.
vi. Based on our examination, which includes
test checks, the Company has used an
accounting software for maintaining
its books of accounts (managed and
maintained by a third- party software
service provider) which has a feature of
recording audit trail (edit log) facility and
the same has been operated throughout
the year for all relevant transactions
recorded in the software except that we
are unable to comment on audit trail at
database level as the Company has not
been able to gather related evidence from
the service provider who manages this
accounting software.
Further, during the course of our audit,
we did not come across any instance of
audit trail feature being tampered with,
wherever maintained. Additionally, in the
absence of sufficient and appropriate
audit evidence (as stated in paragraph
2(b) above), we are unable to comment
whether the audit trail of previous year
has been preserved by the Company
as per the statutory requirements for
record retention.
3. In our opinion and according to information and
explanations given to us, the remuneration paid
and provided by the Company to its directors during
the year is within the limits prescribed under Section
197 of the Act and the rules thereunder.
For M S K A & Associates
Chartered Accountants
ICAI Firm Registration No. 105047W
Rahul Aggarwal
Partner
Membership No. 505676
UDIN: 25505676BMOBKR3810
Place: Gurugram
Date: May 15, 2025
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