1. We have audited the accompanying standalone financialstatements of Allied Blenders and Distillers Limited (‘theCompany’), which comprise the Standalone BalanceSheet as at 31 March 2025, the Standalone Statementof Profit and Loss (including Other ComprehensiveIncome), the Standalone Statement of Cash Flow andthe Standalone Statement of Changes in Equity for theyear then ended, and notes to the standalone financialstatements, including material accounting policyinformation and other explanatory information.
2. In our opinion and to the best of our information andaccording to the explanations given to us, the aforesaidstandalone financial statements give the informationrequired by the Companies Act, 2013 (‘the Act’) in themanner so required and give a true and fair view inconformity with the Indian Accounting Standards (‘IndAS’) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules, 2015and other accounting principles generally accepted inIndia, of the state of affairs of the Company as at 31March 2025, and its profit (including other comprehensiveincome (gain)), its cash flows and the changes in equityfor the year ended on that date.
3. We conducted our audit in accordance with theStandards on Auditing specified under section 143(10)of the Act. Our responsibilities under those standards arefurther described in the Auditor’s Responsibilities for theAudit of the Standalone Financial Statements sectionof our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (‘ICAI’) together withthe ethical requirements that are relevant to our audit ofthe standalone financial statements under the provisionsof the Act and the rules thereunder, and we have fulfilledour other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
4. We draw attention to the matter stated in Note 48(xx) (t)to the accompanying standalone financial statements,wherein it is stated that, one of the customer, CanteenStores Department (‘CSD’) had raised a debitmemorandum resulting into demand amounting to ^3,398.72 lakhs (net of adjustments) on the Company onaccount of differential trade rates for sales made to CSDduring the period 1 April 2012 to 31 October 2017, whichis being contested by the Company. Our opinion is notmodified in respect of this matter.
5. We draw attention to the matter stated in Note 63 ofthe accompanying standalone financial statementsregarding the search operation carried out by the IncomeTax Department (‘the department’) during December2023, pursuant to which demand orders have beenreceived by the Company during the year ended 31March 2025, as further described in the aforesaid note.Subsequent to year-end, the Commissioner of IncomeTax (Appeals) has stayed 90% of such demands raised.Basis legal assessment, the management is of theview that no adjustments are required to the financialstatements. Our opinion is not modified in respectof this matter.
6. Key audit matters are those matters that, in ourprofessional judgment, were of most significance in ouraudit of the standalone financial statements of the currentperiod. These matters were addressed in the context ofour audit of the standalone financial statements as awhole, and in forming our opinion thereon, and we donot provide a separate opinion on these matters.
7. We have determined the matters described below to bethe key audit matters to be communicated in our report.
Key audit matter
How our audit addressed the key audit matter
Revenue Recognition
Our audit procedures, related to revenue recognition, included,
Refer to note 2(d) to the accompanying standalone financial
but were not limited, to the following:
statements for the Company’s material accounting policy
•
Understood the process of revenue recognition and evaluated
information relating to revenue recognition, note 33 and 49 for the
the appropriateness of the accounting policy adopted by the
details of revenue recognized during the year.
management on revenue recognition including determinationof transaction price and satisfaction of performance
The Company derives its revenue from sale of liquor products to awide range of customers through a network of private distributors
obligations, in accordance with Ind AS 115;
(open market), part corporation market and full corporation
Evaluated the design and tested the operating effectiveness
market. Such revenue is recognised in accordance with the
of Company’s key internal controls around revenue recognition
principles of Ind AS 115, Revenue from Contracts with Customers
including controls relating to determination of variable
(‘Ind AS 115’) which requires management to make certain keyjudgements, such as, identification of performance obligations
consideration and satisfaction of performance obligations;
in contracts with customers, determination of transaction price
On a sample basis, tested revenue transactions recorded
for the contract including variable consideration in the form of
during the year, and transactions recorded in specific period
rebates, discounts and pay-outs to distributors under various
before and after year end, basis inspection of supporting
promotional schemes offered by the Company, and assessment of
documents such as customer contracts, purchase orders,
satisfaction of the performance obligations under each contract
price lists, invoices, proof of dispatch and delivery including
represented by the transfer of control of the products sold to the
regulatory documents used for movement of liquor as per
customers including state government corporations.
Evaluation is also required to be made in respect of principal versus
applicable regulations in order to ensure revenue is recordedwith the correct amount and in the correct period;
agent relationship of the Company with its ‘tie-up manufacturing
Performed substantive testing by selecting a sample of
units’ as explained in the material accounting policy information
discounts, rebate and other pay-out transactions with
as referred above.
Owing to the multiplicity of the Company’s products, volume of
distributors recorded during the year as well as period endaccrual basis the promotion schemes offered by the Company;
sales transactions, size of distribution network, nature of customers
Performed substantive analytical procedures such as variance
and varied terms of contracts with different customers, revenuerecognition is determined to be an area involving significant risk in
analysis on revenue to identify any unusual trends;
line with the requirements of the Standards on Auditing and audit
Evaluated adequacy of the disclosures made in the
of revenue recognised during the year required significant auditor
accompanying standalone financial statements in respect of
attention and industry knowledge, and accordingly, revenue
revenue recognition in accordance with financial reporting
recognition is considered as a key audit matter in the current year.
framework.
Litigations and claims - provisions and contingent liabilities
Our
audit procedures, related to provisions and contingent
Refer to note 2(n) to the accompanying standalone financial
liabilities, included, but were not limited, to the following:
Obtained an understanding from the management with
information relating to Provision, Contingent Liabilities andContingent Assets and note 48 for contingent liabilities disclosure.
respect to process and controls followed by the Company for:- identification and monitoring of significant developments
The Company is involved in various direct, indirect tax and other
in relation to the litigations, including completeness
litigations (‘litigations’), that are pending with different statutoryauthorities as at year end.
thereof;
- assessment of accounting treatment for each such
The amounts involved are material and the application of
litigation identified under Ind AS 37 accounting principles;
accounting principles as given under Ind AS 37, Provisions,Contingent Liabilities and Contingent Assets, in order to determine
and
the amount to be recorded as a liability or to be disclosed as acontingent liability, in each case, is inherently subjective, and
- measurement of amounts involved.
needs careful evaluation and judgement to be applied by the
management.
of key controls around above process;
This judgement is dependent on a number of significant
Obtained the list of litigations from the management and
assumptions and assessments which involves interpreting the
reviewed their assessment of the likelihood of outflow of
various applicable rules, regulations, practices and considering
economic resources being probable, possible or remote
precedents in the various jurisdictions.
in respect of the litigations. This involved assessing theprobability of an unfavourable outcome of a given proceeding
This matter is considered as a key audit matter, in view of theinherent high estimation uncertainty regarding the outcome of
and the reliability of estimates of related amounts;
these litigations, the significance of the amounts involved and the
Performed substantive procedures on the underlying
high degree of subjectivity involved in management’s judgement
calculations supporting the provisions recorded and
as to whether the amount should be recognized as a provision,
contingent liabilities disclosed by the management in respect
only disclosed as contingent liability in the standalone financialstatement or not even disclosed being considered as remote.
of identified and ongoing litigations;
Assessed management’s conclusions through discussionsheld with their in house tax experts and understandingprecedents in similar cases;
Tested the underlying calculations supporting the provisionsrecorded and contingent liabilities disclosed by themanagement in respect of identified and ongoing litigations;
• Obtained and evaluated the independent confirmations fromthe attorney/consultants representing the Company before thevarious authorities;
• Engaged auditor’s experts, who obtained an understandingof the current status of the litigations, conducted discussionswith the management, reviewed independent legal advicereceived by the Company, if any and considered relevantlegal provisions and available precedents to validate theconclusions made by the management; and
• Assessed and validated the adequacy and appropriateness ofthe disclosures made by the management in the standalonefinancial statements.
8. The Company’s Board of Directors are responsible forthe other information. The other information comprisesthe information included in the Annual Report, but doesnot include the standalone financial statements and ourauditor’s report thereon.
Our opinion on the standalone financial statements doesnot cover the other information and we will not expressany form of assurance conclusion thereon.
In connection with our audit of the standalone financialstatements, our responsibility is to read the otherinformation identified above when it becomes availableand, in doing so, consider whether the other informationis materially inconsistent with the standalone financialstatements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If, basedon the work we have performed, we conclude that thereis a material misstatement of this other information,we are required to report that fact. We have nothing toreport in this regard.
9. The accompanying standalone financial statements havebeen approved by the Company’s Board of Directors.The Company’s Board of Directors are responsible forthe matters stated in section 134(5) of the Act withrespect to the preparation and presentation of thesestandalone financial statements that give a true andfair view of the financial position, financial performanceincluding other comprehensive income, changes inequity and cash flows of the Company in accordancewith the Ind AS specified under section 133 of the Actand other accounting principles generally accepted inIndia. This responsibility also includes maintenance ofadequate accounting records in accordance with theprovisions of the Act for safeguarding of the assets ofthe Company and for preventing and detecting fraudsand other irregularities; selection and application ofappropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design,implementation and maintenance of adequate internalfinancial controls, that were operating effectively
for ensuring the accuracy and completeness of theaccounting records, relevant to the preparation andpresentation of the financial statements that give a trueand fair view and are free from material misstatement,whether due to fraud or error.
10. In preparing the standalone financial statements, theBoard of Directors is responsible for assessing theCompany’s ability to continue as a going concern,disclosing, as applicable, matters related to goingconcern and using the going concern basis of accountingunless the Board of Directors either intends to liquidatethe Company or to cease operations, or has no realisticalternative but to do so.
11. The Board of Directors is also responsible for overseeingthe Company’s financial reporting process.
12. Our objectives are to obtain reasonable assuranceabout whether the standalone financial statements asa whole are free from material misstatement, whetherdue to fraud or error, and to issue an auditor’s reportthat includes our opinion. Reasonable assurance is ahigh level of assurance, but is not a guarantee thatan audit conducted in accordance with Standards onAuditing will always detect a material misstatementwhen it exists. Misstatements can arise from fraud orerror and are considered material if, individually or inthe aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on thebasis of these standalone financial statements.
13. As part of an audit in accordance with Standardson Auditing, specified under section 143(10) of theAct we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
• Identify and assess the risks of materialmisstatement of the standalone financialstatements, whether due to fraud or error, designand perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion.The risk of not detecting a material misstatementresulting from fraud is higher than for one resultingfrom error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or theoverride of internal control;
• Obtain an understanding of internal control relevantto the audit in order to design audit procedures thatare appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible forexpressing our opinion on whether the Companyhas adequate internal financial controls withreference to financial statements in place and theoperating effectiveness of such controls;
• Evaluate the appropriateness of accountingpolicies used and the reasonableness ofaccounting estimates and related disclosuresmade by management;
• Conclude on the appropriateness of Board ofDirectors’ use of the going concern basis ofaccounting and, based on the audit evidenceobtained, whether a material uncertainty existsrelated to events or conditions that may castsignificant doubt on the Company’s ability tocontinue as a going concern. If we conclude thata material uncertainty exists, we are required todraw attention in our auditor’s report to the relateddisclosures in the standalone financial statementsor, if such disclosures are inadequate, to modifyour opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’sreport. However, future events or conditions maycause the Company to cease to continue as agoing concern; and
• Evaluate the overall presentation, structure andcontent of the standalone financial statements,including the disclosures, and whether thestandalone financial statements represent theunderlying transactions and events in a mannerthat achieves fair presentation.
14. We communicate with those charged with governanceregarding, among other matters, the planned scopeand timing of the audit and significant audit findings,including any significant deficiencies in internal controlthat we identify during our audit.
15. We also provide those charged with governance witha statement that we have complied with relevantethical requirements regarding independence, and tocommunicate with them all relationships and othermatters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.
16. From the matters communicated with those chargedwith governance, we determine those matters thatwere of most significance in the audit of the standalonefinancial statements of the current period and aretherefore the key audit matters. We describe thesematters in our auditor’s report unless law or regulationprecludes public disclosure about the matter or when,in extremely rare circumstances, we determine that
a matter should not be communicated in our reportbecause the adverse consequences of doing so wouldreasonably be expected to outweigh the public interestbenefits of such communication.
17. As required by section 197(16) of the Act, based on ouraudit, we report that the Company has paid remunerationto its directors during the year in accordance with theprovisions of and limits laid down under section 197 readwith Schedule V to the Act.
18. As required by the Companies (Auditor’s Report) Order,2020 (‘the Order’) issued by the Central Government ofIndia in terms of section 143(11) of the Act we give inthe Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order, to the extent applicable.
19. Further to our comments in Annexure A, as required bysection 143(3) of the Act based on our audit, we report,to the extent applicable, that:
a) We have sought and obtained all the informationand explanations which to the best of ourknowledge and belief were necessary for thepurpose of our audit of the accompanyingstandalone financial statements;
b) Except for the matters stated in paragraph 19 (i)(vi) below on reporting under Rule 11(g) of theCompanies (Audit and Auditors) Rules, 2014(as amended), in our opinion, proper books ofaccount as required by law have been kept by theCompany so far as it appears from our examinationof those books;
c) The standalone financial statements dealtwith by this report are in agreement with thebooks of account;
d) In our opinion, the aforesaid standalone financialstatements comply with Ind AS specified undersection 133 of the Act;
e) The matter described in paragraph 4 and 5 underthe Emphasis of Matter, in our opinion, may have anadverse effect on the functioning of the Company;
f) On the basis of the written representations receivedfrom the directors and taken on record by the Boardof Directors, none of the directors is disqualifiedas on 31 March 2025 from being appointed as adirector in terms of section 164(2) of the Act;
g) The qualification relating to the maintenance ofaccounts and other matters connected therewithare as stated in paragraph 19(b) above onreporting under section 143(3)(b) of the Act andparagraph 19(i)(vi) below on reporting under Rule11(g) of the Companies (Audit and Auditors) Rules,2014 (as amended);
(‘Ultimate Beneficiaries’) or provide anyguarantee, security or the like on behalfof the Ultimate Beneficiaries; and
c. Based on such audit proceduresperformed as considered reasonable andappropriate in the circumstances, nothinghas come to our notice that has causedus to believe that the managementrepresentations under sub-clauses (a)and (b) above contain any materialmisstatement.
v. As stated in note 45(B) to the accompanyingstandalone financial statements, the Boardof Directors of the Company have proposedfinal dividend for the year ended 31 March2025 which is subject to the approvalof the members at the ensuing AnnualGeneral Meeting. The dividend declared is inaccordance with section 123 of the Act to theextent it applies to declaration of dividend.
vi. As stated in note 65 to the standalone financialstatements and based on our examinationwhich included test checks, except for instancementioned below, the Company, in respect offinancial year commencing on or after 1 April2024, has used an accounting software formaintaining its books of account which has afeature of recording audit trail (edit log) facilityand the same has been operated throughoutthe year for all relevant transactions recordedin the software. Further, during the course ofour audit we did not come across any instanceof audit trail feature being tampered with otherthan the consequential impact of the exceptiongiven below. Furthermore, the audit trail hasbeen preserved by the Company as per thestatutory requirements for record retention.
Nature of exception noted
Details of Exception
Instances of accounting
The audit trail feature was not
software for maintaining books
enabled at the database level
of account for which the feature
for accounting software to
of recording audit trail (edit
log any direct data changes,
log) facility was not operated
used for maintenance of all
throughout the year for all
accounting records by the
relevant transactions recordedin the software.
Company.
h) With respect to the adequacy of the internalfinancial controls with reference to financialstatements of the Company as on 31 March 2025and the operating effectiveness of such controls,refer to our separate report in Annexure B whereinwe have expressed an unmodified opinion; and
i) With respect to the other matters to be includedin the Auditor’s Report in accordance with rule11 of the Companies (Audit and Auditors) Rules,2014 (as amended), in our opinion and to thebest of our information and according to theexplanations given to us:
i. the Company has disclosed the impact ofpending litigations on its financial position asat 31 March 2025;
ii. the Company did not have any long-termcontracts including derivative contracts forwhich there were any material foreseeablelosses as at 31 March 2025;
iii. There were no amounts which were requiredto be transferred to the Investor Education andProtection Fund by the Company during theyear ended 31 March 2025;
iv. a. The management has represented
that, to the best of its knowledge andbelief, as disclosed in note 68(f) to thestandalone financial statements, nofunds have been advanced or loaned orinvested (either from borrowed funds orsecurities premium or any other sourcesor kind of funds) by the Company to orin any person(s) or entity(ies), includingforeign entities (‘the intermediaries’),with the understanding, whetherrecorded in writing or otherwise, that theintermediary shall, whether, directly orindirectly lend or invest in other personsor entities identified in any mannerwhatsoever by or on behalf of theCompany (‘the Ultimate Beneficiaries’)or provide any guarantee, security or thelike on behalf the Ultimate Beneficiaries;
b. The management has represented that,to the best of its knowledge and belief, asdisclosed in note 68(g) to the standalonefinancial statements, no funds havebeen received by the Company from anyperson(s) or entity(ies), including foreignentities (‘the Funding Parties’), with theunderstanding, whether recorded inwriting or otherwise, that the Companyshall, whether directly or indirectly, lendor invest in other persons or entitiesidentified in any manner whatsoeverby or on behalf of the Funding Party
For Walker Chandiok & Co LLP
Chartered AccountantsFirm’s Registration No.: 001076N/N500013
Adi P. Sethna
Partner
Membership No.: 108840UDIN: 25108840BMNTWW2886
Place: MumbaiDate: 15 May 2025