We have audited the accompanying standalone financialstatements of LT Foods Limited ("the Company"), whichcomprise the Standalone Balance Sheet as at March 31,2025, and the Standalone Statement of Profit and Loss(including Other Comprehensive Income), StandaloneStatement of Changes in Equity and StandaloneStatement of Cash Flows for the year then ended, andnotes to the standalone financial statements, includingmaterial accounting policies and other explanatoryinformation (hereinafter referred to as the "standalonefinancial statements").
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") inthe manner so required and give a true and fair viewin conformity with the Indian Accounting Standardsprescribed under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules, 2015,as amended ("Ind AS") and other accounting principlesgenerally accepted in India, of the state of affairs of theCompany as at March 31, 2025, and its profit and othercomprehensive income, changes in equity and its cashflows for the year ended on that date.
We conducted our audit of the standalone financialstatements in accordance with the Standards onAuditing ('SAs') specified under Section 143(10) of the Act.Our responsibilities under those Standards are furtherdescribed in the 'Auditor's Responsibilities for the Auditof the Standalone Financial Statements' section of ourreport (Refer Annexure 'A'). We are independent of theCompany in accordance with the Code of Ethics issuedby the Institute of Chartered Accountants of India ("ICAI")together with the ethical requirements that are relevantto our audit of the standalone financial statements underthe provisions of the Act and the Rules thereunder,and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the Codeof Ethics. We believe that the audit evidence obtainedby us is sufficient and appropriate to provide a basisfor our opinion.
Key audit matters are those matters that, in ourprofessional judgement, were of most significancein our audit of the standalone financial statementsfor the year ended March 31, 2025. These matters areaddressed in the context of our audit of the standalonefinancial statements as a whole, and in forming ouropinion thereon, and we do not provide a separateopinion on these matters. We have determined thematters described below to be the key audit matters tobe communicated in our report.
Sr.
No
Key Audit Matter
How the Key Audit Matter was addressed in our audit
1
Revenue recognition - Sale of goods
Refer Note 1 to the standalone financialstatements with respect to the accountingpolicies followed by the Company for recognizingrevenue from sale of products.
The Company recognised revenues amountingto f 4,08,531.69 lakhs for the year ended March31,2025, as disclosed in Note 30 and Note 52 tothe standalone financial statements.
Revenue comprises of sale of manufacturedgoods (rice), traded goods and by products -which is recognized when control of such goodsis transferred to the customers and there is nounfulfilled obligation in accordance with therequirements of Ind AS 115 - Revenue fromContracts with Customers.
Our audit procedures in respect of this area, among others,
included the following:
® Understood the business process of revenue andreceivables process for evaluating the design effectivenessof internal financial controls;
® Validated the operating effectiveness of internal financialcontrols in revenues and receivables process;
® Assessed the appropriateness of the accounting policiesrelating to revenue recognition by ensuring theircompliance with Ind AS 115 -Revenue from Contractswith Customers;
® Performed substantive analytical procedures on revenuewhich includes margins analysis (corroboration betweenrevenues and costs for current year and its comparisonwith last year), analysis for key customers etc.;
Revenue towards satisfaction of a performance
®
Performed substantive analytical procedures on revenue
obligation is measured at the amount of
which includes margins analysis (corroboration between
transaction price (net of variable consideration)
revenues and costs for current year and its comparison
allocated to that performance obligation. Thetransaction price of goods sold and services
with last year), analysis for key customers etc.;
rendered is net of variable consideration on
Evaluated the terms and conditions of the key contracts,
account of various discounts and schemesoffered by the company as part of the contract.
including incoterms, with customers to ensure thatthe revenue recognition criteria are assessed bythe management in accordance with the Indian
In accordance with Standards on Auditing, thereis a presumed fraud risk relating to revenue
Accounting Standards;
recognition. Accordingly, occurrence of revenue
Performed substantive testing on test check basis
is a key focus area on account of the multiplicity
for revenue transactions recognised during the year
of Company's products, multiple channels for
by testing their underlying documents which include
sales, transactions with subsidiaries and the
purchase orders from customers, proof of deliveries
volume of the sales made to them.
(bill of lading for export sales and lorry receipts etc. for
Due to the above factors, we have identified
domestic sales), invoices and collection of money from
testing of revenue recognition as a key audit
the customers (as applicable). Considering different
matter.
categories of customers, the nature of documentssupporting accuracy and occurrence of transactionsvaries. Our testing methodology was designed andimplemented considering these facts and circumstances;
Reviewed reconciliation of revenues between books andrevenues disclosed in statutory returns (i.e., GST returns);
Performed other substantive audit procedures includingobtaining debtor confirmations on a sample basis,reviewed the subsequent collection of payment and proofof deliveries document of such selected debtors; and
Assessed the adequacy and appropriateness of thedisclosures made in standalone financial statementsin compliance with the requirements of Ind AS 115 -Revenue from contracts with customer.
2
Inventory - existence and valuation
Refer Note 1 to the standalone financial
statements which includes the accounting
Existence:
policies followed by the Company for valuation
Assessed the appropriateness of the accounting policies
of inventory.
relating to valuation of Inventory by ensuring their
The Company's inventory is valued at the lower
compliance with Ind AS 2 ("Inventories") and Ind AS 23
of cost and Net Realizable Value (NRV).
("Borrowing Costs");
The Company is engaged in the business
Obtained inventory reports (retrieved from SAP) and
of manufacturing and selling rice and theCompany's inventory primarily comprises of rawmaterial i.e., paddy, semifinished rice, finishedrice, stores and spares and packing material. Suchinventory is stored in plant, rented warehouses,silos and storage bags. Inventory holding is
results of management conducted count and reviewedreconciliation of differences, if any, between managementphysical count and inventory records. Verify the necessaryadjustments made in the inventory records by themanagement on test check basis;
generally significant at the end of the financial
Reviewed reconciliation of inventory quantitative details
year considering seasonality of the agriculturalproduce of paddy and natural ageing process
in valuation workings with inventory reports obtainedfrom the management, as retrieved from SAP i.e., the
followed by the Company for getting desired
integrated ERP used by the company. Understood and
level of quality. High quantity of inventory at the
verified the reconciling items on test check basis;
year-end makes inventory physical verification
Obtained independent confirmations, on sample basis,
an extensive procedure for the management.
for inventory lying with third parties as at year-end;
Key Audit MatterNo
The valuation of raw material, semi-finished and
Observed physical verification done by the management
finished rice is a comprehensive exercise and
as at year-end and also, independently verified few items
is carried out manually. The valuation process
physically on sample basis for locations scoped-in, basis
involves estimation around determination of:
materiality of stock lying at such locations to overall
® Allocable overheads and their
inventory balance of the company as at year-end;
absorption rates;
® Determination of net realisable valueof by-products;
Corroborated the results of our physical verificationprocedures, on test check basis, with valuation workingsobtained from the management; and
Presented our approach and results of physical
® Capitalisation of borrowing costs to
verification, including but not limited to scoped-in
paddy, semi-finished and finished rice,
locations, methodology followed for verification of
given significant holding period between
inventory stored in bags and silos and confirmation
acquisition and production. Period and rate
procedures, to the audit committee.
of finance costs to be capitalised.
Valuation:
Accordingly, existence and valuation of the year-end inventory balance, which is significant withrespect to the total assets held by the Company,
Obtained an understanding of management process ofinventory valuation;
it is considered to be one of the areas which
Evaluated design effectiveness of controls over inventory
requires significant auditor attention owing to
valuation process and tested key controls for their
the complexity and judgements involved in the
operating effectiveness;
process of physical count and valuation.
Verified inputs into the valuation process from source
Hence, we have identified Inventory existence
documents/ general ledger accounts on test check basis;
and valuation as a key audit matter.
Verified, on test check basis, quantitative reconciliation ofopening inventory, purchase/ production, sales and year-end inventory to validate the rice yield during the yearand to identify any abnormal production loss. Comparedthe yield between current year and prior year to identifyabnormalities, if any;
Compared basis of key estimates, including thoseinvolved in computation of allocable overheads andborrowing costs, to prior year and enquired reasons forany significant variations;
Verified net realisable value of by-products fromsupporting documents and arithmetical accuracy ofvaluation calculations on test check basis; and
Assessed the adequacy and appropriateness of thedisclosures made in the standalone financial statementswith respect to Inventory in compliance with therequirements of applicable Indian Accounting Standardsand applicable financial reporting framework.
The Company's Management and Board of Directorsare responsible for the other information. The otherinformation comprises the information included in theAnnual Report but does not include the standalonefinancial statements and our auditor's report thereon.The Annual Report is expected to be made available tous after the date of this auditor's report.
)ur opinion on the standalone financial statements doeslot cover the other information and we will not expressiny form of assurance conclusion thereon.
n connection with our audit of the standalone financial;tatements, our responsibility is to read the othernformation identified above when it becomes availablend, in doing so, consider whether the other informations materially inconsistent with the standalone financialtatements or our knowledge obtained in the audit, oritherwise appears to be materially misstated.
When we read the Annual Report, if we conclude thatthere is a material misstatement therein, we are requiredto communicate the matter to those charged withgovernance and take necessary actions, as applicableunder the relevant laws and regulations.
The Company's Management and Board of Directors areresponsible for the matters stated in Section 134(5) of theAct with respect to the preparation of these standalonefinancial statements that give a true and fair view of thefinancial position, financial performance, changes inequity and cash flows of the Company in accordance withthe accounting principles generally accepted in India,including the Indian Accounting Standards specifiedunder Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing anddetecting frauds and other irregularities; selection andapplication of appropriate accounting policies; makingjudgments and estimates that are reasonable andprudent; and design, implementation and maintenance ofadequate internal financial controls, that were operatingeffectively for ensuring the accuracy and completenessof the accounting records, relevant to the preparationand presentation of the standalone financial statementthat give a true and fair view and are free from materialmisstatement, whether due to fraud or error.
In preparing the standalone financial statements, theManagement and Board of Directors are responsible forassessing the Company's ability to continue as a goingconcern, disclosing, as applicable, matters related togoing concern and using the going concern basis ofaccounting unless the Board of Directors either intendsto liquidate the Company or to cease operations, or hasno realistic alternative but to do so.
The Board of Directors are also responsible for overseeingthe Company's financial reporting process.
Our objectives are to obtain reasonable assurance aboutwhether the standalone financial statements as a wholeare free from material misstatement, whether dueto fraud or error, and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an auditconducted in accordance with SAs will always detect amaterial misstatement when it exists. Misstatementscan arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they couldreasonably be expected to influence the economicdecisions of users taken on the basis of these standalonefinancial statements.
We give in "Annexure A" a detailed description ofAuditor's responsibilities for audit of the standalonefinancial statements.
1. As required by the Companies (Auditor's Report)Order, 2020 ("the Order"), issued by the CentralGovernment of India in terms of sub-section (11) ofSection 143 of the Act, we give in "Annexure B" astatement on the matters specified in paragraphs 3and 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 theinformation and explanations which to the bestof our knowledge and belief were necessary forthe purposes of our audit.
(b) In our opinion, proper books of account asrequired by law have been kept by the Companyso far as it appears from our examination ofthose books, except for the matters stated inparagraph 2(h)(vi) below on reporting underRule 11(g). Also, in the absence of sufficientand appropriate audit evidence, we are unableto comment on whether back-up of the booksof account and other records, maintainedin electronic mode, have been maintainedon a daily basis.
(c) The Standalone Balance Sheet, the StandaloneStatement of Profit and Loss (including OtherComprehensive Income), the StandaloneStatement of Changes in Equity and theStandalone Statement of Cash Flow dealtwith by this Report are in agreement with thebooks of account.
(d) In our opinion, the aforesaid standalonefinancial statements comply with the IndianAccounting Standards specified under Section133 of the Act.
(e) On the basis of the written representationsreceived from the directors as on March 31,2025, taken on record by the Board of Directors,none of the directors is disqualified as on March31, 2025 from being appointed as a director interms of Section 164(2) of the Act.
(f) The modifications relating to the maintenanceof accounts and other matters connectedtherewith are as stated in paragraph 2(b) aboveon reporting under Section 143(3)(b) of theAct and paragraph 2(h)(vi) below on reportingunder Rule 11(g) of the Companies (Audit andAuditors) Rules, 2014.
(g) With respect to the adequacy of the internalfinancial controls with reference to standalonefinancial statements of the Company and theoperating effectiveness of such controls, referto our separate report in "Annexure C".
(h) With respect to the other matters to beincluded in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit andAuditors) Rules, 2014, 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 positionin its standalone financial statements- Refer Note 41 to the standalonefinancial statements.
ii. The Company did not have any long-termcontracts including derivative contractsfor which there were any materialforeseeable losses.
iii. There has been no delay in transferringamounts, required to be transferred, tothe Investor Education and ProtectionFund by the Company during the yearended March 31,2025.
iv. (a) The Management has represented
that, to the best of its knowledge andbelief, no funds have been advancedor loaned or invested (either fromborrowed funds or share premium orany other sources or kind of funds)by the Company to or in any otherperson(s) or entity(ies), includingforeign entities ("Intermediaries"),with the understanding, whetherrecorded in writing or otherwise,that the Intermediary shall directlyor indirectly lend or invest in otherpersons or entities identified inany manner whatsoever by or on
behalf of the Company ("UltimateBeneficiaries") or provide anyguarantee, security or the like onbehalf of the Ultimate Beneficiaries.
(b) The Management has represented,that, to the best of its knowledge andbelief, no funds have been receivedby the Company from any person(s)or entity(ies), including foreignentities ("Funding Parties"), with theunderstanding, whether recorded inwriting or otherwise, as on the dateof this audit report, that the Companyshall, directly or indirectly, lend orinvest in other persons or entitiesidentified in any manner whatsoeverby or on behalf of the Funding Party("Ultimate Beneficiaries") or provideany guarantee, security or the like onbehalf of the Ultimate Beneficiaries.
(c) Based on the audit proceduresperformed that have been consideredreasonable and appropriate in thecircumstances, and according tothe information and explanationsprovided to us by the Managementin this regard, nothing has cometo our notice that has caused usto believe that the representationsunder sub-clause (i) and (ii) of Rule11(e), as provided under sub clause(iv)(a) and (iv)(b) above, contain anymaterial mis-statement.
v. The dividend declared and paid by theCompany during the year is in compliancewith Section 123 of the Act.
vi. Based on our examination, which includestest checks, the Company has used anaccounting software for maintainingits books of accounts (managed andmaintained by a third- party software
service provider) which has a feature ofrecording audit trail (edit log) facility andthe same has been operated throughoutthe year for all relevant transactionsrecorded in the software except that weare unable to comment on audit trail atdatabase level as the Company has notbeen able to gather related evidence fromthe service provider who manages thisaccounting software.
Further, during the course of our audit,we did not come across any instance ofaudit trail feature being tampered with,wherever maintained. Additionally, in theabsence of sufficient and appropriateaudit evidence (as stated in paragraph2(b) above), we are unable to commentwhether the audit trail of previous yearhas been preserved by the Company
as per the statutory requirements forrecord retention.
3. In our opinion and according to information andexplanations given to us, the remuneration paidand provided by the Company to its directors duringthe year is within the limits prescribed under Section197 of the Act and the rules thereunder.
Chartered Accountants
ICAI Firm Registration No. 105047W
Partner
Membership No. 505676
UDIN: 25505676BMOBKR3810
Place: Gurugram
Date: May 15, 2025