We have audited the accompanying standalone financial statements of Vidhi Specialty Food Ingredients Ltd (“the
Company”), which comprises the Standalone Balance Sheet as at 31st March, 2025, 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 a summary of significant accounting policies and other explanatory information (hereinafter referred to
as “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, (“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 including total comprehensive income, changes in
equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of 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 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 on Standalone Financial Statements.
Key Audit Matter
Key audit matters (‘KAM”) are those matters that, in our professional judgment, were of most significance in our
audit of the Standalone Financial Statements of the current year. 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. For each matter below, description of our audit addressed is provided
below
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Sr.
No
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Key Audit Matter
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Auditor’s Response
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1
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The Company has an inventory of Rs. 7,492.60
Lakhs as at 31st March, 2025.
Within each location, inventory is stored in
packets, drums at factory.
This is a key audit matter because of the
• Significance of the inventory balance to the
statement of financial position and
• Complexity involved in determining
inventory quantities on hand due to the
number, conversion from litre to Kgs.,
location and diversity of inventory storage
locations.
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We attended inventory counts at factory, which we selected
based on financial significance and risk
We performed the following procedures at each site:
• Selected a sample of inventory items and compared the
quantities we counted;
• Observed a sample of managements inventory count
procedures to assess compliance with Company Policy
and
• Made enquiries regarding obsolete inventory items and
inspected the condition of items counted.
We have also evaluated a selection of controls over
inventory existence across the Company.
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2
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Trade Receivables:
Trade receivables comprise a significant portion
of the current assets of the Company and serve
as security for a majority of the Company short¬
term debt. As indicated in Note 5(C) of the
financial statements. The receivables provision
has been made based on Expected Credit
Loss method. Accordingly, the estimation of the
allowance for trade receivables is a significant
judgement area and is therefore considered a
key audit matter.
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We assessed the validity of material long outstanding
receivables by obtaining third-party confirmations of
amounts receivable. We also considered payments
received subsequent to year-end, past payment history
and unusual patterns to identify potentially impaired
balances. The assessment of the appropriateness of the
allowance for trade receivables comprised a variety of
audit procedures across the Company including:
• Assessing the appropriateness and reasonableness
of the assumptions applied in the management’s
assessment of the receivables allowance;
• Consideration of the creditworthiness of significant
export trade receivables over 270 days;
• Consideration and concurrence of the agreed payment
terms;
• Verification of receipts from trade receivables subsequent
to year-end; and
• Considered the completeness and accuracy of the
disclosures. To address the risk of management bias,
we evaluated the results of audit procedures on other
key balances to assess whether or not there was an
indication of bias. We were satisfied that the Company’s
trade receivables are fairly valued and adequately
provided. We further considered whether the provisions
were misstated and concluded that they were appropriate
in all material respects, and disclosures related to trade
receivable in the financial statements are appropriate.
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Other Information
The Company’s Board of Directors is responsible for the preparation of the other information. The other information
comprises the information included in the Company’s annual report but does not include the financial statements
and auditor’s report(s) thereon. The Company’s annual report is expected to be made available to us after the date
of this 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
and, in doing so, consider whether the other information is materially inconsistent with the standalone financial
statements or our knowledge obtained during the course of our audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information; we are required to report that fact. We have nothing to report in this regard, since the Company’s
annual report is expected to be made available to us after the date of this auditor’s report.
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, including other comprehensive income, changes in equity and cash flows of the Company
in accordance with the Ind AS and other accounting principles generally accepted in India, including Ind AS
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 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 Statements 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, management is 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 and those charged with governance 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. As part
of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also :
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for
expressing our opinion on the internal financial controls with reference to the standalone financial statements
and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including
the disclosures, and whether the standalone financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements that, individually or in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the Statement may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our
work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the standalone financial statements of the current year and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
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 the “Annexure 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 purpose 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.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement Changes in Equity and Cash Flows dealt with by this Report are in an 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) Based on the written representations received from the directors as on 31st March, 2025 taken on
record by the Board of Directors, none of the directors is disqualified as on 31st March, 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
statement of the Company and the operating effectiveness of such controls, refer to our separate Report
in “Annexure B”.
g) In our opinion and according to the information and explanations given to us, the remuneration paid by
the Company to its directors during the current year is in accordance with the provisions of Section 197
of the Act. The remuneration paid to directors is not in excess of the limit laid down under Section 197
of the Act.
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 confirmed that there are no pending litigations impacting 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 has been no delay in transferring amount which was required to be transferred to the Investor
Education and Protection Fund by the Company.
iv. The management has represented that, to the best of its knowledge and belief,
a. 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 (“Ultimate Beneficiaries”) by or on behalf of the Company or
• provide any guarantee, security or the like to or 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(is), including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, 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 Parties (“Ultimate Beneficiaries”) 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, nothing has come to our notice that has caused us to
believe that the representations under subclause (i) and (ii) of Rule 11(e), as provided under
(a) and (b) above contain any material misstatement.
v. As stated in Note 8(viii) of the Standalone financial statements:
a. The final dividend proposed in the previous year, declared and paid by the Company during
the year, is in accordance with Section 123 of the Act, as applicable.
b. The interim dividend declared and paid by the Company during the year and until the date of
this report is in compliance with Section 123 of the Act.
c. The Board of Directors of the Company have proposed final dividend for the year which is
subject to the approval of the members at the ensuing Annual General Meeting. The amount
of dividend proposed is in accordance with Section 123 of the Act, as applicable.
vi. Based on our examination which included test checks and information given to us, the Company
has used accounting software for maintaining its books of account, which did not have a feature
of recording audit trail (edit log) facility throughout the year for all relevant transactions recorded
in the respective software, hence we are unable to comment on audit trail feature of the said
software.
For Bhuta Shah & CO LLP
Chartered Accountants
Firm Reg. No.: 101474W/W100100
Sd/-
Atul Gala
Partner
Membership Number: 048650
UDIN: 25048650BMLHRG4337
Place: Mumbai
Date: 12th May, 2025
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