Audit Opinion

The auditors issued an unmodified opinion stating that the consolidated financial statements give a true and fair view in conformity with accounting principles generally accepted in India, including Accounting Standards specified under section 133 of the Companies Act, 2013.

Key Financial Figures (Consolidated)

  • Revenue from Operations: ₹10,779.84 lakhs
  • Profit Before Tax: ₹871.56 lakhs
  • Profit After Tax: ₹650.60 lakhs
  • Basic EPS: ₹3.63 (Face Value ₹10 per share)
  • Total Assets: ₹13,265.79 lakhs
  • Total Liabilities: ₹13,265.79 lakhs
  • Inventory: ₹3,542.96 lakhs
  • Trade Receivables: ₹3,893.47 lakhs
  • Cash and Cash Equivalents: ₹75.90 lakhs
  • Long-term Borrowings: ₹3,827.32 lakhs
  • Short-term Borrowings: ₹3,905.84 lakhs

Key Audit Matters

1. Revenue Recognition
  • Revenue consists primarily of sale of food products through distributors, modern trade, and direct sale channels
  • Revenue recognized when control of products is transferred to customer with no unfulfilled obligation
  • Significant risk due to volume of transactions, distribution network size, and varied contract terms
  • Audit procedures included testing controls, substantive testing of transactions, and analytical procedures
2. Related Party Transactions
  • Company entered into several transactions with related parties during FY26
  • Outstanding balances exist as at year-end
  • Risk concerns completeness of disclosures and recoverability of balances
  • Audit procedures included evaluating controls, testing transactions, and assessing recoverability
3. Non-verification of Cash in Hand
  • Company maintains high cash balances at various locations due to cash collections from vendors and outlets
  • Physical verification of cash-in-hand not conducted due to limitations imposed by circumstances
  • Cash balance amounted to ₹32.43 crores as at March 31, 2026
  • Audit performed alternative procedures including testing controls and reconciliation procedures
4. Non-verification of Inventory
  • Inventory of finished goods and raw materials amounting to ₹32.43 crores as at March 31, 2026
  • Located at factory premises, includes bakery products (rusk, snacks, bread) and raw materials (flour, semolina, oil)
  • No physical verification carried out during the year
  • Increased risk due to transactions between holding company and subsidiary
  • Audit performed alternate procedures including inspection of records and management representations

Legal and Regulatory Compliance

  • No pending litigations impacting financial position disclosed
  • No long-term contracts with material foreseeable losses
  • No amounts required to be transferred to Investor Education and Protection Fund
  • Management representations provided regarding fund transactions
  • Company used accounting software with audit trail feature except for subsidiary Crazy Funfoods Private Limited
  • No dividend declared or paid during the year

Subsidiary Information

Consolidated financial statements include two subsidiaries for the year ended March 31, 2026. These financial statements were audited by the same auditors.

Internal Financial Controls

Auditors expressed unmodified opinion on adequacy and operating effectiveness of internal financial controls with reference to financial statements as at March 31, 2026.

Tax Matters

  • Current tax expense: ₹225.17 lakhs
  • Earlier year taxation: ₹1.04 lakhs
  • Deferred tax asset: ₹(5.25) lakhs
  • Income tax dispute of ₹523.76 lakhs for AY 2021-22 pending with appellate authority

Cash Flow Information

  • Net cash from operating activities: ₹415.63 lakhs
  • Net cash used in investing activities: ₹(1,752.26) lakhs
  • Net cash from financing activities: ₹(412.92) lakhs
  • Net decrease in cash and cash equivalents: ₹(412.92) lakhs