Hindustan Foods Ltd Auditor Reports

To the Members of Hindustan Foods Limited

Report on the Audit of the Standalone Financial
Statements

OPINION

We have audited the accompanying standalone financial
statements of Hindustan Foods Limited ("the Company"),
which comprise the Balance Sheet as at March 31, 2026,
and the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in
Equity and the Statement of Cash Flows for the year then
ended, and notes to the standalone financial statements,
including material accounting policy information 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 find AS") and other
accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2026, and
its profit (including 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 SAs are further described in the
Auditors 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 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 we have
obtained is sufficient and appropriate to provide a basis for
our opinion.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements of the current period.
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. We have determined
the matters described below to be the key audit matters to
be communicated in our report.

Sr. Key Audit Matters No	How the Key Audit Matters were addressed in our audit
1. Revenue is a key driver of the Companys profitability and is therefore susceptible to misstatement. Revenue is recognised when control of the products being sold is transferred to the customer and when the performance obligation related to service has been fulfilled by the Company based on the terms of the agreements. Accordingly, the timing of revenue recognition and completion of performance obligation has a direct impact on the Companys reported performance.	Our audit procedures include the following:
We have identified revenue recognition as a key audit matter due to the presumed risk of fraud, particularly in relation to the overstatement of revenue at the reporting date. This may arise from the recognition of revenue for transactions where control of the goods has not been transferred to customers as at year-end, including instances where the timing of transfer of control may have been inappropriately altered or performance obligations have not been satisfied.	1. Obtained an understanding of the managements process and controls around revenue recognition.
	2. Evaluated and tested the design and operating effectiveness of controls addressing this risk.
	3. Verified, on a test-check basis, revenue transactions recorded during the year and around the reporting date and assessed whether revenue has been recognised in accordance with Ind AS 115 by performing the following procedures:
	Reviewed underlying customer contracts, purchase orders and sales arrangements to identify performance obligations and assess the basis of revenue recognition;
	-Examined supporting documents such as invoices, dispatch documents and lorry receipts, to determine whether control of goods/ performance obligation related to service had passed to the customers at the time revenue was recognised;
	4. Performed substantive cut-off testing for revenue transactions recognised immediately before and after the year-end, including review of supporting dispatch and delivery documentation to evaluate whether revenue had been recorded in the appropriate accounting period.
	5. Obtained evidence on the existence and accuracy of unbilled revenue recognized, on sample basis, from underlying supporting documents, including customer approvals and acceptance.
	6. Performed Analytical procedures on revenue recognized during the year to identify and inquire on unusual variances, if any and getting the reasons for variances confirmed from the management.
	7. Assessed the valuation and accuracy of trade receivables and sales returns/discount provisions, where applicable, by examining underlying supporting documentation and subsequent adjustments.
	8. Assessed the adequacy and appropriateness of the disclosures made in the financial statements in respect of revenue recognition in accordance with Ind AS 115 and the applicable financial reporting framework.
2. The Scheme of Arrangement (the Scheme) under section 230-232 and other applicable provisions of the Companies Act, 2013 read with the rules prescribed thereunder for merger of the Contract Manufacturing (Nashik) Business unit of Avalon Cosmetics Private Limited ("transferor") into Hindustan Foods Limited ("transferee") and Amalgamation of Vanity Case India Private Limited ("transferor") with Hindustan Foods Limited was approved by the Honble National Law Tribunal vide its order dated March 06, 2026 ("the NCLT Order").	Our audit procedures include the following: 1. Obtained understanding of the process followed by the Company in respect of the assessment of accounting for the business combination during the year.
	2. We understood from the management, assessed and tested the design and operating effectiveness of the Companys key controls over the accounting of business combination including those over assessment of business, common control, acquisition date, identification of assets, liabilities and reserves, and disclosures related to the same.
	3. We have read the order passed by the National Company Law Tribunal and other related documents to obtain an understanding of the transactions and the key terms and conditions.

Sr. Key Audit Matters How the Key Audit Matters were addressed in our audit

No

The business combination with Contract 4. We tested managements assessment of accounting for the
Manufacturing (Nashik) Business unit of Avaion businesscombinationanddeterminedthatitwasappropriateiy
Cosmetics Private Limited and amalgamation with accounted for in accordance with Ind AS 103 Business
the Vanity Case India Private Limited is accounted Combination and the approved scheme of amalgamation,
in accordance with the Appendix C of Ind AS
103 Business Combinations and the approved
scheme of amalgamation.

Considering the magnitude and complex 5. We have verified supporting workings and evidence relating

accounting involved, the aforesaid business to the accounting as per the terms of the Scheme of

combination treatment in standalone financial Arrangement.

statements has been considered to be a key audit . ... . . .

6. We have traced the assets, liabilities and reserves of Avalon

m 3 tts r

Cosmetics Private Limited ("transferor") from unaudited
The carrying value of the assets and liabilities financial statements and from audited financial statements of

of the as at April 1, 2024 (being the beginning Vanity Case India Private Limited ("transferor").

of the previous period presented), as appearing , , ,

7. We also assessed the adequacy and appropriateness of the

in the consolidated financial statements of the

disclosures made in the standalone financial statements are
Transferor Companies before the merger have . .

in accordance with the Ind AS.

been incorporated in the books of Transferee with
merger adjustments, as applicable.

INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITORS REPORT
THEREON

The Companys Board of Directors is 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
auditors report thereon, which is expected to be made
available to us after the date of this auditors 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 identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit, or
otherwise 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.

RESPONSIBILITIES OF MANAGEMENT AND BOARD
OF DIRECTORS FOR THE STANDALONE FINANCIAL
STATEMENTS

The Companys 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 Board
of Directors of the Company are responsible for assessing
the Companys 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 is also responsible for overseeing
the Companys financial reporting process.

AUDITORS 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 auditors 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 Auditors
responsibilities for Audit of the Standalone Financial
Statements.

REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS

1. As required by the Companies (Auditors 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 of the aforesaid standalone
financial statements.

(b) In our opinion, proper books of account as
required by law relating to preparation of the
aforesaid standalone financial statements 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 of Changes in Equity and the
Statement of Cash Flows dealt with by this Report
are in agreement with the books of account
maintained for the purpose of preparation of the
standalone financial statements.

(d) In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified
under Section 133 of the Act.

(e) On the basis of the written representations
received from the directors as on March 31, 2026
taken on record by the Board of Directors, none
of the directors are disqualified as on March 31,
2026 from being appointed as a director in terms
of Section 164 (2) of the Act.

(f) The modification 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) and paragraph 2(h)(vi)
below on reporting under Rule 11(g).

(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 Auditors 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 does not have any pending
litigations which would impact 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 are no amounts which are required to
be transferred to the Investor Education and
Protection Fund by the Company during
the year ended March 31, 2026.

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, 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, 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)
contain any material mis-statement.

v. The Company has neither declared nor paid
any dividend during the year.

vi. Based on our examination which included
test checks, the Company has used Focus
7 Accounting Software for Nashik unit of
Avalon Cosmetics Private Limited and Focus
9 Accounting Software for other locations
for maintaining its books of account during
the year ended March 31, 2026, which has
a feature of recording audit trail (edit log)
facility except that the audit trail feature
for Focus 9 Accounting Software at the
application level was enabled from Jan

01, 2026 and was enabled at the database
level from Jan 09, 2026 and that no audit
trail feature is available in the system at
the database level in respect of Focus 7
Accounting Software to log any direct data
changes for the entire year.

Further, where enabled for Focus 7
Accounting Software and Focus 9
Accounting Software, audit trail feature
has operated for all relevant transactions
recorded in the accounting software. Also,
during the course of our audit, we did not
come across any instance of audit trail feature
being tampered with in respect of such
accounting software. Additionally, the audit
trail of prior years for Focus 7 Accounting
Software and Focus 9 Accounting Software
has been preserved by the Company as
per the statutory requirements for record

retention to the extent it was enabled and
recorded in respective years.

3. In our opinion, according to information, explanations
given to us, the remuneration paid or provided by
the Company to its directors is within the limits laid
prescribed under Section 197 of the Act.

For M S K A & Associates LLP
(Formerly known as M S K A & Associates)

Chartered Accountants

ICAI Firm Registration No. 105047W/W101187

Virendra Kanak

Partner

Membership No.: 110811
UDIN: 26110811AOLPIV1962

Place: Mumbai
Date : May 21, 2026

ANNEXUREATO THE INDEPENDENT AUDITORS REPORT

OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF HINDUSTAN FOODS LIMITED

AUDITORS RESPONSIBILITIES FOR THE AUDIT OF THE
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 control 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 whether the company has
adequate internal financial controls with reference
to standalone financial statements in place 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 Management and
Board of Directors.

- Conclude on the appropriateness of Management and
Board of Directors 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
Companys ability to continue as a going concern.
If we conclude that a material uncertainty exists, we
are required to draw attention in our auditors report
to the related disclosures in the standalone 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
auditors 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.

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 current period and are therefore, the key
audit matters. We describe these matters in our auditors
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.

For M S K A & Associates LLP
(Formerly known as M S K A & Associates)

Chartered Accountants

ICAI Firm Registration No. 105047W/W101187

Virendra Kanak

Partner

Membership No.: 110811
UDIN: 26110811AOLPIV1962

Place: Mumbai
Date: May 21, 2026

ANNEXURE B TO INDEPENDENT AUDITORS REPORT

OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF HINDUSTAN
FOODS LIMITED FOR THE YEAR ENDED MARCH 31, 2026

[Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements in the Independent Auditors Report]

i. a) A. The Company has maintained proper records showing full particulars including quantitative details and
situation of property, plant and equipment and relevant details of right-of-use assets.

B. The Company has maintained proper records showing full particulars of intangible assets.

b) Property, Plant and Equipment, and right of use assets were physically verified by the management according to
a phased programme designed to cover all items over a period of 3 years which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of
Property, plant and equipment and right of use assets have been physically verified by Management during the
year. No material discrepancies were noticed on such verification.

c) According to the information and explanations given to us, the title deeds of immovable properties (other than
properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee),
as disclosed in Note 47(B) to the standalone financial statements, are held in the name of the Company, except
for the following which are not held in the name of the Company.

(Rs. in Crores)

Sr. Description No. of Property	Gross carrying value	Held in the name of	Whether promoter, director or their relative or employee	Period held - Indicate range, where appropriate	Reason for not being held in name of Company (also indicate if in dispute)
1 Leasehold Land	1.07	Karnataka Industrial Areas Development Board (KIADB)	No	February 2022	The leasehold rights of the land were transferred to Company as per the NCLT Approved Scheme [refer note 47(B)] w.e.f. February 18, 2022. As per the lease agreement with KIADB, the Company has an option of purchasing the land. The Company is in process of applying to KIADB for purchase of the land.
2 Leasehold Land	2.14	Reckitt Benckiser Healthcare India Private Limited	No	December, 2023	The leasehold land was acquired by the Company as a part of business transfer agreement entered with Reckitt Benckiser Healthcare India Private Limited for acquisition of Baddi factory. The Company is in the process of transferring the title in the name of Hindustan Foods Limited.

d) According to the information and explanations given to us, the Company has not revalued its property, plant and
Equipment (including Right of Use assets) and intangible assets during the year. Accordingly, the provisions stated
under clause 3(i)(d) of the Order are not applicable to the Company.

e) According to the information and explanations given to us, no proceeding has been initiated or pending against
the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988, as amended
and rules made thereunder. Accordingly, the provisions stated under clause 3(i)(e) of the Order are not applicable
to the Company.

ii. a) The inventory (excluding stocks with third parties which is immaterial) has been physically verified by the

management during the year. In respect of inventory lying with third parties, these have substantially been
confirmed by them. In our opinion, the frequency, coverage and procedure of such verification is reasonable and
appropriate, having regards to the size of the company and the nature of its operations. No discrepancies of 10%
or more in the aggregate for each class of inventories were noticed on such physical verification of inventories.

b) During any point of time of the year, the Company has been sanctioned working capital limits in excess of Rs. 5
crores rupees, in aggregate from Banks, on the basis of security of current assets. Based on the records examined
by us in the normal course of audit of the standalone financial statements, quarterly returns/statements filed with
such Banks are in agreement with the books of accounts of the Company. Further, during any point of time of
the year, the Company has not been sanctioned working capital limits from financial institutions, on the basis of
security of current assets.

iii. a) According to the information and explanations provided to us, the Company has provided loans, advances in the

nature of loans, stood guarantee, or provided security to other entities.

(A) The details of such loans, advances in the nature of loans, guarantee or security to subsidiaries are as follows:

(Rs. In crores)

	Guarantees	Security	Loans	Advances in the nature of loans
Aggregate amount granted/provided during the year Subsidiaries	141.97		551.16
Balance Outstanding as at balance sheet date in respect of above cases Subsidiaries	457.01		198.00

During the year the company has not provided advances in the nature of loans or any given any security to
Subsidiaries.

(B) The details of such loans given, to other than subsidiaries are as follows:

(Rs. in crores)

	Guarantees	Security	Loans	Advances in the nature of loans
Aggregate amount granted/provided during the year Others			0.45
Balance Outstanding as at balance sheet date in respect of above cases Others

During the year the company has not provided advances in the nature of loans or any security nor stood any
guarantee to any other party.

b) According to the information and explanations given to us and based on the audit procedures performed by us,
we are of the opinion that the investments made, guarantees provided and terms and conditions in relation to
grant of all loans, investments made and guarantees provided are not prejudicial to the interest of the Company.

c) The loans are repayable on demand and interest on the same has been stipulated and the borrowers have
been regular in the payment of interest. During the year, the Company has not demanded repayment of such
loans. Accordingly, in our opinion the repayments of principal amounts and receipts of interest are regular (Refer
reporting under clause 3(iii)(f) below).

d) According to the information and explanations given to us and on the basis of our examination of the records of
the Company, there is no overdue amount remaining outstanding as at the balance sheet date as the loans are
repayable on demand and the Company has not demanded such loans.

e) According to the information explanation provided to us, the loans granted has not been demanded by the
Company during the year. Accordingly, the provisions stated under clause 3(iii)(e) of the Order are not applicable
to the company.

f) According to the information explanation provided to us, the Company has granted loans repayable on demand.
The details of the same are as follows:

fRc in

	All Parties	Unrelated Parties	Promoters	Related Parties
Aggregate amount of loans
Repayable on demand (A)	198.00	-	-	198.00
Agreement does not specify any terms or period of repayment (B)	-	-	-	"
Total (A+B)	198.00	-	-	198.00
Percentage of loans/advances in nature of loans to the total loans	100%	-	-	100%

iv. According to the information and explanations given to us, the Company has complied with the provisions of Section
185 and 186 of the Act, in respect of loans, investments and guarantees made.

v. According to the information and explanations given to us, the Company has neither accepted any deposits from the
public nor any amounts which are deemed to be deposits, within the meaning of the provisions of Sections 73 to 76 of
the Act and the rules framed there under. Accordingly, the requirement to report under clause 3(v) of the Order is not
applicable to the Company.

vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records
as specified under Section 148(1) of the Act, in respect of its products/ services. We have broadly reviewed the same,
and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We
have not, however, made a detailed examination of the records with a view to determine whether they are accurate or
complete.

vii. a) According to the information and explanations given to us and the records of the Company examined by us,

in our opinion, undisputed statutory dues including Goods and Services tax, provident fund, employees state
insurance, income-tax, duty of customs, cess and other statutory dues have generally been regularly deposited
with the appropriate authorities during the year, though there has been a slight delay in a few cases.

There are no undisputed amounts payable in respect of Goods and Services tax, provident fund, employees
state insurance, income-tax, duty of customs, cess, and other statutory dues in arrears as at March 31, 2026,
outstanding for a period of more than six months from the date they became payable.

b) According to the information and explanation given to us and the records of the Company examined by us, dues
relating to goods and services tax and income-tax which have not been deposited as on March 31, 2026 on
account of any dispute are as follows:

Sr. No. Name of the Statute	Nature of the Dues	Amount (Rs. In Crores)	Period to which the amount belongs	Forum where dispute is pending	Remarks, If Any
1 Income Tax Act, 1961	Income Tax	8.05	AY 2017-18 AY 2025-26	CIT CPC
2 Goods And Service tax Act, 2017	Goods And Service tax	17.00	FY 2017-18, FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22 FY 2022-23	Appellate Tribunal

viii. According to the information and explanations
given to us, there are no transactions which are not
recorded in the books of account which have been
surrendered or disclosed as income during the year in
Income-tax Assessment under Income Tax Act, 1961.
Accordingly, the provision stated under clause 3(viii)
of the Order is not applicable to the Company

ix. a) In our opinion and according to the information

and explanations given to us and the records of
the Company examined by us, the Company
has not defaulted in repayment of loans or
borrowings or in payment of interest thereon to
any lender.

b) According to the information and explanations
given to us and on the basis of our audit
procedures, we report that the Company has
not been declared wilful defaulter by any Bank
or financial institution or government or any
government authority.

c) In our opinion and according to the information
and explanations provided to us, money raised
by way of term loans during the year have been
applied for the purpose for which they were raised.

d) According to the information and explanations
given to us, and the procedures performed by us,
and on an overall examination of the standalone
financial statements of the Company, we report
that the no funds raised on short-term basis
have been used for long term purposes by the
Company.

e) According to the information and explanation
given to us and on an overall examination of the
standalone financial statements of the Company,
we report that the Company has not taken any
funds from any entity or person on account of or
to meet the obligations of its subsidiaries.

f) According to the information and explanations
given to us and procedures performed by us, we
report that the Company has not raised loans
during the year on the pledge of securities held
in its subsidiaries. Accordingly, the requirement
to report under clause 3(ix)(f) of the order is not
applicable to the company.

x. a) In our opinion and according to the information
and explanations given to us, the Company
did not raise any money by way of initial public
offer or further public offer (including debt
instruments) during the year. Accordingly, the
reporting requirement under clause 3(x)(a) of the
Order is not applicable to the Company.

b) According to the information and explanations
given to us and based on our examination of
the records of the Company, the Company has
made preferential allotment of convertible share
warrants during the year and the requirements of
Section 42 and Section 62 of the Act, have been
complied with. The amount raised has been used
forthe purposesforwhich they were raised except
for idle/surplus funds amounting to Rs. 52.42
Crores which were not required for immediate
utilization and which have been invested in liquid

investments payable on demand. The maximum
amount of idle/surplus funds invested during
the year was Rs 52.42 Crores, of which Rs 52.42
Crores was outstanding at the end of the year.

xi. a) Basedonourexaminationofthebooksandrecords

of the Company and according to the information
and explanations given to us, we report that no
fraud by the Company or no material fraud on the
Company has been noticed or reported during the
year in the course of our audit.

b) During the year no report under Section 145(12)
of the Act, has been filed by us in Form ADT-
4 as prescribed under Rule 15 of Companies
(Audit and Auditors) Rules, 2014 with the Central
Government.

c) As represented to us by the Management, there
are no whistle-blower complaints received by
the Company during the year.

xii. The Company is not a Nidhi Company. Accordingly,
the provisions stated under clause 5(xii)(a) to (c) of the
Order are not applicable to the Company.

xiii. According to the information and explanations given
to us and based on our examination of the records of
the Company, transactions with the related parties are
in compliance with Sections 177 and 188 of the Act,
where applicable and details of such transactions have
been disclosed in the standalone financial statements
as required by the applicable accounting standards.

xiv. a) In our opinion and based on our examination,

the Company has an internal audit system
commensurate with the size and nature of its
business.

b) We have considered the internal audit reports
of the Company issued till the date of our audit
report, for the period under audit.

xv. According to the information and explanations given
to us, and based on our examination of the records
of the Company, in our opinion during the year
the Company has not entered into any non-cash
transactions with its directors or persons connected
with its directors and accordingly, the requirement to
report on clause 5(xv) of the Order is not applicable to
the Company.

xvi. a) The Company is not required to be registered

under Section 45 IA of the Reserve Bank of
India Act, 1954 (2 of 1954) and accordingly, the
requirements to report under clause 5(xvi)(a) of
the Order is not applicable to the Company.

b) The Company is not engaged in any Non-
Banking Financial or FHousing Finance activities
during the year and accordingly, the provisions
stated under clause 5 (xvi)(b) of the Order are not
applicable to the Company.

c) The Company is not a Core investment
Company (CIC) as defined in the regulations
made by Reserve Bank of India. Accordingly, the
requirement to report under clause 5 (xvi)(c) of
the Order is not applicable to the Company.

d) The Group (as defined in the Core Investment
Companies (Reserve Bank) Directions, 2016)
does not have any Core Investment Company (as
part of its group. Accordingly, the requirement to
report under clause 5(xvi)(d) of the Order is not
applicable to the Company.

xvii. Based on the overall review of standalone financial
statements, the Company has not incurred cash
losses in the current financial year and in the
immediately preceding financial year. Accordingly,
the requirement to report under clause 5(xvii) of the
Order is not applicable to the Company.

xviii. There has been no resignation of the Statutory
auditors during the year. Accordingly, reporting under
Clause 5(xviii) of the order is not applicable to the
Company.

xix. According to the information and explanations given to
us and on the basis of the financial ratios (as disclosed
in note 47(A) to the standalone financial statements),
ageing and expected dates of realisation of financial
assets and payment of financial liabilities, other
information accompanying the standalone financial
statements, our knowledge of the Board of Directors
and management plans and based on our examination
of the evidence supporting the assumptions, nothing
has come to our attention, which causes us to believe
that any material uncertainty exists as on the date
of the audit report that Company is not capable of
meeting its liabilities existing at the date of balance

sheet as and when they fail due within a period of one
year from the balance sheet date. We, however, state
that this is not an assurance as to the future viability
of the Company We further state that our reporting is
based on the facts up to the date of the audit report
and we neither give any guarantee nor any assurance
that all liabilities falling due within a period of one year
from the balance sheet date, will get discharged by
the Company as and when they fall due.

xx. a) In respect of other than ongoing projects, there
are no unspent amounts that are required to be
transferred to a Fund as specified in Schedule
VII of the Act, as disclosed in note 43 to the
Standalone financial statements.

b) There are no ongoing projects and accordingly
reporting under Clause 3(xx)(b) of the Order is
not applicable to the Company.

xxi. The reporting under clause 3(xxi) of the Order is not
applicable in respect of audit of standalone financial
statements. Accordingly, no comment in respect of
the said Clause has been included in the report

For M S K A & Associates LLP

(Formerly known as M S K A & Associates)

Chartered Accountants

ICAI Firm Registration No. 105047W/W101187

Virendra Kanak

Partner

Membership No.: 110811

UDIN: 26110811AOLPIV1962

Place: Mumbai

Date : May 21, 2026

[Referred to in paragraph 2(g) under Report on Other Legal
and Regulatory Requirements in the Independent Auditors
Report of even date to the Members of Hindustan Foods
Limited on the Standalone Financial Statements for the
year ended March 31, 2026]

Report on the Internal Financial Controls with reference
to standalone financial statements under Clause (i) of
Sub-section 3 of Section 143 of the Companies Act, 2013
("the Act")

OPINION

We have audited the internal financial controls with
reference to standalone financial statements of Hindustan
Foods Limited ("the Company") as of March 31, 2026 in
conjunction with our audit of the standalone financial
statements of the Company for the year ended on that
date.

In our opinion, and to the best of our information and
according to the explanations given to us, the Company
has, in all material respects, an adequate internal financial
controls with reference to standalone financial statements
and such internal financial controls with reference to
standalone financial statements were operating effectively
as at March 31, 2026, based on the internal financial controls
with reference to standalone financial statements criteria
established by the Company considering the essential
components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") issued by the Institute of
Chartered Accountants of India ( 1CAL).

MANAGEMENTS AND BOARD OF DIRECTORS
RESPONSIBILITIES FOR INTERNAL FINANCIAL
CONTROLS

The Companys Management and the Board of Directors
are responsible for establishing and maintaining internal
financial controls based on the internal financial controls
with reference to standalone financial statements criteria
established by the Company considering the essential
components of internal control stated in the Guidance
Note issued by the ICAI. These responsibilities include the
design, implementation and maintenance of adequate
internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its
business, including adherence to Companys policies, the

safeguarding of its assets, the prevention and detection of
frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable
financial information, as required under the Act.

AUDITORS RESPONSIBILITY

Our responsibility is to express an opinion on the
Companys internal financial controls with reference to
standalone financial statements based on our audit. We
conducted our audit in accordance with the Guidance
Note issued by the ICAI and the Standards on Auditing
prescribed under section 143(10) of the Act, to the extent
applicable to an audit of internal financial controls with
reference to standalone financial statements. Those
Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether adequate
internal financial controls with reference to standalone
financial statements was established and maintained and if
such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls with reference to standalone financial statements
and their operating effectiveness. Our audit of internal
financial controls with reference to standalone financial
statements included obtaining an understanding of
internal financial controls with reference to standalone
financial statements, assessing the risk that a material
weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on
the auditors judgement, including the assessment of the
risks of material misstatement of the standalone financial
statements, whether due to fraud or error.

We believe that the audit evidence we have obtained, is
sufficient and appropriate to provide a basis for our audit
opinion on the Companys internal financial controls with
reference to standalone financial statements.

MEANING OF INTERNAL FINANCIAL CONTROLS WITH
REFERENCE TO STANDALONE FINANCIAL STATEMENTS

A companys internal financial control with reference to
standalone financial statements is a process designed
to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of Standalone

financial statements for external purposes in accordance
with generally accepted accounting principles. A
companys internal financial control with reference to
standalone financial statements includes those policies and
procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial
statements in accordance with generally accepted
accounting principles, and that receipts and expenditures
of the company are being made only in accordance
with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition,
use, or disposition of the companys assets that could have
a material effect on the standalone financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL
CONTROLS WITH REFERENCE TO STANDALONE
FINANCIAL STATEMENTS

Because of the inherent limitations of internal financial
controls with reference to standalone financial statements,

including the possibility of collusion or improper
management override of controls, material misstatements
due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial
controls with reference to standalone financial statements
to future periods are subject to the risk that the internal
financial control with reference to financial statements may
become inadequate because of changes in conditions,
or that the degree of compliance with the policies or
procedures may deteriorate.

For M S K A & Associates LLP
(Formerly known as M S K A & Associates)

Chartered Accountants

ICAI Firm Registration No. 105047W/W101187

Virendra Kanak

Partner

Membership No.: 110811
UDIN: 26110811AOLPIV1962

Place: Mumbai
Date : May 21, 2026