Wardwizard Foods and Beverages Reports Q2 Results with Auditor Concerns

Wardwizard Foods & Beverages Limited has announced its unaudited standalone financial results for the second quarter and half-year ended September 30, revealing a mixed financial performance and raising concerns from auditors.

Financial Performance

The company reported a profit for the quarter, but showed a loss for the half-year period. Here's a breakdown of the key financial metrics:

Particulars (in lakhs)	Q2	H1	Q2 (Previous Year)
Revenue from Operations	6,713.17	8,108.56	458.77
Profit/(Loss) before tax	60.14	(109.77)	(597.28)
Profit/(Loss) after tax	58.34	(111.17)	(599.64)
Total Comprehensive Income	61.63	(106.03)	(591.15)

The company's revenue from operations saw a significant increase compared to the same quarter last year, jumping from 458.77 lakhs to 6,713.17 lakhs.

Auditor's Concerns

The statutory auditors, Mahesh Udhwani & Associates, issued a qualified review report highlighting several concerns:

Outstanding Advances: The financial statements include outstanding advances amounting to 2,760 lakhs, for which no provision for expected credit losses has been made.
Trade Receivables: Certain trade receivables are under scrutiny, with the auditors suggesting that provisions should be recognized against these balances.
Internal Audit Report: The Internal Audit Report for the quarter was not made available for review.
Unbooked Interest Expenses: Interest expenses on a loan balance of 118.99 lakhs from Swapnatari Finserve Limited were not booked for the quarter.

The auditors believe the company should recognize provisions against these balances, while the management considers these amounts recoverable.

Balance Sheet Highlights

As of September 30, the company's financial position shows:

Particulars (in lakhs)	30th Sept	31st March
Total Assets	17,540.70	13,622.20
Total Equity	7,923.46	8,024.47
Total Liabilities	9,617.24	5,597.72

The company's total assets have increased, primarily driven by a significant rise in trade receivables from 2,506.79 lakhs as of March 31 to 6,585.07 lakhs as of September 30.

Cash Flow and Liquidity

The cash flow statement reveals:

Net cash used in operating activities: (37.03) lakhs
Net cash generated from investing activities: 49.87 lakhs
Net cash used in financing activities: (71.01) lakhs

The company's cash and cash equivalents decreased from 64.58 lakhs at the beginning of the period to 6.41 lakhs at the end of September.

Management's Stance

Despite the auditor's concerns, the management of Wardwizard Foods and Beverages Limited maintains that the outstanding amounts are recoverable and has not made provisions against these balances in the financial statements.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on November 12. The company states that these results have been prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013.

Investors and stakeholders may need to closely monitor the company's actions regarding the auditor's concerns and the recovery of outstanding amounts in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.82%	+9.00%	+24.92%	+186.42%	+84.74%	-76.48%

Wardwizard Foods & Beverages Limited, a food manufacturer, has announced a significant expansion of its international presence by entering the East African market through Tanzania. The company has partnered with Macropact Exim Tanzania Limited as its new distributor, marking its first foray into the region.

Strategic Expansion into East Africa

The expansion into Tanzania is part of Wardwizard Foods' broader strategy to diversify its global presence. The company, known for its QuikShef brand of ready-to-eat meals and frozen foods, views Tanzania as a gateway to the larger East African market. This move adds to Wardwizard Foods' existing export operations in Canada, USA, UAE, Bahrain, and Germany.

Product Portfolio and Market Potential

Wardwizard Foods specializes in manufacturing authentic Indian culinary products, including:

Ready-to-eat meals
Frozen foods
Beverages
Sauces
Spices
Condiments

The company also has plans to expand into the pulses and cereals segments, further diversifying its product range.

Management's Perspective

Mrs. Sheetal Bhalerao, Chairperson and Managing Director of Wardwizard Foods and Beverages Limited, expressed optimism about the expansion: "Our global expansion continues as we officially enter the East African market with our new partnership in Tanzania. Through our new distributor, Macropact Exim Tanzania Limited, we will introduce our ready-to-eat and frozen ranges to meet the growing demand in this region."

She added, "We see Tanzania as our gateway to the East African market and look forward to exploring future growth opportunities in the region. We're also actively exploring new international markets and will customize products to meet regional preferences."

Global Showcase

To further boost its international presence, Wardwizard Foods is preparing to showcase its products at the upcoming Gulfood Expo. This world's largest food expo attracts participants from over 190 countries, providing an excellent platform for the company to reach a global audience.

Company Background

Wardwizard Foods and Beverages Limited, based in Por, Vadodara, Gujarat, is committed to delivering high-quality and innovative food solutions to meet evolving consumer demands. With its strategic market presence and diverse product offerings, the company is well-positioned to capitalize on the growing global appetite for authentic Indian flavors and convenient ready-to-eat solutions.

As Wardwizard Foods continues its international expansion, the move into Tanzania represents a significant step in bringing authentic Indian cuisine to new markets and strengthening its position in the global food industry.