(c) Terms and rights attached to equity shares

The Company has only one class of equity shares having par value of INR 10 (31-Mar-2024: INR 10) per share. Each equity share carries one vote and is entitled to the dividend that may be declared by the Board of Directors, which may be subject to the shareholders' approval in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) Shares held by holding/ ultimate holding company and/ or their subsidiaries/ associates

The company do not have the holding or the ultimate holding company, hence there are no such shareholders.

(g) The company has neither issued any bonus shares nor bought back any shares during the period of five years immediately preceding the reporting date.

(h) No equity shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

The Board of Directors of the Company has recommended a dividend at the rate of INR 2 per equity share per fully paid up equity share of INR 10 each (i.e., 20% of the face value of the equity share) aggregating to INR 361.58 lakhs for the financial year ended 31 March 2025. The payment of dividend is subject to approval of the shareholders at the ensuing Annual General Meeting of the company, hence the same has not been recognised as lialbity as at 31 March 2025.

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

* The Company has allotted 9,00,000 share warrants, each convertible into one equity share, on a preferential basis at an issue price of INR 485.00 each, upon receipt of 25% of the issue price (i.e. INR 121.25 per warrant) as warrant subscription money. Balance 75% of the issue price (i.e. INR 363.75 per warrant) shall be payable within 18 months from the allotment date, at the time of exercising the option to apply for fully paid-up equity share of INR 10 each of the Company, against each warrant held by the warrant holder. The funds raised from these warrants are designated for providing loans or making investments in the wholly-owned subsidiary, "Associated Alcohols and Breweries (Awadh) Limited,” to establish a bottling cum distillery unit in Uttar Pradesh. As on 31 March 2025, the funds have been kept in liquid fund earmarked for the aforementioned purpose with a scheduled commercial bank.

** The Company has allotted 11,00,000 share warrants, each convertible into one equity share, on a preferential basis at an issue price of INR 679.00 each, upon receipt of 25% of the issue price (i.e. INR 169.75 per warrant) as warrant subscription money. Balance 75% of the issue price (i.e. INR 509.25 per warrant) shall be payable within 18 months from the allotment date, at the time of exercising the option to apply for fully paid-up equity share of INR 10 each of the Company, against each share warrant. As of 31 March 2025, the received fund INR 1,867.25 lakhs (i.e. INR 169.75 per warrant ) have been utilized for their intended purpose, i.e., the establishment of the Malt Plant.

22.1 These loans are secured by pari passu first charge on entire fixed assets of the company through hypothecation of movable and mortagage of immovable fixed assets (both present and future) and also personal guarantee of certain KMP's of the Company.

22.2 These loans are car loans, hence secured by hypothecation of respective car.

22.3 These loans are cash credit facility, repayable on demand, secured by first charge by way of hypothecation of inventory and book debts and second charge by way of hypothecation of movable and mortgage of immovable fixed assets (both present and future). These loans are further secured by the personal guarantee of the Managing Director along with one of his relative.

22.4 The quarterly returns or statements of current assets and current liabilites filed by the Company with bank or financial institutions are in agreement with the books of accounts except are as under:

The aforementioned discrepancy in figures arise from the use of preliminary data provided to banks before the finalization of quarterly financial records, as the submission deadline is quite stringent. These differences do not have any material impact on the financial positions of the company.

The quarterly returns or statements of current assets and current liabilities for the March 25 quarter have not been filed as of the date of the financial statement, as the same was not due.

22.5 There has been no default in repayment of loan during the year based on the repayment schedule.

Lease liability represents present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

C] Details of contribution to political party via electoral bond:

During the year, the Company has not paid any contribution to a political party (31-Mar-2024: 200.00 Lakhs, was contributed to the Bhartiya Janata Party via electoral bond, which is included in Miscellaneous expenses).

Note 39: Earnings per share (‘EPS’)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Note 40: Employee benefits

(a) Defined contribution plans

The Company makes contributions to the provident fund and employee estate insurance fund as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees State Insurance Act, 1948, respectively (Collectively "funds”), to define the contribution plan for eligible employees. Under the funds, the Company is required to contribute a specified percentage of the payroll costs. The Company has no obligation other than the contribution payable to these funds. The Company recognises the contribution payable to these funds as an expense when an employee renders the related service.

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously. The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

The Gratuity Scheme is invested in a New Group Gratuity Cash Accumulation Plan Policy offered by Life Insurance Corporation (LIC) and Kotak Corporate Benefit Plan offered by Kotak Life Insurance Limited. The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation.

V Details of asset-liability matching strategy

Life Insurance Company and Kotak Life Insurance Limited manage the Company's investments; at the year-end, interest is credited to the fund value. The company has not changed the process used to manage its risk from previous years. The Company's investments are fully secured and would be sufficient to cover its obligations.

The average duration of the defined benefit plan obligation at the end of the reporting period is 7.63 years (31-Mar-2024: 7.80 years)

Note 41: Leases

i) Company as a lessee

The Company has lease contracts for land and building with lease terms ranging between 2 to 99 years, and certain lease contracts include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company's business needs, management judges whether these extension and termination options are reasonably certain to be exercised.

The Company also has certain leases with lease terms of 12 months or less and those of low value. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition exemptions as available in Ind AS 116 'Leases' for these leases.

Note:

1. The future cash flows for the aforesaid contingent liabilites are determinable on receipt of judgements pending at various forums/authorities which in the opinion of the Company is not tenable and there is no possibility of any future cash outflow in case of above.

2. The Company has received an order dated 25 March 2025, from the Deputy Commissioner of Income Tax under Section 153C read with Section 144 of the Income Tax Act, 1961, raising a demand of INR 1,553.23 lakh for FY 2017-18 (AY 2018-19) based on a substantive addition of INR 858.00 lakh, and a demand of INR 1,370.37 lakh for FY 2018-19 (AY 2019-20) based on a protective addition of INR 887.50 lakh, both under Section 69A read with Section 115BBE. The Company has challenged the proceedings before the Hon'ble Madhya Pradesh High Court, which has directed the authorities not to implement the AY 2018-19 order without the Court's permission, while the matter for AY 2019-20 remains pending. As per the principles of Ind AS 37, the substantive addition involves a possible but not probable outflow of resources and is therefore disclosed as a contingent liability. The protective addition does not result in any enforceable demand unless the substantive addition fails, and no present obligation exists against the Company; hence, it is not considered a contingent liability.

3. The office of the Director General (DG) of the Competition Commission of India (CCI) conducted a search on 27 October 2021 at the Company's registered office to examine the process of supply and sale of the Company's Indian Made Indian Liquor ("IMIL”) products. On receipt of order from the CCI based on the investigation report of the DG alleging cartelisation in the supply of IMIL products, the company had earlier challenged the jurisdiction of the CCI on the aforesaid order before the Hon'ble Delhi High Court and based on the direction of the court, took the matter subsequently with CCI. During the earlier year, the company received an order dated 20 March 2024 in which CCI has referred back the investigation report to DG for further investigation. The CCI has also instructed the DG to facilitate the Company with a copy of the statement recorded and cross-

examine the persons who had alleged the cartelisation as mentioned in the investigation report. Thereafter, the company has filed a writ before the Hon'ble Madhya Pradesh High Court on the grounds of CCI's jurisdiction and challenging the incidental action in the matter. The matter is seized with the Hon'ble High Court, and the court has directed CCI not to take any coercive action until the matter is pending before the Hon'ble High Court.

Since the company has not received a penalty order specifying the amount of penalty, the amount can not be ascertained. Further, based on the risk assessment process, the company is confident in the merits of its case.

Enterprise / Company in which Close member of KMP have control

Prasann Kumar Kedia HUF

Bhagwati Prasad Kedia HUF

Ram Dulari Anand Kumar Kedia HUF

Smilington Holdings Private Limited (with effect from 01-May-2023)

Springbok Properties Private Limited (with effect from 01-May-2023)

(c) Enterprise where control over the composition of governing body exists

Babu Bhagwati Prasad Kedia Foundation (Section. 8 Company)

*During the year, the Company has set up a wholly-owned subsidiary, "Associated Alcohols and Breweries (Awadh) Limited” ("AABL Awadh”), to establish a bottling cum distillery unit in the state Uttar Pradesh. The initial investment in the AABL Awadh has been made after 31-Mar-2024. Hence, the requirement for the consolidation of accounts is not applicable for the year ended 31-Mar-2024.

The fair value measurement hierarchy of all financial assets and liabilities is provided in Note 46.

The management assessed that fair value of investment, trade receivables, other current financial assets, current loans, cash and bank balances, trade payables, current borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. Security deposits, loans and other financial assets are evaluated by the Company based on parameters such as interest rates, individual credit worthiness of the counterparties and expected duration of realisability as at the balance sheet date.

2. The fair value of long-term bank borrowings is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. Management regularly assesses a range of 'possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

Credit Risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk arising on its trade receivables. Based on the historical experience and credit profile of counterparties (schedule banks, government and employees), the Company does not expect any significant risk of defaults arising on financial assets except trade receivables i.e. loans, cash and cash equivalents and other financial assets.

The fair value of investment in Mount Everest Breweries Limited ('MEBL') has been considered based on the valuation report by the registered valuer considering the projections provided by the management of the MEBL.

Note 47: Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings, lease liabilities, trade, and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include investment, loans, cash and cash equivalents, trade receivables, and other receivables derived directly from its operations.

The Company is exposed to market risks, credit risks and liquidity risks. The Company's senior management oversees the management of these risks. The Company's senior management provides assurance that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of Directors review and agree policies for managing each of these risks.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks namely interest rate risk, currency risk and price risk, such as equity price risk. The Company is not significantly exposed to currency risk and price risk whereas the exposure to interest risk is given below.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's borrowings.

Interest rate sensitivity

The sensitivity analysis below have been determined based on exposure to interest rates for term loans that have floating rate at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period.

If the interest rates had been 100 basis points higher or lower and all the other variables were held constant, the effect on Interest expense for the respective financial years and consequent effect on Company's profit in that financial year would have been as below:

a. Trade receivables

Customer credit is managed by the Company's through established policies and procedures related to customer credit risk management. Each outstanding customer receivables are regularly monitored and if outstanding is above due date, the further shipments are controlled and can only be released if there is a proper justification.

The Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. Based on the industry practices and the business environment in which the Company operate, management considers the trade receivables are in default (credit impaired) if the payments are more than 365 days past due.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets and are monitored at periodical intervals. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Liquidity Risk

(i) Liquidity risk management

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's principal sources of liquidity are investment, cash and bank balances, fixed deposits, and the cash flow generated from operations. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, liquidity risk is considered as low. The Company closely monitors its liquidity position and maintains adequate funding sources.

(ii) Maturities of financial liabilities

The following tables detail the Company's remaining contractual maturity for its financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

1. The improvement in profitability and operating margins during the year has contributed to a favourable movement in the return on equity ratio

2. The increase in the net capital turnover ratio is attributable to higher revenue and more efficient management of working capital during the year.

3. The improvement in return on capital employed is driven by enhanced profitability during the year.

4. The return on investment declined due to lower and partial-year deployment of funds, resulting in reduced income during the year.

Note 49: Capital management

The Company's objective in managing its capital is to ensure continuity of business while at the same time providing reasonable returns to its various stakeholders but keeping associated costs under control. In order to achieve this, the requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done through a judicious combination of equity/ internal accruals and borrowings, both short-term and long-term. Net debt (total borrowings less cash and cash equivalents, Bank Balance and Investment through FVTPL) to equity ratio is used to monitor capital.

The Company has submitted the necessary applications and is in compliance with the eligibility conditions prescribed under the scheme. Accordingly, the Company expects to receive the incentive against its total eligible investment of INR 17,882.23 lakhs in plant and machinery of the ethanol manufacturing facility. The incentive is being accounted for in accordance with the applicable provisions of Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance and Ind AS 109 - Financial Instruments.

During the year, INR 606.92 lakhs (31-Mar-2024: INR Nil) has been accounted as income (Refer Note 30). Further out of the total grant accounted during the year, INR 606.92 lakhs (31-Mar-24: INR Nil) is pending to be received from the government (Refer Note 18).

Note 51: Merger with Mount Everest Brewaries Limited

The Board of Directors of the Company, in their meeting held on 9-Aug-2022, had approved the Scheme of Arrangement ("SOA”) pursuant to sections 230 to 232 and other relevant provisions of the Companies Act, 2013, for the amalgamation of the company with M/s Mount Everest Breweries Limited (MEBL), the appointed date for the proposed scheme is 1-Apr-2022.

During the previous year, the Board of Directors in there meeting held on 10-Aug-2023, post extensive discussions, deliberations, and considering the present business scenario, has decided to withdraw the Scheme of Arrangement ("SOA”) for the amalgamation of the company with Mount Everest Breweries Limited (MEBL).

Note 52: Government Grant

1. The Government of India vide its notification No. - F. No.1(10)/2018-SP-I dated 22-Apr-2022, notified the modified scheme for extending financial assistance to the project proponents to set up distilleries for producing 1^st Generation (1G) ethanol from feedstock such as cereals (rice, wheat, barley, corn and sorghum), sugarcane, sugar beet etc. Under the said scheme, the Government of India has approved the interest subvention @6% per annum or 50% of the rate of interest charged by the bank, whichever is lower. The company is eligible for the above grant on its term loan of INR 8,000.00 lakhs sourced by the company from HDFC Bank Limited for the new ethanol plant.

Pursuant to the requirements of Ind AS 20 - "Accounting for Government Grants and Disclosure of Government Assistance” and Ind AS 109 - "Financial Instruments”, INR Nil (31-Mar-2024 : INR 342.85 lakhs ) has been credited to the property plant and equipment related to ethanol plant (Refer Note 5), INR 231.32 lakhs (31-Mar-2024 : INR 64.00 lakhs) has been adjusted with interest cost (Refer Note 35). Further out of the total grant accounted, INR 459.87 lakhs (31-Mar-24: INR 360.54 lakhs) is pending to be received from the government (Refer Note 18).

2. The Government of Madhya Pradesh, vide Notification No. 16-36/2021/A-11 dated September 17, 2022, notified a scheme for special financial assistance for ethanol and bio-fuel production from all food grains (excluding sugarcane/molasses and Mahua), under the National Policy on Biofuels, 2018, as approved by the National Biofuel Coordination Committee.

Under the said scheme, the State Government shall provide production-linked fiscal assistance of INR 1.50 per litre of ethanol supplied, subject to a maximum cap of 100% of the eligible investment in plant and machinery. The benefit is available for a period of seven years from the date of commencement of commercial production.

Note 54: Other disclosures

The Company has used accounting software for maintaining its books of account, which includes the feature of recording audit trails (edit logs) facility, and the same has operated throughout the year for all relevant transactions. The audit trail functionality at the application server level was active during the year; however, the audit trail at the database level for direct access was not enabled during the financial year, and the Company is in the process of enabling the same. Further, there are no instance of audit trail feature being tampered with and the audit trail has been preserved as per the statutory requirements for record retention, wherever the feature was enabled.

Note 55: Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during the current financial year and previous financial year

(iii) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(iv) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(v) The Company do not have any such transactions which has not been recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(vi) The company has not been declared as wilful defaulter by any bank of financial institution or other lender

(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

Note 56: Approval of Standalone Financial Statement

The Board of Directors have approved the standalone financial statements for the year ended 31-Mar-25 and authorised them for issue on 26-Apr-25 and these will be placed for the approval of shareholders at the ensuing annual general meeting.