Rights, preferences and restrictions on equity shares:

The Company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held and carry a right to dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

Bonus shares and shares bought back:

Over the period of five years immediately preceding March 31, 2024 and March 31, 2023, neither any bonus shares were issued nor any shares were allotted for consideration other than cash. Further, no shares were bought back during the said period.

c. Short term borrowings interest rate is N/A as on March 31,2024 ( March 31,2023 8.90 % p.a).

d. Cash credit is secured by first pari passu charge by way of hypothecation of entire present and future current assets including stocks and book debts and second pari passu charge by way of extension of charge on all the PPE of the Company including equitable mortgage of factory land & building at Behror, Samalkha, West Bengal and Bihar. Rate of interest of cash credit has range of 8.15% - 9.25% p.a (March 31, 2023 8.10% - 9.00%)

Description of nature and purpose of each reserve

Security premium: Security premium is used to record the premium on issue of shares, which will be utilized as per provisions of relevant act/rules.

Share based payment reserves: This is created to recognise the grant date fair valuation of options issued to employees under employee stock option schemes and is adjusted on exercise of options

General reserve: General reserve is created from time to time by way of transfer of profits from retained earnings for appropriate purposes. It is created by a transfer from one component of equity to another.

Retained earnings: It is created from the statement of profit and loss of the Company, as adjusted for distributions to owners, transfer to other reserves, etc. Capital reserves: This is generally recognised during the amalgamation/merger by acquirer company where purchase price is less that fair value of net assets of acquiree company.

Other comprehensive income: The profits and losses which are routed out of statement of profit and loss are classified in other comprehensive income.

a. The Company has availed above mentioned term loans (i) and (ii) under interest subvention scheme notified by Government of India (Department of Food and Public Distribution) vide notification dated January 14, 2021, for setting up/ expansion of new/existing grain based distilleries.

b. The above mentioned term loans (i) and (ii) are secured by

-First pari passu charge on movable fixed assets and equitable mortgage of factory land & building of the plants at Behror, Samalkha, West Bengal and Bihar. -Second pari passu charge by way of extension of charge on all the current assets of the Company.

-Letter of comfort from Chandbagh Investments Limited.

Note 1 - The difference in inventory is due to the excise duty (for Jun-23, Sep-23, Dec-23 and Mar-24) and capital goods (Jun-23 and Dec-23) which are included in Inventory appearing in books of accounts. However, the same is not considered in the drawing power (DP) statement submitted to the banks.

Note 2 - The difference in trade receivable is majorly on account of advances from customers which has been adjusted with trade receivables provided in quarterly statements submitted to bank which is not included in books of accounts. Further, only oil marketing companies and corporations having dues upto 120 days and other debtors having dues upto 90 days are considered in DP statement submitted which creates a difference between books of accounts and quarterly statement.

Note 3 - The difference in trade payable is on account of accrued expenses and service related payables which are clubbed in trade payables in books of accounts and are excluded in quarterly statements submitted to bank . Further advance given to Food Corporation of India has been adjusted with trade payables provided in quarterly statements submitted to bank which is not included in books of accounts.

* Consumer cases - The above disclosure excludes an amount of Rs. 324.68 Lacs, wherein the demand is in respect of sales made by the Company on behalf of its brand franchisees, and contractually, these brand franchises are required to reimburse the Company for the liability, if any.

** On June 26, 2020, Directorate General of Goods and Services Tax (GST) Intelligence (DGGI) carried out search and seizure proceedings at various premises of the Company; at factories and at head office. Pursuant to this, during the FY 2020-2021 the Company had deposited Rs. 1,989.97 lacs under protest towards GST which may arise on account of issue regarding classification of one of the items sold by the Company (Animal Feed Supplement) for the period July 01,2017 to December 31,2020. The Company had also fled a writ petition on February 17, 2021 before Hon'ble High Court of Delhi challenging the actions of DGGI and seeking refund of the amount deposited by the Company.

Subsequently, DGGI issued summons dated October 01, 2021 to the authorized representatives of the Company and The Ministry of Finance, Department of Revenue vide its Circular No. 163/19/2021-GST dated October 06, 2021 provided clarification on the classification of the said item. Pursuant to the summons and the aforesaid circular, during the FY 2021-2022 the Company deposited Rs. 751.07 lacs under protest towards GST for the period January 01,2021 to October 10, 2021 and started collecting and depositing GST under protest on the said item from its customers w.e.f October 11, 2021. During the current year, the Company has also deposited Rs. 448.17 lacs towards interest and Rs. 254.06 lacs towards penalty on the above GST paid under protest for the period July 01,2017 to October 10, 2021.

The amount of Goods and Services Tax deposited under protest (net of amount collected and deposited under protest) with the department aggregating to Rs. 3,443.27 lacs (previous year aggregating to Rs. 3443.27 lacs) have been disclosed as recoverable in note 9 to the financial statements. Basis the legal advice obtained by the management, that the circular issued by the Government is ultra vires the provisions of the GST laws, the Company has fled a writ petition on January 18, 2022 challenging the constitutional validity of imposing GST on the said item before Hon'ble High Court of Delhi. Proceedings in respect of above matters are in progress before Hon'ble High Court of Delhi and on the basis of legal opinion obtained, the Management is confident that ultimately no liability will devolve on the Company and it will be able to get the refund of GST amount including interest and penalty thereon from the GST Department which has been paid under protest.

*** The Company has ongoing proceedings under Haryana Value Added Tax Act, 2003 in respect of Value Added Tax liability arising on account of issue regarding classification of one of the item sold by the Company for the year 2010-11 to 2016-17 in Samalkha involving amount of Rs. 735 lacs and for the year 2010-11 to 2012-13 in Hisar involving amount of Rs. 326 lacs. The Company has fled appeals against the demand orders received in respect of these proceedings, which are pending for disposal at various judicial forums. The Company has already fled an appeal before appropriate authority dated November 14, 2019. Further, there is no update during the current year in the aforesaid matters.

# The Company has ongoing proceedings under Income tax act, 1961 in respect of income tax liability arising on account of unexplained cash credit (cash deposited during demonitization period) under section 115BBE of Income tax act. The Company has fled an appeal in the matter before CIT(A).

### Guarantees by bank on behalf of company as on March 31,2024 are excluding performance guarantees of Rs. 5,115 lacs.

There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

#### Out of 180.81 lakhs above, 142.05 lakhs pertains to FY 2004-05 to 2009-10 in which Company fled a writ against the demand raised by the Rajasthan Excise Department u/s 22 & 12 of the Rajasthan Excise Act, 1950 and Rules, 1956 of transport permit fee u/s 69 of the Rules for transportation / captive consumption of goods (Rectified Spirits used in the manufacture of liquor) within the factory premises. These matters are still pending for next hearing.

- 38.76 lakhs pertains to FY 1995-96 and FY 1996-97 where excise department provided a ratio of use of old and new glass bottles and provided with a penalty for excess of use of old bottles. The case is pending sine die.

Note 37 : Leases Asset taken on lease:

The Company leases land and buildings.Generally, the Company is restricted from assigning and subleasing the leased assets. With the exception of short team lease, every lease is recognised in balance sheet as right to use and lease liability. Rental contracts are typically made for fixed periods of 3 to 8 years, but may have extension options. Land has a lease term of 99 years.

Trade receivables :

Trade receivables are unsecured in nature and are derived from revenue earned from customers. To mitigate the credit risk related to trade receivables, the Company closely monitors the credit worthiness of the trade receivables through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become 90 days past due for non governmental customers and 180 days past due for governmental customers and consider the default after assessement on case to case basis. Top five customers for the year ended March 31,2024 constitutes 72% of net trade receivables (March 31,2023: 69%). The Company evaluates the credit risk associated with trade receivables on a case-by-case basis. Historically, the Company has not experienced defaults or written off bad debts.

However, credit risk for governmental customer is considered minimal, even if receivables are due for more than 180 days, due to the Company's historical experience of timely fund realization from these customers.

The Company considers a financial asset in default when contractual payments are 90 days past due for non govermental customers. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

Loan and other financial assets measured at amortised cost:

Other financial assets measured at amortised cost includes loans and advances to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.

In order to achieve the overall objective, the Company's capital management, amongst other things, aims to ensure that it meets capital financial covenants attached to interest bearing loans and borrowings that defined capital structure requirements. There have been no breaches in the financial covenants of any interest bearing loans and borrowings in the current financial year and wherever their has been any, the company has teaken the waiver from the concerned bank.

Note 40 - Financial risk management

The Company is exposed to various financial risks arising from underlying operations and finance activities. The Company is primarily exposed to credit risk, liquidity risk and market risk.

Financial risk management within the Company is governed by policies and guidelines approved by the senior management and board of directors. These policies and guidelines cover credit risk, liquidity risk and market risk.

(a) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company if the counterparty defaults on its obligations.

The Company is exposed to credit risk from cash and cash equivalents, deposits with banks, trade receivables, loans and other financial assets measured at amortized cost

i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk on financial reporting date B: Moderate credit risk C: High credit risk

The Company provides for expected credit loss based on the following:

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. There have been no cases of write off with the Company.

Cash and cash equivalents and bank balances :

Credit risk relating to cash and cash equivalents is considered negligible as counterparties are banks. The management considers the credit quality of deposits with such banks to be good and reviews the banking relationships on an on-going basis.

Foreign Currency risk management

Foreign currency risk also known as Exchange Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Foreign currency risk in the Company is attributable to Company's operating activities.

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period demoninated in Rupees are as follows :

Foreign currency senstivity analysis The Company is mainly exposed to USD.

The following table details the Company's sensitivity to a 1% increase and decrease in the Rupee against the foreign currency. The sensitivity analysis includes only outstanding foreign currency denominated monetary item as tabulated above and adjusts their translation at the period end for 1% change in foreign currency rates. A positive number indicates an increase in profit before tax or vise-versa.

(c) 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 risk: interest rate risk, currency risk and credit risk. Financial instruments affected by market risk include deposits. The functional currency of the Company is Indian Rupee. i) 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 long-term debt obligations (including current maturities of long-term borrowings) with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and floating interest rates on borrowings.

Forward foreign exchange contracts

The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business. The Company manages its foreign currency risk by hedging transactions that are expected to occur within of 2 to 3 months for hedges of forecasted sales. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable that is denominated in the foreign currency.

The Company does not have any foreign currency derivatives contracts outstanding as at March 31,2024 and March 31,2023.

Note 41 - Employee benefits plans Defined benefits plans

The Company's gratuity scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months (subject to maximum of Rs. 20.00 lacs). Vesting occurs upon completion of 5 years of service. The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method with actuarial valuations being carried out at each balance sheet date.

The Company is engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Ethanol, Bulk Alcohol and Franchise Bottling. This is the only activity performed and is thus also the main source of risks and returns. The Company's segments as reviewed by the Chief Operating Decision Maker (CODM) does not result into identification of different ways / sources in to which they see the performance of the Company. Accordingly, the Company has a single reportable segment. Hence, the disclosure requirments in terms of Ind AS 108 “Operating Segments” are not applicable.

Note 1: All transactions to/from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. For the year ended March 31,2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2023: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Note 2: Certain KMPs also participate in post employment benefits plans provided by the Company. The amount in respect of these towards the KMPs can not be segregated as these are based on actuarial valuation for all employees of the Company.

Note 45 - Employee Stock Option Plan

The shareholders at Annual General Meeting held on September 24, 2021 approved an employee stock option scheme (“ESOP 2021”) which provides the grant upto 2,87,992 options to eligible employees of the Company determined by Nomination and Remunaration Committee, which are convertible into equivalent number of equity shares of Rs. 10 each as per terms of scheme.

Under the employee share based payment plans, certain employees were granted stock options of Globus Spirits Limited (‘GSL'). The plan was assessed, managed and administered by the GSL. Plan granted to employees are equity-settled.

The Company applied Ind AS 102 - Share based payments to share based payment transactions. Pursuant to this standard, stock options granted to the employee by GSL were measured at fair value and recognised in the Statement of Profit and Loss over the vesting period of the options and crediting other equity. The fair value of stock options was determined by the GSL using the Black Scholes option pricing model.

During the year ended March 31,2023, the Income Tax Department had carried out search and seizure operation at the head office and other premises of the Company from January 30, 2023 to February 03, 2023 under section 132 of the Income-tax Act, 1961 (‘IT Act'). Subsequent to year end, the Company has received assessment orders for the last 10 assessment years in the first week of April'24 disallowing certain expenses resulting in an aggregate tax impact of Rs. 5,649 lacs (including interest). The Company has no tax demand for the AY 2014-15 to AY 2020-21 and for the remaining 3 years, the amount of tax demand is Rs. 4,093 lacs, out of which Rs. 532 lacs was paid as self-assessment tax during the quarter ended December 31,2023. The Company has filed an appeal u/s 246A of the IT Act for all the assessment years covered by the order and has paid Rs 2,511 lacs under protest. The management has appointed an independent firm to review these disallowances and report to Audit committee and the Company has been legally advised that the tax demand may not be sustainable at the appellate forums. While the outcome is awaited, based on legal advice and company's preliminary assessment, management has determined that no material adjustments are needed with respect to the aforementioned matter in standalone financial statements.While the uncertainty exists regarding the outcome of the search and seizure carried out by the Department, the Company after considering all available information and facts as of date, has not identified the need for any adjustments in the financial statements.

Note 48 - Dividend paid & proposed dividend

The Company has paid final dividend amounting to Rs. 1728.16 Lacs (Rs. 6 per equity share (par value of Rs. 10 each)), basis the dividend declared by the board of directors in their meeting held on May 25, 2023. The payment was made post approval by the shareholders in the Annual General Meeting (AGM) of the Company. The dividend was paid on the 5th working day from the date of declaration of the final dividend by the shareholders in the AGM. For the financial year 2023-24, the Board of Directors recommended a final dividend of Rs. 3.50 per equity share (par value of Rs. 10 each). This payment is subject to the approval of shareholders in the AGM of the Company.The dividend will be paid on the 5th working day from the date of declaration of the final dividend to the shareholders. The book closure date for the purpose of the payment of final dividend and AGM date will be announced in due course.

The Company has all the revenue from short term contracts and there are no long term contracts available with the Company Note 51 - Subsequent Events

All events or transactions that have taken place between March 31,2024 and date of signing of the standalone financial statements and for which the Indian Accounting Standard 10 - ‘Events after the Reporting Period' (“Ind AS 10”) requires disclosure/adjustment are disclosed and/or adjusted in the standalone financial statements.

Note 52 - Approval of standalone financial statements

These standalone financial statements were approved for issue by the Board of Directors on May 30, 2024.

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses an accounting software for maintenance of books of account. Once the financial entries are posted in accounting software, no changes are allowed to already posted transactions. Also, in case of cancellation/reversal of already posted entries, separate entries are created in the application.

Further, the database of the accounting software is operated by a third-party software service provider and information on the availability of audit trail (edit log) feature is not covered in the ‘Independent Service Auditor's Assurance Report on the Description of Controls, their Design and Operating Effectiveness' (‘Type 2 report' issued in accordance with SAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information) at the database level. The Company has migrated to a new accounting software with effect from 1 April 2024 which will include the database of audit trail functionality in the next year's Type 2 report.

Note 54 - Reconciliation of liabilities from financing activities

Effective April 1, 2017, the Comapny adopted the amendment to Ind AS-7, which require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the consolidated balance sheet for liabilities arising from financing activities, to meet the disclosure requirements. The required disclosure is presented below:

In accordance with the principles of Indian Accounting Standard 8 - ‘Accounting Policies, Changes in Accounting Estimates and Errors' (“Ind AS 8”), the comparative financial information for the year ended 31 March 2023 included in these financial statements, have been restated on account of correction of following reclassification/ regrouping errors:

Reclassification of financial information of previous year ended March 31,2023:

Note 1: Pertains to reclassification of deposits made with bank having original maturity more than 3 months from cash and cash equivalent to bank balance other than cash and cash equivalent.

Note 2: Pertains to regrouping of carrying value of Motor vehicles purchased by the Company from right of use assets to property, plant and equipment and the carrying value of loan obtained from the bank to purchase such motor vehicles from lease liability to borrowings.

Note 3: Pertains to reclassification of contractual obligations towards employee dues from trade payable to other financial liabilities

Note 4: Pertains to regrouping of freight inward charges from other expenses to cost of material consumed

Note 5: Pertains to regrouping of changes in inventories of work in progress from cost of material consumed to changes in inventories of finished goods and work in progress.

Note 6: Pertains to reclassification of deposits made with bank having maturity of more than 12 months from security deposit to bank deposit with maturity of more than 12 months within non-current other financial assets.