(i) For details of property, plant and equipment charged as security against borrowings. Refer Note 15[ii], [iii] & [iv],
(ii) Title deeds of all freehold immovable properties and lease deed of lease hold properties are in the name of the Company, except property having carrying value of ' 38 Lakhs in respect of which the execution of flat buyers agreement with the builder is under process. However, the Company is in effective physical possession of the property since inception.
(iii) Estimated amount of capital contracts remaining to be executed and not provided for is ' 19,521 Lakhs [Previous year : ' 4 Lakhs],
(iv) There has been no revaluation of property plant and equipment during financial year 2023-24 and 2022-23.
(v) For leasehold land refer note 2.3(b) regarding Significant Accounting Policy.
(v) Estimation of fair value
The Company obtained independent valuations for its investment properties on April 01, 2016. The best evidence of fair value is current prices in an active market for similar properties.
All resulting fair value estimates for investment properties are as per level 2. The Company is of view that there is no significant change in fair value as on March 31,2024. However, the fresh valuation will be taken in the subsequent financial year.
(vi) For details of investment property charged as security of borrowings refer note 15 (i)(a).
(vii) Title deeds of investment properties are held in the name of the Company.
(i) Represents 12% [Previous year : 44%) of total loans.
(ii) Includes a sum of ' 201 Lakhs (Previous year : ' 201 Lakhs) due from an Ex-employee which the management is hopeful to recover in the subsequent periods.
(iii) No loans are due by directors or other officers of the Company or any of them either severally or jointly with any other person or by firms or private companies in which any director is a partner, director or member.
(iv) In line with circular no. 4/2015 issued by the Ministry of Corporate Affairs dated 10.03.2015, loans and advances given to employees as per company's policy are not covered for the purpose of disclosures under section 186 (4) of the Companies Act, 2013.
(ii) No debts are due from directors or other officers of the Company or any of them either severally or jointly with any other person or from firms or private companies, in which any director is a partner or a director or a member except ' 70 Lakhs (Previous year : ' 30 Lakhs) due from a private company having a common director.
(iii) Allowance for expected credit loss is made on the simplified approach as followed in earlier years.
(iv) Refer Note 38(a) and 38(b) in respect of market risk and credit risk.
(i) During the financial year 2017-18, the Company entered into an agreement of sale for development and disposal thereafter a part of leasehold land of glass division at Sahibabad due to discontinuity of operations. In pursuance of the said agreement, the Company has received a sum of ' 5351 Lakhs (Previous year : ' 4627 Lakhs) towards part performance of the agreement. The approval from UPSIDA has been received for sub division of the plots. A fees of ' 578 Lakhs (50% of total fees) is deposited with UPSIDA for obtaining the said approval and the same has been capitalized under this head. The revenue of the same will be recognized at the time of transfer and sales of plots.
(iv) Terms/rights attached to equity shares
(a) 18,953,503 shares referred to as equity shares are having face value of ' 10/- per share. Each holder of such equity shares is entitled to one vote per share and dividend, if declared.
(b) 2,52,10,000 underlying equity shares of ' 10/- each fully paid up ranking pari-passu with existing shares were issued in the name of The Bank of New York Mellon, the Depository representing 12,60,500 Global Depository Receipts (GDRs) issued by the Company in the year 1996. These GDRs do not carry any voting rights till they are converted into equity shares and were beneficially owned by Late Mr. L.P. Jaiswal (NRI) Promoter of the Company. Mr. L.P. Jaiswal expired on 11th August, 2005.
Mr. L. P. Jaiswal had bequeathed his Jersey Estate by way of Will in favour of his son Mr. Karamjit Jaiswal, which inter-alia consisted his beneficial interest in the said GDRs representing 2,52,10,000 underlying equity shares of the Company. A Probate petition was filed in the Hon'ble Delhi High Court and the Hon'ble Delhi High Court probated the Will on 12th April,
2019 in favour of Mr. Karamjit Jaiswal.
Thereafter, an application was filed in the Hon'ble Royal Court of Jersey, for the Probate of the Will as the estate in question was located in Jersey. The Hon'ble Royal Court of Jersey vide their order dated 20th June, 2023 has probated the Will in
favour of Mr. Karamjit Jaiswal and accordingly Mr. Karamjit Jaiswal has acquired the beneficial ownership of the said underlying equity shares. Mr. Jaiswal has disclosed the acquisition of the beneficial interest in the said underlying equity shares to the
Company. Accordingly, the underlying shares are being disclosed as held by Mr. Karamjit Jaiswal, as per declarations made to the Company. However, as per the records of the Company, the said underlying shares are held in the name of The Bank of New York Mellon, the Depository as the conversion of GDRs into underlying shares and transmission in the name of Mr. Karamjit Jaiswal is still pending.
(c) Represents 25,00,000 equity shares of ' 10/- each, fully paid up issued at a premium of ' 20/- per share, as a special series shares with differential rights to dividend and voting, during the financial year 2004-05. These shares have no right to the dividend and each share carry twenty voting rights as compared to one voting right per existing equity share and were under the lock-in-period of three years from the date of allotment. These shares are held by the promoters and promoter group companies.
(d) The holders of all the above equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in event of liquidation of the Company in the proportion to their shareholdings.
(e) There are no equity shares, issued as bonus, for consideration other than cash or bought back during the period of five years
immediately preceding the reporting date.
Nature and purpose of reserve:
(i) Capital redemption reserve
Capital redemption reserve was created pursuant to buy back of equity shares in earlier years out of free reserves. The capital redemption reserve amount can be applied by the Company, in paying up unissued share of the Company to be issued to shareholders of the Company as fully paid bonus shares in accordance with the provisions of the Companies Act, 2013.
(ii) Securities premium
The amount received in excess of face value of the equity shares is recognised in securities premium. It can be utilised for limited purposes for issuance of bonus shares etc. in accordance with the provisions of the Companies Act, 2013.
(iii) General reserve
General reserve is created out of profit earned by the company by way of transfer from retained earnings. There are no restrictions on utilisation of the reserve except in case of declaration of dividend out of Reserves as prescribed under the Companies (Declaration
and Payment of Dividend) Rules, 2014 read with Section 123 of the Companies Act 2013.
(iv) Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. It also Includes revaluation reserve of ' 24,479 Lakhs (Previous year : ' 24,490 Lakhs) related to
land situated at Hamira and Behror.
(v) Share option outstanding account
The reserve is used to recognise the grant date fair value of options issued to employee under employee stock option schemes and adjusted on exercise/cancel/forfeiture of options.
(vi) The disaggregation of changes in each type of reserves are disclosed in Statement of Changes in Equity.
(vii) There are no changes in equity share capital and other equity due to accounting policy changes or prior period errors.
(vi) [a] Includes ' 1,584 Lakhs [Previous year : ' 2,287 Lakhs] carrying interest at 7.50% p.a. for a period of 9 years.
[b] Includes loan of ' 116 Lakhs [Previous year : ' 117 Lakhs] for which term of repayments have not been stipulated and
therefore it is treated as repayable on demand.
(vii) Represents fair value of interest free loan of ' 2,625 Lakhs (Previous year : ' Nil) exclusively for setting up Ethanol Project as
stated above. The loan shall not be repaid till the entire payment of the loan taken from IREDA is made.
(viii) The Company has utilised the borrowings from banks and others for the specific purposes for which it has been borrowed. There has been no default with regard to repayment of borrowing and interest during the year and there are no overdue amount on this account as on the date of balance sheet. The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.
31. EARNINGS PER SHARE (EPS)
Basic EPS is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus share, other than potential equity shares.
For the purpose of calculating the diluted EPS the net profit for the year attributable to equity shareholders and weighted average number of equity shares outstanding during the year are adjusted for the effects all dilutive equity shares.
(ii) Sales tax / VAT
[a] Demand of sales tax & penalty under Telangana VAT Act on account of VAT on royalty ' 103 Lakhs [Previous year : ' 103 Lakhs).
[b] Demand of sales tax & penalty under Punjab VAT Act on account of input VAT credit denied on rice husk ' 220 Lakhs [Previous year : ' 220 Lakhs].
[c] Demand of sales tax under Haryana VAT Act on account of disallowance of credit of excess VAT deposited due to rate difference ' 40 Lakhs [Previous year : ' 40 Lakhs].
[d] Demand for disallowance of ITC on purchase of rice flour ' 108 Lakhs [Previous year :?108 Lakhs].
[e] Demand of sales tax under Ranchi VAT Act Assessment for FY 2015-16'65 Lakhs [Previous year : ' 65 Lakhs].
[f] Demand of sales tax under Ranchi VAT Act Assessment for FY 2016-17 ' Nil [Previous year : ' 8 Lakhs].
[g] Demand of sales tax under Dehradun VAT Act Assessment for FY 2016-17'71 Lakhs [Previous year : ' 71 Lakhs].
(iii) Employee state insurance/employee related
[a] Claim in respect of case filed by ESI Corporation ' 6 Lakhs [Previous year : ' 6 Lakhs].
[b] Employees related claims ' 208 Lakhs [Previous year : ' 208 Lakhs].
(iv) Others
[a] There are certain claims against the Company relating to usage of trade mark etc., which have not been acknowledged as debts. The quantum and outcome of such claims is not ascertainable at this stage.
[b] Includes Nil [Previous year : ' 60 Lakhs] deposited pending completion of property tax assessment in response to notice of demand u/s 100[1] of NDMC Act 1994.
[c] Claims by supplier under arbitration:
- Pending before Chhattisgarh Commercial Court Raipur : ' 560 Lakhs [net of ' 65 Lakhs disclosed in other current financial liabilities] [Previous year : ' Nil].
- Pending before Retd Justice Sole Arbitrator : ' 192 Lakhs for damages [Previous year : ' Nil].
[d] Suppliers claims under recovery case: ' 41 Lakhs [Previous year : ' Nil].
(v) Income Tax Act, 1961
[a] Protective addition of ' 3002 Lakhs and substantive addition of ' 107 Lakhs made in the assessment proceedings u/s 153A in earlier years [AY 2011-12 to AY 2013-14] on account of excessive sales promotion expenses and alleged accommodation purchases respectively. These additions [except disallowance sales promotion expenses of ' 77 Lakhs] were deleted by CIT [A]. The department has filed appeal[s] and the Company has filed cross objection before the ITAT which are pending for adjudication. The Company has strong legal reasons that appeal of the Department for remaining years will be dismissed and the Company will get the remaining relief of ' 77 Lakhs.
[b] Assessment under section 147 in respect of assessment year 2016-17 has been made by making certain disallowances/ addition of ' 445 Lakhs on account of late deposit of provident fund and alleged bogus purchases resulting in reduction of
carry forward of losses to the same extent. The Company have filed appeal before first appellate authority and has strong legal reasons to get relief.
[c] Rectification order U/s 154 for AY 2017-18 making total additions of ' 1012 Lakhs on account of disallowance of expenses u/s 36[1] [va], 201[1A]/206 C[7] and provision for obsolete inventory has been passed. The additions made by the Assessing Officer purports to reduction of carry forward of losses without any current tax impact. Aggrieved by the disallowances made by the Assessing Officer, the Company have preferred an appeal before first appellate authority which is pending. The Company expects substantial relief considering the legal position and past record.
(vi) The Company is contesting these above demands and the management, based on advise of its advisors, believes that its position will likely be upheld in the appellate process. No expense has been accrued in the standalone financial statements for these demands raised. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position and results of operations. The Company does not expect any reimbursements in respect of the above contingent liabilities.
(B) Defined benefit plans
The benefit of Gratuity is payable as per the Payment of Gratuity Act, 1972 or maximum gratuity payable under the said Act, which ever is lower. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The gratuity benefits payable to the employees are based on the employee's service and last drawn salary at the time of leaving. The employees do not contribute towards this plan and the full cost of providing these benefits are met by the Company. The Company does not have any funded plan.
(i) Related parties have been identified by the management.
(ii) No amount has been written off / provided for or written back during the year in respect of amount receivable from or payable to related parties.
(iii) Key Management Personnel remuneration does not include provision for gratuity and compensated absences which is determined for the Company as whole on acturial basis.
(iv) Remuneration paid to KMP excludes expenses incurred in the course of performance of duty.
(v) There have been no guarantees provided to or received from related parties other than disclosed vide note 15(i)(b).
35. SEGMENT INFORMATION
The Company's operating segments are established on the basis of those components of the group that are evaluated regularly by the chief operating officer (the 'Chief Operating Decision Maker' as define in Ind AS 108 -'Operating Segments'), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The CODM does not review assets and liabilities for each operating segment separately, hence primary segment disclosures relating to total assets and total liabilities have not been furnished. The Company's business segments are as under:
Beverages: Segment includes manufacturing and supply of Bottled Indian Made Foreign Liquor, Country Liquor, Industrial Alcohol and licensing use of its IMFL brands.
Food: Segment includes manufacturing and supplies of food products and providing services for manufacture of food products.
Others: Segment includes trading of Petroleum products.
The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.
Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as 'Unallocable'.
(i) Revenue [including excise duty) from customers individually contributing more than 10% of the total revenue aggregates to ' 14,402 Lakhs (Previous year : ' 14,132 Lakhs) from one customer (Previous year one customer).
(ii) Non-current assets for this purpose consists of property, plant and equipment including right of use, capital work-in-progress and intangible assets.
36. FAIR VALUE
Fair value measurement:
(i) All the financial assets and financial liabilities of the company are carried at amortised cost except investment. Investment in subsidiaries are carried at cost and other investments are carried at fair value.
(ii) The management assessed that the carrying values of trade and other receivables, deposit, cash and short term deposits, other assets, borrowings, trade and other payables reasonably approximate their fair values because these instruments have short-term maturities.
37. CAPITAL MANAGEMENT
The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to shareholders through the optimisation of the debt and equity. For the purpose of the Company's capital management, includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, all noncurrent and current borrowings reduced by cash and cash equivalents. The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financials covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payments to shareholders, return capital to shareholders or issue new shares. The capital structure is monitored on the basis of net debt to equity and maturity profile of the overall debt portfolio of the Company.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches in meeting the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the financial covenants of any interestbearing borrowings in the current year.
No significant changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2024 and March 31,2023.
38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company's principal financial liabilities comprise borrowings, security deposits received, 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 trade and other receivables, cash and cash equivalents and security deposits that are out of regular business operations.
The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factors. The Company's senior management oversees the management of these risks.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in market
prices. Market risk comprises of three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include borrowings, trade payables and trade receivables. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
i. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rate relates primarily to the company's borrowings with floating interest rates.
ii. Foreign currency risk
Foreign 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. There does not seem to be any significant risk as transaction in foreign currency are not material.
As there is no significant foreign currency risk, sensitivity analysis showing impact on profit is not calculated.
iii. Commodity price risk
The Company is exposed to the risk of the price volatility of certain commodities raw materials. Its operating activities inter-alia comprise of manufacture of spirit alcohol/Liquor and malted food products and therefore require a continuous supply of Barley/Nakku/Husk/etc. The Company's Board of Directors have developed and enacted a risk management strategy regarding commodity price risk and its mitigation. The Company's long standing relationships with most of the suppliers ensure steady availability of raw materials at competitive prices.
[b] Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty defaults on its obligations.The Company's exposure to credit risk arises majorly from loan, advances, trade and other receivables. Other financial assets like security deposits and bank deposits are mostly with government authorities and nationalised banks and hence, the Company does not expect any credit risk with respect to these financial assets. Trade receivables includes approximately 10 % dues from state government corporations, where probability of default is remote. In respect of trade receivables from other than state government corporations, the Company makes a provision for expected credit loss on the basis of simplified approach as prescribed under Ind AS 109 i.e. on expiry of three years or at the time of initiation of legal proceeding whichever is earlier. The Company management reviews trade receivables/ advances on periodic basis and take necessary mitigative measures, wherever required.
(c) Liquidity risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company's approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank borrowings/ deposits received in the ordinary course of business. The table below summarises the maturity profile of the Company's financial liabilities:
42. RELEVANT ADDITIONAL REGULATORY INFORMATION: (OTHER THAN DISCLOSED IN THE RESPECTIVE NOTES)
(i) The operating cycle of the Company is assumed to be of twelve months in absence of clearly identifiable normal operating cycle and accordingly assets/ liabilities have been classified as current/ non current.
(ii) No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(iii) The Company has not revalued its PPE (including ROU asset) and hence disclosure regarding basis of revaluation is not applicable.
(iv) The Company has not carried out any transactions with companies struck off under section 248 of the Companies Act 2013 or under
section 560 of the Companies Act 1956.
(v) There is no charge or satisfaction of any charge which is not registered with ROC beyond the statutory period.
(vi) The Company has not granted any loans or advances in the nature of loans to promoters, directors, Key Managerial Person and the related parties except as stated in the note 6(i) either severally or jointly with any other person which is either repayable on demand or without
specifying any terms or period of demand.
(vii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies act read with companies (restriction on number of layers) rules 2017.
(viii) The Company has not applied any accounting policy retrospectively or has made a restatement of items in Financial Statements.
(ix) 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.
(x) The Company have not received any funds 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.
fxi) The Company have not traded or invested in crypto currency or virtual currency during the financial year.
(xii) The Company does not have any such transaction which are not recorded in the books of account that have 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).
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