14. Provisions and contingencies
Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. A provision is made in respect of onerous contracts, i.e., contracts in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contracts. Provisions are not recognized for other future operating losses. The carrying amounts of provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.
A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where the likelihood of outflow of resources is remote, no provision or disclosure is made.
15. Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the Statement of profit and loss over the period of the borrowings using the effective interest method.
Borrowings are derecognized from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognized in Statement of profit and loss as other gains/(losses).
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.
16. Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
17. MSME Disclosures
The Company has no suppliers and customers covered under Micro, Small and Medium Enterprises Development Act, 2006. Management believes that on confirmation there will not be any material impact on statement of financial statements.
18. Related Party Disclosures Key Management personnel
• Ankush Bakshi (Managing Director)
• Anuj Bakshi (Executive Director & CFO)
• Roshni Bakshi (Executive Director)
• Kanika Bakshi (Executive Director)
• Pankaj Khanna (Company Secretary, w.e.f. 10.08.2023)
• Arihant Jain (Non-Executive & Independent Director, w.e.f. 27.06.2023)
• Sathvik Jain (Independent Director)
• Jagjit Singh Kochar (Independent Director)
• Malti Jaiswal (Non-Executive & Independent Director, w.e.f. 13.02.2023)
Enterprises over which Key Management Personnel exercise significant influence
• M/s United Wines
• NS Bonded Warehouse Pvt. Ltd.
19. Exceptional items
When an item of income or expense within Statement of profit and loss from ordinary activity is of such size, nature or incidence that its disclosure is relevant to explain more meaningfully the performance of the Company for the year, the nature and amount of such items is disclosed as exceptional items.
20. Segmental information
The Company is engaged in the business of purchase and sale of beverage alcohol (spirits and wines). The Management of the Company (being the Chief Operating Decision Maker) assesses performance and allocates resources for the business of the Company as a whole and hence the management considers company's business activities as a single operating segment (viz. Beverage alcohol). As such no segment disclosures have been made in the financial statements as at and for the year ended March 31,2024.
C. Critical estimates and judgments
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual result. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates and judgements are:
• Estimation of provisions and contingent liabilities - Note 23
Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.
Note No. 25
Contribution to Political Party
During the year, the Company has made Political Contributions of ?120.00 Lakhs (P.Y. Nil) through purchase of 'Electrol Bonds' issued under 'Electrol Bond Scheme' introduced by Government of India. The bonds have been encashed by political parties registered under Section 29A of the Representation of the People Act.
Note No. 26
Corporate Social Responsibility
As per Section 135 of the Companies Act 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A CSR committee has been formed by the company as per the Act. The funds were primarily utilized throughout the year on activities as stated in para (VII) below, which are specified in Schedule VII of the Companies Act 2013:
Note No. 27
‘Employee Benefits’, in accordance with Accounting Standard (Ind As-19)
a. Defined Contribution Plans Provident Fund:
Provident Fund covers substantially all permanent workmen. Contributions towards Provident Fund are made as a percentage of salary, as per regulations to a fund administered by government authority. The obligation of the Company is limited to the extent of contributions made on a monthly basis.
During the year, the Company has recognised the following amounts in the Statement of Profit & Loss, which are included in contribution to provident fund in the employee benefit expense:
b. Defined Benefit Plans Gratuity:
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of continuous service gets a gratuity on departure at 15 days’ salary (last drawn salary) for each completed year of service.
As per Actuarial Valuations as on 31st March, 2024 and recognised in the financial statements in respect of Employee Benefit Schemes:
Note No. 30 Impairment Review
Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment test is performed at the level of each Cash Generating Unit (‘CGU’) or groups of CGUs within the Company at which the goodwill or other assets are monitored for internal management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale calculations.
During the year, the testing did not result in any impairment in the carrying amount of assets.
Note No. 31 Proposed Dividend
The Board of Directors have proposed a final dividend of ?0.25 per Equity Share i.e. 2.50% of ?10/- (Face value) per Equity Share for the FY 2023-24 (P.Y. Nil). The same is subject approval by the Shareholders at
the ensuing Annual General Meeting, and if approved, would result in a cash outflow of approximately ?40.13 Lakhs.
Note No. 32
The Company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, disclosures relating to amount unpaid as on 31st March, 2024 together with interest paid or payable under this Act have not been given.
Note No. 33
The company does not have any derivative contracts as at 31st March, 2024.
Note No. 34
Previous Year's figures have been regrouped/reclassified to conform to the current year's classification Note No. 35
All amounts are disclosed in the financial statements and notes in rupees lakhs and rounded off to two decimal places.
Note No. 36
Other Statutory Information
A. Title deeds of Immovable Property
The title deeds of all the immovable properties, disclosed in the financial statements included in Property, Plant and Equipment (Note 3) are held in the name of the Company as at the balance sheet date.
B. Loans or advances in the nature of loans are granted to promoters, directors, KMPs and the related parties
There is no Loan/Advance to Promoters, Directors, KMP and the related Parties.
C. Details of Benami Property held
There have been no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) and Act, 1988 (45 of 1988) and rules made thereunder.
D. Borrowings from banks or financial institutions on the basis of security of Current Assets
The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained
E. Wilful Defaulter
The Company has not been declared a wilful defaulter by any bank or financial institution or other lender.
F. Relationship with Struck off Companies
The Company has not entered into any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.
G. Registration of charges or satisfaction with Registrar of Companies (ROC)
Registration of Charges or Satisfaction with the registrar of Companies {ROC} done within the statutory period.
H. Compliance with number of layers of Companies
The Company has no subsidiaries or investments in other companies, accordingly compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, are not applicable.
I. Compliance with approved Scheme(s) of Arrangements
There are no Scheme of Arrangements approved by the Competent Authority in terms of section 230 to 237 of the Act.
J. The Company has 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:
i. 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
ii. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
K. The Company has 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:
i. 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
ii. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
L. A search & seizure operation was carried out by the Income Tax Department on the Company on 6th March 2024. However, the Company has not surrendered or disclosed any income to the Income Tax Department in relation to the said search and seizure. Accordingly, the Company has not recorded any such transactions in the books of accounts during the year.
M. Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
As per our report on even date
For J K S S & Associates For and on behalf of the Board of Directors
Formerly known as J K Sarawgi & Company)
Chartered Accountants FRN: 006836C
FCA Jeet Agarwal
Partner Ankush Bakshi Anuj Bakshi
M. No. 064038 Managing Director Executive Director & CFO
UDIN: 24064038BKADCL7751 DIN: 02547254 DIN: 02500120
Place: Kolkata Date: 29th May, 2024
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