2. Significant Accounting Policies:

This note provides a list of the significant accounting policies adopted in the preparation of these financial
statements. These policies have been consistently applied to all the periods presented, unless otherwise
stated.

2.1 - Basis of Preparation:

(i) Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules,
2015] (as amended), other relevant provisions of the Act and other accounting principles generally accepted in
India.

(ii) Historical cost convention

The financial statements have been prepared on an accrual basis and under the historical cost convention
except certain financial assets and liabilities are measured at fair value (refer accounting policy regarding
financial instruments).

(iii) Current vs non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset is classified as current when it is:

? Expected to be realized or intended to sold or consumed in normal operating cycle;

? held primarily for the purpose of trading;

? expected to be realized within twelve months after the reporting period; or

? cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

? expected to be settled in normal operating cycle;

? held primarily for the purpose of trading;

? due to be settled within twelve months after the reporting period; or

? There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current.

Deferred Tax Assets and Liabilities are classified as noncurrent assets and liabilities respectively.

2.2 Summary of Significant Accounting Policies:

(a) Property, Plant and Equipment:

Freehold land is carried at historical cost. All other items of Property, plant and equipment are shown at cost,

less accumulated depreciation and impairment, if any. The cost of an item of property, plant and equipment
comprises its cost of acquisition inclusive of inward freight, import duties, and other nonrefundable taxes or
levies and any cost directly attributable to the acquisition / construction of those items; any trade discounts and
rebates are deducted in arriving at the cost of acquisition.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the group and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to statement of profit
or loss during the reporting period in which they are incurred.

Gain or losses arising on disposal of property, plant and equipment are recognised in profit or loss.

(b) Capital Work in Progress

Property, plant and equipment under construction are disclosed as capital work in progress.

(c) Depreciation and amortisation:

Depreciation has been provided based on useful life assigned to each asset in accordance with Schedule II of
the Companies Act, 2013. The residual values are not more than 5% of the original cost of the asset. The useful
life of major components of property, plant and equipments is as follows.

Factory Building: 30 Years
Plant and Machinery: 15 Years
Vehicles: 8 Years
Office Equipments: 5Years
Computers: 3 Years
Furniture & Fixture: 10Years
Softwares: 3Years

(d) Impairment of assets

At the date of balance sheet, if there are indications of impairment and the carrying amount of the cash
generating unit exceeds its recoverable amount (i.e. the higher of the fair value less costs of disposal and
value in use), an impairment loss is recognised. The carrying amount is reduced to the recoverable amount
and the reduction is recognised as an impairment loss in the profit or loss. The impairment loss recognised in
the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Post
impairment, depreciation is provided on the revised carrying value of the impaired asset over its remaining
useful life.

Reasonable assumptions are made by the management in estimating the value-in-use and fair value less costs
of disposal. Management has considered the indicators required for impairment testing and estimated reliably
that there is no impairment loss for the purpose of Ind AS 36 and AS 28.

(e) Inventories:

The cost of various categories of inventory is determined as follows:

Cost of raw material and packing materials are determined using first in first out (FIFO) method. Costs of
finished goods and stock in process include cost of raw material and packing materials, cost of conversion and
other costs incurred in bringing the inventories to the present location and condition.

(f) Employees Retirement Benefits:

(a) Defined Contribution Plans.

The Company has Defined Contribution Plan post employment benefit in the form of provident fund for eligible
employees, which is administered by Regional Provident Fund Commissioner; Provident fund is classified as
Defined Contribution Plan as the Company has no further obligation beyond making the contributions. The
Company’s contributions to defined Contribution Plans are charged to the Profit and Loss Account as and when
incurred.

(b) Defined Benefit Plan.

The Company has Defined Benefit Plan for post employment benefit in the form of Gratutity for eligible
employees, which is administered through a Group Gratuity Policy with Life Insurance Corporation of India
(L.I.C). The Liability for the above Defined Benefit Plan is provided on the basis of an actuarial valuation
as carried out by L.I.C. The actuarial method used for measuring the liability is the Projected Unit Credit
Method.

(c) Termination Benefits, if any, are recognized as an expense as and when incurred.

(d) The Company does not have policy of leave encashment and hence there is no liability on this account.
Refer to additional note no. 36

(g) Revenue recognition:

Revenue is measured at the fair value of the consideration received or receivable. Gross Sales are inclusive of
State excise duty, MVAT, and Net of returns, Claims, and Discount etc.

The Company recognizes sale of goods when the significant risks and rewards of ownership are transferred
to the buyer, which is usually when the goods are loaded in party’s vehicle and are ready for dispatch after
clearance from excise officials at the factory.

Interest Income is accounted on accrual basis and dividend income is accounted on receipt basis.

Fixed deposit interest is accounted as per statement/documents issued by banks inclusive of related tax deducted
at source.

(h) Excise Duty:

State Excise duty payable on finished goods is accounted for on clearance of goods from the Factory. Company’s
products do not attract any Central Excise duty/ Goods and Service Tax.

(i) Brand Development:

The Company had incurred expenses on brand development of various products. The expenses were accounted
as per prevailing Industry practices.

(j) Value Added Tax (VAT):

VAT payable of finished goods is accounted net of setoff i.e. VAT payable on finished goods less VAT paid
on Raw Materials (Rectified Spirit).

(k) Taxes on Income:

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of Tax
in accordance with Income Tax Act, 1961.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive
income or directly in equity, respectively

Deferred Tax arising on account of depreciation is recognised only to the extent there is a reasonable certainty
of realisation.

(l) Expenses:

Currently alcoholic liquor for human consumption is outside the scope of GST and consequently certain input
tax paid by the company is not available for input tax credit. Hence the GST paid on the input is expensed out
in the books of accounts.