1 Corporate Information
Sanwaria Consumer Limited (Ihe company) (Formerly known as Sanwaria Agro Oils Limited) is a public company incorporated in India having Its Registered and Corporate office at Office Hall No 1 First Floor Metro Walk Bittan maket Bhopal 462016 The company Is engaged in the manufacturing and trading of Soya. Rice Bran and their pioducts. De oiled Cake. Crudevrefined Edible Oil, Manufacturing of Basin all Rice, and Other Foods Grains and Food Products and Retailing of various Products. The Equity shares of the company aic listed on me Bombay stock exchange (BSE) ana National Stock Exchange (NSC).
Corporate insolvency Resolution Process ('GIRP') has been inilated In case of Ihe Company vide an order dated 23 05 2020 of Hon'abie National Company Law Tribunal ("MCLT"), Indore Bench under the Provisions of the bisolvency and Bankruptcy Code. 2016 (the Code) Pursuant to the order the management of affairs of the Company and powers of board of directors of the Company vested with Mr Rajeev Goei (insolvency Professional having registration no. IBBI1PA-001|1P-P00263.'201M8»1050T) wno is appointed as the interim Resolution Professional flRP*) in accordance with Section 16 of The Insolvency Bankruptcy Code. 2016 (*Code‘) Further, as per me order dated 04 09 2020 passed by above mentioned Bench Mr Gautam Mittal (P Regn No IBBb'IPA001/IPP01331/2016 19/12058) was appointed as Resolution Professional ('RP') replacing the IRP. Mr R^eev Goei in the matter ot Sanwaria Consumer Limited These financial statements have been prepared by Ihe management of the Company and certified by Mi Anil Vtshwakarma. Chief Financial Officer and approved by Resolution Professional Mr. Gautam Mittal (IP Regn No. IBBI/1PA-001.'F-P0133l/,201B-I9i'12058).
2 Significant Accounting Policies
2.1 Basis of Preparation
These financial statements have been prepared to comply m all material aspects with Indian Accounbng Standards find AS*) notified under the Companies (Indian Accounting Standaids) Rules, 2015 and Companies (Indian Accounting Standaids) Amendment Rules. 2016 notified under Section 133 of the Companies Act. 2013 ('the Act1) and other relevant provisions of the Act
Companys financial statements are presented in Indian Rupees ('), which is also its functional currency.
The financial statements are prepared on a historical cost bass except tor certain financial assets and liabilities mat are measured at fair value
2.2 Property. Plant and Equipment
Property, plant and equipment are slated at original cost net of tax/duty credit availed, less accumulated depreciation and accumulated impairment losses. If any When significant parts of properly, plant and equipment are required to be replaced at Intervals. Ihe Company derecognizes Ihe replaced pan, and recognises the new part with Its own associated useful life and it is depreciated accordingly All repair and maintenance costs are recognised in the statement of profit and loss as incurred.
Property, plant and equipment are eliminated from financial statements, either on disposal or when retired from active use Losses arising in the case of retirement ot property, plant and equipment and gains or losses arising from disposal ot property, plant and equipment are recognised in the statement of profit and loss in the year of occurrence
Depreciation on assets nas been provided on a straignt line oasis at the useful lives specified in the Schedule u ottne companies Act. 2013. Deprecation on additions/ deductions is calculated pro-rata from/ to the penod or additions.1 deductions.
The assets' residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate Currently the residual life is considered as 5% of the value of property plant and equipment
2.3 impairment ot Non-Financial Assets - Property, Plant and Equipment
The Company assesses at each reporting dale as to whether there is any indication that any property plant and equipmentand intangible assets or group of assets, called cash generating units (CGU) may be impaired If any such indication exists Ihe recoverable amount of an asset ot CGU is estimated to determine the extent of impairment, if any When it is not possible to estimate the recoverable amount of an individual asset ihe Company estimates the recoverable amount of the CGU to which Ihe asset belongs
An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset's carrying amount exceeds its recoverable amount. The recoverable amount is higher of an assets fair value less cost ot disposal ana value in use. value in use is based on the estimated future cash Hows, discounted to their present value using pre-tax discount rale that reflects current market assessments ot the time value of money and risk specific to the assets
2.4 Finance Cost
Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the Interest cost Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of suen assets. A qualifying asset is one mat necessarily takes substantial period of time to get ready tor its intended use.
interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation
All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred
2.8 Inventories
inventories are valued as under -
i Raw material. Stores & spares are valued at lower of cost (on FIFO basis) or net realisable value wmchever is lower, ii. Work in Process at cost including related overheads
iii Finished Goods & Stock In Trade are valued at cost or estimated realisable value whichever is lower Cost comprises material, labour and applicable overhead expenses
Cost of inventories comprises or cost or purchase, cost of conversion and othei costs including manufacturing overheads in bringing them to tneir respective present location and condition
2.8 Foreign Exchange Transactions
me Companys has not made any Foretng Exchange Transaoon dunng the year.
2.7 Revenue Recognition Sale of Goods
Revenue Horn sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer recovery of the consideration is probaDie. the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.
Interest Income
Interest is recognised on a time proportion taking Into account the amount outstanding and rale applicable Other Income
Other Income is recognised when right to receive is established
2.8 Employee Benefits
(i> Short Term Employee Benefits
All employee benefits failing due wholly within twelve months of rendering the service are classified as short term employee benefits The benefits like salaries, wages short term compensated absences etc and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service
(ii) Post-Employment Benefits
a) Defined Contribution Plans: The obligation to employee's piovldent fund is a defined contribution plan The contribution paid/payable is recognized in the period in which the employee renaers tne related service The company has defined contribution plans where the company pays pre-definea amounts and does not have any legal or constructive obligation to pay additional sums Tor post-employment benefits
b) Denned Benefit Plans: The obligation towards gratuity is a aenred benefit plan
T he present value or the obligation under such Defined Benefit Plans is determined based on actuarial valuation using the Projected unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation as per ND- AS 19. i e . "Employee Benefits”
The obligation is measured at the present value of the estimated future cash flows The discount rates used for determining the present value of the obligation under defined benefit plans is based on the market yields on Government securities as at the Balance sheet date having matunty periods approximating to the terms of related obligations.
Remeasurements, comprising of actuanal gains and losses, the effect of foe asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur Remeasurements are not reclassified to the statement of profit and loss In subsequent periods
2.9 Accounting for Taxes on Income
Due to loss incurred in current period no provision or focome Tax Provided
Deterred tax is
provided using the balance sheet approacn on temporary differences at tne reporting date between tne tax oases of assets and liabilities and their carrying amounts tor financial reporting purposes at the reporting date
Deferred tax assets and liabilities are measured al the tax tales that are expected to apply in the year when the asset Is realised or the liability is settled, based on tax rates (and lax laws} that have been enacted or substantively enacted at the reporting date
Deferred tax relating to items recognised outside the statement or profit and loss is recognised outside the statement of profit ana loss. Deterred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets agrmst currenl income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority
2.10 Financial instruments 2.10.1 Financial Assets
A. Initial recognition and measurement
All financial assets and liabilities are initially recogitzed at fair value. Transaction costs tnat are directly attributable to tne acquisition or issue or financial assets and financial uaoilioes. when are not at fair value through profit or loss, ate adjusted to tne fair value on initial recognition Purchase and sale of financial assets are recognised using trade date accounting
I. Financial assets carried at amortised cost (AC)
A financial asset Is measured at amortised cost IT it Is held within a business model whose objective Is to hold the asset in order lo ceded contractual cash nows ana the contractual terms of the financial asset give nse on specified dates to cash flows that ane solely payments of principal and interest on the pnncipai amount outstanding
II. Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at FVTOCI if it is held within a business model whose objective Is achieved by both coiieclng contiactual cash flows and selling financial assets and tne contractual terms or me financial asset grve nse on specified dates to cash flows that are solely payments or principal and interest on the principal amount outstanding
III. Financial assets at fair value through profit or loss (FVTPL)
A financial asset which is not classified in any of the above categories are measured at FVTPL
C. Investment in subsidiaries, Associates and Joint Ventures
A subsidiary Is an entity (hat is controlled by the Company The Company accounts for the Investments in equity shares of subsidiaries at cost in accordance with ind AS 27- separate Financial statements
D. Other Equity Investments
All other equity investments are measured at rad value with value changes recognised In Statement of Profit and Loss, except for those equity investments for wmch me Company nas elected to present me value changes in ‘Otner comprehensive income’.
E. Impairment of financial assets
In accordance with hd AS 109, the Company uses Expected Credit Loss (ECL) model, tor evalualng impairment of financial assets other than those measured at fairvaiue through profitand loss (FVTPL).
Expected credit losses are measured through a loss allowance at an amount equal to
- The 12-months expected credit losses (expected credit losses that result from tnose default events on the financial instrument mat ate possible within 12 months arier the reporting date), or
- Full lifetime expected credit losses ^expected creditlosses that result room ail possible default events over me life of tne financial instrument)
For trade receivables Company applies simplified approach' which requires expected Rfelime losses lo be recognised from initial recognition of the receivables The Company uses historical default rates to determine impairment loss on me portfolio or bade receivables. At every reporting date tnese nistoncai default rates are reviewed and changes in tne forward looKinq estimates are analysed.
For otner assets, tne Company uses 12 montn ECL to provide for impairment loss wnere mere is no significant increase in credit risk. V there is significant increase in credit risk fun lifetime ECL is used
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