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Company Information

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SULA VINEYARDS LTD.

04 July 2025 | 12:00

Industry >> Beverages & Distilleries

Select Another Company

ISIN No INE142Q01026 BSE Code / NSE Code 543711 / SULA Book Value (Rs.) 64.34 Face Value 2.00
Bookclosure 23/05/2025 52Week High 514 EPS 8.32 P/E 36.67
Market Cap. 2574.55 Cr. 52Week Low 243 P/BV / Div Yield (%) 4.74 / 0.00 Market Lot 1.00
Security Type Other

ACCOUNTING POLICY

You can view the entire text of Accounting Policy of the company for the latest year.
Year End :2025-03 

Note 2.1 Material Accounting Policies

i. Basis of Preparation

The standalone financial statements ("financials
statements") of the Company have been prepared to
comply in all material respects with the Indian Accounting
Standards ("Ind AS") as prescribed under Section 133 of
the Companies Act, 2013 (‘the Act') read with Companies
(Indian Accounting Standards) Rules as amended from
time to time notified under the Companies (Accounting
Standards) Rules, 2015 and other accounting principles
generally accepted in India.

The financial statements have been prepared under
the historical cost convention with the exception of
certain financial assets and liabilities and share based
payments in accordance with Ind AS and Presentation
and disclosure requirements of Division II of Schedule III
to the Companies Act, 2013 (Ind AS Compliant Schedule
III) as amended from time to time.

The Company's financial statements are reported in
Indian Rupees, which is also the Company's functional
currency, and all values are presented in INR crore,
except when otherwise indicated. Further, "0.00" denotes
amounts less than fifty thousand rupees.

ii. Operating cycle and current, non-current classification

Based on the nature of services and the time between
acquisition of assets for processing and their realisation in

cash and cash equivalents, the Company has ascertained
its operating cycle as twelve months for the purpose of
current/ non-current classification of assets and liabilities.
The Company presents assets and liabilities in the Balance
Sheet based on current/ non-current classification.

An Asset is Current when:

• It is expected to be realised in normal operating
cycle.

• It is held primarily for the purpose of trading.

• It is expected to be realised within twelve months
after the reporting period, or

• It is cash or cash equivalent.

All other assets are classified as non-current.

A Liability is current when:

• It is expected to be settled in normal operating cycle.

• It is held primarily for the purpose of trading.

• It is 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.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non¬
current assets and non-current liabilities respectively.

iii. Accounting Estimates

The preparation of the financial statements, in conformity
with the recognition and measurement principles of Ind
AS, requires the management to make estimates and
assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities
as at the date of financial statements and the results
of operation during the reported period. Although
these estimates are based upon management's best
knowledge of current events and actions, actual results
could differ from these estimates which are recognised
in the period in which they are determined.

iv. Critical estimates and judgements

Management believes that the estimates used in the
preparation of the financial statements are prudent
and reasonable. Information about the estimates and
judgements made in applying accounting policies that
the most significant effect on the amount recognised in
the financial statements are as follows:

Estimates

a) Useful lives of property, plant and equipment and
intangible assets

The Company has estimated the useful life of each class of
assets based on the nature of assets, the estimated usage
of the asset, the operating condition of the asset, past
history of replacement, anticipated technological changes,
etc. The Company reviews the estimated useful lives and
residual values of the assets at each reporting period. This
reassessment may result in change in depreciation and
amortisation expense in the future periods.

b) Income Taxes

The tax jurisdictions for the Company is India. Significant
judgments are involved in determining the provision for
income taxes includingjudgment on whether tax positions
are probable of being sustained in tax assessments. A tax
assessment can involve complex issues, which can only be
resolved over extended time periods. The recognition of
taxes that are subject to certain legal or economic limits
or uncertainties is assessed individually by management
based on the specific facts and circumstances.

Deferred tax assets are recognised to the extent it is
probable that the underlying tax loss or deductible
temporary difference will be utilised against future
taxable income. This is assessed based on the Company's
forecast of future operating results, adjusted for
significant non-taxable income and expenses and
specific limits on the use of any unused tax loss or credit.
The carrying amounts of deferred tax assets are reviewed
at the end of each reporting period and adjusted to the
extent that it is no longer probable that sufficient taxable
profit will be available to allow the benefit of part or all of
that deferred tax asset to be utilised.

c) Provision and Contingencies

The assessments undertaken in recognizing provisions
and contingencies have been made in accordance
with the applicable Ind AS. A provision is recognized if,
as a result of a past event, the Company has a present
legal or constructive obligation that can be estimated
reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation. Where
the effect of time value of money is material, provisions
are determined by discounting the expected future

cash flows. In the normal course of business, contingent
liabilities may arise from litigation and other claims
against the Company. There are certain obligations
which management has concluded, based on all available
facts and circumstances, are not probable of payment or
are very difficult to quantify reliably, and such obligations
are treated as contingent liabilities and disclosed in the
notes but are not reflected as liabilities in the financial
statements. Although there can be no assurance
regarding the final outcome of the legal proceedings
in which the Company is involved, it is not expected
that such contingencies will have a material effect
on its financial position or profitability. Provisions and
contingent liabilities are reviewed at each balance sheet
date and adjusted to reflect the current best estimate.

d) Share based payments

The Company uses the most appropriate valuation model
depending on the terms and conditions of the grant, including
the expected life of the share option and volatility. The
assumptions and models used for estimating fair value for share-
based payment transactions are disclosed in Note 42.

e) Accounting for defined benefit plans

In accounting for post-retirement benefits, several
statistical and other factors that attempt to anticipate
future events are used to calculate plan expenses and
liabilities. These factors include expected discount rate
assumptions and rate of future compensation increases.
To estimate these factors, actuarial consultants also use
estimates such as withdrawal, turnover, and mortality
rates which require significant judgment. The actuarial
assumptions used by the Company may differ materially
from actual results in future periods due to changing
market and economic conditions, regulatory events,
judicial rulings, higher or lower withdrawal rates, or longer
or shorter participant life spans.

f) Impairment of non-financial assets

An impairment loss is recognised for the amount by which an
assets or cash-generating unit's carrying amount exceeds its
recoverable amount to determine the recoverable amount,
management estimates expected future cash flows from
each asset or cash generating unit and determines a
suitable interest rate in order to calculate the present value
of those cash flows. In the process of measuring expected
future cash flows, management makes assumptions about
future operating results. These assumptions relate to future
events and circumstances. The actual results may vary and
may cause significant adjustments to the Company's assets.
In most cases, determining the applicable discount rate
involves estimating the appropriate adjustment to market
risk and the appropriate adjustment to asset-specific risk
factors.

In accordance with Ind AS 109, the Company applies the
expected credit loss ("ECL") model for measurement and
recognition of impairment loss on financial assets and credit
risk exposures.

The Company follows ‘simplified approach' for recognition of
impairment loss allowance on trade receivables. Simplified
approach does not require the Company to track changes
in credit risk. Rather, it recognises impairment loss allowance
based on lifetime ECL at each reporting date, right from its
initial recognition.

For recognition of impairment loss on other financial assets
and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since
initial recognition. If credit risk has not increased significantly,
12-month ECL is used to provide for impairment loss. However,
if credit risk has increased significantly, lifetime ECL is used.
If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in
credit risk since initial recognition, then the entity reverts to
recognising impairment loss allowance based on 12-month
ECL.

ECL is the difference between all contractual cash flows that
are due to the Company in accordance with the contract and
all the cash flows that the entity expects to receive (i.e., all cash
shortfalls), discounted at the original EIR. Lifetime ECL are
the expected credit losses resulting from all possible default
events over the expected life of a financial instrument. The
12-month ECL is a portion of the lifetime ECL which results
from default events that are possible within 12 months after
the reporting date.

ECL impairment loss allowance (or reversal) recognised
during the period is recognised as income/ expense in the
Statement of Profit and Loss.v. Property, Plant and Equipment

v. Property, Plant and Equipment

Property, Plant and Equipment are stated at cost of
acquisition including attributable interest and finance
costs, if any, till the date of acquisition/ installation of the
assets less accumulated depreciation and accumulated
impairment losses, if any. Subsequent expenditure
relating to Property, Plant and Equipment is capitalised
only when it is probable that future economic benefits
associated with the item will flow to the Company and
the cost of the item can be measured reliably. All other
repairs and maintenance costs are charged to the
Statement of Profit and Loss as incurred. The cost and
related accumulated depreciation are eliminated from
the financial statements, either on disposal or when
retired from active use and the resultant gain or loss are
recognised in the Statement of Profit and Loss.

Bearer plants comprising of grapevines are stated at
cost less accumulated depreciation and accumulated
impairment losses. Immature bearer plants, including
the cost incurred for procurement of new seeds and
maintenance of nurseries, are carried at cost less any
recognized impairment losses under capital work-in¬
progress. Cost includes the cost of land preparation, new
planting and maintenance of newly planted bushes until
maturity. On maturity, these costs are classified under
bearer plants.

vi. Capital work-in-progress

Capital work-in-progress representing expenditure
incurred in respect of assets under development and
not ready for their intended use, are carried at cost. Cost
includes related acquisition expenses, construction cost,
related borrowing cost and other direct expenditure.

vii. Intangible Assets

Intangible assets are stated at cost, only when it is probable
that future economic benefits associated with the item
will flow to the Company and the cost of the item can
be measured reliably, less accumulated amortisation and
accumulated impairment losses, if any. Other Intangible
assets mainly comprise of implementation cost for
software and other application software acquired.

viii. Depreciation and Amortisation

Depreciation on Property, plant and equipment (‘PPE')
is calculated using the straight-line method as per the
estimated useful lives of assets as below:

Asset category

Useful life (in
years)

Basis of

determination of
useful lives

Building

30 - 60

Assessed to be in
line with Schedule II
to the Act

Leasehold

improvement

Over the lease
period

-

Plant and equipment

10 - 25

Assessed to be in
line with Schedule II
to the Act

Furniture and fixtures

5 -10

Management

estimateA

Vehicles

8 -10

Assessed to be in
line with Schedule II
to the Act

Office equipment

3 - 10

Management

estimateA

Computers

3 -6

Assessed to be in
line with Schedule II
to the Act

Oak barrels

4

Management

estimateA

Bearer plants

20

Management

estimateA

A Useful lives of asset classes determined by management
estimate, which are generally lower than those prescribed
under Schedule II to the Act are supported by internal
technical assessment of the useful lives.

The estimated useful lives and residual values are
reviewed at the end of each reporting period, with the
effect of any change in estimate accounted for on a
prospective basis.

Depreciation on additions is provided on a pro-rata basis
i.e. from the date on which asset is ready for use.

Gains and losses on disposals are determined by
comparing proceeds with the carrying amounts. These
are accounted in Statement of profit and loss within
Other income/ Other expenses.

xv. Amortisation on Intangible Assets

Intangible assets are amortised on a straight-line basis,
from the date they are available for use, over their
estimated useful lives as below.

Basis of

Asset category

Useful life (in years)

determination of
useful lives

Brand

5

Management

estimate

Assessed to be in

Computer software

3-6

line with Schedule II
to the Act

ix. Fair Value Measurement

The Company measures financial instruments, at fair
value at each balance sheet date. (Refer note 34).

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the
liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximising the
use of relevant observable inputs and minimising the
use of unobservable inputs. All assets and liabilities for
which fair value is measured or disclosed in the financial
statements are categorized within the fair value hierarchy,
described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole:

Level 1 - Quoted prices (unadjusted) in active markets
for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from
prices).

Level 3 - Inputs for the assets or liabilities that are not
based on observable market data (unobservable inputs).

For assets and liabilities that are recognised in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to
the fair value measurement as a whole) at the end
of each reporting period. At each reporting date, the
Management analyses the movements in the values of
assets and liabilities which are required to be remeasured
or re-assessed as per the Company's accounting policies.
For this analysis, the Management verifies the major
inputs applied in the latest valuation by agreeing the
information in the valuation computation to contracts
and other relevant documents. The Management also
compares the change in the fair value of each asset
and liability with relevant external sources to determine
whether the change is reasonable.

x. Financial Instruments

Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the financial instrument.

Initial measurement, classification and subsequent
measurement of financial assets

Except for those trade receivables that do not contain
a significant financing component and are measured at
the transaction price in accordance with Ind AS 115, all
financial assets are initially measured at fair value plus,
in case of financial assets other than classified as fair
value through profit and loss account, transaction costs
that are attributable to the acquisition of financial asset.
The Company applies Expected Credit Loss (ECL) model
for measurement and recognition of impairment loss.
Different criteria to determine impairment are applied
for each category of financial assets, which are described
below.

Financial assets, other than those designated and
effective as hedging instruments, are classified into one
of the following categories:

• Amortised cost

• fair value through profit or loss (FVTPL), or

• fair value through other comprehensive income (FVOCI)
The classification is determined by both:

• the entity's business model for managing the
financial asset, and

• the contractual cash flow characteristics of the
financial asset

All revenue and expenses relating to financial assets
that are recognised in profit or loss are presented within
finance costs or other income, except for impairment of
trade and other receivables which is presented within
other expenses'. Interest income and expenses are
reported on an accrual basis using the effective interest
method.

For purposes of subsequent measurement, financial
assets are classified in three categories:

Financial assets at amortised cost

Financial assets are measured at amortised cost if
the assets meet the following conditions (and are not
designated as FVTPL):

• they are held within a business model whose
objective is to hold the financial assets and collect its
contractual cash flows, and;

• the contractual terms of the financial assets give rise
to cash flows that are solely payments of principal
and interest on the principal amount outstanding.

After initial recognition, these are measured at amortised
cost using the effective interest method.

The Company accounts for financial assets at FVOCI if
the assets meet the following conditions:

• they are held under a business model whose
objective it is "hold to collect" the associated cash
flows and sell, and

• the contractual terms of the financial assets give rise
to cash flows that are solely payments of principal
and interest on the principal amount outstanding

Financial assets at FVTPL

Financial assets held within a different business model
other than ‘hold to collect' or ‘hold to collect and sell'
are categorised at FVTPL. Further, irrespective of the
business model used, financial assets whose contractual
cash flows are not solely payments of principal and
interest are accounted for at FVTPL. All derivative
financial instruments fall into this category, except for
those designated and effective as hedging instruments,
for which the hedge accounting requirements apply.

For all equity investments the Company accounts for
the investment at FVTPL. The fair value is determined
in line with the requirements of Ind AS 113 ‘Fair Value
Measurement'.

Assets in this category are measured at fair value with
gains or losses recognised in profit or loss. The fair values
of financial assets in this category are determined
by reference to active market transactions or using a
valuation technique where no active market exists.

De-recognition of Financial Assets

The Company de-recognises a financial asset only when the
contractual rights to the cash flows from the asset expire, or
it transfers the financial asset and substantially all risks and
rewards of ownership of the asset to another entity.

If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to
control the transferred asset, the Company recognizes its
retained interest in the assets and an associated liability
for amounts it may have to pay.

If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset,
the Company continues to recognise the financial asset
and also recognises a collateralised borrowing for the
proceeds received.

b) Equity Instruments and Financial Liabilities

Financial liabilities and equity instruments issued by
the Company are classified according to the substance
of the contractual arrangements entered into and the
definitions of a financial liability and an equity instrument

Equity Instruments

An equity instrument is any contract that evidences
a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments which
are issued for cash are recorded at the proceeds received,
net of direct issue costs. Equity instruments which are
issued for consideration other than cash are recorded at
fair value of the equity instrument.

Financial Liabilities

• Initial Recognition

Financial liabilities are classified, at initial recognition,
as financial liabilities at FVPL, loans and borrowings
and payables as appropriate. All financial liabilities are
recognised initially at fair value and, in the case of loans
and borrowings and payables, net of directly attributable
transaction costs.

• Subsequent Measurement

The measurement of financial liabilities depends on their
classification, as described below

Financial liabilities at FVPL:

Financial liabilities at FVPL include financial liabilities
held for trading and financial liabilities designated
upon initial recognition as at FVPL. Financial liabilities
are classified as held for trading if they are incurred for
the purpose of repurchasing in the near term. Gains or
losses on liabilities held for trading are recognised in the
Statement of Profit and Loss.

Financial liabilities at amortised cost

After initial recognition, interest-bearing borrowings
and other payables are subsequently measured at
amortised cost using the EIR method. Gains and losses
are recognised in statement of profit and loss when
the liabilities are derecognised as well as through the
EIR amortisation process. Amortised cost is calculated
by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included as finance costs
in the statement of profit and loss.

• De-recognition of Financial Liabilities

Financial liabilities are de-recognised when the obligation
specified in the contract is discharged, cancelled or
expired. When an existing financial liability is replaced by
another from the same lender on substantially different
terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as
de-recognition of the original liability and recognition of
a new liability. The difference in the respective carrying
amounts is recognised in the Statement of Profit and Loss.

xi. Inventories

Inventories which comprise of raw materials, work-in-progress
/ semi-finished goods, finished goods, stock-in-trade, packing
materials and consumables, chemicals, stores and spares
are carried at the lower of cost or net realisable value. The
comparison of cost and net realisable value is made on an
item-by-item basis.

Cost of inventories comprises all costs of purchase, cost of
conversion and other costs incurred in bringing the inventories
to their present location and condition. Costs of purchased
inventory are determined after deducting rebates and
discounts. The cost is determined as follows:

• Raw Materials, Traded goods, Packing Materials and
Consumables, chemicals, stores and spares are valued
using the weighted average method.

• Finished goods and work-in-progress / semi-finished
goods are valued at the cost of raw materials along with
fixed production overheads being allocated on the basis
of normal capacity of production facilities.

• The net realisable value of work-in-progress is determined
with reference to the selling prices of related finished goods.

• Raw materials, components and other supplies held for
use in the production of finished products are not written
down below cost except in cases when a decline in the
price of materials indicates that the cost of the finished
products shall exceed the net realisable value.

• The comparison of cost and net realisable value is made
on an item-by-Item basis.

• Obsolete, slow moving and defective inventories are
identified and written down to net realisable valuexii.
Revenue Recognition.

xii. Revenue Recognition

Revenue comprises revenue from contracts with
customers for sale of goods and revenue from sale of
services representing revenue from hospitality services.
Revenue towards satisfaction of a performance obligation
is measured at the amount of transaction price (net of
variable consideration) allocated to that performance
obligation. The transaction price of goods sold or services
rendered is net of of variable consideration of various
discounts and schemes offered by the Company as part
of the contract. Revenue from sale of goods is net of
returns, trade allowances, rebates, value added taxes and
such amounts collected on behalf of third parties with an
exception for excise duties. The Company has assumed
that recovery of excise duty flows to the Company on
its own account and hence is a liability of the Company
irrespective of whether the goods are sold or not
.Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless of
when the payment is being made. Revenue is recognised
as and when performance obligations are satisfied by
transferring goods or services to the customer, as below:

(a) Revenue from sale of products

Revenue is recognised on transfer of control, being
on dispatch of goods or upon delivery to customer, in
accordance with the terms of sale.

(b) Revenue from sale of services

Revenue from sale of services represents revenue from
hospitality services which mainly comprise of sale of room
nights, food and beverages and allied services relating to
the resort and winery. Revenue is recognized at a point in
time when the services are rendered.

(c) Interest Income

Interest income is recognized using the effective interest
rate method. The effective interest rate is the rate that
discounts estimated future cash receipts through the
expected life of the financial asset to the gross carrying
amount of the financial asset. Interest income is included
under the head "other income" in the Statement of Profit
and Loss.

(d) Dividend Income

Dividend income is recognised when the right to receive
payment has been established, provided that it is probable
that the economic benefits will flow to the Company and
the amount of income can be measured reliably.

(e) Other Income

Other items of income are accounted as and when the
right to receive such income arises and it is probable that
the economic benefits will flow to the Company and the
amount of income can be measured reliably

xiii. Government Grants

Grants and subsidies from the Government are recognised
when there is reasonable assurance that the grant / subsidy
will be received and all attaching conditions are complied
with. Government grants related to revenue under Wine
Industry Promotion Subsidy linked with Value Added Tax,
are recognised in the Statement of Profit and Loss in the
period in which they become receivable. Where the grant
or subsidy relates to an asset (i.e. Export Promotion Capital
Goods scheme), it is presented in the balance sheet by
setting up the grant as deferred income which is recognised
as income in the statement of profit and loss over the useful
life of the related assets. Government grants related to
assets are treated as deferred income and are recognized
in the net profit in the Statement of Profit and Loss over
the useful life of the assets.

xiv. Borrowing

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently

measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in Statement of profit and loss
over the period of the borrowings using the effective
interest method. Borrowings are derecognised 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 non-cash assets
transferred or liabilities assumed, is recognised 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.

xv. Employee Benefits

a) Defined Contribution Plan

Contributions to defined contribution schemes such as
provident fund, employees' state insurance, labour welfare
fund are charged as an expense based on the amount of
contribution required to be made as and when services are
rendered by the employees. Company's provident fund
contribution, in respect of certain employees, is made to a
government administered fund and charged as an expense
to the Statement of Profit and Loss. The above benefits
are classified as Defined Contribution Schemes as the
Company has no further obligations beyond the monthly
contributions.

b) Defined Benefit Plan

The Company provides for gratuity which is a defined
benefit plan the liabilities of which is determined based
on valuations, as at the balance sheet date, made by an
independent actuary using the projected unit credit
method. Re-measurement, comprising of actuarial gains
and losses, in respect of gratuity are recognised in the
OCI, in the period in which they occur and is not eligible
to be reclassified to the Statement of Profit and Loss
in subsequent periods. Past service cost is recognised
in the Statement of Profit and Loss in the year of plan
amendment or curtailment. The classification of the
Company's obligation into current and non-current is as per
the actuarial valuation report.

c) Leave entitlement and compensated absences

Accumulated leave which is expected to be utilised
within next twelve months, is treated as short-term
employee benefit. Leave entitlement, other than short
term compensated absences, are provided based on
a actuarial valuation, similar to that of gratuity benefit.
However, as the Company does not have an unconditional
right to defer settlement for these obligations, the above
liabilities are presented as current. Re-measurement,
comprising of actuarial gains and losses, in respect of
leave entitlement are recognised in the Statement of
Profit and Loss in the period in which they occur.

d) Short-term benefits

Short-term employee benefits such as salaries, wages,
performance incentives etc. are recognised as expenses
at the undiscounted amounts in the Statement of Profit
and Loss of the period in which the related service is
rendered. Expenses on non-accumulating compensated
absences is recognised in the period in which the
absences occur.

xvi. Share Based Payments

Share based compensated benefits are provided to
certain grades of employees in consideration of the
services rendered. Under the equity settled share
based payment, the fair value on the grant date of
the instrument given to employees is recognised as
‘employee benefits expenses' with a corresponding
increase in equity over the vesting period, which is the
period over which all the specified vesting conditions
are to be satisfied. The fair value of the options at the
grant date is calculated by an independent valuer basis
Black Scholes model. At the end of each period, the
entity revises its estimates of the number of options that
are expected to vest based on the non-market vesting
and service conditions. It recognizes the impact of the
revision to original estimates, if any, in profit or loss, with
a corresponding adjustment to equity. Upon exercise of
share options, the proceeds received are allocated to
share capital up to the par value of the shares issued with
any excess being recorded as securities premium.

xvii. Leases

The Company's lease asset classes primarily consist of leases for

land and warehouses. The Company assesses whether a contract
contains a lease, at inception of a contract. A contract is, or contains,
a lease if the contract conveys the right to control the use of an
identified asset fora period of time in exchange of the consideration.

At the date of the commencement of the lease, the Company
recognises a right-of-use asset representing its right to use the
underlying asset for the lease term and a corresponding lease
liability for all the lease arrangements in which it is a lease, except
for leases with a term of twelve months or less (short-term leases)
and low value leases. For these short-term and low value leases, the
Company recognises the lease payments as an operating expense
on a straight-line basis over the period of the lease:

The right-of-use assets are initially recognised at cost, which
comprises the initial amount of the lease liability adjusted for any
lease payments made at or prior to the commencement date of
the lease. They are subsequently measured at cost less accumulated
depreciation and impairment losses. Right-of-use assets are
depreciated from the commencement date on a straight-line basis
over the shorter of the lease term and useful life of the underlying
asset. The estimated useful life of the assets are determined on the
same basis as those of property, plant and equipment.

Right-of-use assets are evaluated forrecoverabilitywhenever events
or changes in circumstances indicate that their carrying amounts
may not be recoverable. Carrying amount of right-of-use asset is
written down immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated recoverable amount.

Thelease liabilityis initiallymeasured at amortized cost at the present
value of the future lease payments. The future lease payments
are discounted using the interest rate implicit in the lease or, if not
readily determinable, using the incremental borrowing rates. For
a lease with reasonably similar characteristics, the Company, on a
lease by lease basis, may adopt either the incremental borrowing
rate specific to the lease or the incremental borrowing rate for the
portfolio as a whole.

Right-of-use assets and lease liabilities have been separately
presented in the Balance Sheet. Further; lease payments have been
classified as financing cash flows.

xviii. Income Tax

Income tax comprises of current and deferred income
tax. Income tax is recognised as an expense or income
in the Statement of Profit and Loss, except to the extent
it relates to items directly recognised in equity or in OCI.

a) Current Income Tax

Current income tax is recognised based on the estimated
tax liability computed after taking credit for allowances
and exemptions in accordance with the Income Tax Act,
1961. Current income tax assets and liabilities are measured
at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used
to compute the amount are those that are enacted or
substantively enacted, at the reporting date.

b) Deferred Income Tax

Deferred tax is determined by applying the Balance Sheet
approach. Deferred tax assets and liabilities are recognised
for all deductible temporary differences between the
financial statements' carrying amount of existing assets and
liabilities and their respective tax base. Deferred tax assets
and liabilities are measured using the enacted tax rates or
tax rates that are substantively enacted at the Balance Sheet
date. The effect on deferred tax assets and liabilities of a
change in tax rates is recognised in the period that includes
the enactment date. Deferred tax assets are only recognised
to the extent that it is probable that future taxable profits
will be available against which the temporary differences can
be utilised. Such assets are reviewed at each Balance Sheet
date to reassess realisation.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities. Current tax assets and tax
liabilities are offset where the entity has a legally
enforceable right to offset and intends either to
settle on a net basis, or to realise the asset and settle
the liability simultaneously.

xix. Operating Segments

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker. The chief operating
decision maker regularly monitors and reviews the
operating result of the whole Company as one segment
of "Manufacture and sale of alcoholic beverages (wines
and spirits)". Thus, as defined in Ind AS 108 "Operating
Segments", the Company's entire business falls under
this one operational segment and hence the necessary
information has already been disclosed in the Balance
Sheet and the Statement of Profit and Loss.