1.1. Company overview:
Vishwaraj Sugar Industries Limited, a public limited company
incorporated under the provisions of the Companies Act,
1956 having its registered office at BelladBagewadi, Taluka
Hukkeri, Belgaum - 591305, Karnataka, India. The company's
operations comprises of Production of sugar, alcoholic spirits
by distillation including ethanol, blending and bottling of
Indian made foreign liquor (IMFL), vinegar and generation
of power.
These financial statements have been prepared using
presentation and disclosure requirements of the Schedule
III of Companies Act 2013 in conformity with the Ind AS
prescribed under section 133 of the Actread with the
Companies (Indian Accounting Standards) Rules,205, as
amended, ("Ind AS") and other accounting principles
generally accepted in India
1.2. Basis of preparation of financial statements
These financial statements are prepared in accordance with
Indian Accounting Standard (Ind AS), under the historical cost
convention on the accrual basis except for certain financial
instruments which are measured at fair values, the provisions
of the Companies Act, 2013 ("the Act") (to the extent
notified) and guidelines issued by the Securities and
Exchange Board of India (SEBI). The Ind AS are prescribed
under Section 133 of the Act read with Rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015 and
relevant amendment rules issued thereafter. Accounting
policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision
to an existing accounting standard requires a change in the
accounting policy hitherto in use. As the year-end figures
are taken from the source and rounded to the nearest digits,
the figures reported for the previous quarters might not
always add up to the year figures reported in this statement.
1.3. Use of estimates and judgments
The preparation of the financial statements in conformity
with Ind AS requires the Management to make estimates,
judgments and assumptions. These estimates, judgments
and assumptions affect the application of accounting policies
and the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at the date of
the financial statements and reported amounts of revenues
and expenses during the period. The application of
accounting policies that require critical accounting estimates
involving complex and subjective judgments and the use of
assumptions in these financial statements have been
disclosed in Note 1.4. Accounting estimates could change
from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as the
Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which
changes are made and, if material, their effects are disclosed
in the notes to the financial statements.
1.4. Critical accounting estimates and judgments
Revenue Recognition:
The Company recognizes revenue from Sale of Goods when
it transfers the property in Goods to the buyer for a price or
all significant risks and rewards of ownership has been
transferred to the buyer and no significant uncertainty exists
as to the amount of consideration that would be derived
from such sale. The recognition event is usually the dispatch
of goods to the buyer such that the Company retains no
effective control over the goods dispatched. Sales have been
stated exclusive of Excise Duty (except IMFL sales) and GST.
Other revenue is recognized only when it is reasonably
certain that the ultimate collection will be made. The same
is in compliance with Ind AS-18 to the extent applicable.
1.5. Property, plant and equipment
Property, plant and equipment represent a significant
proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining
an estimate of an asset's expected useful life and the
expected residual value at the end of its life. The useful lives
and residual values of Company's assets are determined by
the Management at the time the asset is acquired and
reviewed periodically, including at each financial year end.
The lives are based on reference with Schedule-II to the
Companies act,2013 and historical experience with similar
assets as well as anticipation of future events, which may
impact their life, such as changes in technology.
1.6. Leases
Interests in leasehold land are recorded and classified as
operating leases or finance leases as per set definition and
classification criteria. An important consideration is that the
land has an indefinite economic life. Ind AS 116 requires
lessees to determine the lease term as the non-cancellable
period of a lease adjusted with any option to extend or
terminate the lease, if the use of such option is reasonably
certain. The Company makes an assessment on the expected
lease term on a lease-by-lease basis and thereby assesses
whether it is reasonably certain that any options to extend
or terminate the contract will be exercised. In evaluating the
lease term, the Company considers factors such as any
significant leasehold improvements undertaken over the
lease term, costs relating to the termination of the lease and
the importance of the underlying asset. Short-term leases
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