ii) It represents the proposed manufacturing plant at one of the state in India, which is under construction and is temporarily suspended as at reporting date. As per the terms of the allotment letter, the Company had to commence civil construction within six months of possession date and start commercial production within two years from possession date. However, due to delays in obtaining clearances from respective authorities, the construction work could not commence resulting in delay in project. During the current year, the Company filed an application with respective State Industrial Development Corporation for extension of the moratorium period by one year which was approved in the month of August 2024 and further, filed an application for changing the plant configuration which will result in the increased fund outlays from initial budgeted plan. The said application was also approved in the month of January, 2025 by respective State Industrial Development Corporation. Accordingly, the management will resume development of the said project and therefore, the project has been disclosed as ‘temporarily suspended' as at reporting date.
1 During the prior year, the Company made an initial investment of T 377.03 lacs in Bored Beverages Private Limited by subscribing to 524,999 compulsorily convertible preference shares and 1 equity share. During the current year, the Company infused additional amount of T 222.96 lacs by subscribing to 384,429 compulsorily convertible preference shares. The Company currently holds 51.13% (38.08% as at March 31, 2024) ownership interest on a fully diluted basis.
2 Impairment assessment of Bored Beverages Private Limited
The management of the Company has performed an impairment assessment as at March 31,2025 as per the requirements of Ind AS 36. The recoverable amount was determined using the value in use (‘VIU') approach and no impairment was identified as the recoverable amount exceeded its carrying amount. The impairment assessment was undertaken with reference to the latest business plan that was in effect as at March 31, 2025 which includes a five-year cash flow forecast and contains growth rates that are primarily a function of the management's assumptions, historic performance and management's expectation of future market developments.
Nature and purpose of reserves:
(ii) Terms/rights attached to equity shares:
The Company has only one class of equity shares having a par value of T 10 per share. Each holder of equity share is entitled to one vote per share and carry a right to dividend. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.
a) Capital reserve
It comprise of the difference between the purchase consideration paid by the Company and the fair value of the identifiable net assets of the acquired company in a business combination transaction.
b) Securities premium
Represents the premium on issue of shares and can be utilised in accordance with the provisions of the Companies Act, 2013.
c) General reserve
Created through an annual transfer of net income at specified percentage in accordance with erstwhile Companies Act, 1956. There is no such mandatory requirement under Companies Act, 2013.
d) Retained earnings
Represents the profits that Company has earned till date less transfers to general reserve dividends or other distributions paid to shareholders. It includes re-measurement loss / (gain) on defined benefit plans (net of taxes) that will not be reclassified to the standalone statement of profit and loss.
(a) For part financing capital expenditure towards setting up a new distillery at West Bengal for enhancement of their ethanol distillation capacity or to set up distillers for producing first generation ethanol from feed stocks such as cereals, sugarcane, sugar beet etc. The loan had a moratorium of 1 year and repayment started from July 2022 onwards and is repayable in 48 equal instalments.
(b) For part financing capital expenditure towards setting up a new distillery at Jharkhand and is also approved under NABARD's Interest Subvention Scheme for extending financial assistance to project and reimbursement of cost of enhancement of their ethanol distillation capacity or to set up distillers for producing first generation ethanol from feed stocks such as cereals, sugarcane, sugar beet etc. The loan had a moratorium of 1 year and repayment started from March 2023 onwards and is repayable in 48 equal instalments.
(c) For part financing of the capital expenditure to be incurred by the Company towards the setting up the grains/molasses/cane juice based Ethanol distillery of 150 KLPD located to be established at Lakhimpur Kheri, Uttar Pradesh and towards the reimbursement of the capital expenditure incurred by the Company in relation to the Project, not more than 12 months prior to April 19, 2023. The loan had a moratorium of 1 year and is repayable in 48 equal instalments.
(d) For part financing of the capital expenditure to be incurred by the Company towards the setting up the ENA distillation plant of 60 KLPD located to be established at Lakhimpur Kheri, Uttar Pradesh, towards the reimbursement of the capital expenditure incurred by the Company in relation to the Project, not more than 12 months prior to May 20, 2024 and any transaction related expenditure incurred in relation to the facility. The loan had a moratorium of 1 year and is repayable in 48 equal instalments.
(e) The loan was obtained for various capital expenditure to be incurred for the purpose of process improvements by the Company across various plants. The said loan is a general purpose corporate loan and may be used for both capital expenditure as well as day to day operations requirement. The loan had a moratorium of 6 months and repayment started from September, 2024 onwards and is repayable in 60 equal monthly instalments.
(f) The above mentioned secured rupee term loans are secured by:
- First pari passu charge on property, plant and equipment and equitable mortgage of Freehold land and Factory building of the plants at Behror, Samalkha, West Bengal, Jharkhand and Bihar.
- Second pari passu charge by way of extension of charge on all the current assets of the Company.
- Letter of comfort from Chandbagh Investments Limited."
6 Interest rate on cash credit facilities ranges from 8.15% - 9.25% p.a. and are secured by:
First pari passu charge by way of hypothecation of entire present and future current assets including stocks and book debts and;
Second pari passu charge by way of extension of charge on all the immovable assets of the Company including equitable mortgage of Freehold land and Factory building at Behror, Samalkha, West Bengal and Bihar.
35
|
Commitments and contingencies
|
|
|
|
|
|
(a)
|
Contingent liabilities (to the extent not provided for)
|
|
|
|
|
|
|
As at March 31, 2025
|
As at March 31, 2024
|
|
Particulars
|
Amount
disputed
|
Deposited under protest
|
Provision for expected liability
|
Amount
disputed
|
Deposited
under
protest
|
Provision for expected liability
|
|
(I) Disputed tax liabilities:
|
|
|
|
|
|
|
|
- Income-tax matters
|
|
|
|
|
|
|
|
Assessment years 2021-2022, 2022-2023 and 2023-2024 (refer note 46)
|
4,093.82
|
3,043.76
|
|
4,093.00
|
532.49
|
|
|
Assessment year 2017-18 (refer note 1)
|
196.61
|
-
|
-
|
196.61
|
-
|
-
|
|
- Goods and Services Tax matters (refer note 2)
|
|
|
|
|
|
|
|
Financial years 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22
|
1,992.42
|
1,992.42
|
-
|
1,989.97
|
1,989.97
|
-
|
|
Financial years 2017-18, 2018-19, 2019-20 and 2020-21
|
702.22
|
702.22
|
-
|
702.22
|
702.22
|
-
|
|
Financial year 2020-21
|
189.46
|
189.46
|
-
|
189.46
|
189.46
|
-
|
|
Financial year 2021-22
|
561.61
|
561.61
|
-
|
561.61
|
561.61
|
-
|
|
Financial year 2023-24 (refer note 3)
|
6.24
|
6.24
|
-
|
6.24
|
6.24
|
-
|
|
- Haryana Value Added Tax matter (refer note 4)
|
|
|
|
|
|
|
|
Financial years 2010-11, 201112, 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17
|
1,084.01
|
|
|
1,084.01
|
|
|
|
- Excise duty matter (refer note 5)
|
|
|
|
|
|
|
|
Financial years 2004-05, 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10
|
142.05
|
|
|
142.05
|
|
|
|
Financial year 1995-96
|
27.64
|
-
|
-
|
27.64
|
-
|
-
|
|
Financial year 1996-97
|
11.12
|
-
|
-
|
11.12
|
-
|
-
|
|
Financial year 2022-23
|
-
|
4.59
|
-
|
-
|
4.59
|
-
|
|
- Service Tax matter (refer note 6)
|
|
|
|
|
|
|
|
Financial years 2013-14, 2014-15, 2015-16 and 2016-17
|
12.59
|
-
|
-
|
12.59
|
-
|
-
|
|
(II) Consumer claims/suits (refer note 7)
|
|
|
|
|
|
|
|
Financial years 2004-05, 2005-06, 2007-08, 2008-09 and 2009-10
|
324.68
|
-
|
-
|
324.68
|
-
|
-
|
Notes:
1 The Company has ongoing proceedings under Income-tax Act, 1961 in respect of income-tax liability arising on account of unexplained cash deposited during demonetization period under Section 115BBE of Income-tax Act, 1961. The Company has filed an appeal in the aforesaid matter before Commissioner of Income-tax (Appeals). Basis legal opinion obtained, the management is confident that ultimately no liability will devolve on the Company and accordingly no provision for any liability has been made in the standalone financial statements.
2 On June 26, 2020, Directorate General of Goods and Services Tax Intelligence (‘DGGI') carried out search and seizure proceedings at various premises of the Company. Pursuant to this and during the investigation proceedings, the Company deposited T 3,445.71 lacs comprising of tax demand of T 2,741.04 lacs, T 450.61 lacs towards interest and T 254.06 lacs towards penalty under protest towards tax demand which may arise on account of issue regarding classification of one of the item sold by the Company (Animal Feed Supplement). Subsequently, The Ministry of Finance, Department of Revenue vide its Circular No. 163/19/2021-GST dated October 6, 2021 provided clarification on the classification of the said item and the Company has started collecting and depositing GST under protest on the said item from its customers w.e.f October 11,2021. The Company has filed writ petitions on the above classification matter and seeking refund of the amount deposited and challenging the constitutional validity of imposing GST on the said item before Hon'ble High Court of Delhi. Proceedings in respect of above matters are in progress before Hon'ble High Court of Delhi and on the basis of legal opinion obtained, the management is confident that ultimately no liability will devolve on the Company and it will be able to get the refund of GST amount from the GST Department and accordingly no provision for any liability has been made in the standalone financial statements.
3
|
The vehicle was detained on October 25, 2023 and a penalty was levied for non-generation of E-way Bill towards sale of ENA (‘Non-GST Supply’). The Company was of the opinion that since GST is not applicable on ENA so no E-way bill was required to be generated on such supply.
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4
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The Company has ongoing proceedings under Haryana Value Added Tax Act, 2003 in respect of tax liability arising on account of issue regarding classification of one of the item sold by the Company for the year 2010-11 to 2016-17 in Samalkha involving amount of T 758.44 lacs and for the year 2010-11 to 2012-13 in Hisar involving amount of T 325.57 lacs. The Company has filed appeals against the demand orders received in respect of these proceedings, which are pending for disposal at various judicial forums. The Company has already filed an appeal before appropriate authority dated November 14, 2019. Further, there is no update during the current year in the aforesaid matters.
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5
|
Out of T 180.81 lacs above, T 142.05 lacs pertains to financial year 2004-05 to 2009-10 in which Company filed a writ against the demand raised by the Rajasthan Excise Department under Section 22 and Section 12 of the Rajasthan Excise Act, 1950 and Rules, 1956 of transport permit fee under Section 69 of the Rules for transportation / captive consumption of goods (Rectified Spirits used in the manufacture of liquor) within the factory premises. These matters are still pending for next hearing.
Further, T 27.64 lacs and T 11.12 lacs pertains to financial year 1995-96 and financial year 1996-97 respectively wherein excise department provided a ratio of use of old and new glass bottles and provided with a penalty for excess of use of old bottles. The case is pending sine die
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6
|
The Company received a tax demand of T 68.60 lacs from the Office of Commissioner of Central Tax (CE and GST) on March 31, 2021. An appeal was filed with the Commissioner (Appeals), Panchkula, on February 9, 2023, remanded the case for re-determination of tax liability. However, the adjudicating authority’s revised order on August 31, 2023 and maintained the original demand. A further appeal led to a reduction of the demand to T 12.59 lacs by the Commissioner (Appeals) on December 27, 2023. Basis legal opinion obtained, the management is confident that ultimately no liability will devolve on the Company and accordingly no provision for any liability has been made in the standalone financial statements.
|
7
|
Consumer claims/suits filed against the Company not acknowledged as debts of T 324.68 lacs (March 31, 2024: T 324.68 lacs) in respect of sales made by the Company on behalf of brand franchisees. The Company has disclaimed the liability and defending the action. The Company has been advised by its legal counsel that its position is likely to be upheld in the litigation process and accordingly no provision for any liability has been made in the standalone financial statements.
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(b) Capital commitments
Salary escalation risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.
These assumptions were developed by management with the assistance of independent actuaries. Discount factors are determined close to each year-end by reference to market yields of government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related defined benefit obligation. Other assumptions are based on current actuarial benchmarks and management’s historical experience.
(Estimated amount of contracts remaining to be executed, to the extent not provided for)
Particulars As at As at particulars March 3!, 2025 March 31, 2024
Property, plant and equipment (net of capital advances) 6,567.35 1,856.42
36 Employee benefit obligations
a) Gratuity -defined benefit plan
I n accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while-in-employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months (subject to maximum of T 20.00 lacs) on completion of vested year of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial year.
A. Policy for recognizing actuarial gains and losses:
Actuarial gains and losses of defined benefit plan arising from experience adjustments and effects of changes in actuarial assumptions are immediately recognized in other comprehensive income. The defined benefit plan typically exposes the Company to actuarial risks such as interest rate risk, longevity risk and salary increase risk.
Interest rate risk
A fall in the discount rate which is linked to the Government security rate will increase the present value of the liability requiring higher provision.
Longevity risk
Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.
I. Changes in significant actuarial assumption - Sensitivity Analysis:
The significant actuarial assumptions for the determination of the defined benefit obligation are the discount rate and the salary escalation rate. The calculation of the net defined benefit liability is sensitive to these assumptions. The impact of employee attrition and mortality rate do not significantly impact the determination
b) Defined contribution plans
i) Provident Fund Plan and Employee Pension Scheme
The Company makes monthly contributions at prescribed rates towards Employee Provident Fund/ Employee Pension Scheme, a fund administered and managed by the Government of India.
ii) Employee State Insurance
The Company makes prescribed monthly contributions towards Employees State Insurance Scheme.
39 Disclosures required pursuant to Ind AS 102 - Share based payments
The shareholders of the Company at its Annual General Meeting held on September 24, 2021 approved ‘Employee Stock Option Scheme', hereinafter referred to as ‘ESOP 2021'. ESOP 2021 is assessed, managed and administered by the Company.
As per the ESOP 2021, 287,992 equity-settled options were granted to eligible employees of the Company determined by Nomination and Remuneration Committee, which are convertible into equivalent number of equity shares of T 10 each as per terms of ESOP 2021 with a vesting period of 1 year from the date of the grant. The employees have the options to exercise their right within a period of 1 year from the date of vesting. The compensation cost of stock options granted to employees is accounted by the Company using the fair value method. The fair value of stock options was determined using the ‘Black Scholes Method'.
I n respect of Options granted under the ESOP 2021, in accordance with the guidelines issued by SEBI, the accounting value of the options is accounted as deferred employee compensation, which is amortized on a straight line basis over the period between the date of grant of options and eligible dates for conversion into equity shares.
Further, during the current year, the Company has granted 112,610 stock options to the eligible employees of the Company as per ESOP Scheme 2021. Each option granted during the year shall entitle the holder to one equity share having face value of T 10 each at an equivalent exercise price.
40 Segmental reporting A Segmental information
The operating segment is the level at which discrete financial information is available. Business segments are identified considering:
a) the nature of products and services
b) the differing risks and returns
c) the internal organisation and management structure, and
d) the internal financial reporting systems.
In view of the above, the management of the Company has identified following operating segments as below:
(i) Manufacturing - Comprises of production of bioethanol, other industrial spirits and by-products etc.
(ii) Consumer - Comprise of diverse portfolio of branded alcoholic beverages, including Prestige and Value Spirits, catering to both premium and mass-market consumer.
B Segment revenue and results
Revenue and expenses directly attributable to segments are reported under each reportable segment. Income and expenses which are not attributable or allocable to segments are disclosed separately. Pricing between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
C Segment assets and liabilities:
Segment assets include Property, plant and equipment, Inventories, Trade receivables and Other current assets to the extent specifically identifiable to each segment. Other assets and liabilities used in the Company’s business are not identified to any of the reportable segments, as these are used interchangeably between segments.”
F Additional information by geographies
a) Although the Company’s operations are managed basis type of product (or) services, additional information about external revenues based on geographies of the customers has been provided in Note 32F.
b) There are no non-current assets located outside India.
41 Fair value measurement
a. Fair value measurement of financial instruments- by category and fair values hierarchy
The following table shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels in the fair value hierarchy.
E Information about major customers
Two customers are having more than 10% of the total revenue during the financial year ended March 31, 2025 and March 31, 2024 pertaining to Manufacturing segment.
Other notes:
There has been no transfer between Level 1, Level 2 and Level 3 for the year ended March 31, 2025 and March 31, 2024 respectively.
b. Financial risk management
Risk management objectives and policies
The Company’s financial assets majorly comprise of investments, trade receivables, financial assets, and cash and cash equivalents. The Company’s financial liabilities majorly comprises of borrowings, acceptances, lease liabilities, trade payables and other financial liabilities.
The Company is primarily exposed to market risk, credit risk and liquidity risk arising out of operations and the use of financial instruments. The Company’s financial assets and liabilities by category are summarised in Note 6 and 7, Note 11 to 14, Note 4, Note 17 and Note 21 to 23 .
The Company does not engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below:
Market risk analysis
The Company has exposure to the following risks arising from financial instruments:
• Credit risk;
• Liquidity risk;
• Market risk
- Interest rate risk
- Foreign currency risk
- Commodity price risk
The Company’s risk management policies are established to identify and analyse the risks faced by the Company to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in the market conditions and the business activities. The Board of Directors oversees how management monitors compliance risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risk faced by the business.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the business activities.
The credit risk in respect of cash balances held with banks and deposits with banks are managed via diversification of bank deposits, and are only with major reputable banks.
The Company continuously monitors the credit quality of customers. The Company’s policy is to deal only with credit worthy counterparties. The credit terms range between 0 and 90 days. The credit terms for customers as negotiated with customers are subject to an internal approval process . The ongoing credit risk is managed through regular review of ageing analysis, together with credit limits per customer.
The Company has determined that climate-related risks have no significant impact on credit risk exposure and credit risk management practices because (a) of the short-term nature of credit exposure and (b) given the absence of recent major climate-related events in the main areas where debtors operate.
Trade receivables consist of a large number of customers in various industries and geographical areas. The Company does not hold any security on any trade receivables balance at each annual reporting date. In addition, the Company does not hold any collateral relating to other financial assets at each annual reporting date.
Financial assets are written off (i.e., derecognised) when there is no reasonable expectation of recovery. On failure to make payments and failure to engage with the Company on alternative payment arrangement amongst other is considered indicators of no reasonable expectation of recovery.
Expected credit loss with respect to trade receivables
The Company applies the Ind AS 109 simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component. In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due and also according to the geographical location of customers:
The expected loss rates are based on the historical payment profile for sales as well as the corresponding historical credit losses during that period. The historical rates are adjusted to reflect current and forwarding looking macroeconomic factors affecting the customer’s ability to settle the amount outstanding. However, given the short period exposed to credit risk, the impact of these macroeconomic factors has not been considered significant within each annual reporting period:
(ii) Liquidity risk
Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short-term operational needs as well as for long-term capital expenditure growth projects. The Company generates sufficient cash flow for operations, which together with the available cash and cash equivalents. The Company has acceptances in line with supplier’s financing arrangements which might invoke liquidity risk as a result of liabilities being concentrated with few financial institutions instead of a diverse group of suppliers. The Company has established an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements.
The Company’s liquidity management process as monitored by management, includes the following:
- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.
- Maintaining rolling forecasts of the Company’s liquidity position on the basis of expected cash flows.
- Maintaining appropriate credit lines.
The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amounts are gross and undiscounted, and include contractual interest payments. The contractual maturity is based on the earliest date on which the Company may be required to pay.
(iii) Market risk
Market risk is the risk that changes in market prices - e.g. interest rate risk, foreign currency risk and commodity price risk - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including cash and cash equivalents, foreign currency payables. The Company is exposed to market risk primarily related to foreign currency risk . Thus, the Company’s exposure to market risk is a function of investing activities and revenue generating and operating activities in foreign currencies.
b. Foreign currency risk exposure
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Most of the Company’s transactions are carried out in T. Exposures to currency exchange rates arise from the Company’s overseas operations, which are primarily denominated in US dollars (‘USD’) . The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other currencies.
c. Commodity price risk
Commodity price risk for the Company is mainly related to fluctuations in raw materials prices linked to various external factors, which can affect the production cost of the Company. The Company is subject to fluctuations in prices for the purchase of grains, maize, coal, rice-husk and other raw material inputs. The Company purchased primarily all of its grain and maize requirements at prevailing market rates during the year ended March 31, 2025. Since the raw material costs is one of the primary costs drivers, any fluctuation in its prices can lead to a drop in operating margin. To manage this risk, the Company take following steps:
a) Optimising the raw material mix, where considered necessary.
b) Consistent efforts to reduce the cost of material costs by entering into short-term interest bearing supplier financing arrangements for early payment to supplier of materials.
Additionally, processes and policies related to such risks are reviewed and controlled by senior management and material requirements are monitored by the central procurement team.
42 Capital management
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain stakeholders’ confidence. The Company monitors capital using a ratio of ‘Net Debt’ to ‘Total Equity’. For this purpose, Net Debt is defined as total borrowings less cash and cash equivalents and other bank balances. Total equity comprises of equity share capital and other equity. The Company is not subject to any externally imposed capital requirements. During the year, no significant changes were made in the objectives, policies or processes relating to the management of the Company’s capital structure.
44 Government grants receivables
Department of Food and Public Distribution (‘DFPD’), Ministry of Consumer Affairs notified the Scheme for extending financial assistance to project proponents for enhancement of their ethanol distillation capacity (‘the Scheme’) vide notification dated January 14, 2021, for setting up/ expansion of new/existing grain based distilleries. As per the covenants of the said Scheme, interest subvention @6% per annum or 50% of the rate of interest charged by banks for the loans extended, whichever is lower will be borne by Government of India (‘GoI’) for five years including one-year moratorium against the loan availed by project proponents.
The Company opted for the aforesaid Scheme and availed terms loans from scheduled banks for setting up of Ethanol Distillation Plants at Panagarh, West Bengal and Baharagora, Jharkhand for T 7,000.00 lacs and T 6,500.00 lacs respectively. The Company has accrued interest receivable on account of subvention of interest as per the aforesaid Scheme. The balance as at year is outstanding as below:
46 During the year ended March 31, 2023, the Income Tax Department had carried out search and seizure operation at the various premises of the Company from January 30, 2023 to February 3, 2023 under section 132 of the Income-tax Act, 1961 (‘IT Act’). The Company has received assessment orders (‘Orders’) for the last 10 assessment years (‘AYs’) in the first week of April 2024 disallowing certain expenses resulting in an aggregate tax impact of T 5,649.00 lacs (including interest). The Company has no tax demand for the AY 2014-15 to AY 2020-21 and for the remaining 3 years, the amount of tax demand is T 4,093.00 lacs, out of which T 532.49 lacs was paid as self-assessment tax during the quarter ended December 31, 2023.
The Company has filed an appeal u/s 246A of the IT Act for all the assessment years covered by the Orders and has paid T 2,511.00 lacs under protest. While the uncertainty exists regarding the outcomes of the legal proceedings, the management of the Company has evaluated the demand orders after considering all available records and facts known to it and based on an independent legal review and opinion from external legal counsel, and believes that the Company can succeed in the appeals filed against the aforesaid demand orders and accordingly, the management has not identified any adjustments to the current or prior period standalone financial statements.
48 Additional regulatory information required by Schedule III to the Companies Act, 2013
i) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
ii) The Company has not traded or invested in Crypto currency or virtual currency during the year.
iii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income-tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.
iv) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (‘Intermediaries') with the understanding that the Intermediary shall:
a. 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
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
v) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a. 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
b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
vi) The Company has not been declared wilful defaulter during any of the reporting periods.
vii) Basis the management's assessment, it has been concluded that the Company has made no transactions with struck-off companies under Section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956. Further, there are no outstanding balances at balance sheet date with struck-off companies.
49 The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company has used accounting software which is operated by third-party software service provider for maintaining its books of account which has a feature of audit trail (edit log) facility and the same was enabled at the application level.
However, in the absence of an ‘Independent Service Auditor's Assurance Report on the Description of Controls, their Design and Operating Effectiveness' (‘Type 2 report' issued in accordance with SAE 3402, Assurance Reports on Controls at a Service Organization), the management of the Company did not conclude whether the feature of recording audit trail (edit log) is enabled at the database level for the said accounting software to log any direct data changes or not. Furthermore, the audit trail has been preserved as per the statutory requirements for record retention where such feature is enabled.
50 Events occurring after the balance sheet date
Subsequent to the current year, the Company entered into a strategic joint venture with ANSA MCAL Limited, leading to the incorporation of a new entity, Globus ANSA Private Limited to foray into the beer segment, in line with its strategic objective of portfolio diversification and tapping into high growth consumer categories. The aforesaid event did not require any adjustments in the standalone financial statements of the Company for the current year.
51 Previous year figures have been re-grouped/re-classified wherever necessary. The impact of the same is not material to the users of the standalone financial statements.
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