l. Provisions
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to
a provision is presented in the statement of profit and loss
net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pretax rate that
reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.
Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a
whole. A provision is recognised even if the likelihood of
an outflow with respect to any one item included in the
same class of obligations might be small.
m. Retirement and other employee benefits
Retirement benefit in the form of provident fund is a
defined contribution plans. The Company has no
obligation, other than the contribution payable to the
plans. The Company recognises contribution payable to
the plans as an expense, when an employee renders the
related service. If the contribution payable to the scheme
for service received before the balance sheet date
exceeds the contribution already paid, the deficit payable
to the scheme is recognised as a liability after deducting
the contribution already paid. If the contribution already
paid exceeds the contribution due for services received
before the balance sheet date, then excess is recognised
as an asset to the extent that the pre-payment will lead to,
for example, a reduction in future payment or a cash
refund.
The Company operates a defined benefit gratuity plan,
which requires contributions to be made to a separately
administered fund.
The cost of providing benefits under the defined benefit
plan is determined using the projected unit credit method
by actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from actual
developments in the future. These include the
determination of the discount rate, future salary
increases, mortality rates and attrition rate. Due to the
complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are
reviewed at each reporting date.
Remeasurements, comprising of actuarial gains and
losses, the effect of the 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 OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss in
subsequent periods.
Net interest is calculated by applying the discount rate to
the net defined benefit liability or asset. The Company
recognises the following changes in the net defined
benefit obligation as an expense in the consolidated
statement of profit and loss:
- Service costs comprising current service costs,
past-service costs, gains and losses on curtailments
and non-routine settlements; and
- Net interest expense or income
- Remeasurement
Accumulated leave, which is expected to be utilised
within the next 12 months, is treated as short-term
employee benefit. The company measures the expected
cost of such absences as the additional amount that it
expects to pay as a result of the unused entitlement that
has accumulated at the reporting date.
Long-term Employee Benefits:
The Company's net obligation in respect of long-term
employee benefits for employees, being long term
compensated absences, is the amount of future benefits
that employee have earned in return for the service in the
current and prior periods. The liability is determined by an
independent actuary, using Projected Unit Credit Method.
Actuarial gains and losses are recognised immediately as
income or expense in the Statement of Profit and Loss.
Obligation is measured at the present value of estimated
future cash flows using a discount rate that is determined
by reference to the market yields at the Balance Sheet
date on Government Bonds where the currency and
terms of the Government Bonds are consistent with the
currency and estimated terms of the defined benefit
obligation.
n. Financial instruments
A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value,
plus in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
However, trade receivables which do not contain a
significant financing component are measured at
transaction price. Purchases or sales of financial assets
that require delivery of assets within a time frame
established by regulation or convention in the
marketplace (regular way trades) are recognised on the
trade date, i.e., the date that the Company commits to
purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in four categories:
• Debt instruments at amortised cost
• Equity instruments measured at fair value through other
comprehensive income (FVTOCI)
Trade Receivables
Trade receivables are amounts due from customers for
goods sold or services performed in the ordinary course
of business and reflect the Company’s unconditional right
to consideration (that is, payment is due only on the
passage of time). Trade receivables are recognised
initially at the transaction price as they do not contain
significant financing components. The Company holds
the trade receivables with the objective of collecting the
contractual cash flows and therefore measures them
subsequently at amortised cost using the effective
interest method, less loss allowance
For trade receivables and contract assets, the Company
applies the simplified approach required by Ind AS 109,
which requires expected lifetime losses to be recognised
from initial recognition of the receivables.
Debt instruments at amortised cost
A ‘debt instrument’ is measured at the amortised cost if
both the following conditions are met:
a The asset is held within a business model whose
objective is to hold assets for collecting contractual cash
flows, and
b) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount
outstanding.
This category is the most relevant to the Company. After
initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. 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 in
finance income in the profit or loss. The losses arising
from impairment are recognised in the profit or loss.
The effective interest method is a method of calculating
the amortised cost of a debt instrument and of allocating
interest income over the relevant period.
The amortised cost of a financial asset is the amount at
which the financial asset is measured at initial recognition
minus the principal repayments, plus the cumulative
amortisation using the effective interest method of any
difference between that initial amount and the maturity
amount, adjusted for any loss allowance. The gross
carrying amount of a financial asset is the amortised cost
of a financial asset before adjusting for any loss
allowance.
Equity Investments
All equity investments in scope of Ind AS 109 are
measured at fair value. For all equity instruments, the
Company may make an irrevocable election to present in
other comprehensive income subsequent changes in the
fair value. The Company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable. If the
Company decides to classify an equity instrument as at
FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognised in the OCI. There is
no recycling of the amounts from OCI to P&L, even on
sale of investment. However, the Company may transfer
the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category
are measured at fair value with all changes recognised in
the P&L.
Derecognition
A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is
primarily derecognised (i.e. removed from the Company’s
balance sheet) when:
- The rights to receive cash flows from the asset have
expired, or
- The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to
pay the received cash flows in full without material
delay to a third party under a ‘passthrough’
arrangement; and either (a) the Company has
transferred substantially all the risks and rewards of the
asset, or (b) the Company has neither transferred nor
retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.
When the Company has transferred its rights to receive
cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if and to what
extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially
all of the risks and rewards of the asset, nor transferred
control of the asset, the Company continues to recognise
the transferred asset to the extent of the Company’s
continuing involvement. In that case, the Company also
recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that
reflects the rights and obligations that the Company has
retained.
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the
maximum amount of consideration that the Company
could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial
assets and credit risk exposure:
a) Financial assets that are debt instruments, and are
measured at amortised cost e.g., loans, debt securities,
deposits, trade receivables and bank balance
b) Lease receivables under Ind AS 116
c) Trade receivables or any contractual right to receive
cash or another financial asset that result from
transactions that are within the scope of Ind AS 115
d) Loan commitments which are not measured as at
FVTPL
The Company follows ‘simplified approach’ for
recognition of impairment loss allowance on:
• Trade receivables or contract revenue receivables; and
• All lease receivables resulting from transactions within
the scope of Ind AS 116
The application of simplified approach does not require
the Company to track changes in credit risk. Rather, it
recognises impairment loss allowance based on lifetime
ECLs 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.
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.
Financial liabilities
Initial recognition and measurement
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.
The Company’s financial liabilities include trade and other
payables, loans and borrowings including bank
overdrafts, financial guarantee contracts and derivative
financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their
classification, as described below:
Loans and borrowings
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost
using the EIR method. Gains and losses are recognised in
profit or 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.
This category generally applies to borrowings.
Borrowings are derecognised from the balance sheet
when the obligation specified in the contract is
extinguished, 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 profit or
loss as other gains/(losses).
Borrowings are classified as current liabilities unless, at
the end of the reporting period, the Company has an
unconditional right to defer settlement of the liability for at
least 12 months after the reporting period.
o. Cash and Cash equivalents
Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, which are
subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and shortterm deposits,
as defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company’s
cash management.
p. Cash Flow Statement
Cash flows are reported using the indirect method,
whereby profit/(loss) after tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The
cash flows from operating, investing and financing
activities of the Company are segregated based on the
available information.
q. Operating Segment
The Chief Operational Decision Maker (MD) monitors the
operating results of the business segments separately for
the purpose of making decisions about resource
allocation and performance assessment. Segment
performance is evaluated based on profit and loss
reported by the segment periodically.
The accounting policies adopted for segment reporting
are in line with the accounting policies of the Company.
Segment revenue, segment expenses, segment assets
and segment liabilities have been identified to segments
on the basis of their relationship to the operating activities
of the segment. Accordingly, the Company operates in
single segment viz., Milk and milk products.
r. Earnings per share
Basic earnings per share is computed by dividing the
profit/(loss) after tax (including the post tax effect of
extraordinary items, if any) by the weighted average
number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the
profit/(loss) after tax (including the post tax effect of
extraordinary items, if any) as adjusted for dividend,
interest and other charges to expense or income relating
to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving
basic earnings per share and the weighted average
number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive only if
their conversion to equity shares would decrease the net
profit per share from continuing ordinary operations.
Potential dilutive equity shares are deemed to be
converted as at the beginning of the period, unless they
have been issued at a later date. The dilutive potential
equity shares are adjusted for the proceeds receivable
had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive
potential equity shares are determined independently for
each period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for share
splits/reverse share splits and bonus shares, rights issue
(if any) as appropriate.
s. Non-current assets held for sale
Non-current assets and disposal groups are classified as
held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through
continuing use. This condition is regarded as met only
when the asset (or disposal group) is available for
immediate sale in its present condition subject only to
terms that are usual and customary for sales of such
asset (or disposal group) and its sale is highly probable.
Management must be committed to the sale, which
should be expected to qualify for recognition as a
completed sale within one year from the date of
classification. Non-current assets (and disposal groups)
classified as held for sale are measured at the lower of
their carrying amount and fair value less costs to sell.
t. Contingent liabilities
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
company or a present obligation that is not recognised
because it is not probable that an outflow of resources will
be required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a liability
that cannot be recognised because it cannot be
measured reliably. The Company does not recognise a
contingent liability but discloses its existence in the
financial statements.
u. Expenditure on Corporate Social Responsibility
(CSR)
The Company accounts the expenditure incurred towards
Corporate Social Responsibility as required under the Act
as a charge to the statement of profit and loss account.
v. Rounding of amounts
All amounts disclosed in the financial statements and
notes have been rounded off to the nearest crore as per
the requirement of Schedule III, unless otherwise stated.
2.4 Critical Accounting judgements and Key sources
of Estimation Uncertainty
Inherent in the application of many of the accounting
policies used in preparing the financial statements is the
need for Management to make judgments, estimates and
assumptions that affect the reported amounts of assets
and liabilities, the disclosure of contingent assets and
liabilities, and the reported amounts of revenues and
expenses. Actual outcomes could differ from the
estimates and assumptions used.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are
revised and future periods are affected.
In particular, information about significant areas of
estimation, uncertainty and critical judgments in applying
accounting policies that have the most significant effect
on the amounts recognised in the financial information are
included in the following notes:
(i) Useful lives and impairment of property, plant and
equipment and other intangible assets (refer Notes f and g)
(ii) Assets and obligations relating to post-retirement and
long-term employee benefits (refer Note m)
(iii) Valuation and measurement of provision for income
taxes and deferred tax assets / liabilities (refer Note e)
(iv) Measurement of leases (refer Note i)
(v) Assessment of contingent liabilities and commitments
(refer Note t)
Note: TATA Power Central Odisha Distribution Limited (“TPCODL”), an electricity supplier for the Company's Sambalpur plant,
had changed the Company’s status and tariff rates from agro-allied industry to large industry w.e.f. from March 2016, resulting in
the Company paying electricity charges under protest at a higher rate, aggregating to ?4.70. During FY 2020-21, the Company
had received a favourable judgement from Grievances Redressal Forum, Bhubaneswar and tariff rates were re-classified from
large industry to agro-allied industry. Consequently, such amount has been recognised as recoverable from TPCODL in the
respective years. Whilst the Management continued to explore all options to recover the excess electricity charges recoverable,
it had recognised a provision based on the expected credit loss model, considering the effect of time, in accordance with the
accounting policy of the Company.
(ii) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any
other person, nor from firms or private companies respectively in which any director is a partner, a director or a member.
Trade receivables are non-interest bearing.
(iii) The Company sells goods on advance payment terms. In cases of customers with certain nature of products where
credit is allowed, the average credit period on such sale of goods ranges from 1 day to 45 days depending on the nature
of the product. The Company's receivables turnover is quick and historically, there was no significant defaults on account
of those customer in the past.
13.2 Rights attached to equity shares
The Company has only one class of equity shares having par value of Re.1 per share (March 31,2025: Re.1/). Each
holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian
Rupees. During the year ended March 31, 2026, the amount of dividend per share recognised as distributions to
equity shareholders was Rs. 6.00/- (March 31,2025: Rs.6.00/-). Also refer Note 34. In the event of liquidation of the
Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution
of all preferential payments. The distribution will be in proportion to the number of equity shares held by the
shareholders.
Nature and purpose of other reserves
Capital reserve:
Upon convergence of Schedule II of depreciation in FY 2013-14.
Capital redemption reserve:
Capital redemption reserve has been created by the Company as a part of the buyback transaction that seeks to redeem its own shares.
Securities premium:
Securities premium is used to record the premium on issue of shares and can be utilised in accordance with the provisions of the
Companies Act, 2013.
Retained earnings:
Retained earnings are the profits/loss that the Company has earned/incurred till date, less any transfers to other reserves, dividends or
other distributions paid to its equity shareholders.
Other comprehensive income:
Items of other comprehensive income consists of remeasurement of net defined benefit liability/asset.
Foreign Currency Translation Reserve:
Represents the cumulative difference on translation of foreign operations.
Unsecured cash credit carries interest ranging from 9.50% to 10.60% (March 31,2025: 9.50% to 10.60%).
Secured short-term loans are secured by charge on plant and machinery, land and building, inventories, receivables
and other current assets of the Company. These loans carry an interest rate ranging from 6.25% to 7.25% during the
year (March 31,2025: 6.81% to 8.00%).
Unsecured short-term loans obtained from various banks carry an interest rate ranging from 5.68% to 7.95% during
the year (March 31,2025: 6.98% to 8.20%).
Secured term loans obtained from various banks carry an interest rate (excluding subvention) ranging from 6.03% to
8.55% during the year (March 31,2025: 7.45% to 8.68%).
The Company had not committed any default in the repayment of loan or payment of interest. The quarterly return /
statement of current assets filed by the Company with banks are in agreement with books of accounts.
The borrowings obtained by the Company from banks have been applied for the purposes for which such loans were
taken.
Note: 22.1 Disaggregated revenue information
Based on the management approach as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker
(CODM) evaluates the Company’s performance and allocates resources based on analysis of various performance
indicators by operating segments. The Company operates in a single segment viz., milk and milk products.
Note: 22.2 Trade receivables and contract balances
A receivable is a right to consideration that is unconditional upon passage of time. The Company sells goods on advance
payment terms. In case of customers with certain nature of products where the credit is allowed, the same is disclosed in
Note 9 - Trade Receivables.
Note:
Based on the professional advice obtained, the Company believes that they maintain adequate information /
documentation which can be furnished and hence have a good case and the chances of favourable outcome is high.
Further, the Company has paid an amount of ^19.63 (March 31, 2025: ^18.40) as deposits paid under protest. Based on
the advice of its legal counsel, the Company believes that other disputes, lawsuits and claims, including commercial
matters, which arise from time to time in the ordinary course of business and are outstanding as at March 31,2026 will not
have any material adverse effect on its financial statements for the year ended March 31,2026.
36. Employee benefits
(a) Gratuity benefits provided by the Company
In accordance with applicable Indian laws, the Company has a defined benefit plan which provides for gratuity payments
(the “Gratuity Plan”) and covers certain categories of employees in India. The Gratuity Plan provides a lump sum gratuity
payment to eligible employees at retirement or termination of their employment. The amount of the payment is based on
the respective employee’s last drawn wages (as defined in the New Labour Codes notified by the Government of India in
November 2025) and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined
by an actuarial valuation, based upon which the Company makes contributions to the Gratuity Fund maintained with Life
Insurance Corporation of India (LIC).
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and
salary risk.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds. When there is a deep
market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit. Currently, for these plans,
investments are made in government securities, debt instruments, short-term debt instruments, equity instruments and
asset-backed, trust-structured securities as per the notification of Ministry of Finance.
Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an
increase in the return on the plan’s investments.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
participants will increase the plan’s liability.
Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.
(b) Provident fund benefits
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying
employees towards provident fund, which is defined contribution plan. The Company has no obligations other than to
make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue. The
amount recognised as an expense towards contribution to provident fund for the year aggregated to ^13.38 (March 31,
2025: ^12.34) and is included in “contribution to provident and other funds”.
(c) Employee state insurance benefits
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying
employees towards Employee State Insurance, which is defined contribution plan. The Company has no obligations other
than to make the specified contributions. The contributions are charged to the statement of profit and loss as they accrue.
The amount recognised as an expense towards contribution to employee state insurance for the year aggregated to ^1.50
(March 31, 2025: ?1.55) and is included in "staff welfare expenses".
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the
right-of-use assets. The related payments are recognised as an expense in the period in which the event or condition that
triggers those payments occurs and are included in the line other expenses in the Statement of Profit and Loss.
A lease contract is modified and the lease modification is not accounted for as a separate lease in which case the lease
liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a
revised discount rate at the effective date of the modification.
The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient
to meet the obligations related to lease liabilities as and when they fall due.
The Company has applied a single discount rate to a portfolio of leases of a similar assets in similar economic environment
with similar end date.
Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that create and economic incentive to
exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options)
are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
b) Foreign currency sensitivity:
The Company is mainly exposed to fluctuations in US Dollar, EURO, CHF and SGD. The following table details the
Company’s sensitivity to a 5% increase and decrease against the US Dollar, EURO, CHF and SGD. 5% is the sensitivity
used when reporting foreign currency risk internally to key management personnel and represents management’s
assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net
outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change
in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rupee strengthens
by 5% against the US Dollar, EURO, CHF and SGD. For a 5% weakening against the uS Dollar, EURO, CHF and SGD,
there would be a comparable impact on the profit or equity..
Note 40. Segment information
a) Products from which reportable segments derive their revenues
Based on the management approach as defined in Ind AS 108 - Operating Segments, the Chief Operating Decision Maker
(CODM) evaluates the Company’s performance and allocates resources based on analysis of various performance
indicators by operating segments. The Company operates in a single segment viz., milk and milk products.
The Management assessed that trade receivables, cash and cash equivalents, other financial assets, borrowings, trade
payables and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale.
42. Fair value hierarchy
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).
The following table provides the fair value measurement hierarchy of the Company's assets and liabilities..
Fair value of instruments measured at amortised cost
Fair value of instruments measured at amortised cost for which fair value is also the same as calculated using Level 3
inputs:
There have been no significant change between the discounting rate used on the date of transaction and used at the end
of the period. Hence, the carrying value is taken at fair value. The carrying amounts of trade receivables, trade payables,
cash and cash equivalents, other bank balances and other current financial assets and liabilities are considered to be the
same as their fair values, due to their short-term nature.
43. Financial risk management objective and policies
The Company's principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of
these financial liabilities is to finance its operation. The Company's principal financial assets include trade and other
receivables, cash & cash equivalents and other bank balances that are derived directly from its operation. The Company also
holds FVTOCI and FVTPL investments.
The Company’s activities are exposed to a variety of financial risks, like credit risk, market risk and liquidity risk. The
Company’s primary risk management focus is to minimise potential adverse effects of market risk on its financial
performance. The Company’s risk management assessment and policies and processes are established to identify and
analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance
with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market
conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing the
Company’s risk assessment and management policies and processes.
a. Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness
as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a
continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments
that are subject to concentrations of credit risk principally consist of trade receivables, investments, derivative financial
instruments, cash and cash equivalents, bank deposits and other financial assets. To manage the credit risks arising from
customers, the Company periodically assesses the financial reliability of customers, taking into account the financial
conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk
limits are set accordingly.
Exposure to credit risk:
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is
^4.77 and ^8.16 as of March 31, 2026 and March 31, 2025 respectively, being the total carrying amount of balances with
trade receivables.
Trade and other receivables
The Company sells goods on advance payment terms. In cases of customers with certain nature of products where credit is
allowed, the average credit period on such sale of goods ranges from 1 day to 45 days depending on the nature of the
product. The customer credit risk is managed by the Company’s established policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed based on the individual credit limits which are
defined in accordance with this assessment and outstanding customer receivables are regularly monitored. The Company's
receivables turnover is quick and historically, there was no significant defaults on account of those customers in the past.
Ind AS requires an entity to recognise in profit or loss, the amount of expected credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date to the amount that is required to be recognised in accordance with Ind AS 109.
The Company assesses at each date of statements of financial position whether a financial asset or a group of financial assets
is impaired. Expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount
equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial
recognition.
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based
on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for
forward-looking information.The following table shows details of provision for doubtful receivables:
b. Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and
liabilities. The Company has established an appropriate liquidity risk management framework for its short term, medium
term and long term funding requirement.
The following tables detail the Company's remaining contractual maturity for its financial liabilities with agreed repayment
periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest
date on which the Company can be required to pay. The tables include both interest and principal cash flows.
c. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange
rates, interest rates, credit, liquidity and other market changes.
i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in
market interest rates. In order to optimise the Company’s position with regards to interest income and interest expenses and
to manage the interest rate risk, management performs a comprehensive corporate interest risk management by balancing
the proportion of fixed rate and floating rate financial instruments in its total portfolio.
ii) Foreign currency risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other
comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are
denominated in a currency other than the functional currency of the respective entities. Considering the countries and
economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in
exchange rates in those countries. The Company also operates from a foreign branch in New Jersey, USA, consequently, the
risks primarily relate to fluctuations in US Dollar against the functional currencies of the Company.
The Company's exposure to foreign currency risk at the end of the reporting period expressed in are as mentioned in Note 39.
44. Capital management
The Company manages its capital to ensure that it is able to continue as a going concern while maximising the return to the
stakeholders through the optimisation of the debt and equity balance. The Company determines the amount of capital
required on the basis of an annual budgeting exercise, future capital projects outlay, etc. The funding requirements are met
through equity, internal accruals and borrowings (current/non-current).
46. Expenditure on Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The areas for CSR activities are eradication of hunger and malnutrition, promotion education, art and culture,
healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 and rural development
projects. A CSR committee has been formed by the Company as per the Act. The funds are utilised through the year on
these activities which are specified in Schedule VII of the Companies Act, 2013.
Note:
Represents contribution to HAP Sports Trust to support promotion of sports.
47. Other statutory information:
((i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(ii) The Company reviewed the status of all its customers and vendors, as at March 31, 2026 and March 31, 2025, in MCA
portal, and observed that the Company does not have any transactions or outstanding balances with struck-off companies
under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
(iv) The Company has not been declared wilful defaulter by any banks or financial institutions or other lenders.
(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with any oral or written 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.
(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
any oral or written 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 on behalf of the Ultimate Beneficiaries.
(viii) There were no transactions which are not recorded in the books of account that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961).
(ix) During the financial year, the Company has not revalued any of its Property, Plant and Equipment, Right of Use Assets and
Intangible Assets
(x) The Company has not granted any loans or advances in the nature of loans to promoters, Directors, Key Managerial
Personnel and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.
(xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year, other than the matter covered in Note 50.
(xii) The Company has complied with the number of layers prescribed under the Companies Act, 2013 read with Companies
(Restriction on number of layers) Rule, 2017.
48. The Company has used accounting software for maintaining its books of account for the year ended March 31, 2026,
which has a feature of recording audit trail (edit log) facility, and the same has operated throughout the year for all relevant
transactions recorded in the software, except that the audit trail feature was not enabled at the application level to log any
direct data changes during the period from April 05, 2025 to April 06, 2025 (two days), due to storage constraints at the
database level. Further, the Management has robust controls to ensure that privilege access to database tables is restricted
to authorised users and over monitoring the activity logs to table maintenance.
49. On November 21,2025, the Government of India notified four Labour Codes, effective immediately, replacing the existing
29 labour laws. In accordance with Ind AS 19 - Employee Benefits, changes to employee benefit plans arising from legislative
amendments are treated as plan amendments, requiring immediate recognition of past service cost in the Statement of Profit
and Loss. This approach is consistent with the guidance issued by the Institute of Chartered Accountants of India.
The implementation of the Labour Codes has resulted in an increase in the provision for defined benefit obligation, which has
been recognised as an employee benefit expense in the year ended March 31,2026 (Rs.10.23 Crores) (refer Note 36(a)). The
Company continues to monitor the finalisation of Central and State Rules, as well as Government clarifications on other
aspects of the Labour Codes, and will incorporate appropriate accounting treatment based on these developments as
required.
50. The Board of Directors of the Company at its meeting held on April 28, 2025, had approved the Scheme of Amalgamation
under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 and the rules made thereunder for
merger/amalgamation of the wholly-owned subsidiary, Milk Mantra Dairy Private Limited with Hatsun Agro Product Limited,
with an appointed date of April 01,2025 or such other date as approved by the appropriate authority. The said Scheme has
been sanctioned with effect from the appointed date of April 01, 2025 by the National Company Law Tribunal ("NCLT") vide
its order dated March 10, 2026.
Accordingly, the Company has given effect to the merger/amalgamation in the financial statements during the year ended
March 31, 2026, and restated the financial information for the previous year ended March 31, 2025, as if the
merger/amalgamation had occurred from the date when the control was acquired, i.e. January 27, 2025.
51. In connection with the preparation of the financial statements for the year ended March 31,2026, the Board of Directors
have confirmed the propriety of the contracts / agreements entered into by / on behalf of the Company and the resultant
revenue earned / expenses incurred arising out of the same after reviewing the levels of authorisation and the available
documentary evidences and the overall control environment. Further, the Board of Directors have also reviewed the realisable
value of all the current assets of the Company and have confirmed that the value of such assets in the ordinary course of
business will not be less than the value at which these are recognised in the financial statements. In addition, the Board has
also confirmed the carrying value of the non-current assets in the financial statements. The Board, duly taking into account
all the relevant disclosures made, has approved these financial statements in its meeting held on May 19, 2026 in accordance
with the provisions of Companies Act, 2013.
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