xx. Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the Company has a
present obligation (legal or constructive) as a result of
past events and it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation, in respect of which a reliable estimate
can be made of the amount of obligation. Provisions
(excluding gratuity and compensated absences) are
determined based on management's estimate required
to settle the obligation at the Balance Sheet date. In
case the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects the
risks specific to the liability. When discounting is used,
168 | Annual Report 2024-25
the increase in the provision due to the passage of time
is recognised as a finance cost. These are reviewed at
each Balance Sheet date and adjusted to reflect the
current management estimates.
The Company recognises a provision in respect of an
onerous contract when the expected benefits to be
derived from a contract is lower than the unavoidable
costs of meeting the future obligations under the contract.
The provision is measured at lower of the expected cost
of terminating the contract and the expected net cost of
fulfilling the contract. Contingent liabilities are disclosed in
respect of possible obligations that arise from past events,
whose existence would be confirmed by the occurrence
or non-occurrence of one or more uncertain future
events not wholly within the control of the Company. A
contingent liability also arises, in rare cases, where a liability
cannot be recognised because it cannot be measured
reliably. Contingent assets are disclosed where an inflow of
economic benefits is probable.
xxi. Foreign currency transactions and balances
(a) Initial Recognition
Foreign currency transactions are initially recorded in the
reporting currency, by applying to the foreign currency
amount the exchange rate between the reporting currency
and the foreign currency at the date of the transaction.
(b) Conversion
Monetary assets and liabilities denominated in foreign
currencies are reported using the closing rate at the reporting
date. Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction.
(c) Treatment of Exchange Difference
Exchange differences arising on settlement/ restatement of
short-term foreign currency monetary assets and liabilities
of the Company are recognised as income or expense in the
Statement of Profit and Loss
xxii. Earnings Before Interest, Tax, Depreciation and
amortisation (EBIDTA)
Earnings Before Interest, Tax, Depreciation and
amortization (EBIDTA) is computed by adding interest
(finance cost), tax expenses and depreciation and
amortization expense to net profit for the period/year.
Note 2.2 Recent accounting pronouncements
Ministry of Corporate Affairs notifies new standards
or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as
issued from time to time. For the year ended 31 March
2025, MCA has notified Ind AS - 117 Insurance Contracts
and amendments to Ind AS 116 - Leases, relating to sale
and leaseback transactions, applicable to the Company
w.e.f. 1 April 2024. The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant impact
on its financial statements as at and for the year ended
31 March 2025.
Notes:
i. Compensation to key managerial personnel does not include (i) provisional gratuity liability and compensated absences valued by an actuary, as separate figures are not
available and (ii) reimbursement of expenses related to business.
ii. During the year, the Company granted Stock Options to eligible employees, including KMPs under its Employee Stock Option Schemes.
Since such Stock Options are not tradeable, no perquisite or benefit is immediately conferred upon the employee by grant of such Stock Options and accordingly the
said grants have not been considered as 'remuneration'. However, in accordance with Ind AS -102, the Company has recorded employee benefits expense by way of share
based payments to employees at ?3.78 Crores for the year ended 31 March 2025 (2024 - ?1.23 Crores), of which ?0.78 Crores (31 March 2024 - ?0.38 Crores) is attributable
to KMPs.
iii. Transactions amongst related parties are made on terms equivalent to those that prevail in arm's length transactions and represent the substance over the legal form.
iv. Trade receivables, trade and other payables as at year-end are unsecured and interest free and settlement occurs in cash. For the year ended 31 March 2025, the Company
has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2024: ? Nil). This assessment is undertaken each financial year
through examining the financial position of the related party and the market in which the related party operates.
v. Refer note 6 for terms and condition with respect to loans given to related parties.
Note 48
The Ministry of Corporate Affairs (MCA) has prescribed a new 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 accounts, 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 accounts
along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
a. The Company has used an accounting software for maintaining its books of account for the period 1 April 2024 to 30 September 2024 which has a feature of recording
audit trail (edit log) facility and the same has been operated throughout the period for all relevant transactions recorded in the accounting software.
b. The Company has used another accounting software for maintaining its books of account for the period from 1 October 2024 to 31 March 2025 which has a feature of
recording audit trail (edit log) facility and the same has been operated throughout the period for all relevant transactions recorded in the accounting software at the
application level. However, the database of the said accounting software is operated by a third-party software provider. The 'Independent Service Auditor's Assurance
Report on the Description of Controls, their Design and Operating Effectiveness' ('Type 2 report' issued in accordance with ISAE 3402, Assurance Reports on Controls at a
Service Organization) does not provide any information for any direct changes made at the database level of the said software for the aforesaid period.
c. An accounting software used for maintenance of sales records for the hospitality services (resort operations) did not have a feature of recording audit trail (edit log)
facility.
d. In respect of the accounting software used for maintenance of sales records for the hospitality services (other than resort operations), the Company has migrated to a
new software from 1 June 2024 onwards. The accounting software used until 31 May 2024 did not have a feature of recording audit trail (edit log) facility. Further, the new
accounting software used from 1 June 2024 is operated by a third-party software service provider and has a feature of recording audit trail (edit log) facility and the
same has been operated throughout the period for all relevant transactions recorded in the accounting software at the application level. The '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), is not available.
e. The Company has also used an accounting software for maintenance of payroll records which is operated by a third-party software provider and as per the
'Independent Service Auditor's Report on a Description of the Service Organization's System and the Suitability of the Design and Operating Effectiveness of Controls'
('Type 2 report' issued in accordance with attestation standards established by the American Institute of Certified Public Accountants ('AICPA')), audit trail is enabled and
operated throughout the year at the application level and database level to log any direct data changes.
Note 49 Other Statutory I nformatlon
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with struck off companies.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory year.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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. directly or indirectly provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company has not received any fund from any person(s) or entity(ies), 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 on behalf of the Ultimate Beneficiaries.
(vii) The Company does not have any such transaction which is not recorded in the books of accounts 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 TaxAct, 1961).
(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(ix) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(x) The Company has not entered into any scheme of arrangement which has an accounting impact on the current or previous financial year.
Note 50
Previous year figures have been re-grouped / re-classified wherever necessary, to confirm to the current period's presentation wherever considered necessary
This is a summary of material accounting policies and other explanatory information referred to in our audit report of even date
For WalkerChandiok & Co LLP For and on behalf of Board of Directors of Sula Vineyards Limited
Chartered Accountants
FirmRegistrationNo.001076N /N500013
Rohan Jain Rajeev Samant Alok Vajpeyi
Partner CEO andManaging Director Chairman and Director
Membership No. 139536 DIN: 00020675 DIN: 00019098
Abhishek Kapoor Shalaka Koparkar
Chief Financial Officer Company Secretary
ACA: 098459 Membership No. A25314
Place: Mumbai Place: Mumbai
Date: 08 May 2025 Date: 08 May 2025
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