viii) Provisions and Contingent Liabilities
A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assumptions of the time value of money
and the risks specific to the liability. The unwinding of
discount is recognized as finance cost.
The amount recognized as a provision is the best estimate
of the consideration required to settle the present
obligation at reporting date, taking into account the risks
and uncertainties surrounding the obligation.
When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, the receivable is recognized as an asset if it is
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.
Contingent liabilities are possible obligations that arise
from past events and whose existence will only be
confirmed by the occurrence or non-occurrence of one
or more future events not wholly within the control of
the Company. Where it is not probable that an outflow
of economic benefits will be required, or the amount
cannot be estimated reliably, the obligation is disclosed
as a contingent liability, unless the probability of outflow
of economic benefits is remote.
ix) Leases
As a lessee
The Company's leases primarily consist of leases of
office premises, warehouses and guest houses. The
Company assesses whether a contract contains a lease,
at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange
for consideration.
At the date of commencement of the lease, the Company
recognizes a ROU assets and a corresponding lease liability
for all lease arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short-term
leases) and low value leases. For these short-term and/
or low value leases, the Company recognises the lease
payments as an operating expense on a straight-line basis
over the term of the lease. Certain lease arrangements
includes the options to extend or terminate the lease
before the end of the lease term. ROU assets and lease
liabilities includes these options when it is reasonably
certain that they will be exercised.
The ROU assets are initially recognized at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses. Currently, ROU assets are being
amortised over a period of 3-5 years based on lease term
being lower of lease term and estimated useful life of
underlying assets.
Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing activities in statement of
cash flows.
As a lessor
Lease income from operating leases where the Company
is a lessor is recognised in income on a straight-line basis
over the lease term unless the receipts are structured
to increase in line with expected general inflation to
compensate for the expected inflationary cost increases.
x) Borrowings
Borrowings are initially recognised at fair value (net of
transaction costs incurred). Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognized in Statement of profit and loss over
the period of the borrowings using the effective interest
rate method. Subsequently all borrowings are measured
at amortised cost using the effective interest rate method.
Borrowings are derecognized from the balance sheet
when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying
amount of a financial liability that has been extinguished
or transferred to another party and the consideration
paid, including any non-cash assets transferred or
liabilities assumed, is recognised in statement of profit
and loss. The gain / loss is recognised in other equity in
case of transaction with shareholders
Borrowing costs
General and specific borrowing costs directly attributable
to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial
period of time to get ready for their intended use, are
added to the cost of those assets, until such time the
assets are substantially ready for their intended use. All
other borrowing costs are recognised as an expense in
statement of Profit and Loss in the period in which they
are incurred.
xi) Revenue Recognition
Revenue comprises revenue from contracts with customers
for sale of goods. Revenue from sale of goods is inclusive
of excise duties and is net of returns, trade allowances,
rebates, value added taxes, Goods and Services Tax (GST)
and such amounts collected on behalf of third parties.
Revenue is recognized on satisfaction of performance
obligation upon transfer of control of promised products
or services to customers, at an amount that reflects the
consideration expected to be received by the Company
in exchange for those products or services, as below:
a) Revenue from sale of products:
Revenue is recognised at transaction price on
transfer of control, being on dispatch of goods or
upon delivery to customer, in accordance with the
terms of sale.
b) Income from Royalty and Contract
manufacturing
I ncome from royalties and contract manufacturing
are recognised on an accrual basis in accordance
with the substance of relevant agreement.
c) Revenue from manufacture and sale of
products from tie-up manufacturing
arrangements:
The Company has entered into arrangements with
Tie-up Manufacturing Units (TMUs), wherein TMUs
manufacture and sell beverage alcohol on behalf
of the Company. Under such arrangements, the
Company has exposure to significant risks and
rewards associated with the sale of products
i.e. it has the primary responsibility for providing
goods to the customer, has pricing latitude and
is also exposed to inventory and credit risks.
Accordingly, the transactions of the TMUs under
such arrangements have been recorded as gross
revenue, excise duty and expenses as if they were
transactions of the Company. The Company also
presents inventory under such arrangements as its
own inventory. The net receivables from / payable
to TMUs are recognised under other financial assets/
other financial liabilities respectively.
d) Interest
I nterest income is recognized using the effective
interest rate method. The effective interest rate
is the rate that discounts estimated future cash
receipts through the expected life of the financial
asset to the gross carrying amount of the financial
asset. Interest income is included under the head
"Other income" in the statement of profit and loss.
e) Dividend
Dividend income is recognized when the Company's
right to receive the payment is established, which
is generally when the shareholders approve
the dividend.
xii) Government grants
Government grants are recognised where there is
reasonable assurance that the grant will be received and
all attached conditions will be complied with. When the
grant relates to revenue, it is recognised in the statement
of profit and loss on a systematic basis over the periods
to which they relate. When the grant relates to an asset,
it is treated as deferred income and recognised in the
statement of profit and loss on a systematic basis over
the useful life of the asset.
xiii) Income tax
Income tax expense comprises current tax expenses and
net change in the deferred tax assets or liabilities during
the period. Current and deferred taxes are recognised
in the Statement of profit and loss, except when they
relate to item that are recognised in other comprehensive
income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive
income or directly in equity respectively.
a) Current tax
Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount
expected to be paid or received after considering
the uncertainty, if any related to income taxes. It is
measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.
b) Deferred tax
Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried
forward tax losses and tax credits.Deferred tax
assets are recognised to the extent that it is probable
that future taxable profits will be available against
which they can be used.
Deferred tax assets are recognised to the extent
that it is probable that future taxable profits will be
available against which they can be used.
Deferred tax assets recognised or unrecognised are
reviewed at each reporting date and are recognised
/ reduced to the extent that it is probable / no longer
probable respectively that the related tax benefit will
be realised.
Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realised or the liability is settled, based on the laws
that have been enacted or substantively enacted by
the reporting date.
The measurement of deferred tax reflects the tax
consequences that would follow from the manner in
which the Company expects, at the reporting date,
to recover or settle the carrying amount of its assets
and liabilities.
The Company offsets the current tax assets and
liabilities (on a year on year basis) and deferred
tax assets and liabilities, where it has a legally
enforceable right and where it intends to settle such
assets and liabilities on a net basis.
xiv) Earnings per share
The Company presents basic and diluted earnings
per share (EPS) data for its ordinary shares. Basic EPS
is calculated by dividing the profit or loss after tax
attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares
outstanding during the period. Diluted EPS is determined
by adjusting the profit or loss after tax attributable to
ordinary shareholders and the weighted average number
of ordinary shares outstanding after adjusting for the
effects of all potential dilutive ordinary shares.
xv) Statement of Cash flow
Cash flows are reported using the indirect method,
whereby profit / (loss ) for the period is adjusted for the
effects of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the
Company are segregated. Cash and cash equivalents are
cash, balances with bank and short-term (three months or
less from the date of placement), highly liquid investments
that are readily convertible into cash and which are
subject to an insignificant risk of changes in value.
Amendment to Ind AS 7
Effective April 1, 2017, the Company adopted the
amendment to Ind AS 7, which require the entities
to provide disclosures that enable users of financial
statements to evaluate changes in liabilities arising from
financing activities, including both changes arising from
cash flows and non-cash changes, suggesting inclusion
of a reconciliation between the opening and closing
balances in the Balance Sheet for liabilities arising from
financing activities, to meet the disclosure requirement.
The adoption of amendment did not have any material
impact on the financial statements.
xvi) Share based payments
The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using
an appropriate valuation model. That cost is recognised,
together with a corresponding increase in share-based
payment (SBP) reserves in equity, over the period in
which the performance and / or service conditions are
fulfilled in employee benefits expense. The dilutive effect
of outstanding options is reflected as additional share
dilution in the computation of diluted earnings per share.
xvii) Financial instruments
a) Recognition and initial measurement
The Company initially recognises financial assets
and financial liabilities when it becomes a party to
the contractual provisions of the instrument. All
financial assets and liabilities are measured at fair
value on initial recognition. Transaction costs that
are directly attributable to the acquisition or issue
of financial assets and financial liabilities that are
not at fair value through profit or loss are added
to the fair value on initial recognition. Regular way
purchase and sale of financial assets are accounted
for at trade date.
b) Classification and subsequent measurement
Financial assets
Financial assets carried at amortised cost
A financial asset is subsequently measured at
amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of
the financial asset give rise on specified dates to
cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Financial assets at fair value through other
comprehensive income
A financial asset is subsequently measured at fair
value through other comprehensive income if it is
held within a business model whose objective is
achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms
of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains
or losses, interest revenue and foreign exchange
gains and losses which are recognised in the
Statement of Profit and Loss.
Financial assets at fair value through profit or
loss
A financial asset which is not classified in any of
the above categories are subsequently fair valued
through profit or loss.
Investment in subsidiary and associate
companies
The Company has elected to recognize its
investments in subsidiary and associate companies
at cost in accordance with the option available in Ind
AS 27, 'Separate Financial Statements'. The details
of such investments are given in Note 3. Where
an indication of impairment exists, the carrying
amount of the investment is assessed and written
down immediately to its recoverable amount. The
recoverable amount is the higher of an asset's fair
value less costs of disposal and value in use. On
disposal of investments in subsidiary and associates
the difference between net disposal proceeds
and the carrying amounts are recognised in the
Statement of profit and loss.
Financial liabilities
Financial liabilities are subsequently carried at
amortised cost using the effective interest method.
For trade and other payables maturing within one
year from the balance sheet date, the carrying
amounts approximate fair value due to the short
maturity of these instruments.
In case, the fair value of a financial asset or financial
liability, at initial recognition, differs from the
transaction price, the difference between the fair
value at initial recognition and the transaction price -
(i) i s recognised as a gain or loss if that fair value
is evidenced by a quoted price in an active
market for an identical asset or liability (i.e. a
Level 1 input) or based on a valuation.
(ii) i s deferred and is recognised as a gain or
loss only to the extent that it arises from a
change in a factor (including time) that market
participants would take into account when
pricing the asset or liability. The unamortised
portion of the deferred fair value gain / loss
difference as on reporting date, is disclosed
under other current / non-current assets /
liabilities as the case may be.
c) Derecognition
Financial assets
The Company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire, or it transfers the right to
receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards
of ownership of the financial assets are transferred
or in which the Company neither transfers nor
retains substantially all of the risks and rewards
of ownership and does not retain control of the
financial asset.
I f the Company enters into transactions whereby it
transfers assets recognised on its balance sheet but
retains either all or substantially all of the risks and
rewards of the transferred assets, the transferred
assets are not derecognised.
If the Company neither transfers nor retains
substantially all the risks and rewards of ownership
and continues to control the transferred asset, the
Company recognizes its retained interest in the
assets and an associated liability for amounts it may
have to pay. If the Company retains substantially all
the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognise
the financial asset and also recognises a collateralised
borrowing for the proceeds received.
Financial liabilities
The Company derecognises a financial liability
when its contractual obligations are discharged or
cancelled or expired.
The Company also derecognises a financial liability
when its terms are modified and the cash flows
under the modified terms are substantially different.
In this case, a new financial liability based on the
modified terms is recognised at fair value. The
difference between the carrying amount of the
financial liability extinguished and a new financial
liability with modified terms is recognised in the
statement of profit and loss.
d) Impairment of Financial Assets
The Company assesses impairment based on
expected credit losses (ECL) model at an amount
equal to:-
• 12 months expected credit losses, or
• Lifetime expected credit losses
depending upon whether there has been a
significant increase in credit risk since initial
recognition. However, for trade receivables, the
company does not track the changes in credit risk.
Rather, it recognizes impairment loss allowance
based on lifetime ECLs at each reporting date, right
from its initial recognition.
e) Offsetting
Financial assets and financial liabilities are offset
and the net amount presented in the balance sheet
when, and only when, the Company currently has a
legally enforceable right to set off the amounts and it
intends either to settle them on a net basis or realise
the asset and settle the liability simultaneously.
xviii) Exceptional items
When an item of income or expense within Statement of
profit and loss from ordinary activity is of such size, nature
or incidence that its disclosure is relevant to explain more
meaningfully the performance of the Company for the
period, the nature and amount of such items is disclosed
as exceptional items.
xix) Recent amendments to Indian Accounting
Standards:
The Ministry of Corporate Affairs ("MCA") notifies new
standards or amendment to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended March 31, 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. April 1, 2024. The Company has reviewed the
new pronouncements based on its evaluation has
determined that it does not have any significant impact
in its financial statements.
d) Amount received against warrants.
e) Retained earnings are the profits that Company has earned till date less transfers to general reserve dividends or other
distributions paid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans (net
of taxes) that will not be reclassified to the Statement of Profit and Loss. Retained earnings is a free reserve available
to the Company.
f) This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at
fair value through other comprehensive income, net of amounts reclassified to retained earnings when those assets
have been disposed off.
Footnotes:
a) The amount received in excess of face value of the equity shares is recognised in Securities Premium. In case of equity-
settled share based payment transactions, the difference between fair value on grant date and nominal value of share
is accounted as securities premium. It is utilised in accordance with the provisions of section 52 of the Companies
Act,2013.
b) The general reserve represents amounts appropriated out of retained earnings based on the provisions of the Act prior
to its amendment.
c) The fair value of the equity-settled share based payment transactions with employees is recognised in Statement of
Profit and Loss with corresponding credit to Employee Stock Grants Outstanding Account. The expenses in respect of
the Company's ESOP scheme will be charged against the Reserve for employee compensation expense as per Scheme.
1 Term Loan
The Term loans availed from Kotak Mahindra Bank were:
FY 2023-24
a) Secured against all tangible / intangible assets and current assets of the Company, both present and future.
b) Secured against all the fixed assets, both present and future of the wholly owned subsidiary companies i.e. Vahni
Distilleries Private Limited and PunjabExpo Breweries Private Limited.
c) Secured with the Corporate guarantee given by the wholly owned subsidiary companies i,e, Vahini Distilleries
Private Limited and PunjabExpo Breweries Private Limited.
d) Backed by personal guarantee of Chairman & Managing Director of the Company.
FY 2024-25
a) During 2024-2025, the outstanding term loan of ' 6,642 lacs as on March 31, 2024 was repaid in full and the
security provided for the loan stands withdrawn.
2 Cash Credit (including Working Capital Demand Loan)
a) During 2023-2024, working capital limits with Kotak Bank Limited were sanctioned for ' 2,500 lacs which was
enhanced to ' 12,000 lacs during 2024-2025. As at March 31, 2025 there is no amount outstanding against these
facilities. The no dues certificate from Kotak Bank Ltd was subsequently received in FY 2025-26.
24 Financial Instruments - Accounting classification and fair value measurements
a) The fair value of the assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in forced or liquidation sale.
b) The following methods and assumptions were used to estimate the fair value:
1) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current
liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due
to the short term maturities of these instruments.
2) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such
as interest rate and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken
to account for the expected losses of these receivables.
c) The company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation techniques:
Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : Valuation techniques for which all inputs which have a significant effect on the recorded fair value are observable,
either directly or indirectly.
Level 3 : Valuation techniques which use inputs that have a significant effect on the recorded fair value that are not based
on observable market data.
The following table shows the carrying amounts and fair values of financial assets and financials liabilities, including their
levels in the fair value hierarchy:
Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities and from its financing activities,
including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The
company generally doesn't have collateral.
25 Financial risk management
Objectives and policies
Risk management framework
The Company's management has overall responsibility for the establishment and oversight of the Company's risk
management framework.
The Company conducts yearly risk assessment activities 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 systems are reviewed
regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and
management standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.
The Company has a system in place to ensure risk identification and ongoing periodic risk assessment is carried out. The
Board of directors periodically monitors the risk assessment.
The Company has exposure to the following risks arising from financial instruments :
- Credit risk
- Liquidity risk
- Market risk
- Interest risk
Trade receivables
Customer credit risk is managed as per Company's established policy, procedures and control relating to customer credit
risk management. Credit risk has always been managed by the Company through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business.
An impairment analysis is performed for all major customers at each reporting date on an individual basis. In addition,
a large number of minor receivables are grouped into homogenous group and assessed for impairment collectively. The
calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of
each class of financial assets. The company evaluates the concentration of risk with respect to trade receivables as low, as
its customers are located in several jurisdictions and operate in largely independent markets.
Bank balances and deposits with banks
Credit risk from balances with banks is managed by the company's finance department as per Company's policy. Investment
of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty.
Counterparty credit limits are reviewed by the Company's Board of Directors on an annual basis, and may be updated
throughout the year subject to approval of the Company's Board of directors. The limits are set to minimise the concentration
of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.
b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.
Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial
instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices
and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive
financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowing.
The company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification
of risk factors with the object of governing / mitigation them accordingly to company's objectives and declared policies in
specific context of impact thereof on various segments of financial instruments.
Currency risk
The Company is exposed to currency risk to the extent that there is mismatch between the currencies in which sales,
purchase are denominated and the respective functional currencies of Company. The Company has export sales primarily
denominated in US dollars.
28 Capital Management
For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves
attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital
is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize
shareholder value.
Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve
an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into business
based on its long term financial plans.
Contingent liabilities above represent estimates made mainly for probable claims arising out of litigation and disputes pending
with tax authorities. The probability and timing of outflow with regard to these matters depend on the final outcome of
litigations / disputes. Hence the Company is not able to reasonably ascertain the timing of the outflow.
I n addition to above, the Company is also subject to legal proceedings and claims which arise in the ordinary course of
business. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where
provisions are required and disclosed as contingent liability, where applicable. The management does not reasonably
expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect on the
Company's operations or financial condition.
30 Operating Lease:
a) The company has taken certain office premises and warehouse under cancellable operating leases. In the rent agreements
there are no terms for purchase option or any restriction such as those concerning dividend and additional debts. Lease
agreements of the company do not contain any variable lease payment or any residual value guarantees.
31 The disclosure of Ind AS 19 “Employee Benefits” is as follows:
Defined Contribution Plans
The Company has charged in the Statement of Profit and Loss during the financial year an amount of ' 211.32 lacs (P.Y.
' 175.11 lacs) under defined contribution plan as employer's contribution to Provident Fund.
Defined Benefit Plans
The Employees' gratuity fund scheme managed by LIC is a defined benefit plan. The present value of obligation is determined
based on actuarial valuation using the Projected Unit Credit Method (PUCM), which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final
obligation.The obligation for leave encashment is recognized in the same manner as gratuity
33 Segment Reporting:
The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor and its
related products which constitute a single business segment. This is the only activity performed and is thus also the main
source of risks and returns. Accordingly there is no other separate segment as per Indian Accounting Standard 108 dealing
with "Operating Segment". The geographical segmentation is insignificant as the export turnover is less than 10% of the
total turnover and also company's Non Current assets (other than Financial Instrument, deferred tax, post employment
benefits and rights arising under insurance contracts) are located in India.
Revenue of ' 2,56,757 lacs is derived from the three external customers (P.Y.? 2,46,006 lacs) that individually contributed
more than 10% of the total revenue.
42 The Company expects to restart the grain distillery plant post incurring of relevant capital expenditure. In view of this, the
management believes that there is no impairment in value of its ENA Plant and hence the recoverable amount of the ENA
Plant is not required to be estimated.
43 a) Anupama Wine Distributors has filed a suit before the City Civil Court, Bangalore claiming approximately ' 731.10
lacs towards refund of security deposit and other dues. The Hon'ble Court vide its Order dated December 22, 2007
dismissed their application for attachment of property for recovery of the above dues. The Company has filed a counter
claim for the sum of approximately ' 1,193.00 lacs against Anupama Wine Distributors and the matter is pending
before City Civil Court, Bangalore. The matter is posted for filing evidence by Anupama Wine Distributors and the
cross examination is underway.
b) A body corporate has filed a suit in Bombay High Court in 2009 regarding ownership of one of the brands owned by
the Company, and the Company has filed a counter claim in this regard. The Court in its order dated December 22,
2011 has adjudicated in favor of the Company and allowed unrestricted usage of the concerned brand throughout
India by the Company. An appeal has been filed by the body corporate against the order dated December 22, 2011,
however, no stay has been granted, and the order is subsisting till date.
I n a separate application filed in the counter claim, the Court in its order dated February 7, 2025 has given approval
to the assignee of the body corporate to also use the name of the concerned brand in West Bengal. The Company
believes it has strong case in its favor and has filed an appeal with the Division Bench of Bombay High Court against
the said order. The Bombay High Court has put a stay on the order dated February 7, 2025, and subsequently an
undertaking has been given by the assignee of body corporate that it will not act upon the order dated February 7,
2025. The matter is sub-judice.
The Company continues its uninterrupted exclusive use and sale of the goods under the said brand.
45 Exceptional Items in the year ended March 31, 2025 includes :
Over the years, the net worth of PunjabExpo Breweries Private Ltd" a wholly owned subsidiary (referred as PE) had been
fully eroded despite attempts to rationalize its administrative overheads. In the year 2022-2023 the company had assessed
the situation and concluded that there is no sufficient visibility on PE northern business and return on investments. The
company accordingly provided for impairment of the equity investments in PE of ' 2,680.39 lacs in its books of accounts
under exceptional items for the year ended March 31, 2023. In the following years, the management of PE increased /
rationalised the capacity utilisation and contract manufacturing rates for bottling carried on for the holding company.
Consequent to the financial restructuring and steps taken by PE, efficiency has improved resulting in profit during the year
and positive networth at the year end. The company reassessed the value of its equity investment through an independent
valuation exercise at ' 1,002.24 lacs. The excess provision created in 2022-2023 was thus written back for ' 1,002.24 under
exceptional items for year ended March 31, 2025.
46 During the year ended March 31, 2025, The Deputy Commissioner of Income tax (DCIT) has reassessed the income pursuant
to the search conducted in February 2024, and has passed the assessment orders from AY 2016-17 to AY 2024-25 as per the
applicable provisions of the Income tax Act, 1961. Certain additions / disallowances were made to the returned income of the
company. The Income tax department has set off the brought forward losses of the company against the assessed income.
Overall, there is no demand raised for the said years except ' 0.03 lacs for AY 2023-24 while refunds of ' 138.43 lacs and
' 343 lacs for AY 2021-2022 and AY 2024-2025 respectively have been granted. Based on the Company's riskassessment
process and applicable laws, there is no material impact on the financial position, operation or other activities of the
Company. The company has filed further appeals against the above assessment orders and expects a favourable outcome.
47 The Revenue from Operations includes ' 2,901.09 lacs for the year ended March 31, 2025 (P.Y. ' Nil Lacs) received as partial
Subsidy from Government of Maharashtra under Package Scheme of Incentives, 2007, relating to past investments.
48 During the financial year 2024-2025, the Finance Committee of the Board of Directors approved a follow-on investment
of ' 1,315 lacs in Spaceman Spirits Lab Private Limited ("SSL"), makers of premium Indian craft gin Samsara and craft rum
Sitara. The Company shall invest ' 1,315 lacs across 3 tranches over an 18 month period by subscribing to (a) 2,546 Equity
Shares and (b) 16,890 Compulsory Convertible Preference Shares ("CCPS"). Earlier, the Company had executed a Share
Subscription and Investment Agreement on March 27, 2023, against which the Company had subscribed to 6,636 Equity
Shares and 7,374 CCPS of SSL equivalent to 10% of share capital on a fully diluted basis for ' 975 lacs. The total shareholding
percentage of the Company in SSL after the proposed investment shall stand increased to 20.02% (on a fully diluted basis).
The first tranche of investment of ' 399.99 lacs was made in 2024-2025 .
49 During the financial year 2024-2025, the Finance Committee of the Board of Directors approved an investment of ' 802.85
lacs in Round the Cocktails Private Limited ("Bartisans") which is a 'ready to pour' beverage company, engaged in the
business of developing, producing, marketing and selling non-alcoholic beverages which can be mixed with alcohol to create
cocktails, and can also be consumed on their own as mocktails. The Company has invested ' 802.85 lacs by (a) Subscribing
to 2,352 Compulsory Convertible Preference Shares (""CCPS"") and 1 equity share of Bartisans equivalent to 13.52% of
share capital on a fully diluted basis for ' 300 lacs; and (b) Purchasing from existing shareholders, 163 equity shares and
3,781 CCPS of Bartisans equivalent to 22.65% of share capital on a fully diluted basis for ' 502.85 lacs. In aggregate, the
Company now owns 36.17% of the share capital of Bartisans on a fully diluted basis post its investment.
50 a) The Board of Directors recommended payment of Dividend of ' 1 per equity share of ' 10/- each for the financial year
ended March 31, 2025 subject to the approval of the Members at the ensuing Annual General Meeting.
b) During the financial year 2024-25, the Company has paid dividend of ' 964.78 lacs (' 0.50 per share) against the
dividend declared for the financial year 2023-24.
54 The Company has used accounting software for maintaining its books of account 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.
With respect to changes made by certain privileged access rights to the SAP application and / or the underlying database
audit trail feature is not enabled. The Company does have a privileged access monitoring tool that monitors these access
rights and the Company is in the process of further strengthening this feature with adequate logs to be maintained. Further
no instance of audit trail feature being tampered with was noted in respect of the software. Additionally, the audit trail of
previous year has been preserved by the Company as per the statutory requirements for record retention to the extent it
was enabled and recorded in the previous year.
55 Figures of previous year have been regrouped, reclassified and recast, wherever considered necessary.
As per our Report of even date annexed. For and on behalf of the Board of Directors
For Harshil Shah & Company Amit Dahanukar Aparna Chaturvedi
Chartered Accountants Chairman & Managing Director Director
Firm Registration No.141179W (DIN:00305636) (DIN: 00028647)
Himmat Sharma Abhinav Gupta Minuzeer Bamboat
Partner Chief Financial Officer Company Secretary
Membership No.156501
Place : Mumbai
Date : May 14, 2025
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