l. Provisions, contingent liabilities and contingent
assets
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.
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.
Contingent Assets
Contingent assets are not recognised but disclosed
in the financial statements, where economic
inflow is probable.
m. Revenue recognition
Revenue is measured based on the consideration
specified in a contract with a customer and excludes
amounts collected on behalf of third parties, if any.
The Company recognises revenue when it transfers
control over a product or service to a customer.
The Company has applied five step model as
per Ind AS 115 'Revenue from contracts with
customers' to recognise revenue in the standalone
financial statements.
The Company recognises revenue from the
following major sources:
Revenue from Sugar segment:
For transfer of goods, the Company recognises
revenue when the customers obtain the control of
goods. This usually happens when the customer
gains right to direct the use of and obtains
substantially all benefits from the goods.
Revenue from Power segment:
Revenue is recognised, when power units are
transferred to the customer.
Revenue from Ethanol segment:
Revenue is recognised when the customers obtain
the control of goods. This usually happens when
the ethanol is supplied at Oil marketing companies
('OMC') location.
Interest income
Interest income is recognised on a time proportion
basis taking into account the amount outstanding
and the rate applicable.
Dividend income
Dividend is recognised when the Company's' right
to receive payment is established, i.e., in the case
of interim dividend, on the date of declaration by
the Board of Directors; whereas in the case of final
dividend, on the date of approval by the shareholders.
Power banked units
Income from power banked units is recognised
when the right to set off power banked units is
established against the power to be purchased
by the Company.
Other
Other items of income are accounted as and when
the right to receive such income arises and it is
probable that the economic benefits will flow to
the Company and the amount of income can be
measured reliably.
n. Income taxes
Income tax expense comprises current tax and
deferred tax. It is recognised in Statement of Profit
and Loss except for the items directly recognised in
other comprehensive income or in equity.
Current tax is determined as the tax payable in respect
of taxable income for the year and is computed in
accordance with relevant tax regulations.
Deferred tax is recognised in respect of temporary
differences between carrying amount of assets
and liabilities for financial reporting purposes and
corresponding amount used for taxation purposes.
Deferred tax assets are recognised to the extent
that it is probable that taxable profit will be available
against which the deductible temporary differences,
the carry forward of unused tax credits and unused
tax losses can be utilised.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted
or substantively enacted at the reporting date. The
Company offsets deferred tax assets and liabilities if
and only if it has a legally enforceable right to set off
current tax assets and current tax liabilities and the
deferred tax assets and liabilities relate to income
taxes levied by the same tax authority.
o. Retirement and other employee benefits
Provident fund
The Company pays provident and other fund
contributions to publicly administered funds as per
related Government regulations.
The Company has no further obligation other than
the contributions payable to the respective funds.
The Company recognises contribution payable
to such funds as an expense when an employee
renders the related service.
Gratuity
The Company operates a defined benefit plan for its
employees viz. gratuity liability. The cost of providing
benefit under this plan is determined on the basis
of actuarial valuation at each year end using the
projected unit credit method. The Company has
taken an insurance policy under the Group Gratuity
Scheme with the Life Insurance Corporation of India
(LIC) to cover the gratuity liability of the employees.
The difference between the actuarial valuation of
the gratuity of employees at the year-end and fair
value of plan assets is provided for as liability or
assets in the books.
Re-measurement gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised directly in Other
comprehensive income in the period they occur and
are subsequently transferred to Retained earnings.
Re-measurements are not reclassified to profit or
loss in subsequent periods.
Leave encashment
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.
The Company treats accumulated leave expected to
be carried forward beyond twelve months as long
term employee benefit for measurement purpose.
Such long-term compensated absences are
provided for based on actuarial valuation using the
projected unit credit method at the year end. Re¬
measurement gains/losses are immediately taken to
the statement of profit and loss and are not deferred.
Superannuation and contributory pension fund
Retirement benefits in the form of Superannuation
Fund, National pension Scheme and Contributory
Pension Fund are defined contribution scheme.
The Company has no obligation, other than the
contribution payable to the Superannuation Fund
and Contributory Pension Fund to Life Insurance
Corporation of India (LIC) against the insurance
policy taken with them. The Company recognises
contribution payable to the Superannuation
Fund and Contributory Pension Fund scheme
as expenditure, when an employee renders the
related service.
Ex-gratia or other amount disbursed on account
of selective employees separation scheme or
otherwise are charged to Statement of Profit and
Loss as and when incurred/determined.
p. 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 receivable that do not contain
a significant financing component are measured at
transaction price.
Subsequent measurement
Financial Assets other than Equity Instruments
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.
After initial measurement, such financial assets are
subsequently measured at amortised cost using
the effective interest rate (EIR) method. The EIR
amortization is included in finance income in the
profit or loss.
Financial assets at Fair value through other
comprehensive income (FVOCI)
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 principal outstanding.
They are subsequently measured at each reporting
date at fair value, with all fair value movements
recognised in Other Comprehensive Income (OCI).
On derecognition of the asset, cumulative gain or
loss previously recognised in Other Comprehensive
Income is reclassified from the OCI to Statement of
Profit and Loss.
Financial asset at Fair value through profit or loss
(FVTPL):
A financial asset which is not classified in any of the
above categories is subsequently fair valued through
profit and loss.
Equity investments (other than Investment in
Subsidiaries, Joint Ventures and Associates)
AH equity investments in scope of Ind AS 109 are
measured at fair value. Equity Investments, which are
held for trading are classified as Fair value through
Profit and Loss with all changes recognised in the
P&L. For all other 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.
De-recognition
A financial asset is primarily de-recognised 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 'pass-through' arrangement
and the transfer qualifies for derecognition
under Ind AS 109.
Impairment of financial assets
The Company assesses at each date of balance
sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through a
loss allowance.
The Company follows 'simplified approach' for
recognition of impairment loss allowance on
Trade receivables that do not contain a significant
financing component.
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.
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.
Subsequent measurement
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 statement of profit and 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.
Non-Convertible Redeemable Preference Shares
(NCRPS)
At the issue date or receipt of money, whichever is
earlier, the fair value of the liability component of
NCRPS is estimated using the market interest rate
for similar non-convertible instrument. This amount
is recorded as a liability at amortised cost using
the effective interest method until extinguished
upon at the instrument's redemption date. The
equity component is determined as the difference
of the amount of the liability component from the
fair value of the instrument issued to shareholders
of the Company.
Financial guarantee contracts
Financial guarantee contracts issued by the
Company are those contracts that require a
payment to be made to reimburse the holder for
a loss it incurs because the specified debtor fails
to make a payment when due in accordance with
the terms of a debt instrument. Financial guarantee
contracts are recognised initially as a liability at fair
value, adjusted for transaction costs that are directly
attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher
of the amount of loss allowance determined as per
impairment requirements of Ind AS 109 and the
amount recognised less cumulative amortisation.
Financial Liabilities through PL
A financial liability is classified as FVTPL if it is
classified as held-for-trading, or it is a derivative or it
is designated as such on initial recognition. Financial
liabilities at FVTPL are measured at fair value and net
gains and losses, including any interest expense, are
recognised in profit or loss.
De-recognition
A financial liability is de-recognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the de-recognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.
q. Cash and cash equivalents
Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand, cheques
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 short-term
deposits, as defined above.
r. Dividend to equity holders
The Company recognises a liability to make
dividend distributions to equity holders of the
Company when the distribution is authorised and
the distribution is no longer at the discretion of the
Company. A corresponding amount is recognised
directly in equity.
s. Earnings per share
Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year.
For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to equity shareholders and the weighted
average number of shares outstanding during
the year are adjusted for the effects of all dilutive
potential equity shares.
t. Investment property
The Company has certain investments in Land &
Buildings which are classified as Investment Property
as per the requirement of Ind AS 40. Investment
properties are properties held to earn rentals or for
capital appreciation or both. Investment properties
are measured initially at their cost of acquisition,
including transaction costs. The cost comprises
purchase price, cost of replacing parts, borrowing
cost, if capitalisation criteria are met and directly
attributable cost of bringing the asset to its working
condition for the intended use. Any trade discount
and rebates are deducted in arriving at the purchase
price. When significant parts of the investment
property are required to be replaced at intervals,
the Company depreciates them separately based
on their specific useful lives. All other repair and
maintenance costs are recognised in statement of
profit and loss as incurred.
Investment properties are subsequently measured
at cost less accumulated depreciation and
accumulated impairment losses, if any. The same
has been disclosed separately in the financial
statements along with requisite disclosure about fair
valuation of such Investment Property at year end.
Depreciation on investment properties is provided
on the straight-line method over the useful lives of
the assets as follows:
Asset Category - Useful live considered
Buildings 60 years
The residual values, useful lives and method of
depreciation are reviewed at the end of each
financial year and adjusted prospectively.
Investment properties are derecognised either
when they have been disposed of or when they
are permanently withdrawn from use and no future
economic benefit is expected from their disposal.
The difference between the net disposal proceeds
and the carrying amount of the asset is recognised
in profit or loss in the period of derecognition.
u. Fair value measurement of financial instruments
The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.
A fair value measurement of a non-financial asset
takes into account a market participant's ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.
AH assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
• Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities
• Level 2 - Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable
• Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable
The Company's management determines the
policies and procedures for both recurring fair value
measurement, such as derivative instruments and
unquoted financial assets measured at fair value,
and for non-recurring measurement, such as assets
held for distribution in discontinued operation.
External valuers are involved for valuation of
significant assets, such as properties and unquoted
financial assets, and significant liabilities, such as
contingent consideration, if any.
For the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the
fair value hierarchy as explained above.
v. Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker, who is responsible
for allocating resources and assessing performance
of the operating segments.
w. Assets held for sale
Non-current assets are classified as held for sale
if their carrying value will be recovered principally
through a sale transaction rather than through
continuing use and a sale is considered highly
probable. They are measured at the lower of their
carrying amount and fair value less costs to sell.
Such assets are not depreciated or amortised while
they are classified as held for sale. Such assets
classified as held for sale are presented separately
from the other assets in the balance sheet.
x. Exceptional items
Certain occasions, the size, type or incidence of
an item of income or expense, pertaining to the
ordinary activities of the Company is such that
its disclosure improves the understanding of the
performance of the Company, such income or
expense is classified as an exceptional item and
accordingly, disclosed in the notes accompanying
to the standalone financial statements.
y. Recent accounting pronouncements
In May 2025, MCA notified amendments to Ind AS
21 - The Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. April 1, 2025. The Company
has reviewed the amendment and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.
In August 2025, MCA notified the amendments
to Ind AS 1, Presentation of Financial Statements,
Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures and Ind AS 12,
International Tax Reform Pillar Two Model Rules.
The Company has reviewed the amendments and
determined that it does not have any significant
impact in its financial statements.
Fair value hierarchy and valuation technique
The Company obtains independent valuations for its investment properties annually. The best evidence of fair value is current
prices in an active market for similar properties. Where such information is not available, the Company considers information
from a variety of sources.
These valuations are based on valuations performed by S V Kushte, a registered valuer. He is a specialist in valuing these types
of investment properties.
The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase,
construct or develop investment properties or for repairs, maintenance and enhancements.
7.1. 2,200,000 shares (31 March 2025: 4,965,000 shares) of Zuari Agro Chemicals Limited and 55,257,756 shares (31 March 2025:
42,397,534 shares) of Chambal Fertilisers and Chemicals Limited amounting to INR 2,39,770.58 lakhs (31 March 2025: INR
2,74,261.67 lakhs) have been pledged as security by the Company. Refer note 17 and 40 for details.
7.2. During the current year, the Company received 572,582 equity shares of Paradeep Phosphates Limited ("PPL”) in exchange
for 306,194 equity shares of Mangalore Chemicals & Fertilizers Limited ("MCFL”), pursuant to the Composite Scheme of
Arrangement between MCFL, PPL, and their respective shareholders and creditors, as approved by the Hon'ble National
Company Law Tribunal, Bengaluru and Cuttack Benches, vide their respective orders dated 24 September 2025 and 26
September 2025.
II. Terms/Rights attached to equity shares
i) The Company has only one class of equity shares having a par value of INR 10 per share. Each share holder of equity
shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend
proposed by board of directors is subject to the approval of shareholders in the ensuing Annual General Meeting.
ii) 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 amounts. The distribution will be in proportion to the number of
equity shares held by the shareholder.
Nature and purpose
Retained Earnings
Retained earnings are created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to
other reserves, etc.
General Reserve
The Company has transferred a portion of the net profit kept separately for future propose.
FVTOCI Reserve
The Company has elected to recognise changes in the fair value of certain investments in equity shares in other comprehensive
income. These are accumulated in Fair value through OCI reserve in OCI within the equity. The Company transfers this reserves
to retained earnings when relevant equity investments are derecognised.
Capital Redemption Reserve
Where the preference shares are redeemed out of the profits available for distribution, a sum equivalent to the nominal amount
of shares being redeemed shall be transferred to the Capital Redemption Reserve.
Molasses and Alcohol Storage and Maintenance Reserve
The above mentioned reserve is created under Molasses Control Order 1961 which requires every sugar factory to set aside a
amount as mentioned in the order. The amount credited in said account shall be utilised only for purposes of construction or
erection of storage facilities for molasses.
Securities Premium
Securities premium reserve is created when the Company issue shares at the premium. The same will be utilised in accordance
with the provisions of the Companies Act, 2013 and related provisions.
Deemed Equity
This represents equity component on discounting of preference shares issued by the Company.
Capital Reserve on Merger
This represents the impact on equity pursuant to scheme of amalgamation.
17.1 Rupee term loan from banks - Non Current
a. Facility of INR 2,897.90 lakhs (31 March 2025: 4,537.84 lakhs) from ICICI Bank Limited bearing interest rate of 9.65% p.a.
The loan is for a tenure of 42 months repayable in 12 equal quarterly instalments starting from January 2025. This loan
is secured by way of :
First pari passu charge over all movable and immovable fixed assets pertaining to the Sugar, Ethanol and Power plant
both present & future.
The Company has pledged 12,00,000 shares of Chambal Fertilizers and Chemicals Limited, owned by the Company.
b. Facility of INR 17,393.40 lakhs (31 March 2025: INR 20,474.15 lakhs) bearing interest @ 9.85% p.a. from Canara Bank. The
loan is for a tenure of five years. The loan is repayable in ten half yearly instalments starting from Sept 2024, with first
two instalment of 2.50% each of the loan amount then another two of 7.50% each of the loan amount and remaining
six of 13.33% each of the loan amount.
The above loans is secured by way of:
Exclusive mortgage of land at Mandya District, Mysore admeasuring 23.02 acre held by Zuari Infraworld India Limited
(subsidiary) and exclusive mortgage of land at Goa admeasuring approx. 26 acres in the name of the company. Also, the
said loan is secured by pledge of 800,000 shares of Chambal Fertilizers and Chemicals Limited (owned by the Company).
17.2 Rupee term loan from financial institutions - Non Current
a. Facility of INR 12,000.00 lakhs (31 March 2025: INR 12,500.00 lakhs) from Bajaj Finance Limited, bearing interest
rate 9.25% p.a. having outstanding balance of INR 12,464.00 lakhs (31 March 2025: INR 12,464.00 lakhs). The loan is
repayable in 36 months from the date of disbursement. The loan is secured by pledge of 3,974,979 share of Chambal
Fertilizers and Chemicals Limited (owned by the Company) and 21,22,577 shares of Chambal Fertilizers and Chemicals
Limited owned by Simon India limited (wholly owned subsidiary of Company).
b. Facility of INR 12,500.00 lakhs (31 March 2025: INR 12,500.00 lakhs) from Tata Capital Limited, bearing interest rate
10.09 % p.a. having outstanding balance of INR 7,489.68 lakhs (31 March 2025: INR 7,481.17 lakhs). The loan is repayable
in 3 equal half year instalments starting from Nov 2026. The loan is secured by pledge of 2,400,000 shares of Chambal
Fertilizers and Chemicals Limited (owned by the Company) and 78,600 shares of Gillette India Limited (owned by
Globalware Trading and Holdings Limited).
c. Facility of INR 12,500.00 lakhs (31 March 2025: INR 12,500.00 lakhs) from Axis Finance Limited, bearing interest rate
10.40 % p.a. having outstanding balance of INR 8,709.06 lakhs (31 March 2025: INR 10,555.66 lakhs). The loan is
repayable in 4 unequal annual instalments from the date of first disbursement.
The above loans was secured by way of:
Exclusive mortgage of land at Goa admeasuring approx. 24.77 acres in the name of the company and exclusive mortgage
of land (Including factory) at Chennai admeasuring approx. 16.72 acre in the name of Indian Furniture products India
Limited (Subsidiary of the company). The Company has also pledged 2,790,000 shares of Chambal Fertilizers and
Chemicals Limited, owned by the Company.
d. Facility of INR 9,000.00 lakhs (31 March 2025: Nil) from Jio Credit Limited, bearing interest rate 9.10% p.a. having
outstanding balance of INR 7,900.00 lakhs (31 March 2025: Nil). Borrower can repay the principal amount at any point
of time during the tenor of loan (3 years)The Company has also pledged 4,143,000 shares of Chambal Fertilizers and
Chemicals Limited, owned by the Company.
Rupee term loan from financial institution - Current
Facility of INR 4,000 lakhs (31 March 2025: 4,000 lakhs) from Nuvaman Wealth Finance Limited, bearing interest rate
10.50% p.a. having outstanding balance of INR 3,999.89 lakhs (31 March 2025: 3,981.12 lakhs). The loan is repayable in
365 days from the date of disbursement.
The Company has pledged 1,156,000 shares of Chambal Fertilizers and Chemicals Limited and 2,200,000 of Zuari Agro
Chemicals Limited, owned by the Company.”
17.3 Non-convertible debentures - Non Current
Secured, unrated and unlisted Non-Convertible Debentures ('NCDs') aggregating to INR 20,000.00 lakhs comprising of
2,000 debentures of INR 10 lakhs each bearing interest rate of 11.00% p.a. The carrying value of the NCDs after adjustment
of processing fees is INR 19,954.06 lakhs (31 March 2025: INR 19,867.51 lakhs). These 2,000 debentures are redeemable
on 30 Sept 2026.
The NCDs are secured by way of Pledge of 4,818,333 shares of Chambal Fertilizers and Chemicals Limited (Owned by the
Company), 107,000 shares of Gillette India Limited (Owned by Adventz Finance Private Limited) and 143,000 shares of
Gillette India Limited (Owned by Globalware Trading and Holdings Limited).
17.4 Cash credit from Banks - Current
a. Cash credit of INR 7,854.09 lakhs (31 March 2025: INR 7,457.88 lakhs) bearing interest @ 10.15% p.a. taken from State
Bank of India and repayable on demand.
The cash credit is secured by way of:
(i) Primary hypothecation charge on entire current assets of company including its book debts both present and
future on pari passu basis with other lenders
(ii) Collateral extension of 2nd charge on the entire fixed assets of company on pari passu with other working
capital lenders.
b. Several cash credit facilities aggregating to INR 12,398.35 lakhs (31 March 2025: INR 10,649.77) bearing interest @8.15%
p.a. taken from Zila Sahakari Bank Limited and repayable on demand.
The cash credit facilities are secured by way of:
(i) First charge on current assets.
(ii) Pari pasu charge on land, building and plant and machinery against principal and interest amount.
c. Working capital demand loan of INR 1,000 lakhs (31 March 2025: Nil) bearing interest rate 10.20% p.a. taken from
ICICI Bank Limited.
d. Working capital demand loan of INR 5,253.31 lakhs (31 March 2025: INR 4,596.72 lakhs) bearing interest rate 5.58% p.a.
taken from State Bank of India.
17.5 Intercorporate deposits from related party - Non Current
Unsecured loans aggregating to INR Nil (31 March 2025: INR 460.97 lakhs) from Simon India Limited, bearing interest
rate of 10.00% p.a.
Intercorporate deposits from related party - Current
Unsecured loans aggregating to INR 8,000.00 lakhs (31 March 2025: INR 8,000.00 lakhs) from Adventz Finance Private Limited.
17.6 Financial liability part of Non-convertible redeemable preference share issued - Non Current
1. 5,081,448 (31 March 2025: 5,922,080) 7% Non convertible redeemable cumulative preference shares of Rs. 10 each.
2. Nil (31 March 2025: 5,852,034) 10.50% Non convertible redeemable cumulative preference shares of Rs. 10 each. These
shares were redeemed during the year.
NCRPS have been initially recorded at fair value by discounting the cash flow at maturity of instruments. The difference
between the transaction price and fair value of the instruments issued are treated as "deemed equity” at the time of
initial recognition
24.1 Disaggregation of revenue from operations:
The table below presents disaggregated revenue from contracts with customers by geography, offerings and sales channels
for each of our business segments. The Company believes that this disaggregation best depicts how the nature, amount,
timing and uncertainty of our revenues and cash flows are effected by industry, market and other economic factors. The
table also includes a reconciliation of the disaggregated revenue with the Company's strategic divisions, which are its
reportable segments.
24.2 Sale of power:
Pursuant to the notification of the Captive and Renewable Energy ("CRE”) Regulations, 2024 issued by the Uttar Pradesh
Electricity Regulatory Commission ("UPERC”) on 17 October 2025, a revised tariff structure was made applicable with
retrospective effect from 01 April 2024. Accordingly, during the year ended 31 March 2026, the Company recognized
differential revenue amounting to INR 621.11 lakhs pertaining to the period from 01 April 2024 to 31 March 2025, along with
interest of INR 61.28 lakhs.
a) The Company has investment (equity shares, preference shares and equity portion of corporate guarantee) amounting
to INR 6,843.62 and inter corporate deposits amounting INR 2064.13 lakhs in Indian Furniture Products Limited (IFPL), a
subsidiary company. Based on review of current situation and future prospects of furniture business, the Company has
recognised an impairment loss amounting to INR 1,388.04 lakhs (31 March 2025: INR 992.95 lakhs) on this investment
for the year ended 31 March 2026.
b) The Company has investment (equity shares), amounting to INR 5,135.29 lakhs and inter corporate deposits amounting
to INR 5,487.81 lakhs, in Zuari Furniture Limited (formerly Forte Furniture Products India Limited), a subsidiary company.
Based on review of current situation and future prospects of furniture business, the Company has recognised amounting
to INR 867.81 lakhs (31 March 2025 : INR 4,809.62 lakhs) on this investment for year ended 31 March 2026.
33.2 Note
On 31 March 2023, there was an accident in the sugar factory of the Company, resulting in major damage to boiler and
other equipment. The Company had incurred expenditure towards repair of the same and claimed the damages from
insurance company. The claim was settled by the insurance company during current year, resulting in an exceptional loss of
INR 697.89 lakhs.
33.3 Note
The Government of India has consolidated multiple existing labour legislations into a unified framework comprising four
Labour Codes, collectively referred to as the New Labour Codes, on 21 November 2025. Based on current estimates, the
Company has assessed and recognised the monetary impact arises from these regulatory changes during the year ended 31
March 2026. The Company continues to monitor the finalisation of Central and State Rules, along with further clarifications
from the Government on other aspects of the Labour Codes and will recognise any accounting impact as and when required.
34.1 Note
The Board of Directors in its meeting held on 25 May 2026, recommended a final dividend of INR 1/- per fully paid-up
equity share of INR 10 /- each besides payment of interim dividend on unlisted 7% Non-Convertible Redeemable Preference
Shares of INR 10/- each for the period 20 September 2025 till 31 March 2026 on proportionate basis. The same is subject to
approval of shareholders at the ensuing Annual General meeting.
35. Earnings per share (EPS)
Basic and diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by
the weighted average number of equity shares outstanding during the year.
Payments associated with short-term leases are recognized on a straight-line basis as an expense in profit or loss. Short¬
term leases are leases with a lease term of 12 months or less. The rent expense on account of short term leases amounts to
INR 259.74 lakhs (31 March 2025: INR 266.64 lakhs) (refer note 32). Further, income from subleasing assets amounts to INR
57.75 lakhs (31 March 2025: INR 54.09 lakhs) (refer note 25).
Where Company is a Lessor
The Company has entered into operating leases on its investment properties in Goa consisting of land and building (refer
note 4). The leases do not transfer substantially all the risks and rewards incidental to ownership of the assets hence the
same are being classified as operating leases. Rental income recognised during the year is INR 274.84 lakhs (31 March 2025:
INR 257.59 lakhs).
Transaction price allocated to the performance obligation (yet to complete)
The aggregate amount of transaction price allocated to the performance obligations (yet to complete) as at 31 March 2026 is INR
341.63 lakhs (31 March 2025: INR 233.58 lakhs). This balance represents the advance received from customers (gross) against sale
of real estate properties/sale of sugar/rental income. The Management expects to collect the remaining balance of consideration
in the coming years. These balances will be recognised as revenue in future years as per the policy of the Company.
38. Critical accounting judgements, estimates and assumptions
The preparation of these standalone financial statements in conformity with generally accepted accounting principles in India
requires management to make judgements, estimates and assumptions that affect the reported amount of revenue, expenses,
assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the results of operations
during the reporting year end. Although these estimates and associated assumptions are based upon historical experiences and
various other factors besides management's best knowledge of current events and actions, actual results could differ from these
estimates. The estimates and underlying assumptions are reviewed on a periodic basis. Any revision in the accounting estimates
is recognised in the period in which the results are known/materialise.
In the process of applying the company's accounting policies, management has made the following judgements, estimates and
assumptions, which have the most significant effect on the amounts recognised in the financial statements:
i) Income tax balances and related contingencies
The Company has significant litigations outstanding as at 31 March 2026 which includes income tax and wealth tax.
The eventual outcome of these tax proceedings is dependent on the outcome of future events and unexpected adverse
outcomes could significantly impact the Company's reported profits and balance sheet position. The amounts involved
are material and the application of accounting principles as given under Ind AS 37, Provisions, Contingent Liabilities and
Contingent Assets, in order to determine the amount to be recorded as a liability or to be disclosed as a contingent liability,
in each case, is inherently subjective, and needs careful evaluation and judgement to be applied by the management. Key
judgments are also made by the management in estimating the amount of liabilities, provisions and/or contingent liabilities
related to aforementioned litigations.
ii) Impairment assessment of non-current investments in subsidiaries and joint venture
The Company has significant investment and loans in subsidiaries and Joint ventures, which has been carried at cost in the
standalone financial statements. The impairment assessment of these investments and loans is inherently subjective due
to reliance on net worth of investee, valuations of the assets held and cash flow projections of these investee companies.
The key assumptions underpinning management's assessment of the valuation model includes, but are not limited to future
growth rates, discount rates, estimated future operating and capital expenditure.
iii) Valuation of investment property
Investment property is stated at cost. However, as per Ind AS 40, there is a requirement to disclose fair value as at the balance
sheet date. The Company engaged independent valuation specialists to determine the fair value of its investment property
as at reporting date.
iv) Defined Benefit obligation
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using 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. AH assumptions are reviewed at each reporting date.
v) Recoverability of deferred tax assets
The extent to which deferred tax assets can be recognized is based on an assessment of the probability that future taxable
income will be available against which the deductible temporary differences and tax loss carry-forward can be utilized. In
addition, significant judgement is required in assessing the impact of any legal or economic limits or uncertainties in various
tax jurisdictions.
vi) Useful lives of depreciable assets
Management reviews its estimate of the useful lives of Property, plant and equipment at each reporting date, based on the
expected utility of the assets, assessed by technical experts.
vii) Inventories' valuation
Manufacturing of Sugar is complex process which leads to generation of certain joint products / by products, which are used
for generation of other products or sold in the market. The valuation requires use of judgement and assumptions regarding
elimination of inter-divisional profits, allocation of costs of production, subsequent inventory sale data, current sale prices,
notifications / press releases from the government authorities, estimates of expected net realisable value, etc.
Further, the Company has certain litigations involving employees, for which a sufficiently reliable estimate of the amount
of the obligation cannot be made. Based on Management's assessment and in-house legal team's advice, the Management
believes that the Company has reasonable chances of succeeding before the courts/appellate authorities and does not
foresee any material liability. Pending the final decision on the matters, no further provision has been made in the standalone
financial statements.
Note 1: UP Government have levied regulatory fees on sale and captive consumption of molasses @ INR 20/- Qtls w.e.f 24
December 2021 vide order no 4605-5153 dated 12 January 2022 passed by the office of the Commissioner cum Molasses
Controller Allahabad 2. UP Sugar Mill Association filled a writ petition at Hon'ble High Court Lucknow Bench challenging this
order levying regulatory fees on molasses vide write petition no. 589 of 2022. Pending the final outcome of the litigation,
the Company has deposited, under protest, the amount of regulatory fee aggregating to INR 687.23 lakhs. As a matter of
prudence, the Company has recognised / provided for the entire amount deposited in the financial statements.
Note 2: Consequent to the Hon'ble Supreme Court's Order dated 23 October 2024, the Company received a letter from the
Office of the Assistant Excise Commissioner, Lakhimpur Kheri, Uttar Pradesh dated 17 July 2025 directing the Company to
deposit import/export pass fees levied on denatured alcohol retrospectively under the Uttar Pradesh Excise Import, Export,
Transport and Possession of Denatured spirit (Twenty Fourth Amendment) Rules, 2004 ("”2004 Rules””), covering the period
from FY 2018-19 up to the date of the letter. It also instructed the Company to deposit such fees prospectively, as and when
it becomes due.
The matter was challenged by U.P Sugar Mills Association (UPSMA) on behalf of all its members (of which the Company is
also a member) by filing a writ petition dated 30 July 2025 before the Hon'ble High Court of Allahabad. The Hon'ble High
Court of Allahabad granted interim relief by permitting the dispatch of ethanol without payment of import/export pass fees,
subject to the execution of an indemnity bond by distillery operators for movement of trucks carrying industrial alcohol.
Based on discussions with the solicitors/ favourable decisions in similar cases/ legal opinions taken by the Company, the
Management does not expect these claims to succeed and hence, no provision against above is considered necessary.
Value added tax/ Sales tax liability on sale of molasses
Based on discussions with the solicitors/ favourable decisions in similar cases/ legal opinions taken by the Company, the
Management does not expect these claims to succeed and hence, no provision against above is considered necessary. The
Company has sold molasses to certain parties without charging sales tax on the basis of stay order by Hon'ble High Court
of Allahabad and is pending with Hon'ble Supreme Court. It says that during the pendency of special appeal before Hon'ble
Supreme Court, the Company shall not realise taxes on sale of molasses. In case the order is decided against the parties by
the Hon'ble Supreme Court, the Company would be liable to collect and pay VAT/Sales tax to the department along with
interest and penalty. Amount involved is indeterminate.
The details of assets pledged as security for contingent liabilities are:
B.1 The Company has provided following securities to Catalyst Trusteeship Limited for extending loan to its subsidiaries:
The land collateral of 4.28 acre bearing survey no. 252/1, 7.48 acre bearing survey no. 251/1, 9.69 acre bearing survey no. 112/1
and 15.09 acre bearing survey no. 110/1 situated in Goa by the Company for the loan taken by Zuari Infraworld India Limited.
The land collateral of 105.86 acre bearing survey no. 111/1 situated in Goa by the Company for the loan taken by Zuari
International Limited and Zuari Infraworld India Limited.
C 33,975,444 (31 March 2025: 27,047,222) shares of Chambal Fertilizers & Chemical Limited amounting to INR 1,44,973.22 lakhs
(31 March 2025: INR 1,69,180.37 lakhs) pledged by the Company to the lenders of its subsidiaries as follows:
- 15,820,222 (31 March 2025: 10,250,000) shares pledged on behalf of Zuari International Limited
- 2,439,222 (31 March 2025: 2,072,222) shares pledged on behalf of Indian Furniture Products Limited
- 15,716,000 (31 March 2025: 14,725,000) shares pledged on behalf of Zuari Infraworld India Limited
Further, Nil (31 March 2025: 27,65,000) shares of Zuari Agro Chemicals Limited amounting to INR Nil (31 March 2025: INR
5,048.34 Lakhs) pledged by the Company to the lenders of Zuari International Limited.”
42. Financial risk management objectives and policies
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management
of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk.
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current
market interest rates, projected debt servicing capability and view on future interest rate. The Company mitigates this risk by
regularly assessing the market scenario and finding appropriate financial instruments.
(ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company does not hedge its foreign exchange receivables. The Company has a working
capital demand loan of USD 55.50 lakhs (INR 5,253.31 lakhs (31 March 2025: USD 53.74 lakhs (INR 4,596.73 lakhs)) in foreign
currency which is fully hedged against currency risk.
(iii) Equity price risk
The Company's investment in listed and non-listed equity securities are susceptible to market price risk arising from
uncertainties about future values of the investment securities. Having regard to the intrinsic worth, intent and long term
nature of securities, fluctuation in their prices are considered acceptable. Reports on the equity portfolio are submitted to
the Company's senior management on a regular basis. The Company's Board of Directors reviews and approves all equity
investment decisions.
The exposure of equity securities price risk arises from investment in FVTOCI securities held by the Company. At the reporting
date, the exposure to listed equity securities at fair value was INR 2,85,374.27 lakhs (31 March 2025: INR 4,00,293.12 lakhs)
and unlisted equity securities at fair value is INR 3,332.49 lakhs (31 March 2025: INR 7,563.00 lakhs), which are classified at
FVTOCI . Refer note 44 Fair values measurement.
Equity price sensitivity
The table below summarises the impact of increase / decrease of the index on the Company's equity for the period. The
analysis is based on the assumption that the equity index had increased by 5% or decreased by 5% with all other variables
held constant, and that all the Company's equity instruments moved in line with the index.
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is mainly exposed to credit risk from its operating activities (trade receivables) and loans to
related parties.
Customer credit risk is managed as per the Company's established policy, procedures and control relating to customer
credit risk management. The Company assesses the credit quality of the counterparties regularly. Outstanding customer
receivables are regularly monitored and assessed. Impairment allowance for trade receivables if any, is provided on the basis
of respective credit risk of individual customer as on the reporting date.
Given the nature of business operations, the Company's receivables from real estate business does not have any expected
credit loss as transfer of legal title of properties sold is generally passed on to the customer, once the Company receives the
entire consideration. Further, the credit risk of sugar business is also low as the Company sells sugar on 'cash and carry' basis.
The loans have been given to various subsidiary companies and an associate (Zuari Agro Chemicals Limited) to support their
operations. The same are subject to impairment testing along with related investments. Refer Note 38(ii).
Liquidity risk
Liquidity risk is the risk where 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 is to ensure as far as possible
that it will have sufficient liquidity to meet its liabilities when due.
The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The Company
monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while
maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not
breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.
43. Capital management
For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity holders of the Company. The Company's objective with respect to capital management is
to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders. In order to achieve
this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital
expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/ internal accruals and
borrowings, both short term and long term.
The various ratios for monitoring financial position/ capital of the Company are provided in Note No 51.
In order to achieve this overall objective, the company's capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches
in the financial covenants of any interest-bearing loans and borrowing in the current period.
Notes
(i) The equity securities for which the Company has made an irrevocable election at initial recognition to recognize changes in
fair value through OCI rather than profit and loss are investments which are not held for trading purposes.
(ii) Investment in subsidiaries and joint ventures are measured at cost as per Ind AS 27, 'Separate financial statements' and hence,
not presented here.
50. Additional disclosures:
A Compliance with number of layers of companies:
No layers of companies has been established beyond the limits prescribed under clause 87 of section 2 of the Companies
Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
B Relationship with Struck off Companies:
There are no transaction with the companies whose name struck off under section 248 of The Companies Act, 2013 or
section 560 of Companies Act, 1956 during the year ended 31 March 2026 and the year ended 31 March 2025, except as per
the details given below:
C Undisclosed income:
There is no such income which has not been disclosed in the books of accounts. No such income is surrendered or disclosed
as income during the year in the tax assessments under Income Tax Act, 1961.
D No bank or Financial institutions has declared the company as "Wilful defaulter”.
E No proceedings have been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
F All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have been done
except as below:
H Details in respect of Utilization of Borrowed funds and share premium shall be provided in respect of:
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:
i) 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
ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
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:
i) 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
ii) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
J The Company has used an accounting software for maintaining its books of account which has a feature of recording audit
trail of each and every transaction posted into the accounting software, creating an edit log of each change made in the
books of account along with the date when such changes were made, in respect of those posted transactions in the books
of accounts and such feature in the accounting software cannot be disabled. Further, the audit trail feature has not been
tampered with or disabled during the year, and the audit trail has been preserved by the Company in accordance with the
statutory requirements for record retention.
52 The Company had demerged its fertilizer undertaking to Zuari Agro Chemicals Limited ("ZACL”) with effect from 01 July 2011.
The Company had, during the financial year ended 31 March 2017, based on Hon'ble High Court Order on demerger of fertilizer
undertaking, identified the amount of income tax paid or payable under protest pertaining to fertilizer undertaking demerged into
ZACL. The Company has exchanged letter of mutual understanding with ZACL, wherein, ZACL has paid such amount of tax paid
or payable under protest by the Company. The balance carrying value of such advance is INR 522.16 lakhs (31 March 2025: INR
522.16 lakhs) and classified under non- current liability.
53 As per Ind AS 108- "Operating Segment”, segment information has been provided under the Notes to Consolidated Financial
Statements.
54 Previous year comparative figures have been regrouped wherever necessary to correspond to current year figures.
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