Piccadily Agro Industries Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

estimate can be made. These are reviewed at each
balance sheet date and adjusted to reflect the current
best estimates.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognized
as a finance cost.

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount cannot
be made. Contingent assets are neither recognized nor
disclosed in the standalone financial statements.

A contingent liability recognized in a business
combination is initially measured at its fair value.
Subsequently, it is measured at the higher of the
amount that would be recognized in accordance with
the requirements for provisions above or the amount
initially recognized less, when appropriate, cumulative
amortization recognized in accordance with the
requirements for revenue recognition.

m) Earnings per Share:

Basic earnings per share (EPS) are calculated by
dividing the net profit / (loss) after tax for the year
attributable to equity shareholders by the weighted
average number of equity shares outstanding
during the year.

Diluted earnings per share is computed by adjusting the
number of shares used for basic EPS with the weighted
average number of shares that could have been issued
on the conversion of all dilutive potential equity shares.

Dilutive potential equity shares are deemed converted
as of the beginning of the year, unless they have been
issued at a later date. The diluted potential equity
shares have been adjusted for the proceeds receivable
had the shares been actually issued at fair value i.e.
average market value of outstanding shares.

The number of shares and potentially dilutive shares
are adjusted for share splits and bonus shares, as
appropriate. In calculating diluted earnings per share,
the effects of anti-dilutive potential equity shares
are ignored. Potential equity shares are anti-dilutive
when their conversion to equity shares would increase
earnings per share or decrease loss per share.

n) Leases

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.

As per Ind AS 116 each lease component within the
contract is accounted as a lease separately from non¬
lease components of the contract and the consideration
in the contract is allocated to each lease component
on the basis of the relative stand-alone price of the
lease component and the aggregate stand-alone price
of the non-lease components. A right-of-use asset
representing its right to use the underlying asset for
the lease term at the lease commencement date is
recognized. The cost of the right-of-use asset measured
at inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any
lease payments made at or before the commencement
date less any lease incentives received, plus any initial
direct costs incurred and an estimate of costs to be
incurred by the lessee in dismantling and removing the
underlying asset or restoring the underlying asset or
site on which it is located. The right-of-use assets is
subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated using
the straight-line method from the commencement
date over the shorter of lease term or useful life of
right-of-use asset. The estimated useful lives of right-
of-use assets are determined on the same basis as
those of property, plant and equipment. Right-of-use
assets are tested for impairment whenever there is
any indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognized in
the statement of profit and loss.

The lease liability is measured at the present value
of the lease payments that are not paid at the
commencement date of the lease. The lease payments
are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that
rate cannot be readily determined, the incremental
borrowing rate is used.

Thelease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to
reflect the lease payments made and remeasuring the
carrying amount to reflect any reassessment or lease
modifications or to reflect revised in-substance fixed
lease payments. The amount of the re-measurement
of lease liability due to modification is recognized as
an adjustment to the right-of-use asset and statement
of profit and loss depending upon the nature of
modification. Where the carrying amount of the right-
of-use asset is reduced to zero and there is a further
reduction in the measurement of the lease liability, the
Company recognizes any remaining amount of the re¬
measurement in statement of profit and loss.

Company as a lessee:

The Company has elected not to apply the requirements
of Ind AS 116 Leases on short- term leases of all
assets that have a lease term of 12 months or less and
leasesfor which the underlying asset is of low value.
The lease payments associated withthese leases are
recognized as an expense on a straight-line basis over
the lease term.

o) Borrowing Costs

General and specific borrowing costs that are
directly attributable to the acquisition, construction
or production of a qualifying asset are capitalized
during the period of time that is required to complete
and prepare the asset for its intended use or sale.
Qualifying assets are assets that necessarily take
a substantial period of time to get ready for their
intended use or sale. Investment income earned on the
temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalization.
Other borrowing costs are expensed in the period in
which they are incurred.

p) Government Grants

Grants from the government are recognized at their
fair value where there is a reasonable assurance that
the grant will be received and the Company will comply
with all attached conditions. Government grants
relating to income are deferred and recognized in the
profit or loss over the period necessary to match them
with the costs that they are intended to compensate
and presented within other income. Government
grants relating to the purchase of property, plant and
equipment are included in non-current liabilities as
deferred income and are credited to profit or loss on

a straight-line basis over the expected lives of the
related assets and presented within other income.

During the year in accordance with IND AS 20, the
subsidy has been accounted for as income in the
period to which it pertains, despite the actual receipt
being deferred to a subsequent financial year. The
recognition is based on reasonable assurance that
the grant conditions have been met and the amount
will be received.

q) Provisions

Provisions for claims including litigations are recognized
when the Company has a present obligation as a result
of past events, in the year when it is established by
way of orders of court or government notifications
etc. that it is probable that an outflow of resources will
be required to settle the obligations and the amount
can be reasonably estimated. The provision including
any subsequent adjustments are accounted for in the
same expenditure line item to which the claim pertains.

r) Employee Stock Options (ESOP''S)

The Company has implemented an Employee Stock
Option Plan (ESOP) to attract, retain, and motivate
employees by offering them an opportunity to
participate in the equity ownership of the Company.
Under the ESOP scheme, eligible employees are
granted options that vest over a defined period,
subject to continued employment and other conditions
as specified in the plan.

In accordance with the requirements of Ind AS 102 -
Share-based Payment, the Company measures the
fair value of the options granted on the date of grant
and recognizes it as an employee compensation
expense over the vesting period. This expense is
allocated over the respective vesting period, and the
amount recognized during the year reflects the portion
attributable to the current year.

s) Instruments Classified as Equity in Nature

The Company classifies certain financial instruments
as equity in nature in accordance with the principles
laid down under Ind AS 32 - Financial Instruments:
Presentation, where such instruments do not contain
any contractual obligation to deliver cash or another
financial asset and are mandatorily convertible into
a fixed number of equity shares. These instruments
are presented under "Other Equity" in the financial
statements. The Company has issued financial
instruments during the year which, in accordance with
the principles laid down under Ind AS 32 - Financial

Instruments: Presentation, have been classified as
equity instruments. These instruments are non¬
redeemable, mandatorily convertible, and do not
involve any contractual obligation to deliver cash or
other financial assets, thereby meeting the conditions
for classification as equity.

• Compulsorily Convertible Debentures (CCDs)-
The Company accounts for Compulsorily
Convertible Debentures (CCDs) as equity
instruments where the terms of the issue specify
mandatory conversion into a fixed number of
equity shares after a specified period, with no
option for redemption in cash. Even though the
CCDs carry a fixed rate of interest, the interest
does not result in a contractual obligation for
cash payment. Accordingly, the proceeds from
such CCDs are classified under "Other Equity -
Instruments entirely equity in nature." Interest
accrued on these instruments is recognized in the
Statement of Profit and Loss as a finance cost,
with a corresponding credit to Other Equity.

• Compulsorily Convertible Warrants (CCWs)-
The Company issues Compulsorily Convertible
Warrants (CCWs) which entitle the holder to
subscribe to a fixed number of equity shares upon
conversion, with no repayment or redemption
feature. As the conversion is mandatory and
there is no obligation to deliver cash or another
financial asset, these instruments are classified
as equity. The amount received on issuance of
such CCWs is accounted for under "Other Equity -
Instruments entirely equity in nature," in line with
the requirements of Ind AS 32.

t) Use of estimates

The preparation of these financial statements in
conformity with the recognition and measurement
principles of Ind AS requires the management of
the Company to make estimates and assumptions
that affect the reported balances of asset and
liabilities, disclosures relating to contingent liabilities
as at the date of the financial statements and the
reported amounts of income and expense for the
period presented.

Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates
are recognized in the period in which estimates are
revised if the revision affects only that period or in the
period of the revision and future periods if the revision
affects both current and future periods.

The following are the key assumptions concerning the
future, and other sources of estimation uncertainty
at the end of the reporting period that may have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities in future are:

i) Useful lives and residual value of property, plant
and equipment:

Useful life and residual value are determined by
the management based on a technical evaluation
considering nature of asset, past experience,
estimated usage of the asset, vendor''s advice etc
and same is reviewed at each financial year end.

ii) Deferred tax assets:

The Company reviews the carrying amount of
deferred tax assets including MAT credit at the
end of each reporting period and reduces to the
extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part
of the asset to be recovered.

iii) Revenue:

The Company''s contracts with customers could
include promises to transfer multiple products and
services to a customer. The Company assesses
the products / services promised in a contract and
identify distinct performance obligations in the
contract. Identification of distinct performance
obligation involves judgment to determine the
deliverables and the ability of the customer to
benefit independently from such deliverables.

• Judgment is also required to determine the
transaction price for the contract and to
ascribe the transaction price to each distinct
performance obligation. The transaction price
could be either a fixed amount of customer
consideration or variable consideration with
elements such as volume discounts, service
level credits, performance bonuses, price
concessions and incentives. The transaction
price is also adjusted for the effects of the
time value of money if the contract includes
a significant financing component. Any
consideration payable to the customer is
adjusted to the transaction price, unless
it is a payment for a distinct product or
service from the customer. The estimated
amount of variable consideration is adjusted
in the transaction price only to the extent
that it is highly probable that a significant
reversal in the amount of cumulative revenue

recognized will not occur and is reassessed
at the end of each reporting period. The
Company allocates the elements of variable
considerations to all the performance
obligations of the contract unless there is
observable evidence that they pertain to one
or more distinct performance obligations.

• The Company exercises judgment in
determining whether the performance
obligation is satisfied at a point in time
or over a period of time. The Company
considers indicators such as how customer
consumes benefits as services are rendered
or who controls the asset as it is being
created or existence of enforceable right
to payment for performance to date and
alternate use of such product or service,
transfer of significant risks and rewards to
the customer, acceptance of delivery by
the customer, etc.

• Revenue for fixed-price contract is
recognized using percentage-ofcompletion
method. The Company uses judgment to
estimate the future cost-to-completion
of the contracts which is used to
determine the degree of completion of the
performance obligation..

7. Additional Regulatory Information

Additional Regulatory Information pursuant to Clause
6L of General Instructions for preparation of Balance
Sheet as given in Part I of Division II of Schedule III to
the Companies Act, 2013, are given hereunder to the
extent relevant and other than those given elsewhere
in any other notes to the Financial Statements.

a. The Company does not have any Benami property,
where any proceeding has been initiated or
pending against the Company for holding any
Benami property.

b. The Company has not been declared as a willful
defaulter by any lender who has powers to
declare a company as a willful defaulter at any
time during the financial year or after the end of
reporting period but before the date when the
financial statements are approved.

c. The Company does not have any transactions
with struck-off companies.

NOTE 48 (Contd..)

d. The Company does not have any charges or
satisfaction which is yet to be registered with
the Registrar of Companies (ROC) beyond the
statutory period.

e. The Company has complied with the number of
layers prescribed under clause (87) of section 2
of the Companies Act 2013 read with Companies
(Restrictions on number of Layers) Rules, 2017.

f. 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;

- 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

- Provide any guarantee, security or the like to
or on behalf of the Ultimate Beneficiaries.

g. The Company has not received any funds 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;

- 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 - Provide
any guarantee, security or the like to or on
behalf of the Ultimate Beneficiaries.

h. The Company does not have any transactions
which is not recorded in the books of accounts
but has been surrendered or disclosed as income
during the year in the tax assessments under the
Income Tax Act, 1961 ( such as, search or survey
or any other relevant provisions of the Income
Tax Act, 1961).

i. The Company has not traded or invested in
Crypto currency or Virtual Currency during
the financial year.

8. As per the proviso to rule 3(1) of the Companies
(Accounts) Rules, 2014 for maintaining books of
account using accounting software which has a feature
of recording audit trail ( Edit Log) facility is complied
by the company.

9. The figures of the previous years have been regrouped
/ rearranged wherever necessary.

l) Provision^ and contingent liabilities:

A provision is recognized when the Company has a present obligation as a result of past even! and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable
estimate can be made, These are reviewed at each balance sheet date and adjusted to reflect the current
best estimates,

if the effect of the lime value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
Future events not wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to setlle the obligation or
a reliable esiimate of the amount cannot be made. Contingent assets are neither recognized nor disclosed
in the standalone financial statements.

A contingent liability recognized in a business combination is initially measured at its fair value.
Subsequently, it is measured at the higher of the amount that would be recognized in accordance with the
requirements for provisions above or the amount initially recognized less, when appropriate, cumulative
amortization recognized in accordance wilh the requirements for revenue recognition.

m) Earnings per Share:

Basic earnings per share (EPS) are calculated by dividing the net profit / (loss) after tax for the year
attributable to equity shareholders by the weighted average number of equity shares outstanding during the
year.

Diluted earnings per share is computed by adjusting the number of shares used for basic EPS with the
weighted average number of shares that could have been issued on the conversion of all dilutive potential
equity shares.

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have
been issued at a later date. The diluted potential equity shares have been adjusted for the proceeds
receivable had the shares been actually issued at fair value i e average market value of outstanding
shares.

The number of shares and potentially dilutive shares are adjusted for share splits and bonus shares, as
appropriate. In calculating diluted earnings per share, I he effects of anti-dilutive potential equity shares are
ignored. Potential equity shares are anti-dilutive when their conversion to equity shares would increase
earnings per share or decrease toss per share.

n) Leases

A contract is, or contains, a lease it the contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.

As per Ind AS 116 each lease component within the contract is accounted as a tease separately from non -
lease components of the contract and the consideration in the contract is allocated to each lease
component on the basis of ihe relative stand-alone price of the lease componeni and the aggregate stand¬
alone price of the non-I ease components, A right-of-use asset representing its right to use the underlying
asset for the lease term at the lease commencement date is recognized. The cost of the right-of-use asset
measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted
for any lease payments made at or before Ihe commencement date less any lease incentives received,
plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and
removing the underlying asset or restoring the underlying asset or site on which it is located. The righl-of-
use assets is subsequently measured at cost less any accumulated depreciation accumulated impairment
losses, if any and adjusted for any remeasuremeni of the lease liability, The right-of-use assels is
depreciated using the straight-line method from the commencement date over the shorter of lease term or
useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the
same basis as those of properly, plant and equipment, Right-of-use assets are tested for impairment
whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if
any, is recognized in the statement of profit and loss.

The lease liability is measured at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit m the
lease, if that rate can be readily determined. If that rale cannot be readily determined, the incremental
borrowing rate is used.

The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the
lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the
carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed
lease payments. The amount of the re-measurement of lease liability due to modification is recognized as
an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of
modification. Whore the carrying amount of the right-of-use asset is reduced to zero and there is a further
reduction in the

measurement of the lease liability, the Company recognizes any remaining amount of Ihe re-measurement
in statement of profit and loss.

Company as a lessee:

The Company has elected not to apply Ihe requirements of Ind AS 116 Leases on short- term leases of all
assets that have a lease term of 12 months or less and leases for which the underlying asset is of low
value. The lease payments associated with these leases are recognized as an expense on a straight-line
basis over the lease term.

o) Borrowing Costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized during the period of lime thai is required to complete and
prepare the asset lor its intended use or sale. Qualifying assels are assets that necessarily take a
substantial period ot time to get ready for their intended use or sale. Investment income earned on the
temporary investment of specific borrowings pending their expenditure or. qualifying assets is deducted
from the borrowing costs eligible for capitalization. Other borrowing costs are expensed m the period in
which they are incurred.

p) Government Grants

Grants Tram the government are recognized at their fair value where there is a reasonable assurance that
the grant will be received and the Company will comply with all attached conditions. Government grants
relating to income are deferred and recognized in the profit or loss over the period necessary to match
them with the costs that they are intended to compensate and presented within other income. Government
grants relating to the purchase of property, plant and equipment are included in non-current liabilities as
deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the
related assets and presented within other income.

During the year in accordance with HMD AS 20, the subsidy has been accounted for as income in (he period
to which it pertains, despite the actual receipt being deferred lo a subsequent financial year, The
recognition is based on reasonable assurance that the grant conditions have been met and the amount will
be received.

q) Provisions

Provisions for claims indue ng legations are recognized when the Company has a present obligation as a
result of past events, in the year when it is established by way of orders of court or government notifications
etc. that it is probable that an outflow of resources will be required to settle the obligations and the amount
can he reasonably estimated. The provision including any subsequent adjustments are accounted for in the
same expenditure Une item lo which the claim pertains.

rj Employee Stock Options fESOP''S)

The Company has implemented an Employee Stock Option Plan (ESOP) to attract, retain, and motivate
employees by offering them an opportunity to participate in (he equity ownership of the Company. Under
the ESOP scheme, eligible employees are granted options that vest over a defined period, subject to
continued employment and other conditions as specified in the plan,

In accordance with the requirements of Ind AS 102 - Share-based Payment, the Company measures the
fair value of the options granted on the dale of gran I and recognizes it as an employee compensation
expense over the vesting period, During the financial year, the Company granted 2,35,045 stock options to
eligible employees. Based on the fair value of these options on the grant date, the Company has
recognized an employee benefit expense of f 1.50 cmre in the Statement ot Profit and Loss. This expense
is allocated over the respective vesting period, and the amount recognized during the year reflects the
portion attributable to the current year.

s) Instruments Classified as Equity in Nature

The Company classifies certain financial instruments as equity in nature in accordance with the principles
laid down under Ind AS 32 - Financial Instruments. Presentation, where such instrument do not contain
any contradual obligaiion to deliver cash or another financial asset and are mandatory convertible into a
fixed number of equity shares, These instruments are presented under "Other Equity" in the financial
statements.The Company has issued financial instruments during the year which, in accordance with the
principles laid down under Ind AS 32 - Financial Instruments: Presentation, have been classified as equity
instruments. These instruments are non-redeemable, mandatorily convertible, and do not involve any
contractual obligation to deliver cash or other financial assets, thereby meeting the conditions for
classification as equity.

Compulsorily Convertible Debentures (CCDs)- The Company accounts for Compulsorily
Convertible Debentures (CCDs) as equity instruments where the terms of the issue specify
mandatory conversion into a fixed number of equity shares after a specified period, with no option
for redemption in cash. Even though the CCDs carry a fixed rate of interest:, the interest does not
result in a contractual obligation for cash payment. Accordingly, the proceeds from such CCDs are
classified under "Other Equity - Instruments entirely equity in nature." Interest accrued on these
instruments is recognized in the Statement of Profit and Loss as a finance cost, with a
corresponding credit to Other Equity.

Compulsorily Convertible Warrants {CCWs)'' The Company issues Compulsorily Convertible
Warrants (CCWs) which entitle the holder to subscribe to a fixed number of equity shares upon
conversion, with no repayment or redemption feature, As the conversion is mandatory and there is
no obligation to deliver cash or another financial asset, these instruments are classified as equity,
The amount received or issuance of such CCWs is accounted for under "Other Equity ¦
Instruments entirely equity in nature/'' in line with the requirements of Ind AS 32.

t) Use of estimates

The preparation of these financial statements in conformity with the recognition and measurement
principles of !nd AS requires the management of the Company to make estimates and assumptions that
affect the reported balances of asset and liabilities, disclosures relating to contingent liabilities as at the
date of the financial statements and the reported amounts of income and expense for the period presented.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which estimates are revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the key assumptions concerning the future, and other sources of estimation uncertainty at
the end of the reporting period that may have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities in future are:

i) Useful lives and residual value of property, plant and equipment: Useful life and residual value are
determined by the management based on a technrcal evaluation considering nature of asset, past
experience estimated usage of the asset, vendor''s advice etc and same is reviewed at each financial year
end.

ii) Deferred tax assets: The Company reviews the carrying amount of deferred tax assets including MAT
credit at the end of each reporting period and reduces to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the asset lo be recovered.

iii) Revenue:

The Company’s contracts with customers could include promises to transfer multiple products and services
to a customer. The Company assesses the products / services promised in a contract and identify distinct
performance obligations in the contract, identification of distinct performance obligation involves judgment
to determine the deliverables and the ability of the customer to benefit independently from such
deliverables.

¦ Judgment is also required to determine the transaction price for the contract and to ascribe the transaction
pnee to each distinct performance obligation. The transaction price could be either a fixed amount of
customer consideration or variable consideration with elements such as volume discounts, service level
Credits, performance bonuses, price concessions and incentives, The transaction price is also adjusted for

the effects of the time value of money if the contract includes a significant financing component. Any
consideration payable to the customer is adjusted to the transaction price, unless it is a payment for a
distinct product or service from the customer. The estimated amount of variable consideration is adjusted in
the transaction price only to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognized will not occur and is reassessed at the end of each reporting period. The
Company allocates the elements of variable considerations to all the performance obligations of the
contract unless there is observable evidence that they pertain to one or more distinct performance
obligations.

• The Company exercises judgment in determining whether the performance obligation is satisfied at a
point in time or over a period of time. The Company considers indicators such as how customer consumes
benefits as services are rendered or who controls the asset as it is being created or existence of
enforceable right to payment for performance to date and alternate use of such product or service, transfer
of significant risks and rewards to the customer, acceptance of delivery by the customer, etc.

• Revenue for fixed-price contract is recognized using percentage-of completion method. The Company
uses judgment to estimate the future cost-tocompletion of the contracts which is used to determine the
degree of completion of the performance obligation.

AUDITORS REPORT For and on behalf of the board

As per our separate report of even date

For Jain & Associates Sd/- Sd/-

CHARTERED ACCOUNTANTS Natwar Aggarwal Harvinder Singh Chopra

FRN: 001361N (Chief Financial Officer) (Chairman & Managing Director)

DIN:00129891

Sd/- SdA Sd 1-

Krishan Mangawa Niraj Kumar Sehgal Dharmendra Kumar Batra

Partner (Company Secretary) (Whole Time Director)

M.No:513236 M.No. :A8019 DIN:07947018

Date: 20-0S2025
Place: Gurugram
UDIN: 25513236BMJPJQ4533

B) RIGHT OF SHAREHOLDERS

i) Each Shareholder is entitled to one vote per share.

ii) Each Shareholder has the right in profit/surplus in proportion to amount paid up with respect to share holding.

iii) In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets, if any, in proportionate to their individual shareholding in the paid up equity capital of the company.

NOTE 32 PAYABLES & RECEIVABLES

Balance of certain sundry debtors, loans & advances (including capital advances), creditors and other liabilities are in process of confirmation/reconcilliation. The management is of the opinion that adjustment, if any, arising out of such reconcilliation would not be material.

NOTE 33 ADVANCES RECOVERABLE

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for known liabilities is adequate and not in excess of amount reasonably necessary.

NOTE 34 DISCLOSURE AS PER IND AS-36 IMPAIRMENT OF ASSETS

In terms of Ind AS 36 on impairment of assets, there was no impairment indicators exist as of reporting date as per the internal management estimates done and hence no impairment charge is recognised during the year under review.

a) The Company has identified Business Segments as primary Segments. The reportable business Segments are “Sugar” and “Distillery”.

b) The type of products in each business segments are as under:

Sugar : Sugar, Molasses, Power and Bagasse

Distillery: Liquor, Malt, Carbondioxide Gas and Ethanol

c) The Company is also converting resin in to pet bottle, which is exclusively used for Liquor which is taken in Distillery Segment and hence no separate segment is reported for the same.

d) In addition to the significant accounting policies applicable to the operating segments as set out in note 44, the accounting policies in relation to segment accounting are as under:

(i) Segment revenue and expenses:

Joint revenue and joint expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments.

(ii) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, trade receivables, inventories and property, plant and equipments, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of trade payables. Segment assets and liabilities do not include deferred income taxes. While most of the assets/ liabilities can be directly attributed to individual segment, the carrying amount of certain assets/ liabilities pertaining to two or more segments are allocated to the segments on a reasonable basis.

Provisions Liabilty

A provision is recognized when the Company has a present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable
estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current
best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation that arises from past
events where it is either not probable that an outflow of resources will be required to settle the obligation or a
reliable estimate of the amount cannot be made. Contingent assets are neither recognized nor disclosed in
the standalone financial statements.

A contingent liability recognized in a business combination is initially measured at its fair value.
Subsequently, it is measured at the higher of the amount that would be recognized in accordance with the
requirements for provisions above or the amount initially recognized less, when appropriate, cumulative
amortization recognized in accordance with the requirements for revenue recognition.

6. Use of estimates

The preparation of these financial statements in conformity with the recognition and measurement
principles of Ind AS requires the management of the Company to make estimates and assumptions that
affect the reported balances of asset and liabilities, disclosures relating to contingent liabilities as at the date
of the financial statements and the reported amounts of income and expense for the period presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which estimates are revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the key assumptions concerning the future, and other sources of estimation uncertainty at
the end of the reporting period that may have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities in future are:

i) Useful lives and residual value of property, plant and equipment: Useful life and residual value are
determined by the management based on a technical evaluation considering nature of asset, past
experience, estimated usage of the asset, vendor''s advice etc and same is reviewed at each financial year
end.

ii) Deferred tax assets: The Company reviews the carrying amount of deferred tax assets at the end of each
reporting period and reduces to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.

Deferred income tax assets and liabilities are recognized for deductible and taxable temporary differences
arising between the tax base of assets and liabilities and their carrying amount, except when the deferred
income tax arises from the initial recognition of an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred
income tax assets are recognized to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry forward of unused tax credits and unused tax
losses can be utilized.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax asset to be utilized. Deferred tax assets and liabilities are measured using
substantively enacted tax rates expected to apply to taxable income in the years in which the temporary
differences are expected to be received or settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off assets against
liabilities representing the current tax and where the deferred tax assets and liabilities relate to taxes on
income levied by the same governing taxation laws.

7. Earnings Per Share

Basic earnings per share (EPS) are calculated by dividing the net profit / (loss) after tax for the year
attributable to equity shareholders by the weighted average number of equity shares outstanding during the
year.

Diluted earnings per share is computed by adjusting the number of shares used for basic EPS with the
weighted average number of shares that could have been issued on the conversion of all dilutive potential
equity shares.

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have
been issued at a later date. The diluted potential equity shares have been adjusted for the proceeds
receivable had the shares been actually issued at fair value i.e. average market value of outstanding shares.
The number of shares and potentially dilutive shares are adjusted for share splits and bonus shares, as
appropriate. In calculating diluted earnings per share, the effects of anti-dilutive potential equity shares are
ignored. Potential equity shares are anti-dilutive when their conversion to equity shares would increase
earnings per share or decrease loss per share.

8. Revenue

The Company’s contracts with customers could include promises to transfer multiple products and services
to a customer. The Company assesses the products / services promised in a contract and identify distinct
performance obligations in the contract. Identification of distinct performance obligation involves judgement
to determine the deliverables and the ability of the customer to benefit independently from such
deliverables.

• Judgement is also required to determine the transaction price for the contract and to ascribe the
transaction price to each distinct performance obligation. The transaction price could be either a fixed
amount of customer consideration or variable consideration with elements such as volume discounts,
service level credits, performance bonuses, price concessions and incentives. The transaction price is
also adjusted for the effects of the time value of money if the contract includes a significant financing
component. Any consideration payable to the customer is adjusted to the transaction price, unless it is a
payment for a distinct product or service from the customer. The estimated amount of variable
consideration is adjusted in the transaction price only to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognized will not occur and is reassessed at
the end of each reporting period. The Company allocates the elements of variable considerations to all
the performance obligations of the contract unless there is observable evidence that they pertain to one
or more distinct performance obligations.

• The Company exercises judgement in determining whether the performance obligation is satisfied at a
point in time or over a period of time. The Company considers indicators such as how customer
consumes benefits as services are rendered or who controls the asset as it is being created or
existence of enforceable right to payment for performance to date and alternate use of such product or
service, transfer of significant risks and rewards to the customer, acceptance of delivery by the
customer, etc.

• Revenue for fixed-price contract is recognized using percentage-ofcompletion method. The Company
uses judgement to estimate the future cost-to-completion of the contracts which is used to determine
the degree of completion of the performance obligation.

For Jain & Associates
Chartered Accountants
FRN: 001361N

Sd/- Sd/- Sd/- Sd/-

^{Krishan Mangawa Akhil j} D^ada Harvinder Singh Chopra Balinder Kumar

(^Partner) (^Chairman) (Managing Director) (Chief Financial Officer)

M.No. 513236 DIN No. 02321706 Dl_{N N}o. 0₀1₂₉₈₉1

Sd/-

Niraj Kumar Sehgal

^Date: 26/05/2023 (Company Secretary)

Place: Chandigarh M. No. A8019

Notes: a) The Company has identified Business Segments as primary Segments.

The reportable business Segments are “Sugar” and “Distillery”.

b) The type of products in each business segments are as under:

Sugar : Sugar, Molasses and Bagasse Distillery: Liquor & Malt

c) Inter-divisional transfers have been valued at prevailing market price.

d) There is no unallocated amount of revenue /expenses

e) The Company is also converting resin in to pet bottle, which is exclusively use for Liquor which is taken in Distillery Segment and hence no separate segment is reported for the same.

NOTE 1 PAYABLES & RECEIVABLES_

Balance of certain sundry debtors, loans & advances (including capital advances), creditors and other liabilities are in process of confirmation/reconcilliation. The management is of the opinion that adjustment, if any, arising out of such reconcilliation would not be material.

NOTE 2 ADVANCES RECOVERABLE_

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for known liabilities is adequate and not in excess of amount reasonably necessary

NOTE 3_MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006_

The company has not received intimation from suppliers regarding the status under Micro Small and Medium Enterprises Act 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with Development interest paid/payable as required under the said Act have not been given.

NOTE 4 REGROUPING OF FIGURES

The previous year figures have been recast/ regrouped whenever considered necessary to facilitate comparison with revised Schedule XI.

1. RIGHT OF SHAREHOLDERS

A) Each Shareholder is entitled to one vote' per share.

B) Each Shareholder has the right in profit/surplus in proportion to amount paid up with respect to share holding.

C) In the event ol winding up, the equity shareholders will be entitled to receive the remaining balance of assets, it any, in proportionate to their individual shareholding-in the paid up equity capital of the company.

D) There is no change in the Number of Share outstanding at the beginning and at the end of the Financial year.

2.AYABLES & RECEIVABLES

Balance of certain sundry debtors, loans & advances (including capital advances), creditors and other liabilities are in process of confirmation/reconcilliation. The management is of the opinion that adjustment, if any, arising out of such reconciliation would not be material.

3. ADVANCES RECOVERABLE

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if real- ized in the ordinary course of business. The provision for known liabilities is adequate and not in excess of amount reasonably necessary.

4. MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

The company has not received intimation from suppliers regarding the status under Micro Small and Me- dium Enterprises Act 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with Development interest paid/pavable as required under the said Act have not been given.

5. REGROUPING OF FIGURES

The previous year figures have been recast/ regrouped whenever considered necessary to facilitate comparison, with Schedule III.

NOTE 1 PAYABLES & RECEIVABLES

Balance of certain sundry debtors, loans & advances (including capital advances), creditors and other liabilities are in process of confirmation/reconcilliation. The management is of the opinion that adjustment, if any, arising out of such reconcilliation would not be material.

NOTE 2 ADVANCES RECOVERABLE

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordi- nary course of business. The provision for known liabilities is adequate and not in excess of amount reasonably necessary.

NOTE 3 MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

The company has not received intimation from suppliers regarding the status under Micro Small and Medium Enterprises Act 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with Development interest paid/payable as required under the said Act have not been given.

NOTE 4 Regrouping of Figures

The previous year figures have been recast/ regrouped whenever considered necessary to facilitate comparison with revised Schedule XI.

As at As at 31st March, 2014 31st March, 2013

NOTE 5 CONTINGENT LIABILITIES

a. In respect of unassessed cases of Income Tax, Sales Tax, Nil Nil Excise Duty & Service Tax

b. Estimated amount of contracts remaining to be executed on capital account Nil Nil and not provided for (net of advances)

NOTE 6 PAYABLES & RECEIVABLES

Balance of certain sundry debtors, loans & advances (including capital advances), creditors and other liabilities are in process of confirmation/reconcilliation. The management is of the opinion that adjustment, if any, arising out of such reconcilliation would not be material.

NOTE 7 ADVANCES RECOVERABLE

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for known liabilities is adequate and not in excess of amount reasonably necessary.

NOTE 8 MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

The company has not received intimation from suppliers regarding the status under Micro Small and Medium Enterprises Act 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with Development interest paid/payable as required under the said Act have not been given.

NOTE 9 REGROUPING OF FIGURES

The previous year figures have been recast/ regrouped whenever considered necessary to facilitate comparison with revised Schedule XI.

NOTE 1 PAYABLES & RECEIVABLES

Balance of certain sundry debtors, loans & advances (including capital advances), creditors and other liabilities are in process of con- firmafai/reconcilliation. The management is of the opinion that adjustment, if any, arising out of such reconciliation would not be material.

NOTE 2 ADVANCES RECOVERABLE

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for known liabilities is adequate and not in excess of amount reasonably necessary.

NOTE 3 MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

The company has not received intimation from suppliers regarding the status under Micro Small and Medium Enterprises Act 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with Development inter- est paid/payable as required under the said Act have not been given.

NOTE 4 Regrouping of Figures

The previous year figures have been recast/ regrouped whenever considered necessary to facilitate comparison with revised Schedule XI.

NOTE 1 CONTINGENT LIABILITIES As at 31st March, 2012 As at 31st March, 2011

A. In respect of unassessed cases of Income Tax, Sales Tax, Amount Unascertained Excise Duty & Service Tax

A. The Company has identified Business Segments as primary Segments. The reportable business Segments are "Sugar" and Distillery.

B. The type of products in each business segments are as under:

1 Sugar: Sugar, Molasses and Bagasse

2 Distillery: - Ethanoi & Liquor

C Inter-divisional transfers have been valued at prevailing market price.

D There is no unallocated amount of revenue /expenses

E The Company is also converting resin into pet bottle, which is exclusively use for Liquor which is taken in Distillery Segment & hence no separate segment is reported for the same included in the distillery segment.

NOTE 2 BALANCE CONFIRMATION

Balance of certain Sundry Debtor, Loans & Advances(including capital advances), Creditors and other!iabilities(including asso- ciate company) are in process of confirmation/reconciliation. The management is of opinion that adjustment, if any, arising our - of such reconciliation would not be material.

NOTE 3 ADVANCES RECOVERABLE

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for known liabilities is adequate and not in excess of amount reasonably necessary.

NOTE 4 MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT 2006

Company has not received intimation from supplier regarding the status under Micro Small & Medium Enterprises Development Act 2006 and hence disclosure, if any, relating to amounts unpaid as at the year end together with the interest paid/payable as required under the said Act have not been given.

1. Contingent Liabilities: Current Year Previous Year

(Rs. in lacs) (Rs. in lacs)

a) Guarantee given to banks in respect NIL 1000 of advance given by banks to cane growers

2. Other Miscellaneous income includes interest income amounting to Rs.42.59 lacs (Rs. 28.86 lacs) on which TDS is deducted Rs. 4.26 lacs (Rs. 5.84 lacs).

3. Fixed deposit with banks of Rs 11.00 Lacs is under lien with Sales Tax Department, Haryana.

4. Investments of Rs 73.88Lacs (Rs 73.88 lacs) (At Cost) is consist of 1383871 Equity shares of Rs.10/- each fully paid up of Piccadily Sugar & Allied Industries Ltd. (Market value of Rs.6.36 per share) is long term investment.

5. The previous year expense of Rs.62.74 Lacs is net of the expenses relating to previous years of Rs.65.62 Lacs and Income relating to previous years of Rs.2.88 Lacs.

6. Interest charged under the head Financial Expenses in Profit & Loss Account includes interest on Term loans amounting to Rs.139.42 lacs (Rs. 19.40 lacs)

Notes :-

a) The Company has identified Business Segments as primary Segments. The reportable business Segments are "Sugar" and "Distillery".

b) The type of products in each business segments are as under:

1. Sugar: Sugar, Molasses and Bagasse

2. Distillery - Ethanol, Liquor

Inter-divisional transfers have been valued at prevailing market price.

d) There is no unallocated amount of revenue /expenses

7. Sundry Creditors and loan and advances are subject to confirmation, reconciliation and adjustment and the amount is unascer- tained.

8. In the opinion of the board, the current assets, loans and advances are approximately of the value stated, if realised in the ordi- nary course of business. The provision for known liabilities is adequate and not in excess of amount reasonably necessary.

9. Installment of term loans Payable with in one year period is Rs.466.94 lacs (Rs. 376.59 lacs)

10. In compliance with Accounting Standard 20 issued by The Institute of Chartered Accountants of India, the following informa- tion is disclosed for basic and diluted earning per share.

11. Advances recoverable in cash or kind amounting to Rs 2267.87 lacs (Rs 925.31 lacs) includes loans advanced Rs 630.99 ( Rs. 259.93 lacs) out of which Rs. 250.00 lacs (Rs.250.00 Lacs) are secured against Plant & Machinery and balance is unsecured. It also includes Rs 816.61 lacs as advances against shares.

12. The information as required by para 3,4c and 4D of part II of Schedule VI of the Companies Act,1956>

13. Figures in brackets relates to Previous Year.

14. Figures of the Previous Year have been regrouped and recast to make them comparable with those of current year wher- ever considered necessary.