v Provisions, Contingent liabilities and Contingent assets
Provisions in respect of present obligations arising out of past events are made in accounts when reliable estimatescan be made of the amounts of obligations. Provisions are not discounted to their present value and reviewed ateach reporting date. Contingent liabilities & commitments are not accounted but disclosed separately. Contingentassets are neither accounted nor disclosed in the financial statements.
w Earnings per share
The earnings considered in ascertaining the Company's earnings per share are net profit after tax. The number ofshares is considered on weighted average basis. Partly paid equity shares are treated as fraction of equity shareto the extent they are entitled to participate in dividends. For the purpose of calculating dilutive EPS, the net profitattributable to equity shareholders and weighted average number of shares are adjusted for the effect of DilutivePotential Equity shares.
x Contingencies and events occurring after the Balance Sheet date -
The existence and nature of the contingency is disclosed separately. In case where the potential loss to an enterprisecan be reduced or avoided because a contingent liability is matched by a related counterclaim, the amount of theprovision on account of contingent liability is determined after taking into account the probable counterclaim if nosignificant uncertainty as to its measurability or collectability exists.
The existence and amount of guarantees, obligations arising from discounted bills of exchange and similarobligations undertaken by an enterprise have been disclosed in financial statements by way of notes.
y Net profit or loss for the period, prior period items and changes in accounting policies
Profit or loss from ordinary activities & extraordinary items have been disclosed on the face of the statement of profitand loss. Extraordinary items have been disclosed in the statement of profit and loss as part of net profit or loss forthe period & the nature and the amount of each extraordinary item have been separately disclosed.
The nature and the amount of a change in an accounting estimate which has a material effect in the current period &subsequent period have been disclosed or if it is impracticable to quantify the amount, that fact has been disclosed.
z Discontinuing operations
The discontinuing operations include such operations which are discontinued pursuant to single plan or whichrepresent major segment, or which can be distinguished operationally or financially. The Company has notdiscontinued any of its operations during the year.
aa Interim financial reporting
Interim Financial Reporting is applicable to the Company as per SEBI rules. The Company gives condensed set ofthe financial statements in the interim reporting which includes Balance Sheet, Statement of Profit & Loss, Cash flowstatement, notes and other explanatory material & Comments about seasonality of interim operations - if any. Incase of Balance Sheet, the period covered is end of current interim period & comparative Balance Sheet as at theend of immediately preceding financial year.
"In case of Statement of Profit & Loss, the period covered is current interim period, cumulative for current financialyear to date, comparative Profit & Loss for the comparable interim period of immediately preceding financial year& comparative year to date Profit & Loss of immediately preceding financial year.
In case of cash flow statement, the period covered is current financial year to date & comparative statement forthe comparable year to date period of immediately preceding financial year.
As per our report of even dateFor HMA & Associates
Chartered AccountantsFirm's Registration No. 100537W
Managing Director Wholetime Director
DIN - 00041021 DIN - 00097644
Partner CEO Company Secretary CFO
Membership No. 113805
Place: Pune Place: Pune
Date: 28 May 2025 Date: 28 May 2025
General Description of the Plan
1. The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity planprovides a lumpsum payment to vested employees at retirement, death, incapacitation or termination of employment ofan amount based on respective employees' salary and tenure of employment with the Company. Liabilities with regard tothe gratuity plan are determined by actuarial valuation performed by an independent actuary at each Balance sheet dateusing ‘Projected Unit Credit' method
2. The Company provides for leave encashment, a defined benefit obligation covering eligible employees. The leaveencashment plan provides a lumpsum payment to vested employees at retirement, death, incapacitation or termination ofemployment of an amount based on respective employees' salary and number of unsused leaves accumulated during thetenure of employment with the Company. Liabilities with regard to the leave encashment plan are determined by actuarialvaluation performed by an independent actuary at each Balance sheet date using ‘Projected Unit Credit' method.
3. The gratuity liability is unfunded and is accounted for on the basis actuarial valuation.
4. The leave encashment liability is not funded. Hence, there is no gain or loss on the plan assets. However, the actuarialgain or loss as reported arises on account of changes in actuarial assumptions and/ or demographic changes in thepopulation profile.
1. Contingent liability on account of income tax demands relate to short deduction of TDS Rs.1.06 lakh, short payment of TDSRs. 0.04 lakh, Interest on late payment and short deduction and interest u/s 220(2) amounting to Rs 0.80 lakh for variousperiods. The liability is uncertain relating to its outflow as it depends upon rectification of defaults on traces by filing revisedTDS returns for various periods. There is no possibility of reimbursement of the expenses if the liability is crystallised.
2. Contingent liability on account of indirect tax demands relate to liability of MVAT against which Writ Petition is pending inthe Hon'ble High Court. Possibility of reimbursement is to the extent of advances received on account of taxes in Note no.10.
3. Contingent liablity on account of state excise demand relates to demand arising vide order dated 14/08/2023 passed byOffice of Commissioner, State Excise, Maharashtra, for payment of duty on rectified spirit on the grounds that the Companyhas released 34,58,175 litres of pure alchohol for manufacturing of liquor. The Company has challenged this order, anda temporary stay was granted till further order with immediate effect by the State Excise Duty Minister on 05/09/2023.However, the stay order does not mention how long the stay is valid, and no further action has been taken by the excisedepartment since the stay was granted. The liability is uncertain as the case is pending with State Excise Department. Thereis no possibility of reimbursement if the liability is crystallised.
4. Bank guarantee is given to Maharashtra Pollution Control Board of HDFC Bank. There is uncertainty of outflow because thegaurantees will be invoked by the bank in case of non-performance / violation of agreed terms by the Company. There isno possibility of reimbursement.
i. The reasons for variances less than 25% are not explained as such variances are not considered significant.
Reasons for Variances
1. Return on equity Ratio - The variance in the return on equity ratio is primarily due to a decrease in net profit after tax,combined with an increase in the company's equity during the year.
2. Trade payables turnover ratio - The ratio has improved during the year on account of prompt payment of trade payables.
3. Net capital turnover ratio - The variance is on account of decrase in revenue and increase in trade advances given tosuppliers of raw material for the next financial year.r.
4. Return on Capital Employed - The variance in capital turnover ratio is due to lower profits and an increase in capital fromadditional equity and borrowings.
Nature of CSR activities
1. Gross amount required to be spent as per section 135 of the Companies Act, 2013 - Rs. 41.08 lakhs (P.Y. Rs. 26.23 lakhs)
2. Excess expenditure incurred in earlier years set off against current year - Rs. 0.08 lakhs (P.Y. Rs. 0.23 lakhs). Balance amountavailable for set off in subsequent years - Rs. 0.07 lakhs (P.Y. Rs. 0.15 lakhs).
3. Rs. 41 lakh donation given to Dashmesh Education Society.
44 Other Regulatory Disclosures as per the Companies Act, 2013
1. The Company does not have any Benami property, where any proceeding has been initiated or pending against thecompany for holding any Benami property.
2. The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.
3. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013.
4. The company does not have any subsidiaries and hence compliance with the number of layers prescribed under clause(87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 is not attracted.
5. The Company has not entered into any scheme of arrangements.
6. Loans/advances/investment out of borrowed fund/share premium/any other source of fund, to any person, includingforeign entity, with intention of further investment/loan/guarantee/security on behalf of the Company - Nil
7. Amount received by the Company as Loans/advances/investment, from any person, including foreign entity, with intentionof further investment/loan/guarantee/security on behalf of the such funding party - Nil
8. The Company does not have any undisclosed income which is not recorded in the books of account that has beensurrendered or disclosed as income during the year (previous year) in the tax assessments under the Income Tax Act, 1961such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
9. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
45 Segment Reporting
1. Though the Company has two business segments namely, distillery division and potash division, the turnover of potashdivision is less than 10% of the total turnover. Hence, segment reporting for business segment as primary segment is notrequired to be disclosed.
2. In terms of secondary segment being geographical segment, separate disclosure is not required as the turnover of exportsis less than 10% of the total turnover.