k. Provision and contingencies
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.
When the Company expects some or all of a provision
to be reimbursed, reimbursement is recognised as a
separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision is
presented in the standalone statement of profit and loss
net of any reimbursement.
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 recognised as a
finance cost.
Contingencies
Contingent liabilities are identified and disclosed with
respect to following:
• a possible obligation that arises from past events
and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the entity; or
• a present obligation that arises from past events but
is not recognised because:
? it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation; or
? the amount of the obligation cannot be
measured with sufficient reliability.
Contingent assets are neither recognized nor disclosed,
unless inflow of economic benefits is probable. However,
when realization of income is virtually certain, related
asset is recognized.
l. Employee benefits
Short term benefits
Short Term Employee Benefits are accounted for in the
period during which the services have been rendered.
Post-employment benefits and other long-term
employee benefits
Provident Fund: Retirement benefit in the form of
provident fund is a defined contribution scheme. The
contributions to the provident fund administered by the
Central Government under the Provident Fund Act, 1952,
are charged to the standalone statement of profit and
loss for the year in which the contributions are due. The
company has no obligation, other than the contribution
payable to the provident fund. If the contribution payable
to the scheme for service received before the standalone
balance sheet date exceeds the contribution already
paid, the deficit payable to the scheme is recognized as
a liability after deducting the contribution already paid.
If the contribution already paid exceeds the contribution
due for services received before the standalone balance
sheet date, then excess is recognized as an asset to the
extent that the pre-payment will lead to a reduction in
future payment.
Gratuity: The Company operates a defined benefit
gratuity plan in India, which requires contributions to
be made to a separately administered fund. The cost
of providing benefits under the defined benefit plan is
determined using the projected unit credit method.
Remeasurements, comprising mainly of actuarial gains
and losses, are recognised immediately in the standalone
balance sheet with a corresponding debit or credit to
retained earnings through OCI in the period in which
they occur. Remeasurements are not reclassified to the
standalone statement of profit and loss in subsequent
periods.
Leave Encashment: The Company operates a long¬
term leave encashment plan in India. Accrued liability
for leave encashment including sick leave is determined
on actuarial valuation basis using Projected Unit Credit
(PUC) Method at the end of the year and provided
completely in profit and loss account as per Ind AS - 19
“Employee Benefits”.
m. 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, excluding trade receivables 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. Trade receivables that
do not contain a significant financing component are
measured at transaction price.
Subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in four categories:
? Debt instruments at amortised cost
? Debt instruments and equity instruments at fair
value through profit or loss (FVTPL)
? Equity instruments measured at FVTOCI and FVTPL
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. 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 in
finance income in the standalone statement of profit and
loss. The losses arising from impairment are recognised
in the standalone statement of profit and loss.
Debt instrument at FVTPL
FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.
Debt instruments included within the FVTPL category are
measured at fair value with all changes recognized in the
standalone statement of profit and loss.
Equity instruments
All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which are held
for trading are classified as at FVTPL. For all other equity
instruments, the Company decides to classify the same
either as at FVTOCI or FVTPL. 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 recognized in the OCI. There
is no recycling of the amounts from OCI to standalone
statement of profit and loss, even on sale of investment.
However, the Company transfers the cumulative gain or
loss within equity.
De-recognition
A financial asset is primarily derecognised 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 either (a) the
company has transferred substantially all the risks
and rewards of the asset, or (b) the company has
neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred
control of the asset.
When the Company has transferred its rights to receive
cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it
has retained the risks and rewards of ownership. When
it has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred
control of the asset, the company continues to recognise
the transferred asset to the extent of the company’s
continuing involvement. In that case, the company also
recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that
reflects the rights and obligations that the Company has
retained.
Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and
the maximum amount of consideration that the company
could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial
assets and credit risk exposure:
? Financial assets that are debt instruments, and
are measured at amortised cost e.g., loans, debt
securities, deposits, trade receivables and bank
balances
? Financial guarantee contracts which are not
measured at FVTPL
? Lease receivables under Ind AS 116
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.
Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected life of
a financial instrument. The 12-month ECL is a portion of
the lifetime ECL which results from default events that
are possible within 12 months after the reporting date.
ECL is the difference between all contractual cash flows
that are due to the Company in accordance with the
contract and all the cash flows that the entity expects
to receive (i.e., all cash shortfalls), discounted at the
original EIR. When estimating the cash flows, an entity is
required to consider:
? All contractual terms of the financial instrument
(including prepayment, extension, call and similar
options) over the expected life of the financial
instrument. However, in rare cases when the
expected life of the financial instrument cannot
be estimated reliably, then the entity is required to
use the remaining contractual term of the financial
instrument.
? Cash flows from the sale of collateral held or
other credit enhancements that are integral to the
contractual terms
ECL impairment loss allowance (or reversal) recognized
during the period is recognized as income/ expense in
the standalone statement of profit and loss. This amount
is reflected under the head ‘other expenses’ in the
standalone statement of profit and loss. The standalone
balance sheet presentation for various financial
instruments is described below:
? Financial assets measured at amortised cost: ECL is
presented as an allowance, i.e., as an integral part of
the measurement of those assets in the standalone
balance sheet. The allowance reduces the net
carrying amount. Until the asset meets write-off
criteria, the company does not reduce impairment
allowance from the gross carrying amount.
? Financial guarantee contracts: ECL is presented as
a provision in the standalone balance sheet, i.e. as
a liability.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
loans and borrowings or payables, as appropriate.
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.
The Company’s financial liabilities include trade and
other payables, loans and borrowings including financial
guarantee contracts and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their
classification, as described below:
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 the standalone 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 standalone statement
of profit and loss.
This category generally applies to borrowings from
banks.
Trade and other payables
These amounts represent liabilities for goods and
services provided to the Company prior to the end
of financial year which are unpaid. The amounts are
unsecured and are usually paid as per agreed terms.
Trade and other payables are presented as current
liabilities unless payment is not due within 12 months
after the reporting period. They are recognised initially at
their fair value and subsequently measured at amortised
cost using the effective interest method.
De-recognition
A financial liability is derecognised 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 standalone statement of
profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the
net amount is reported in the standalone 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.
n. Earnings per share
Basic earnings per share are calculated by dividing the
net profit or loss for the period attributable to equity
shareholders (after deducting preference dividends, if
any, and attributable taxes) by the weighted average
number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per
share, the net profit or loss for the period 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.
o. Cash flow statement
The standalone cash flow statement is prepared in
accordance with the Indirect method. Standalone cash
flow statement presents the cash flows by operating,
financing and investing activities of the Company.
Operating cash flows are arrived by adjusting profit or
loss before tax for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past or future
operating cash receipts or payments, and items of
income or expense associated with investing or financing
cash flows.
For the purpose of the standalone cash flow statement,
cash and cash equivalents consist of cash at banks
and on hand and deposits, as defined above, net of
outstanding loans repayable on demand from banks as
they are considered an integral part of the Company’s
cash management.
p. Cash and cash equivalents
Cash and cash equivalent in the standalone balance
sheet comprise cash at banks and 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.
q. Cash dividends to equity holders
Annual dividend distribution to the shareholders is
recognised as a liability in the period in which the
dividend is approved by the shareholders. Any interim
dividend paid is recognised on approval by Board of
Directors. Dividend payable / paid is recognised directly
in equity.
r. Investments in subsidiary, joint venture and associate
The Company has elected to recognise its investments
in equity instruments in subsidiary, joint venture and
associate at cost in accordance with the option available
in Ind AS 27, ‘Separate Financial Statements’.
4. Key accounting estimates, judgements and assumptions
The preparation of the Company’s standalone financial
statements requires management to make judgements,
estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future
periods.
The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year, are described below.
a. Defined benefit plans and other long-term benefit
plan
The cost and present value of the defined benefit gratuity
plan and leave encashment (other long-term benefit
plan) 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 and mortality rates. Due to the
complexities involved in the valuation and its long-term
nature, a defined benefit obligation and other long¬
term benefits are highly sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date.
b. Useful lives of depreciable and amortisable assets
Management reviews the useful lives of depreciable and
amortisable assets at each reporting date, based on the
expected utility of the assets to the Company.
c. Leases
Ind AS 116 requires lessees to determine the lease term
as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use
of such option is reasonably certain. The Company
makes an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses whether
it is reasonably certain that any options to extend or
terminate the contract will be exercised. In evaluating
the lease term, the Company considers factors such
as any significant leasehold improvements undertaken
over the lease term, costs relating to the termination of
the lease and the importance of the underlying asset to
Company’s operations taking into account the location
of the underlying asset and the availability of suitable
alternatives.
d. Impairment of assets
The impairment provisions for Financial Assets are based
on assumptions about risk of default and expected cash
loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment
calculation, based on Company’s past history, existing
market conditions as well as forward-looking estimates
at the end of each reporting period.
In case of non-financial assets, assessment of impairment
indicators involves consideration of future risks. Further,
the company estimates asset’s recoverable amount,
which is higher of an asset’s or Cash Generating Units
(CGU’s) fair value less costs of disposal and its value in
use. In assessing value in use, the estimated future cash
flows are discounted to their present value using pre-tax
discount rate that reflects current market assessments
of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal,
recent market transactions are taken into account, if
no such transactions can be identified, an appropriate
valuation model is used.
5. Standards and recent pronouncements issued but not yet
effective
Ministry of Corporate Affairs (“MCA”) notifies new standard
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. The Company applied following amendments for the first¬
time during the current year which are effective from 1 April
2024:
a) Introduction of Ind AS 117
MCA notified Ind AS 117, a comprehensive standard
that prescribe, recognition, measurement and disclosure
requirements, to avoid diversities in practice for
accounting insurance contracts and it applies to all
companies i.e., to all “insurance contracts” regardless of
the issuer. However, Ind AS 117 is not applicable to the
entities which are insurance companies registered with
IRDAI.
The Company has reviewed the new pronouncements
and based on its evaluation has determined that these
amendments do not have an impact on the Standalone
Financial Statements.
Nature and purpose of reserves
Securities premium
The amount received in excess of face value of the equity shares, net off issue expenses, is recognised in the securities premium. This
reserve will be utilised in accordance with the provisions of Section 52 of the Companies Act, 2013 (“the Act”).
Capital reserve
The excess of net assets taken, over the consideration paid, as part of the business combinations have been recorded under the capital
reserve during the earlier years.
Capital redemption reserve
Capital redemption reserve was created on buy back of equity shares in the earlier years. The Company uses capital redemption reserve
in accordance with the provisions of the Act.
Warrants money appropriated
Warrants money appropriated represents forfeiture of share application money made during the earlier years.
General reserve
The reserve has arisen on transfer of a portion of the net profit pursuant to the provisions of the erstwhile Companies Act, 1956.
Mandatory transfer to general reserve is not required under the Act.
Changes in fair value of equity instruments
This represents the cumulative gains and losses arising on the fair valuation of equity instruments measured at FVTOCI, under an
irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.
Retained earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distribution to the shareholders.
(iii) The Company has been sanctioned working capital limits in excess of ?5 crores by banks based on the security of certain assets,
including current assets. As required under the respective arrangements, the Company has filed quarterly statements, in respect
of the working capital limits with such banks and such statements are in agreement with the unaudited books of account of the
Company for the respective periods.
(iv) Deferred Payment Liabilities represents sales tax collected under deferment scheme which the Company is obligated to repay
in 14 yearly instalments starting from September 2011 and ending by September 2024 in case of its Gokul plant and in 14 yearly
instalments starting from November 2010 and ending by November 2023 for its Bayyavaram plant. The Company has created a
charge on its specified fixed assets. The company has repaid the balance amount during the year.
34. Disclosure pursuant to requirements of Rule 11(e) (i) & (ii) of the Companies (Audit and Auditors) Rules
(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on
behalf of the Company (Ultimate Beneficiaries).
(ii) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
35. Impairment loss on investment in Joint venture
In view of the limited market potential and continuous losses from operations reported by its Joint Venture, Heritage Novandie Foods
Private Limited (“HNFPL”), the Board of HNFPL in its meeting held during March 2025 has approved a proposal, subject to execution
of necessary agreements and required approvals, allowing the Company to obtain controlling stake by acquiring equity shares from
the other shareholders and restructure / repurpose the business operations of HFNPL.
Subsequently in the month of May 2025, the Company has entered into a Share Purchase Agreement (SPA) for acquiring 71,00,000
equity shares of ?10 each in HNFPL from the other joint venture partner for a consideration of ?85.00. The proposed acquisition is
subject to satisfaction of certain conditions precedent as stipulated in the SPA.
The recoverable value of the investment in HNFPL is determined using the fair value on the basis of the above agreed sales consideration,
which has resulted in recognition of impairment of ?402.80, including ?234.85 recognized during the year ended 31 March 2025, which
has been classified as exceptional items.
There are no transfers between levels during the current and previous year ended 31 March 2025 and 31 March 2024 respectively.
The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.
(ii) Valuation technique and inputs used for level 3 instruments:
The fair value of the level 3 instruments has been estimated using the discounted cash flow model. The valuation requires
management to make certain assumptions about the model inputs, including forecasting of cash flows, discount rate, credit
risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in the
management’s estimate of the fair value for these level 3 instruments.
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy as
at 31 March 2025 and 31 March 2024 are as shown below.
The Company’s principal financial liabilities, comprises of borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade and other receivables, and
cash and cash equivalents that the Company derives directly from its operations.
The Company is exposed primarily to Credit risk, Liquidity risk and Market risk (fluctuations in interest rates, foreign currency rates,
and prices of equity instruments), which may adversely impact the fair value of its financial instruments. The Company assesses
the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the
Company.
A. Credit risk
Credit risk is the risk that the counterparty shall not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of the creditworthiness
as well as concentration of risks. Credit risk arises primarily from financial assets such as trade receivables, investment in equity
shares, balances with banks, loans and other receivables.
Credit risk is controlled by analyzing credit limits and creditworthiness of the customers on a continuous basis to whom credits
have been granted after obtaining necessary approvals. Financial instruments that are subject to concentration of credit risk
principally consist of trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets. None
of the financial instruments of the Company result in material concentration of credit risk.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was
^3,055.78 and ^2,489.08 as of 31 March 2025 and 31 March 2024 respectively, representing carrying amount of all financial
assets with the Company.
Financial assets that are neither past due nor impaired
None of the Company’s cash equivalents, including fixed deposits, were either past due or impaired as at 31 March 2025 and
31 March 2024. The Company has diversified its portfolio of investment in cash and cash equivalents and term deposits with
various banks which have secure credit ratings hence the risk is reduced. Concentration of exposures are actively monitored by
the finance department of the Company.
Financial assets that are past due but not impaired
The Company’s credit period for customers generally ranges from 0 - 30 days. The aging of trade receivables, net of those
provided for in the books of account, is given below:
Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of
Balance Sheet whether a financial asset or a group of financial assets are impaired. Expected credit losses are measured at an
amount equal to 12 months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk
on the financial assets have increased significantly since the initial recognition. The Company has used a practical expedient by
computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into
account historical credit loss experience and is adjusted for forward-looking information. Based on such data, loss on collection
of receivable is not material.
C. Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in the market
rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and
payables and all short-term and long-term borrowings. Market risk comprises three types of risk: interest rate risk, currency risk
and other price risks such as equity price risk.
i. Interest risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument shall fluctuate because of changes in the
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
short-term obligations with floating interest rates. The impact on account of change in interest rate on the Company’s long-term
obligations is not considered as significant.
ii. Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure shall fluctuate because of changes in foreign
exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s
operating and investing activities (when revenue or expense including capital expenditure is denominated in a foreign currency).
The exposure of foreign currency risk to the Company is low as it enters very limited transactions in foreign currencies and
accordingly any impact on account of change in the exchange rate is not considered as significant.
iii. Equity price risk:
The Company’s listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future
values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on
individual and total equity instruments. 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.
At the reporting date, the exposure to unlisted equity securities at fair value was ?2.60 (31 March 2024:^2.60). The impact on
account of change in the assumptions are not considered as significant.
For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other reserves
attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payments to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided
by total equity plus net debt. The Company’s policy is to keep the gearing ratio up to 35%. The Company includes within net debt,
borrowings from banks less cash and cash equivalents. Borrowings from banks comprise of term loans and loans repayable on demand.
Company as lessee
The Company has lease arrangements for its office premises located in Hyderabad and various Heritage Distribution centers / Parlours
/ Sales offices located across India. These leases typically have original lease terms not exceeding 21 years and generally contain
multiyear renewal options. The agreements entered into by the Company have, rent escalation upto 10%. There are no residual value
guarantees provided by the third parties. The carrying amount for such right-of-use assets as at 31 March 2025 amounts to ?255.82
(31 March 2024: ?273.31)
The Company has also leased solar panels for a period of five years and has an option to purchase the asset at the end of the lease
term. The carrying amount for such right-of-use assets as at 31 March 2025 amounts to ?72.94 (31 March 2024: ?76.66).
In the previous year, the Ministry of Corporate Affairs (MCA) has prescribed a new requirement under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses
accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording
audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when
such changes were made and ensuring that the audit trail cannot be disabled.
The Company uses an accounting software for maintaining its books of account. The audit trail (edit log) feature was enabled at
application level and the same operated throughout the current and previous year. However, the Company did not enable the feature
for recording audit trails (edit logs) at the database level to log any direct data changes, as this consumes storage space on the disk
and can significantly impact database performance. The users of the Company, except for authorized personnel, do not have access
to database IDs with Data Manipulation Language (DML) authority, which can make direct data changes (create, change, delete) at the
database level. Furthermore, the audit trail has been preserved by the Company as per the statutory requirements for record retention.
(a) No proceeding have been initiated on or is pending against the Company for holding benami property under the Benami
Transactions Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(b) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.
(c) No transactions are carried out with companies struck off under section 248 of the Act or section 560 of Companies Act, 1956.
(d) No charges or satisfaction yet to be registered with ROC beyond the statutory period.
(e) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.
(f) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Act.
(g) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the
Income Tax Act, 1961, that has not been recorded in the books of account.
(h) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(i) There was no revaluation of Property, plant and equipment (including right -of-use assets) and Intangible assets carried out by
the Company during the respective reporting periods.
This is the summary of material accounting policies
and other explanatory information referred to in our
report of even date.
For Walker Chandiok & Co LLP For and on behalf of Board of Directors of
Chartered Accountants Heritage Foods Limited
Firm’s Registration No: 001076N/N500013
Sumesh E S N Bhuvaneswari N Brahmani M Sambasiva Rao
Partner Vice Chairperson and Executive Director Whole Time Director
Membership No: 206931 Managing Director DIN: 02338940 DIN: 01887410
DIN: 00003741
Srideep Madhavan Nair Kesavan A Prabhakara Naidu Umakanta Barik
Chief Executive Officer Chief Financial Officer Company Secretary &
M.No.FCA 200974 Compliance Officer
M.No. FCS 6317
Place : Hyderabad Place : Hyderabad
Date : May 16, 2025 Date : May 16, 2025
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