Notes to Accounts of Allied Blenders & Distillers Ltd.

Mar 31, 2025

n. Provisions, Contingent Liabilities and
contingent assets

A provision is recognised when the Company has a
present obligation as a result of past events 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. Provisions are measured at the
present value of management’s best estimate of the
expenditure required to settle the present obligation at
the end of the reporting period. The discount rate used
to determine the present value is a pre-tax rate that
reflects the current market assessments of time value of
money and the risks specific to the liability. The increase
in the provision due to passage of time is recognised as
interest expense. The provisions are reviewed at each
Balance Sheet date and adjusted to reflect the current
management estimates.

Contingent liabilities are disclosed in respect of possible
obligations that arise from past events, whose existence
would be confirmed 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
where outflow of resources is not probable or where
outflow is probable but reliable estimate of the amount
cannot be made. When there is an obligation in respect
of which the likelihood of outflow of resources is remote,
no provision or disclosure is made.

Contingent assets are not recognised in the financial
statements. However, they are disclosed only when an
inflow of economic benefits is probable.

Where some or all of the expenditure required to settle a
provision is expected to be reimbursed by another party,
the reimbursement shall be recognised as a separate
asset, when it is virtually certain that reimbursement
will be received if the entity settles the obligation. The
amount so recognised shall not exceed the amount of
the provision / obligation.

o. Employee Benefits

A) Short term employee benefits: All employee benefits
which are due within twelve months of rendering
the services are classified as short term employee
benefits. Benefits such as salaries, wages, compensated
absences, etc. and the expected cost of bonus, ex-gratia
are recognised in the period in which the employee
renders the related service.

B) Post-employment benefits

i. Defined Contribution Plans: Company’s
contribution to the state governed provident fund
scheme, superannuation scheme, Employees
State Insurance corporation (ESIC) etc. are
recognised during the period in which the related
service is rendered.

ii. Gratuity: The Company has computed its liability
towards future payments of gratuity to employees,
on actuarial valuation basis which is determined
based on project unit credit method and the charge
for current period is debited to the Statement of
Profit and Loss. The present value of the defined
benefit obligation, which is unfunded at present,
is determined by discounting the estimated future
cash outflows by reference to market yields at the
end of the reporting period on government bonds
that have terms approximating the terms of the
related obligation. Actuarial gains and losses arising
on the measurement of defined benefit obligation is
charged/ credited to other comprehensive income.

iii. Compensated absences: Accumulated

compensated absences, which are expected to be
availed or encashed within 12 months from the end
of the period are treated as short term employee
benefits. The obligation towards the same is
measured at the expected cost of accumulating
compensated absences as the additional amount
expected to be paid as a result of the unused
entitlement as at the period end.

Accumulated compensated absences, which are
expected to be availed or encashed beyond 12
months from the end of the period are treated as
other long term employee benefits. The Company’s
liability is actuarially determined (using the
Projected Unit Credit method) at the end of each
period. Actuarial losses/gains are recognised in
the Standalone Statement of Profit and Loss in the
period in which they arise.

iv. Medical benefits: The Company has computed
its liability towards post-employment medical
benefits, on actuarial valuation basis which is
determined based on projected unit credit method
and the charge for current period is debited to
the Statement of Profit and Loss. The present
value of the defined benefit obligation, which is
unfunded at present, is determined by discounting
the estimated future cash outflows by reference to
market yields at the end of the reporting period on
government bonds that have terms approximating
the terms of the related obligation. Actuarial gains
and losses arising on the measurement of defined
benefit obligation is charged/ credited to other
comprehensive income.

C) Termination Benefits: These are recognised as
an expense in the Statement of Profit and Loss
of the period in which they are incurred, i.e. when
employment is terminated or when an employee
accepts voluntary redundancy in exchange for
these benefits.

p. Earnings per share

Basic earnings per share are calculated by dividing the
net profit or loss (excluding other comprehensive income)
for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding
during the period. The weighted average number of
equity shares outstanding during the period is adjusted
for events such as bonus issue, bonus element in a right
issue, shares split (sub-division) and reverse share splits
(consolidation of shares) that have changed the number
of equity shares outstanding, without a corresponding
change in resources. For the purpose of calculating diluted
earnings per share, the net profit or loss (excluding other
comprehensive income) for the period attributable to
equity shareholders and the weighted average number
of shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.

q. Exceptional items

When an item of income or expense within Statement
of profit and loss from ordinary activity is of such size,
nature or incidence that its disclosure is relevant to
explain more meaningfully the performance of the
Company for the period, the nature and amount of such
items is disclosed as exceptional items.

r. Segmental information

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. Executive committee, which has been
identified as the chief operating decision maker, assesses
the financial performance and position of the Company
and makes strategic decisions. The executive committee
consists of the Chief Financial Officer & Chief Executive
Officer and other departmental heads. See note 51 for
segment information presented.

3. Critical estimates and judgements

The preparation of financial statements in conformity
with Ind AS requires estimates and assumptions to be
made by the Management of the Company that affect
the reported amounts of assets and liabilities and
amounts disclosed as contingent liabilities on the date
of the financial statements and the reported amounts
of revenues and expenses during the reporting period.
Differences between actual results and estimates are
recognised in the period in which the results are known.

The Management believes that these estimates are
prudent and reasonable and are based upon the
management’s best knowledge of current events and
actions. Actual results could differ from these estimates
and differences between actual results and estimates
are recognised in the periods in which the results are
known or materialised.

This note provides an overview of the areas that involved
a higher degree of judgement or complexity, and of items
which are more likely to be materially adjusted due to
originally assessed estimates and assumptions turning
out to be different than the actual results.

Examples of such estimates include the useful life of
property, plant and equipment, provision for doubtful
debts/advances, future obligation in respect of retirement
benefit plans, impairment of investments/assets, etc.

i) Property, plant and equipment and Intangible
Assets: (Refer note 5 and 7)

Management reviews the estimated useful lives
and residual values of the assets annually in
order to determine the amount of depreciation/
amortisation to be recorded during any reporting
period. The useful lives and residual values as per
schedule II to the Companies Act, 2013 or otherwise
are based on the Company’s historical experience
with similar assets and taking into account
anticipated technological changes, whichever is
more appropriate.

ii) Income Tax: (Refer note 42)

The Company reviews at each balance sheet date
the carrying amount of deferred tax assets. The
factors used in estimates may differ from actual
outcome which could lead to an adjustment
to the amounts reported in the standalone
financial statements.

iii) Contingencies: (Refer note 48)

Management has estimated the possible outflow of
resources, if any at the end of each annual reporting
financial period, if any, in respect of contingencies/ ₍
claim/litigations against the Company as it is
not possible to predict the outcome of pending
matters with accuracy.

iv) Impairment of financial assets: (Refer note 44)

The impairment provisions for financial assets are
based on assumptions about risk of default and
expected cash loss. 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.

v) Loss Allowance (Refer note 15)

Trade receivables do not carry any interest and
are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable
amounts. Under Ind AS, impairment allowance has
been determined based on Expected Credit Loss
(ECL) model. Estimated irrecoverable amounts are
based on the ageing of the receivable balance and
historical experience. Individual trade receivables
are written off if the same are not collectible.

vi) Impairment of non-financial assets:
(Refer note 5 and 7)

The carrying amounts of assets are reviewed
at each Balance Sheet date to assess whether

there is any indication that an individual asset /
group of assets (constituting a Cash Generating
Unit) may be impaired. If there is any indication of
impairment based on internal / external factors i.e.
when the carrying amount of the assets exceed
the recoverable amount, an impairment loss
is charged to the Statement of Profit and Loss
in the period in which an asset is identified as
impaired. An impairment loss recognised in prior
accounting periods is reversed or reduced if there
has been a favorable change in the estimate of the
recoverable amount. However, the carrying value
after reversal is not increased beyond the carrying
value that would have prevailed by charging usual
depreciation if there was no impairment.

vii) Defined benefit obligation (Refer note 47)

The cost of post-employment benefits is determined
using actuarial valuations. The actuarial valuation
involves making assumptions about discount
rates, future salary increases and mortality rates.
Due to the long term nature of these plans such
estimates are subject to significant uncertainty. The
assumptions used are disclosed in the notes to the
financial statements.

viii) Fair value measurements (Refer note 43)

Management applies valuation techniques to
determine the fair value of financial instruments
(where active market quotes are not available). This
involves developing estimates and assumptions
consistent with how market participants would
price the instrument.

Application of new and revised Indian
Accounting Standards (Ind AS)

All the Ind AS issued and notified by the Ministry
of Corporate Affairs under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) till
the standalone financial statements are authorised,
have been considered in preparing these Standalone
Financial Statements.

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended 31
March 2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions, applicable
to the Company w.e.f. 1 April 2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact on its financial statements as at and
for the year ended 31 March 2025.

Further MCA has notified amendments to Ind AS 21 -
The Effects of Changes in Foreign Exchange Rates,
with respect to lack of exchangeability and this will
be applicable to the Company for reporting periods
beginning on or after 1 April 2025.

43. Fair value measurements

Fair value intsruments by category and heirarchy

The fair values of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and term deposits, trade and other short term receivables, trade payables, other current liabilities, short
term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities
of these instruments. The fair value of lease liability is not required to be disclosed.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as
interest rates and individual credit worthines of the counter party. Based on this evaluation, allowances are taken to acount
for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their
carrying amounts.

The fair values for loans and security deposits were calculated based on cash flows discounted using a curent lending rate.
They are classified as level 3 fair values in fair value heirarchy due to the inclusion of unobservable inputs including counter
party credit risk.

The fair values of non-current borrowings are based on discounted cashflows using a current borrowing rate. They are
classified as level 3 fair values in the fair value heirarchy due to the use of unobsevable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to fair value.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. For example, listed equity instruments
that have quoted market price.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-
counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

44. Financial risk management

The Company is exposed primarily to fluctuations in foreign exchange, interest rate, credit quality and liquidity management which may
adversely impact the fair value of its financial assets and liabilities. The Company has a risk management policy which covers the risk
associated with its financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus is to assess
the unpredictability of the financial environment and to mitigate potential adverse effect on the financial performance of the Company.
The Company’s principal financial liabilities comprises of borrowings, lease liabilities, trade payables and other financial liabilities.
The Company’s principal financial assets include loans, trade receivables, cash and bank balances , other bank balances and other
financial assets that derive directly from its operations.

A. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, financial assets. Management has a credit policy in place and the exposure to credit risk is monitored on
an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.

a: Trade receivables (net of loss allowance)

Trade receivables are unsecured and are derived from revenue earned from two main classes of trade receivables i.e.
receivables from sales to government corporations and receivables from sales to private parties. A substantial portion of
the Company’s trade receivables are from government corporation customers having strong credit worthiness. Further,
Company’s historical experience of collecting receivables is that credit risk is low. Hence trade receivables are considered
to be a single class of financial assets.Further, the Company has taken insurance against some of receivables from sales
to private parties. The Company measured the expected credit loss of trade receivables from individual customers based
on historical trends, industry practices and the business environment in which the entity operates. Loss rates are based
on actual loss experiences and past trends.

b: Other financial assets

Cash balances are maintained with banks having high credit rating. Loans given to related parties and employees are
fully recoverable and loans given to others are fully provided. Majority of other security deposits are placed majorly
with government agencies. The credit loss recognised is for a specific scenario and is not expected in the future. The
Company presumes increase in credit risk when financial assets are past due more than 30 days.

B. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company’s objective is to maintain optimum levels of liquidity and to ensure that
funds are available for use as per requirement.

The liquidity risk principally arises from obligations on account of financial liabilities viz. borrowings, lease liabilities, trade
payables and other financial liabilities.

The finance department of the Company is responsible for liquidity and funding as well as settlement management. In addition,
processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net
liquidity position through trade receivables or through short term borrowings on need basis.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated. There is no change in the method of valuation from the prior period. Sensitivity due to mortality and withdrawals
are not material and hence impact of change not calculated.

Risks associated with defined benefit plan

Valuations of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory
framework which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit plans
which are as follows:

i. Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability
(i.e. value of defined benefit obligation)

ii. Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase
rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate
of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

iii. Mortality risk : Since the benefits under the plan is not payable for life time and payable till retirement age only, plan
does not have any longevity risk. Mortality rate during employment is calculated considering Indian Assured Lives
Mortality 2012-14 (Urban) (Previous year:Indian Assured Lives Mortality 2012-14 (Urban).

(c) Compensated absences

The leave obligations cover the Company’s liability for sick and privilege leaves. The leave obligation is presented as current,
since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based
on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment
within the next 12 months.

a) Contingent liability relating to determination of provident fund liability, based on 28 February 2019 Supreme Court
judgement, is not determinable at present, due to uncertainty on the period of impact of the judgement in absence
of further clarification relating to applicability. The Company will continue to assess any further developments in this
matter for their implications on the Company financial statements, if any, which, based on the number of employees,
is not expected to be significant.

b) Transport pass fee claimed by excise authorities @ ^ 3 per bulk litre (BL) from 12 July 1999 up to 25 August 2009 and
@ ^ 1.50 per BL from 26 August 2009 till 18 May 2011 on Extra Neutral Spirit (ENA) purchased aggregating ^ 821.97
lakhs (31 March 2024 ^ 821.97 lakhs) and transport pass fee claimed by excise authorities @ ^ 1 per BL from 01
April 2010 to 18 May 2011 on rectified spirits purchased aggregating ^ 48.88 lakhs (31 March 2024 ^ 48.88 lakhs),
transport pass fee claimed by excise authorities @ ^ 3 per BL from 01 June 2009 to 18 May 2011 on Malt purchased
aggregating ^ 2.16 lakhs (31 March 2024 ^ 2.16 lakhs) including for one of the Contract Bottling Unit.

The Company has paid ^ 303.71 lakhs (31 March 2024 ^ 303.71 lakhs) under protest which is shown under balance
with statutory authorities (non-current).

The Hon’ble High Court of Judicature at Mumbai has, vide its order dated 06 May 2011, upheld Company’s appeal
and allowed the Company’s petition with the direction that the amount paid be refunded along with the interest @ 9%
per annum within 10 weeks from the date of receipt of application for refund. As directed, the Company has filed an
application for claim of refund before the customs and excise authorities. The Company has also claimed ^ 163.71
lakhs (including interest of ^ 29.94 lakhs) on account of transport pass fees charged by suppliers.

The Customs and excise department of Maharashtra has filed a Special leave petition (SLP) before the Hon’ble
Supreme Court against the above order. The Supreme Court has directed the registrar to issue notice to all concerned
and affected parties pending admission of petition.

Subsequently, the registrar has issued notice to all the concerned and affected parties for admission of petition and
accordingly, the Company has filed its response to this notice. The matter has not come up for hearing.

c) Increased water charges (including delayed payment charges billed by MIDC from time to time for the period November
2001 to March 2024, disputed by the Company aggregating ^ 196.07 lakhs (31 March 2024 ^ 196.07 lakhs).

In the above said matter, High Court of Judicature of Bombay, Aurangabad Bench did not allow the stay petition filed
by the Company. However, the Hon’ble High Court of Aurangabad Bench has agreed to allow for payment of only
principal amount to MIDC towards outstanding water charges and granted stay on levy of interest and penalty till the
disposal of final appeal.

Based on the above, the Company has paid till 31 March 2025 ^ 162.02 lakhs (31 March 2024 ^ 151.98 lakhs) under
protest which is shown under balance with statutory authorities (non-current).

Few of the IMFL manufacturers have filed Special Leave Petition before the Supreme Court challenging the order of the
Aurangabad Bench of Bombay High Court. Since the cause of action and reliefs claimed are identical, the outcome of
this case will hold good for the Company as well.

d) The Maharashtra State Excise Department, Aurangabad has raised a demand of ^ 32.80 lakhs (31 March 2024
^ 32.80 lakhs) towards additional license fee on the Company as a consequence of the change of name arising due
to restructuring of the Company. The Company has challenged the said demand and filed Writ Petition before High
Court of Judicature of Bombay, Aurangabad Bench. The said matter has not come up for hearing yet. The demand of
^ 32.80 lakhs (31 March 2024 ^ 32.80 lakhs), which is paid by the Company under protest, is shown under balance
with statutory authorities (non-current).

e) The Aurangabad Municipal Corporation (AMC) had recovered differential Octroi Duty on Extra Neutral Alcohol /
Rectified Spirit for the period from December 1991 to June 1997 on the basis of High Court judgment on similar facts
in another liquor Company case. This judgment had been reversed by the Hon’ble Supreme Court of India in another
case in which interest @ 6 % p. a. was allowed. The Company has entered into an agreement with AMC on 12 March
1993 by which both the parties had agreed that judgment passed shall be binding on both the parties.

The Company had filed a suit for recovery in the Hon’ble Court of Civil Judge, (Senior Division) at Aurangabad. As per
the order dated 16 October 2006 of the Court, the Company is entitled to get an amount of ^ 157.97 lakhs (31 March
2024 ^ 157.97 lakhs), with interest thereon@ 6% p.a. from the date of suit till the date of payment.

The Municipal Corporation has filed an appeal against this order, which has been disposed off by the Division Bench
of the Bombay High Court, Aurangabad bench vide their order dated 12 February 2007 granting the stay of execution
of decree passed by Trial Court subject to deposit of ^ 220 lakhs in 11 instalments commencing from April 2007.
Further, the appeal came up for hearing on 29 August 2007 before the High Court at Bombay Bench at Aurangabad
and an order was passed allowing the Company to withdraw the aforesaid amount and so far the Company has
received ^ 220 lakhs up to 31 March 2009. The appeal filed by AMC is pending before the Bombay High Court,
Aurangabad Bench

f) In an earlier year, the Company had received demand notice from the Commissioner of Central Excise, Customs and
Service Tax, Aurangabad for the F.Y. 2011-12 to 2014-15 towards service tax on reverse charge basis on expenditure
incurred in foreign currency on sales promotion, travelling and other expenditure. Total demand raised is ^ 538.08
lakhs (31 March 2024 ^ 538.08 lakhs) (including penalty of ^ 268.28 lakhs, late fees of ^ 1.60 lakhs excluding interest).
The Company has paid ^ 20.11 lakhs (31 March 2024 ^ 20.11 lakhs) under protest against the said demand towards
mandatory deposit for admission of appeals, which is shown under balance with statutory authorities (non-current).
The Company has filed an appeal before Central Excise and Sales Tax Appellate Tribunal (CESTAT), Mumbai.

g) One of the Company’s Contract Bottling Unit (CBU) at Rajasthan had received notice of demand for the A.Y. 2007¬
08 to 2009-10 amounting to ^ 91.80 lakhs (31 March 2024 ^ 91.80 Lakhs) of VAT and interest thereon for ^ 15.75
lakhs (31 March 2024 ^ 15.75 lakhs) aggregating ^ 107.55 lakhs (31 March 2024 ^ 107.55 lakhs) from Commercial
Tax Officer, Government of Rajasthan on alleged VAT payable on captive consumption of ENA for the manufacturing
of the Company’s brands and deemed sale of ENA to the brand owner. The said demand was upheld by the Hon’ble
Rajasthan High Court vide their order dated 20 July 2017. Against the said demand, the CBU has filed a Special Leave
Petition before the Hon’ble Supreme Court. Vide order dated 28 August 2017, the Hon’ble Supreme Court has granted
stay in the matter in respect of recovery of any demand or interest. In the event, if the matter is decided against the
CBU, the Company is liable to compensate the CBU for the tax demand including interest.

h) In an earlier year, the Company has received excise demand of ^ 286.02 lakhs (31 March 2024 ^ 286.02 lakhs) relating

to excess transit wastages for ENA supplied by Contract Bottling unit (CBU). Writ petition was filed with the Hon’ble

High Court by CBU and is pending for disposal. Amount deposited under protest of ^ 71.50 lakhs (31 March 2024 ^
71.50 lakhs) is shown under balance with statutory authorities (non-current). Madhya Pradesh High Court ordered
that, on furnishing an adequate surety to the satisfaction of Excise Commissioner, the recovery of penalty shall remain
stayed until next date of hearing. The matter has not come up for hearing yet and the same is under progress.

i) The Company had received a show cause notice dated 22 March 2021 from its customer - Canteen Stores Department
(CSD) for ^ 857.69 lakhs (31 March 2024 ^ 857.69 lakhs) on account of differential trade rate relating to the period from
October 2014 to December 2020, which has been disclosed as contingent liability. The Company has submitted the
explanation and necessary documents demanded by CSD in response. letter received from CSD, however consequent

to the explanation filed by the Company a show cause notice was issued by CSD to the Company demanding certain
clarification and documentation. The Company has sought further time from the CSD department to respond to
the said notice.

j) A letter of Intent (LOI) was granted to the Company along with a demand notice by the Government of Andhra
Pradesh on 9 March 2017 based on an application made on 3 December 2014 along with stipulated payment of ^
275.00 lakhs (31 March 2024 ^ 275.00 lakhs). The Company had immediately requested for a waiver of the demand
notice. Further, vide letter dated 17 May 2017, the Company had requested for a three-year moratorium for payment
of license fees. The request was disallowed vide their letter dated 31 May 2017 which was served on the Company
on 12 June 2017.

The Company then requested the Commissioner of Prohibition of Excise for surrendering the LOI and requested for
refund of the advance paid ^ 275.00 lakhs vide letter dated 14 June 2017. However, the Company received a demand
notice dated 9 February 2018 from the Government of Andhra Pradesh and Commissioner of Prohibition & Excise
for payment of the license fees of ^ 2,725.00 lakhs in 11 quarterly instalments with first instalment being due on 26
January 2017 which remains unpaid. Amount deposited under protest of ^ 425.00 lakhs (31 March 2024 ^ 425.00
lakhs) is shown under balance with statutory authorities (non-current).

Company filed a writ petition under Article 226 of the Constitution of India against the State of Andhra Pradesh
represented by the Principal Secretary to Government Revenue (Excise Department) as well as against the
Commissioner, Prohibition and Excise, Government of Andhra Pradesh in the High Court of Andhra Pradesh seeking
a declaration that the said demand as well as refusal of the Respondents to refund amounts paid by the Company of
^ 87.48 lakhs and ^ 275.00 lakhs along with applications made on 22 November 2010 and 03 December 2014 as bad
and illegal in law; and a direction to the Respondents to cease making demands for payment of instalments and to
refund the above amounts paid by the Company along with interest @ 18% p.a. from 17 December 2012 and 31 May
2017 respectively.

In the said Writ Petition, the Hon’ble High Court was pleased to pass an interim order directing the Respondents not
to take any coercive action against Company pursuant to the letter dated 6 February 2019 of the 2nd Respondent.
The Company filed a writ petition against the said order and obtained an interim stay on the same. The matter is still
pending in Andhra Pradesh High Court. The writ petition filed by the Company against the State of Andhra Pradesh
represented by Principal Secretary to Government, Revenue (Excise Department) and the Commissioner Prohibition
and Excise is pending before the High Court of Andhra Pradesh. The matter was last listed on 19 March 2019 when
the order was passed. Thereafter the matter has not been listed. The order subsists even as on today. The Order also
stated that no coercive steps can be taken against the petitioner.

k) The Company is operating its business in the State of Uttar Pradesh by entering into a Lease Agreement with Simbhaoli
Sugars Limited (“Simbhaoli”) since October 2017. As per UP VAT Act, during pre-GST period i.e., before 30 June 2017,
ENA in Uttar Pradesh was charged at Paisa 0.80 per litre for intra state purchase of ENA and Inter-state purchase
was taxed at 2% CST. After introduction of GST, ENA falls under VAT and there was no clarity on Vat to be charged on
ENA. In respect of ENA purchases made by the Company from Simbhaoli since October 2017, no VAT / GST has been
recovered or paid by Simbhaoli in line with the request made by the Company. The Company has issued an indemnity
to safeguard Simbhaoli from any liability on account of VAT / GST on ENA procurement from them. Department has
issued notice to Simbhaoli to deposit arrears of Tax for F.Y 2017-18, 2018-19 and 2019-20. Neither Simbhaoli nor the
Company has paid any tax for the period 1 October 2017- 8 December 2019. On 17 December 2019, Uttar Pradesh
VAT Authority has notified 5% rate of VAT on ENA, effective from 9 December 2019 onwards, the Company has
been paying 5% VAT on ENA purchase. The liability amounts to ^ 1,428.70 lakhs (31 March 2024 ^ 1,428.70 lakhs).
The Company has been granted stay for 90% of the demand on issuance of surety. Balance 10% of the demand has
been paid by the Company amounting to ^ 142.87 lakhs (31 March 2024 ^ 142.87 lakhs) for FY 2017-18, FY 2018-19
and FY 2019-20, which is shown under balance with statutory authorities (non-current). The Company has received
intimation of tax u/s 74(5) of the CGST Act, 2017 for the period October to November 2022, amounting to ^ 200.31
lakhs including interest and penalty (31 March 2024 ^ 200.31 lakhs) on alleged GST on ENA. The Company has replied
to the instant notice.

l) A contract bottling unit had been issued notice of demand of ^ 131.17 lakhs (31 March 2024 ^ 131.17 lakhs) on 2 July
2010 under the Assam Entry Tax Act by the Government of Assam. Amount deposited under protest of ^ 75.79 lakhs
(31 March 2024 ^ 75.79 lakhs) is shown under other financial assets (non-current).

m) In earlier years, the Company was receiving taxable invoices from its CBUs at the rate of 18% on the bottling charges
on manufacturing of IMFL for the Company (brand owner). However, based on the notification dated 13 October 2017,
No. 31/2017 - Central Tax (rate), the Company has asked its bottlers to charge GST on bottling charge at 5%. Vide
Notification No. CBIC (TRU) Circular no 164/20/2021 a separate new entry was introduced with effect from 01 October
2021, accordingly all the CBUs are charging 18% on job work changes. However, there remains to be lack of clarity
in respect of charging the 18% rate from 01 October 2017 to 30 September 2021.Confederation of Indian Alcoholic
Beverage Companies (CIABC) has submitted a representation vide letter dated 9 October 2019 to Hon’ble Finance
Minister and other Senior Member of the GST Council. However, final disposal of the above representation made has
not been received. The Company is of the view that the effective date of applicability of 18% GST should be from 01
October 2021 only and accordingly no provision has been made in the books of account. Andhra Pradesh High Court
vide order dated 20 October 2022, in case of another Company in the industry, ruled that the services by way of job
work in relation to manufacture of alcoholic liquor for human consumption should be liable to 18% GST retrospectively.
A special leave petition has been filed by that Company with Hon’ble Supreme Court against such ruling of Andhra
Pradesh High Court and is yet to be concluded. The Company has also been advised by senior counsel that the GST
at 18% would not be payable with retrospective effect which is in line with special leave petition filed by aforesaid
Company. Some of the State GST departments have raised demand for the differential GST amount as mentioned
below for which Company has filed its reply with the department that the Company through its Member Association
CIABC has made various representation for clarification to the GST council and is awaiting response on this.

• In the case of Solkit Distillery and Brewery Private Limited, the Company has filled appeal before Appellate Authority. After
paying pre-deposit of 10% of the demand for ^ 7.98 lakhs. In case of Solkit, Udaipur, Commissioner (Appeal) GST, Jodhpur
allowed appeal on GST@ 5% in place of 18% alleged by GST Department on bottling charge prior to 01 October 2021 in
the state of Rajasthan.

• In the case of Hi-Tech Bottling Limited, has received notice of rejecting appeal for period from 01 July 2017 to 31 March
2022 without citing any reason. Letter submitted to the authority for Company’s intention to file further appeal in tribunal
once functional/Operational.

• In the case of Batra Breweries Private Limited, Company has received demand order dated 12 March 2024. The Company
filled appeal before the first Appellate Authority within stipulated time frame allowed. Appeal Order received on 23
September 2024 with Demand.

-Further letter submitted to the authority for Company’s intention to file further appeal in tribunal once functional/operational.
Additional 10% advance deposited for ^ 20.81 lakhs according to 20% pre-deposit notification to file appeal in tribunal.

• In the case of Unistil Alcoblends Private Limited, a detailed submission and Personal Hearing was concluded. Order
Received with demand and Appeal filled on 27 August 2024.

• In the case of Shakti Maltare & Lemonade Private Ltd the first Appellate Authority has rejected the appeal of the CBU by
confirming applicable GST rate of 18% on bottling charges payable to CBU wide order dated 04 July 2024. Company has
submitted a suitable reply to appeal order on 1st October 2024 as Tribunal yet not defined and further appeal will be filled
as soon as tribunal is functional/operational.

• In case of CDBL DRC07 order received for the FY 2019-20 with demand of '' 32.35 lakhs. Company has filled appeal with
pre-deposit amount of ^ 3.24 lakhs. Subsequent CDBL has received DRC 07 notice for FY 2018-19 and FY 2020-21 with
demand of ^ 13.88 lakhs and ^ 22.42 lakhs respectively and Company has filed appeal.

• In all above cases in ABDL CBUs The similar matter is pending with Honorable supreme court in case of Esveeaar Distilleries
Private Limited and scheduled for the hearing on 12th August 2025.

n) Company has received summon notice dated 11 August 2020 from the Director General of GST Intelligence,
Hyderabad on applicability of GST on Distillery Wet Grain Soluble (DWGS) and Distillery Dry Grain Soluble (DDGS).
On 20 June 2022, the Company has received Show Cause Notice on the subject matter from Directorate General of
Goods and Services Tax Intelligence (DGGI), Telangana for an amount of ^ 726.19 lakhs (31 March 2024 ^ 726.19
lakhs). Aggrieved by the earlier orders, the Company has filed an appeal before High Court of Telangana at Hyderabad
on 3 December 2022. The Company has filed the rejoinders in the hearing scheduled on 12 June 2023. The hearing of
the matter was scheduled on 18 July 2023. Amount deposited under protest of ^ 50.00 lakhs (31 March 2024 ^ 50.00
lakhs) is shown under balance with statutory authorities(non-current). The Company is discharging GST on DDGS and
DWGS at 5% from 12 August 2020. However, the Company has been advised by senior counsel, that the GST demand
for the period prior to the issuance of the clarificatory Circular dated 06 October 2021 is not payable. Honorable High
Court has granted a new date of hearing being 9 June 2025.

o) One of the ENA suppliers Triveni Engineering & Industries Ltd. has received order u/s. 74 of the GST Act for the period
April 2022 to August 2022 from the Joint Commissioner, Saharanpur, Uttar Pradesh, raising demand of ^ 360.40 lakhs
(including interest and penalty) (31 March 2024 ^ 360.40 lakhs) in respect of supply of ENA to the Company without
charging GST. The Company has filed the appeal before the Appellate authority. Amount deposited under protest of
^ 17.43 lakhs (31 March 2024 ^ 17.43 lakhs) is shown under balance with statutory authorities(non-current).

The question of chargeability of appropriate Tax (whether UPVAT or GST) is subjudice before Apex Court of India as
UPVAT Authority, CIABC and International Spirits and Wines Association of India (ISWAI) has filed Special Leave
Petition before Apex Court, challenging Order of Allahabad High Court which has ruled that appropriate tax is not
UPVAT. The matter was scheduled for hearing on 10 April 2023, however the hearing got postponed. Next date of
hearing is yet to be announced.

Further, Show Cause notice has been received in our Kerala unit from State Goods and Service Tax Department, Kerala
raising demand of ^ 60.38 lakhs (31 March 2024 ^ 60.38 lakhs) on alleged non-payment of GST on procurement of
ENA during the tax period 2017-18. The Company has responded to such notice. No further communication has been
received from State GST Department.

During the year Company has received favourable order VAT authority state appeal Muzaffarnagar has confirmed
that CAB & Malt transactions is now under VAT at 5% and not GST, order is issued for the FY 2022-23 under UPVAT
Act. Further, during the year the GST appellate authority, Muzaffarnagar has passed the order confirming that no GST
is payable on sale of Malt & CAB Spirit with reduction of demand from ^ 360.40 to ^ 256.40 lakhs.

p) By its order dated 18 October 2022, the Aurangabad Mathadi and Unsecured Workers Board, Aurangabad has directed
the Company to make the payment of ^ 252.95 lakhs (31 March 2024 ^ 252.95) towards short payment of wages and
levy to the Mathadi Workers working at its unit situated at Plot No. 06, MIDC Area, Chikalthana, Aurangabad during
February 2010 to July 2017 (loading), August 2014 to December 2019 (Unloading) and September 2020 to June 2022
(shifting/Carriage/Store) from the rates fixed by the Board for the period 2013-16, 2016-19, 2019-22. Challenging
the order of the Board, Company has filed a writ petition before Bombay High Court, Aurangabad Bench seeking
suspension of operation of the order dated 18 October 2022 passed by the Board. While granting a conditional stay
of the order, the Court has directed the Company to deposit a sum of ^ 50.00 lakhs (31 March 2024 50.00 lakhs)
along with an undertaking to deposit balance amount on final conclusion. As per the Court directives, Company has
deposited a sum of ^ 50.00 lakhs (31 March 2024 ^ 50.00 lakhs) reflected under balance with statutory authorities
(non-current) along with an undertaking. The matter is pending for filing the reply by the Mathadi Board.

q) The Company received excise demand of ^ 27.10 Lakhs (31 March 2024 ^ 27.10 Lakhs) relating to low strength of
ENA. The Company had challenged the same with appropriate authority and has paid the amount under protest,
which is disclosed under due from tie-up units (non-current). Rajasthan High Court had left it exclusively for the Excise
Commissioner to take a decision, after examining all aspects of the matter. The Company had filed a writ petition in
March 2020. The Rajasthan High Court, vide its order dated 15 November 2021 has quashed the orders of the Excise

by allowing the writ petition with a direction to pay ^ 0.10 lakhs as compounding fee. An appeal has been filed by the
State Excise challenging the order before Principal Bench, Jodhpur bench of Rajasthan High Court.

r) The Company was operating its business in the State of Uttar Pradesh by entering into an arrangement with Dhampur
Sugar Mills Limited (Dhampur). As per UP VAT Act, during pre-GST period i.e., before 30 June 2017, ENA in Uttar
Pradesh was charged at Paisa 0.80 per litre for intra state purchase of ENA and Inter-state purchase was taxed at
2% CST. Dhampur has received intimation of tax ascertained as being payable under Section 73(5) (Form GST DRC-
01A) from Office of Joint Commissioner, Moradabad, Uttar Pradesh for the FY 2019-20, 2020-21 and 2021-22 vide
letter dated 12 April 2023 and 12 July 2023 alleging to pay GST on ENA for the following tax period for sale of ENA
to the Company.

t) The Company has received a claim on 11 December 2023, amounting to ^ 4,210.66 lakhs from one of its institutional
customer Canteen Stores Department (CSD), which pertains to a historically settled issue regarding differential trade
terms for sales made during the period from 1 March 2012 to 31 October 2017, which was disclosed in the annual
financial statements for the financial years ended 31 March 2020, 31 March 2021 and 31 March 2022. The Company
vide its letter dated 13 June 2024 to the customer has rejected the claim and invoked arbitration disputing the arbitrary
claim of the customer. Management assessment supported by external legal opinion is that the Company has a good
case on merits and the probability of the claim fructifying into a liability is remote. Accordingly, the management has
determined that the receivable from the customer, amounting to ^ 3,398.72 lakhs (net of adjustments) as on 31 March
2025, is good and recoverable. The Company has filed a petition on 08 November 2024 under Section 11 of Arbitration
and Conciliation Act, 1996 before the Hon''ble Bombay High Court seeking appointment of Sole Arbitrator and the
matter is sub-judice.

u) The Company has received order under section 153C of the Income Tax Act from the Assistant Commissioner of
Income Tax, CC 8(2) Mumbai. In response to the same the assessment was completed by the appropriate authority
and demand of ^ 5,331.06 lakhs was raised including interest for A.Y. 2014-15 to 2020-21. Moreover, the Company
has also received notice u/s. 274 regarding Penalty proceedings. The Company has already filed appeal before the
first Appellate authority (CIT(Appeals), filed rectification of demand letter and abeyance letter to keep the demand in
abeyance till the disposal of our appeal by CIT(Appeals). The Company expects favorable order in the above cases
and therefore no provision has been created in the books of account. The above mentioned demand has been now
merged with order u/s 143(3) read with section 147, refer note 63 for the same.

v) The Company has received GST audit notice in the state of Haryana for FY 2019-20. GST audit of the Company was
conducted by the GST department along with staff under Section 65(1) of Act, 2017 read with rules 101 of HGST
Rules,2017. Notice ADT-01 was issued to the Company where Company has submitted reply of this notice with all
required supporting documents. Further SCN issued to the Company on the same which was also replied. However,
department has issued DRC-07 order with charging tax liability for ^ 192.83 lakhs with interest ^ 168.60 lakhs and
penalty ^ 19.28 lakhs total ^ 380.71 lakhs for the reason of unreconciled turn over reported in GSTR 9C(5O) which
relates to provisions for expenses created in earlier period written off and provisions for statutory liability written off
during the period in the financial statement and Miscellaneous/other income reported in books of accounts pertain to
all states in India related to reversal of security deposit and not subject charge GST.

The Company decided to file appeal against DRC-07 order and filled appeal APL-01 before first appeal authority with
mandatory 10% pre-deposit of tax amount for ^ 19.28 lakhs as per GST provision.

w) During the year under review the Company has received demand notice under DRC 07 from the state of Andhra Pradesh
raising demand of ^ 3,003.11 lakhs and equivalent penalty of ^ 3,003.11 lakhs and applicable Interest. The same notice
is received for wrong availment of ITC for the period of July 2017 to march 2021. The Company had filled rectification
application for above said notice of demand. Subsequently, Company has received rectification order reducing tax
demand amount of ^ 3,003.11 lakhs to ^ 51.55 lakhs by accepting companies attention. However, the AO has retained
the penalty of ^ 3,003.11 lakhs. The Company has once again filled rectification application against the penalty of ^
3,003.11 lakhs and in the process of filling appeal before the first appeal authority against the penalty ^ 3,003.11 lakhs
and demand of ^ 51.55 lakhs.

(B) Commitments:

(i) Estimated amount of contracts unexecuted on account of Property, plant and equipment (net of advances) ^ 10,308.57
lakhs (31 March 2024 ^ 106.98 lakhs)

(ii) Uncalled Liability on shares of ‘ABD Maestro Private Limited of ^ 5,600 lakhs

(Refer footnote 5 below note 8 for commitment for further capital infusion in ABD Maestro Private Limited)

49. Revenue from contracts with customers

The Company determines revenue recognition through the following steps:

1. Identification of the contract, or contracts, with a customer.

2. Identification of the performance obligations in the contract.

3. Determination of the transaction price.

4. Allocation of the transaction price to the performance obligations in the contract.

5. Recognition of revenue when, or as, a performance obligation is satisfied.

I n all cases, the total transaction price for a contract is allocated amongst the various performance obligations based on their
relative stand-alone selling prices. The transaction price for a contract excludes any amounts collected on behalf of third parties.

At contract inception, the Company assesses the goods and services promised in the contracts with customers and identifies
a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is
distinct. To identify the performance obligations, the Company considers all of the goods and services promised in the contract
regardless of whether they are explicitly stated or are implied by customary business practices.

The majority of customer contracts that the Company enters into consist of a single performance obligation for the delivery of
Indian made foreign liquor. The Company recognizes revenue from product sales when control of the product transfers, generally
upon shipment or delivery to the customer, i.e., at a point in time. The Company records product sales net of estimated incentives/
discounts, returns, and other related charges. These are generally accounted for as variable consideration estimated in the same
period the related sales occur. The methodology and assumptions used to estimate rebates and returns are monitored and adjusted
regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. The
payment terms are generally less than a year. The Company does not have any remaining performance obligation as contracts
entered for sale of goods are for a shorter duration.

Nature of CSR Activities - Betterment of communities around the Company’s manufacturing site. There are no related party
transactions. There are no ongoing projects on which CSR expenditure is made.

53. The Government of Bihar by its notification dated 5 April 2016 imposed a ban on trade and consumption of Indian Made Foreign
Liquor and Foreign Liquor in the state of Bihar. The Company had received a letter dated 16 August 2017 from the Government of
Bihar, stating that it is not liable to refund the aforesaid statutory duties under the Bihar Prohibition and Excise Act, 2016.

On 17 October 2017, the Company filed a writ petition before the Hon’ble High Court of Patna seeking refund of the aforesaid
statutory duties (including statutory duties paid by the Company’s tie-up manufacturers) i.e. VAT, excise duty, license fee, bottling
fee etc., paid to the Government of Bihar of ^ 3,124 lakhs in respect of billed stocks destroyed/ returned by Bihar State Beverages
Corporation Limited (“BSBCL”). Out of the above VAT and Excise department has processed ^ 1,062 lakhs till 31 March 2019.

During the year ended 31 March 2022, the Company has received ^ 239.26 lakhs out of the recoverable balance of ^ 2,334.56 lakhs
as on 31 March 2021. There was no receipt during 1 April 2024 to 31 March 2025.

The Balance recoverable of ^ 2,095.30 lakhs as at 31 March 2025 is considered good and receivable based on the favourable Order
issued by the Hon’ble High Court of Patna dated 18 May 2017 and dated 30 April 2019. The same is disclosed under Note 10 “Due
from tie-up units”.

The Hon’ble High Court of Patna has passed the order dated 24 November 2023 in favour of the Company for refund of Excise
Duty Refund. The impugned order passed by the Excise Commissioner, Bihar and the Assistant Commissioner, Excise, Patna has
been set aside. However, Excise Department has filed an appeal before the Hon’ble Supreme Court against the order passed by
the Hon’ble High Court of Patna and stay of the judgment of the High Court has been granted by the Hon’ble Supreme Court on 08
July 2024 and the matter in The Supreme Court is not yet listed and hence status quo.

Consequent to the above claim by the Company, BSBCL has raised a demand for demurrage charges of ^ 1,111.00 lakhs on
account of IMFL being kept in its godown for the period 2016-17 & 2017-18. In the demurrage charge matter, the writ petition
was filed by the Company and the impugned demands have been set aside. The matter has been remanded to the MD, BSBCL to
furnish detailed claim to the petitioners, whereupon the Company was required to submit the detailed response. The matter would
be finally adjudicated by the MD, BSBCL within 6 months.. Despite a detailed reply from the Company, the BSBCL rejected the show
case reply filled by the Company and held them liable for the charges. Company challenged this order, and the Patna High Court
has stayed the impugned order passed by BSBCL, with the next hearing scheduled in June 2025.

54. Leases

Company as lessee

The Company’s leased assets primarily consist of leases for land, building and machinery. Leases of land, building and machinery
generally have lease term between 10 years to 95 years, 2 to 5 years and 2 to 10 years respectively. The leases includes non¬
cancellable periods and renewable option at the discretion of lessee which has been taken into consideration for determination of
lease term.

*The figures in the quarterly returns filed by the Company are updated for book closure entries including provisions and reclassification recorded post
submission of returns/statements to banks.

The value of inventory compared excludes amount of excise duty accrued on finished goods based on the return filed with lenders.

There were no differences for the 6 months period ended 30 September 2024. Company is in the process for the submission of return/statements for the
year ended 31 March 2025.

62. ABD Foundation was incorporated on 4 September 2020 as a Section 8 private company limited by guarantee. The company was
subscriber to the memorandum of association of ABD Foundation which was wholly guaranteed by the Company. ABD Foundation
was formed to carry out CSR activities on behalf of the Company such as eradicate hunger, poverty and malnutrition, promoting
preventive health care and sanitation and making available safe drinking water, promoting education, including special education
and employment en

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Mar 31, 2024

n. Provisions, Contingent Liabilities and contingent assets

A provision is recognised when the Company has a present obligation as a result of past events 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. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects the current market assessments of time value of money and the risks specific to the liability. The increase in the provision due to passage of time is recognised as interest expense. The provisions are reviewed at each Balance Sheet date and adjusted to reflect the current management estimates.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed 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 where outflow of resources is not probable or where outflow is probable but reliable estimate of the amount cannot be made. When there is an obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognised in the financial statements. However, they are disclosed only when an inflow of economic benefits is probable.

o. Employee Benefits

A) Short term employee benefits: All employee benefits which are due within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, compensated absences, etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

B) Post-employment benefits

i. Defined Contribution Plans: Company''s contribution to the state governed provident fund scheme, superannuation scheme, Employees State Insurance corporation (ESIC) etc. are recognised during the period in which the related service is rendered.

ii. Gratuity: The Company has computed its liability towards future payments of gratuity to employees, on actuarial valuation basis which is determined based on project unit credit method and the charge for current period is debited to the Statement of Profit and Loss. The present value of the defined benefit obligation, which is unfunded at present, is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating the terms of the related obligation. Actuarial gains and losses arising on the measurement of defined benefit obligation is charged/ credited to other comprehensive income.

iii. Compensated absences: Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the period are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the period end.

Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the period are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each period. Actuarial losses/gains are recognised in the Standalone Statement of Profit and Loss in the period in which they arise.

iv. Medical benefits: The Company has computed its liability towards post-employment medical benefits on actuarial valuation basis which is determined based on projected unit credit method and the charge for current period is debited to the Statement of Profit and Loss. The present value of the defined benefit obligation, which is unfunded at present, is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating the terms of the related obligation. Actuarial gains and losses arising on the measurement of defined benefit obligation is charged/ credited to other comprehensive income.

C) Termination Benefits: These are recognised as an expense in the Statement of Profit and Loss of the period in which they are incurred, i.e. when employment is terminated or when an employee accepts voluntary redundancy in exchange for these benefits.

p. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss (excluding other comprehensive income) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a right issue, shares split (sub-division) and reverse share splits (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss (excluding other comprehensive income) for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

q. Exceptional items

When an item of income or expense within Statement of profit and loss from ordinary activity is of such size, nature or incidence that its disclosure is relevant to explain more meaningfully the performance of the Company for the period, the nature and amount of such items is disclosed as exceptional items.

r. Segmental information

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. Executive committee, which has been identified as the chief operating decision maker, assesses the financial performance and position of the Company and makes strategic decisions. The executive committee consists of the Chief Financial Officer & Chief Executive Officer and other departmental heads. See note 51 for segment information presented.

3 Critical estimates and judgements

The preparation of financial statements in conformity with Ind AS requires estimates and assumptions to be made by the Management of the Company that affect the reported amounts of assets and liabilities and amounts disclosed as contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known.

The Management believes that these estimates are prudent and reasonable and are based upon the management''s best knowledge of current events and actions. Actual results could differ from these estimates and differences between actual results and estimates are recognised in the periods in which the results are known or materialised.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to originally assessed estimates and assumptions turning out to be different than the actual results.

Examples of such estimates include the useful life of property, plant and equipment, provision for doubtful debts/advances, future obligation in respect of retirement benefit plans, impairment of investments/assets, etc.

i) Property, plant and equipment and Intangible Assets: (Refer note 5 and 7)

Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation/amortisation to be recorded during any reporting period. The useful lives and residual values as per schedule II to the Companies Act, 2013 or otherwise are based on the Company''s historical experience with similar assets and taking into account anticipated technological changes, whichever is more appropriate.

ii) Income Tax: (Refer note 42)

The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual outcome which could lead to an adjustment to the amounts reported in the standalone financial statements.

iii) Contingencies: (Refer note 48)

Management has estimated the possible outflow of resources, if any at the end of each annual reporting financial period, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

iv) Impairment of financial assets: (Refer note 44)

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss. 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.

v) Loss Allowance (Refer note 15)

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Under Ind AS, impairment allowance has been determined based on Expected Credit Loss (ECL) model. Estimated irrecoverable amounts are based on the ageing of the receivable balance and historical experience. Individual trade receivables are written off if the same are not collectible.

vi) Impairment of non-financial assets: (Refer note 5 and 7)

The carrying amounts of assets are reviewed at each Balance Sheet date to assess whether there is any indication that an individual asset / group of assets (constituting a Cash Generating Unit) may be impaired. If there is any indication of impairment based on internal / external factors i.e. when the carrying amount of the assets exceed the recoverable amount, an impairment loss is charged to the Statement of Profit and Loss in the period in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed or reduced if there has been a favorable change in the estimate of the recoverable amount. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

vii) Defined benefit obligation (Refer note 47)

The cost of post-employment benefits is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases and mortality rates. Due to the long term nature of these plans such estimates are subject to significant uncertainty. The assumptions used are disclosed in the notes to the financial statements.

viii) Fair value measurements (Refer note 43)

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the instrument.

4 Application of new and revised Indian Accounting Standards (Ind AS)

All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the standalone financial statements are authorised, have been considered in preparing these Standalone Financial Statements.

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

have been re-classified to Non-current investment in subsidiaries, as per the requirements of the accounting standard. However, in the event of a disposal arising at any time in the future, the Company has received an undertaking (which would be operative as per the provisions of law prevailing at that point of time) from the chairman confirming his willingness to compensate the Company for shortfall, if any, in the carrying value as compared with its recoverable value. Such undertaking would enable the Company to safeguard the carrying value of these assets from impairment, if any, in the future.

Note 2: Terms of 0% Compulsorily Convertible Debentures (CCD):

(a) The CCD shall be unsecured.

(b) The CCD shall have tenure of not exceeding 10 years.

(c) Each CCD shall be convertible into such number of fully paid up equity shares of '' 10 each solely at the option of the Board of Directors of ABD Dwellings Private Limited and Madanlal Estates Private Limited. The holders of CCD shall not have any right to opt for conversion at any time during the period of maturity.

(d) The CCD do not themselves give to the holder thereof any rights of shareholders of the Company.

(e) The new equity shares issued on conversion of CCD shall be in dema terialised or physical form and subject to the Memorandum and Articles of Association of the Company and shall rank pari-passu in all respects with the existing issued and subscribed equity shares of the Company including rights towards dividend.

Note 3: Loan give to subsidiary is accounted at fair value and the difference between the fair value and transaction price is recognised as deemed investment as per Ind AS 109. Such investments will be derecognised on disposal of control in the subsidiary.

Note 4: In compliance with Limited Liability Partnership Agreement dated 6 July 2022, the Company became a 85% stake partner in Allied Blenders and Distillers Maharashtra LLP on 15 June 2022 by contributing a fixed capital of '' 0.85 lakhs.

43 Fair value measurements

Fair value instruments by category and hierarchy

The fair values of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments. The fair value of lease liability is not required to be disclosed.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The fair values for loans and security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The fair values of non-current borrowings are based on discounted cashflows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to fair value.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. For example, listed equity instruments that have quoted market price.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

44 Financial risk management

The Company is exposed primarily to fluctuations in foreign exchange, interest rate, credit quality and liquidity management which may adversely impact the fair value of its financial assets and liabilities. The Company has a risk management policy which covers the risk associated with its financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus is to assess the unpredictability of the financial environment and to mitigate potential adverse effect on the financial performance of the Company.

The Company''s principal financial liabilities comprises of borrowings, lease liabilities, trade payables and other financial liabilities. The Company''s principal financial assets include loans, trade receivables, cash and bank balances and other bank balances, other financial assets that derive directly from its operations.

A Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, financial assets. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.

a: Trade receivables (net of loss allowance)

Trade receivables are unsecured and are derived from revenue earned from two main classes of trade receivables i.e. receivables from sales to government corporations and receivables from sales to private parties. A substantial portion of the Company''s trade receivables are from government corporation customers having strong credit worthiness. Further, Company''s historical experience of collecting receivables is that credit risk is low. Hence trade receivables are considered to be a single class of financial assets. The Company measured the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual loss experience and past trends. Based on historical data, loss on collection of receivable is not material hence no additional provision considered.

b: Other financial assets

Cash balances are maintained with banks having high credit rating. Loans given to related parties and employees are fully recoverable and loans given to others are fully provided. Majority of other security deposits are placed majorly with government agencies. The credit loss recognised is for a specific scenario and is not expected in the future.

B Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to maintain optimum levels of liquidity and to ensure that funds are available for use as per requirement.

The liquidity risk principally arises from obligations on account of financial liabilities viz. borrowings, lease liabilities, trade payables and other financial liabilities.

The finance department of the Company is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through trade receivables or through short term borrowings on need basis.

C Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: Foreign currency risk, interest rate risk and price risk. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The risk primarily relates to fluctuations in receivables, trade payables, borrowings and other payables denominated in USD, GBP SGD and AED against the functional currency INR of the Company.

The Company''s risk management policy is to assess the Company''s net exposures which is mainly represented by receivable and payable towards exports and imports respectively, and partly represented by the loans availed in foreign currencies. The Company can hedge its net exposures with a view on forex outlook.

Reference is also invited to footnote to note 23 and note 26 for guarantee provided by and assets pledged of Tracstar Distillers Private Limited towards loans availed by the Company.

Reference is also invited to footnote to note 23 for guarantee provided by Mr. Kishore Chhabria towards loan availed by the Company.

Reference is also invited to footnote to note 23 for assets pledged of Ashoka Liquors Private Limited towards loan availed by the Company.

Equity (or equity like) investments by the Company and equity (or equity like) infusion into the Company are not considered for disclosure under balances as these are not considered "outstanding" exposures. Refer note 8 and 21 for the same.

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs through payment. For the year ended March 31, 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2023: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Reference is also invited to Note 20 for ''Share issue expenses'' which will be reimbursed by the selling shareholders in proportion to their respective shares offered for sale as a part of the IPO, amount for which will be determined on completion of the IPO.

Reference is also invited to Note 8 (Foot notes 1 and 2) for agreement for sale of securities held in subsidiaries and the subsequent termination of such agreement, resulting in the re-classification of these securities, and the undertaking confirming willingness to compensate the Company for impairment / shortfall in recoverable value, if any, as detailed in the said note.

Reference is also invited to Note 47(e) for provision of post employment medical benefits made by actuarial valuation to extend the facility of payment for medical insurance premium at actuals in respect of the Non- Executive Chairman and certain specified family members.

a) Contingent liability relating to determination of provident fund liability, based on 28 February 2019 Supreme Court judgement, is not determinable at present, due to uncertainty on the period of impact of the judgement in absence of further clarification relating to applicability. The Company will continue to assess any further developments in this matter for their implications on the Company financial statements, if any, which, based on the number of employees, is not expected to be significant.

b) Transport pass fee claimed by excise authorities @ '' 3 per bulk litre (BL) from 12 July 1999 up to 25 August 2009 and @ '' 1.50 per BL from 26 August 2009 till 18 May 2011 on Extra Neutral Spirit (ENA) purchased aggregating '' 821.97 lakhs (31 March 2023''821.97 lakhs) and transport pass fee claimed by excise authorities @ '' 1 per BL from 01 April 2010 to 18 May 2011 on rectified spirits purchased aggregating '' 48.88 lakhs (31 March 2023''48.88 lakhs), transport pass fee claimed by excise authorities @ '' 3 per BL from 01 June 2009 to 18 May 2011 on Malt purchased aggregating '' 2.16 lakhs (31 March 2023''2.16 lakhs) including for one of the Contract Bottling Unit.

The Company has paid '' 303.71 lakhs (31 March 2023''303.71 lakhs) under protest which is shown under balance with statutory authorities (non-current).

The Hon''ble High Court of Judicature at Mumbai has, vide its order dated 06 May 2011, upheld Company''s appeal and allowed the Company''s petition with the direction that the amount paid be refunded along with the interest @ 9% per annum within 10 weeks from the date of receipt of application for refund. As directed, the Company has filed an application for claim of refund before the customs and excise authorities. The Company has also claimed '' 163.71 lakhs (including interest of '' 29.94 lakhs) on account of transport pass fees charged by suppliers.

The Customs and excise department of Maharashtra has filed a Special leave petition (SLP) before the Hon''ble Supreme Court against the above order. The Supreme Court has directed the registrar to issue notice to all concerned and affected parties pending admission of petition.

Subsequently, the registrar has issued notice to all the concerned and affected parties for admission of petition and accordingly, the Company has filed its response to this notice. The matter has not come up for hearing.

c) Increased water charges (including delayed payment charges billed by MIDC from time to time for the period November 2001 to March 2024, disputed by the Company aggregating '' 196.07 lakhs (31 March 2023''185.98 lakhs).

In the above said matter, High Court of Judicature of Bombay, Aurangabad Bench did not allow the stay petition filed by the Company. However, the Hon''ble High Court of Aurangabad Bench has agreed to allow for payment of only principal amount to MIDC towards outstanding water charges and granted stay on levy of interest and penalty till the disposal of final appeal.

Based on the above, the Company has paid till 31 March 2024 '' 162.02 lakhs (31 March 2023''151.98 lakhs) under protest which is shown under balance with statutory authorities (non-current).

Few of the IMFL manufacturers have filed Special Leave Petition before the Supreme Court challenging the order of the Aurangabad Bench of Bombay High Court. Since the cause of action and reliefs claimed are identical, the outcome of this case will hold good for the Company as well.

d) The Maharashtra State Excise Department, Aurangabad has raised a demand of '' 32.80 lakhs (31 March 2023''32.80 lakhs) towards additional license fee on the Company as a consequence of the change of name arising due to restructuring of the Company. The Company has challenged the said demand and filed Writ Petition before High Court of Judicature of Bombay, Aurangabad Bench. The said matter has not come up for hearing yet. The demand of '' 32.80 lakhs (31 March 2023''32.80 lakhs), which is paid by the Company under protest, is shown under balance with statutory authorities (noncurrent).

e) The Aurangabad Municipal Corporation (AMC) had recovered differential Octroi Duty on Extra Neutral Alcohol / Rectified Spirit for the period from December 1991 to June 1997 on the basis of High Court judgment on similar facts in another liquor Company case. This judgment had been reversed by the Hon''ble Supreme Court of India in another case in which interest @ 6 % p. a. was allowed. The Company has entered into an agreement with AMC on 12 March 1993 by which both the parties had agreed that judgment passed shall be binding on both the parties.

The Company had filed a suit for recovery in the Hon''ble Court of Civil Judge, (Senior Division) at Aurangabad. As per the order dated 16 October 2006 of the Court, the Company is entitled to get an amount of '' 157.97 lakhs (31 March 2023 '' 157.97 lakhs), with interest thereon @ 6% p.a. from the date of suit till the date of payment.

The Municipal Corporation has filed an appeal against this order, which has been disposed off by the Division Bench of the Bombay High Court, Aurangabad bench vide their order dated 12 February 2007 granting the stay of execution of decree passed by Trial Court subject to deposit of '' 220 lakhs in 11 instalments commencing from April 2007. Further, the appeal came up for hearing on 29 August 2007 before the High Court at Bombay Bench at Aurangabad and an order was passed allowing the Company to withdraw the aforesaid amount and so far the Company has received '' 220 lakhs up to 31 March 2009. The appeal filed by AMC is pending before the Bombay High Court, Aurangabad Bench

f) In an earlier year, the Company had received demand notice from the Commissioner of Central Excise, Customs and Service Tax, Aurangabad for the F.Y. 2011-12 to 2014-15 towards service tax on reverse charge basis on expenditure incurred in foreign currency on sales promotion, travelling and other expenditure. Total demand raised is '' 538.08 lakhs (31 March 2023''538.08 lakhs) (including penalty of '' 268.28 lakhs, late fees of '' 1.60 lakhs excluding interest). The Company has paid '' 20.11 lakhs (31 March 2023''20.11 lakhs) under protest against the said demand towards mandatory deposit for admission of appeals, which is shown under balance with statutory authorities (non-current). The Company has filed an appeal before Central Excise and Sales Tax Appellate Tribunal (CESTAT), Mumbai.

g) Post receipt of order under section 153C received for A.Y. 2014-15 , the open matter is now merged and part of pending appeal / assessment of A.Y. 2014-15 under section 153C, therefore the liability for 31 March 2024 is Nil (31 March 2023''333.1 1 lakhs). Refer note no. xxiii of the contingent liability schedule. Against the demand order, the Company has deposited under protest '' 55.12 lakhs (31 March 2023''55.12 lakhs) which is disclosed under Income tax (current-tax) assets (net). The balance demand is adjusted by the department with refundable balance of AY 2011-2012 as per intimation dated 20 April 2017.

h) One of the Company''s Contract Bottling Unit (CBU) at Rajasthan had received notice of demand for the A.Y. 2007-08 to 2009-10 amounting to '' 91.80 lakhs (31 March 2023''91.80 Lakhs) of VAT and interest thereon for '' 15.75 lakhs (31 March 2023 '' 15.75 lakhs) aggregating '' 107.55 lakhs (31 March 2023 '' 107.55 lakhs) from Commercial Tax Officer, Government of Rajasthan on alleged VAT payable on captive consumption of ENA for the manufacturing of the Company''s brands and deemed sale of ENA to the brand owner. The said demand was upheld by the Hon''ble Rajasthan High Court vide their order dated 20 July 2017. Against the said demand, the CBU has filed a Special Leave Petition before the Hon''ble Supreme Court. Vide order dated 28 August 2017, the Hon''ble Supreme Court has granted stay in the matter in respect of recovery of any demand or interest. In the event, if the matter is decided against the CBU, the Company is liable to compensate the CBU for the tax demand including interest.

i) In an earlier year, the Company has received excise demand of '' 286.02 lakhs (31 March 2023''286.02 lakhs) relating to excess transit wastages for ENA supplied by Contract Bottling unit (CBU). Writ petition was filed with the Hon''ble High Court by CBU and is pending for disposal. Amount deposited under protest of '' 71.50 lakhs (31 March 2023''71.50 lakhs) is shown under balance with statutory authorities (non-current). Madhya Pradesh High Court ordered that, on furnishing an adequate surety to the satisfaction of Excise Commissioner, the recovery of penalty shall remain stayed until next date of hearing. The matter has not come up for hearing yet and the same is under progress.

j) The Company had received a show cause notice dated 22 March 2021 from its customer - Canteen Stores Department (CSD) for '' 857.69 lakhs (31 March 2023''857.69 lakhs) on account of differential trade rate relating to the period from October 2014 to December 2020, which has been disclosed as contingent liability. The Company has submitted the explanation and necessary documents demanded by CSD in response. letter received from CSD, however consequent to the explanation filed by the company a show cause notice was issued by CSD to the company demanding certain clarification and documentation. The company has sought further time from the CSD department to respond to the said notice.

k) A letter of Intent (LOI) was granted to the Company along with a demand notice by the Government of Andhra Pradesh on 9 March 201 7 based on an application made on 3 December 2014 along with stipulated payment of '' 275.00 lakhs (31 March 2023''275.00 lakhs). The Company had immediately requested for a waiver of the demand notice. Further, vide letter dated 17 May 2017, the Company had requested for a three-year moratorium for payment of license fees. The request was disallowed vide their letter dated 31 May 2017 which was served on the Company on 12 June 2017.

The Company then requested the Commissioner of Prohibition of Excise for surrendering the LOI and requested for refund of the advance paid '' 275.00 lakhs vide letter dated 14 June 2017. However, the Company received a demand notice dated 9 February 2018 from the Government of Andhra Pradesh and Commissioner of Prohibition & Excise for payment of the license fees of '' 2,725.00 lakhs in 11 quarterly instalments with first instalment being due on 26 January 2017 which remains unpaid.

Company filed a writ petition under Article 226 of the Constitution of India against the State of Andhra Pradesh represented by the Principal Secretary to Government Revenue (Excise Department) as well as against the Commissioner, Prohibition and Excise, Government of Andhra Pradesh in the High Court of Andhra Pradesh seeking a declaration that the said demand as well as refusal of the Respondents to refund amounts paid by the Company of '' 87.48 lakhs and '' 275.00 lakhs along with applications made on 22 November 2010 and 03 December 2014 as bad and illegal in law; and a direction to the Respondents to cease making demands for payment of instalments and to refund the above amounts paid by the Company along with interest @ 18% p.a. from 17 December 2012 and 31 May 2017 respectively.

In the said Writ Petition, the Hon''ble High Court was pleased to pass an interim order directing the Respondents not to take any coercive action against Company pursuant to the letter dated 6 February 2019 of the 2nd Respondent. The Company filed a writ petition against the said order and obtained an interim stay on the same. The matter is still pending in Andhra Pradesh High Court. The writ petition filed by the Company against the State of Andhra Pradesh represented by Principal Secretary to Government, Revenue (Excise Department) and the Commissioner Prohibition and Excise is pending before the High Court of Andhra Pradesh. The matter was last listed on 19 March 2019 when the order was passed. Thereafter the matter has not been listed. The order subsists even as on today. The Order also stated that no coercive steps can be taken against the petitioner.

l) The Company is operating its business in the State of Uttar Pradesh by entering into a Lease Agreement with Simbhaoli Sugars Limited ("Simbhaoli") since October 2017. As per UP VAT Act, during pre-GST period i.e., before 30 June 2017, ENA in Uttar Pradesh was charged at Paisa 0.80 per litre for intra state purchase of ENA and Inter-state purchase was taxed at 2% CST. After introduction of GST, ENA falls under VAT and there was no clarity on Vat to be charged on ENA. In respect of ENA purchases made by the Company from Simbhaoli since October 2017, no VAT / GST has been recovered or paid by Simbhaoli in line with the request made by the Company. The Company has issued an indemnity to safeguard Simbhaoli from any liability on account of VAT / GST on ENA procurement from them. Department has issued notice to Simbhaoli to deposit arrears of Tax for F.Y 2017-18, 2018-19 and 2019-20. Neither Simbhaoli nor the Company has paid any tax for the period 1 October 2017- 8 December 2019. On 17 December 2019, Uttar Pradesh VAT Authority has notified 5% rate of VAT on ENA, effective from 9 December 2019 onwards, the Company has been paying 5% VAT

on ENA purchase. The liability amounts to '' 1,428.70 lakhs (31 March 2023''1,428.70 lakhs). The Company has been granted stay for 90% of the demand on issuance of surety. Balance 10% of the demand has been paid by the Company amounting to '' 142.87 lakhs (31 March 2023 '' 142.87 lakhs) for FY 2017-18, FY 2018-19 and FY 2019-20, which is shown under balance with statutory authorities (non-current). The Company has received intimation of tax u/s 74(5) of the CGST Act, 2017 for the period October to November 2022, amounting to '' 200.31 lakhs including interest and penalty (31 March 2023''200.31 lakhs) on alleged GST on ENA. The Company has replied to the instant notice.

m) A contract bottling unit had been issued notice of demand of '' 131.17 lakhs (31 March 2023''131.17 lakhs) on 2 July 2010 under the Assam Entry Tax Act by the Government of Assam. Amount deposited under protest of '' 75.79 lakhs (31 March 2023''75.79 lakhs) is shown under other financial assets (non-current).

n) In earlier years, the Company was receiving taxable invoices from its CBUs at the rate of 18% on the bottling charges on manufacturing of IMFL for the Company (brand owner). However, based on the notification dated 13 October 2017, No. 31/2017 - Central Tax (rate), the Company has asked its bottlers to charge GST on bottling charge at 5%. Vide Notification No. CBIC (TRU) Circular no 164/20/2021 a separate new entry was introduced with effect from 01 October 2021, accordingly all the CBUs are charging 18% on job work changes. However, there remains to be lack of clarity in respect of charging the 18% rate from 01 October 2017 to 30 September 2021.Confederation of Indian Alcoholic Beverage Companies (CIABC) has submitted a representation vide letter dated 9 October 2019 to Hon''ble Finance Minister and other Senior Member of the GST Council. However, final disposal of the above representation made has not been received. The Company is of the view that the effective date of applicability of 18% GST should be from 01 October 2021 only and accordingly no provision has been made in the books of account. Andhra Pradesh High Court vide order dated 20 October 2022, in case of another company in the industry, ruled that the services by way of job work in relation to manufacture of alcoholic liquor for human consumption should be liable to 18% GST retrospectively. A special leave petition has been filed by that company with Hon''ble Supreme Court against such ruling of Andhra Pradesh High Court and is yet to be concluded. The Company has also been advised by senior counsel that the GST at 18% would not be payable with retrospective effect which is in line with special leave petition filed by aforesaid company. Some of the State GST departments have raised demand for the differential GST amount as mentioned below for which Company has filed its reply with the department that the Company through its Member Association CIABC has made various representation for clarification to the GST council and is awaiting response on this.

• In the case of Solkit Distillery and Brewery Private Limited, the Company has filled appeal before Appellate Authority. After paying pre-deposit of 10% of the demand for '' 7.98 lakhs. Virtual hearing has been scheduled on 25 July 2024.

• In the case of Hi-Tech Bottling Limited, has received notice of rejecting appeal for period from 01 July 2017 to 31 March 2022 without citing any reason, The CBU is in the process of submitting appropriate response with appellate authority.

• In the case of Batra Breweries Private Limited, Company has received demand order dated 12 March 2024. The Company is in the process of filing an appeal before the first Appellate Authority within stipulated time frame allowed.

• In the case of Unistil Alcoblends Private Limited, a detailed submission and Personal Hearing was concluded, and final order is awaited.

• In the case of Shakti Maltare & Lemonade Private Ltd the first Appellate Authority has rejected the appeal of the company by confirming applicable GST rate of 18% on bottling charges payable to CBU wide order dated 04 July 2024. The company in a process to filling appropriate response the GST authority in due course of time.

• The similar matter is pending with Honorable supreme court in case of Esveer Distilleries Private Limited and scheduled for the hearing on 30 July 2024.

o) Company has received summon notice dated 11 August 2020 from the Director General of GST Intelligence, Hyderabad on applicability of GST on Distillery Wet Grain Soluble (DWGS) and Distillery Dry Grain Soluble (DDGS). On 20 June 2022, the Company has received Show Cause Notice on the subject matter from Directorate General of Goods and Services Tax Intelligence (DGGI), Telangana for an amount of '' 726.19 lakhs (31 March 2023''726.19 lakhs). Aggrieved by the earlier orders, the Company has filed an appeal before High Court of Telangana at Hyderabad on 3 December 2022. The company has filed the rejoinders in the hearing scheduled on 12 June 2023. The hearing of the matter was scheduled on 18 July 2023. The Company is discharging GST on DDGS and DWGS at 5% from 12 August 2020. However, the Company has been advised by senior counsel, that the GST demand for the period prior to the issuance of the clarificatory Circular dated 06 October 2021 is not payable.

Honorable High Court has granted a new date of hearing being 24 July 2024.

p) Post receipt of order under section 153C received for A.Y. 2016-17 dated , the open matter is now merged and forms part of pending appeal/assessment of A.Y. 2016-17 under section 153C, therefore the liability for 31 March 2024 is Nil (31 March 2023 '' 17.34 lakhs). Refer note no. xxiii of the contingent liability schedule. The said demand has arisen due to non-granting of claim of TDS and TCS in respect of Wales Distillers Private Limited, which was merged with the Company with the appointed date of 01 April 2015. The Company has made required representation before the Assessing Officer for rectification of demand. The Company is confident of getting a favorable rectification order and accordingly, no provision has been made in the books of account.

q) One of the ENA suppliers has received order u/s. 74 of the GST Act for the period April 2022 to August 2022 from the Joint Commissioner, Saharanpur, Uttar Pradesh, raising demand of '' 360.40 lakhs (including interest and penalty) (31 March 2023''360.40 Lakhs) in respect of supply of ENA to the Company without charging GST. The Company has filed the appeal before the Appellate authority.

The question of chargeability of appropriate Tax (whether UPVAT or GST) is subjudice before Apex Court of India as UPVAT Authority, CIABC and International Spirits and Wines Association of India (ISWAI) has filed Special Leave Petition before Apex Court, challenging Order of Allahabad High Court which has ruled that appropriate tax is not UPVAT. The matter was scheduled for hearing on 10 April 2023, however the hearing got postponed. Next date of hearing is yet to be announced.

Further, Show Cause notice has been received in our Kerala unit from State Goods and Service Tax Department, Kerala raising demand of '' 60.38 lakhs (31 March 2023''60.38 lakhs) on alleged non-payment of GST on procurement of ENA during the tax period 2017-18. The Company has responded to such notice. No further communication has been received from State GST Department.

r) By its order dated 18 October 2022, the Aurangabad Mathadi and Unsecured Workers Board, Aurangabad has directed the Company to make the payment of '' 252.95 lakhs (31 March 2023''252.95) towards short payment of wages and levy to the Mathadi Workers working at its unit situated at Plot No. 06, MIDC Area, Chikalthana, Aurangabad during February 2010 to July 2017 (loading), August 2014 to December 2019 (Unloading) and September 2020 to June 2022 (shifting/Carriage/Store) from the rates fixed by the Board for the period 2013-16, 2016-19, 2019-22. Challenging the order of the Board, Company has filed a writ petition before Bombay High Court, Aurangabad Bench seeking suspension of operation of the order dated 18 October 2022 passed by the Board. While granting a conditional stay of the order, the Court has directed the Company to deposit a sum of '' 50.00 lakhs (31 March 2023''50.00 lakhs) along with an undertaking to deposit balance amount on final conclusion. As per the Court directives, Company has deposited a sum of '' 50.00 lakhs (31 March 2023''50.00 lakhs) reflected under balance with statutory authorities (non-current) along with an undertaking. The matter is pending for filing the reply by the Mathadi Board.

s) The Company received excise demand of '' 27.10 Lakhs (31 March 2023''27.10 Lakhs) relating to low strength of ENA. The Company had challenged the same with appropriate authority and has paid the amount under protest, which is disclosed under due from tie-up units (non-current). Rajasthan High Court had left it exclusively for the Excise Commissioner to take a decision, after examining all aspects of the matter. The Company had filed a writ petition in March 2020. The Rajasthan High Court, vide its order dated 15 November 2021 has quashed the orders of the Excise by allowing the writ petition with a direction to pay '' 0.10 Lakhs as compounding fee. An appeal has been filed by the State Excise challenging the order before Principal Bench, Jodhpur bench of Rajasthan High Court.

t) The Company was operating its business in the State of Uttar Pradesh by entering into an arrangement with Dhampur Sugar Mills Limited (Dhampur). As per UP VAT Act, during pre-GST period i.e., before 30 June 2017, ENA in Uttar Pradesh was charged at Paisa 0.80 per litre for intra state purchase of ENA and Inter-state purchase was taxed at 2% CST. Dhampur has received intimation of tax ascertained as being payable under Section 73(5) (Form GST DRC-01A) from Office of Joint Commissioner, Moradabad, Uttar Pradesh for the FY 2019-20, 2020-21 and 2021-22 vide letter dated 12 April 2023 and 12 July 2023 alleging to pay GST on ENA for the following tax period for sale of ENA to the Company.

Nature of CSR Activities - Betterment of communities around the Company''s manufacturing site. There are no related party transactions. There are no ongoing projects on which CSR expenditure is made.

53 The Government of Bihar by its notification dated 5 April 2016 imposed a ban on trade and consumption of Indian Made Foreign Liquor and foreign liquor in the state of Bihar. The Company had received a letter dated 16 August 2017 from the Government of Bihar, stating that it is not liable to refund the aforesaid statutory duties under the Bihar Prohibition and Excise Act, 2016.

On 17 October 2017, the Company filed a writ petition before the Hon''ble High Court of Patna seeking refund of the aforesaid statutory duties (including statutory duties paid by the Company''s tie-up manufacturers) i.e. VAT, excise duty, license fee, bottling fee etc., paid to the Government of Bihar of '' 3,124 lakhs in respect of billed stocks destroyed/ returned by Bihar State Beverages Corporation Limited ("BSBCL"). Out of the above VAT and Excise department has processed '' 1,062 lakhs till 31 March 2019.

During the year ended 31 March 2022, the Company has received '' 239.26 lakhs out of the recoverable balance of '' 2,334.56 lakhs as on 31 March 2021. There was no receipt during 1 April 2023 to 31 March 2024.

The Balance recoverable of '' 2,095.30 lakhs as at 31 March 2024 is considered good and receivable based on the favourable Order issued by the Hon''ble High Court of Patna dated 18 May 2017 and dated 30 April 2019. The same is disclosed under Note 10 "Due from tie-up units".

The Hon''ble High Court of Patna has passed the order dated November 24, 2023 in favour of the company for refund of Excise Duty Refund. The impugned order passed by the Excise Commissioner, Bihar and the Assistant Commissioner, Excise, Patna has been set aside. However, Excise Department has filed an appeal before the Hon''ble Supreme Court against the order passed by the Hon''ble High Court of Patna.

Consequent to the above claim by the Company, BSBCL has raised a demand for demurrage charges of '' 1,111 lakhs on account of IMFL being kept in its godown for the period 2016-17 & 2017-18. In the demurrage charge matter, the writ petition was filed by the company and the impugned demands have been set aside. The matter has been remanded to the MD, BSBCL to furnish detailed claim to the petitioners, whereupon the Company was required to submit the detailed response. The matter would be finally adjudicated by the MD, BSBCL within 6 months.

54 Leases

Company as lessee

The Company''s leased assets primarily consist of leases for land, building and machinery. Leases of land, building and machinery generally have lease term between 10 years to 95 years, 2 to 5 years and 2 to 10 years respectively. The leases includes non-cancellable periods and renewable option at the discretion of lessee which has been taken into consideration for determination of lease term.

62 Compulsory Convertible Debentures

The Company received the sum of '' 10,000 lakhs from Oriental Radios Private Limited, a promoter entity and related party as application money towards allotment of 8.5% Compulsorily Convertible Debentures (convertible securities) on 14 June 2021. However, the application money was subsequently refunded to the party within the prescribed time. On 8 July 2021, the Company has again received '' 10,000 lakhs towards allotment of convertible securities and the allotment was completed within statutory timelines.

On 27th July 2021, the Company has issued 8,547,000 compulsory convertible debentures (CCD) to Oriental Radios Private Limited. Coupon on CCD is 8.5% which is to be paid in quarterly instalments. The holder shall have the right to exercise the conversion option of all or part of the CCDs at anytime after the expiry of 60 months after the date of allotment of CCDs at a conversion ratio of 1:1. In the event, the Company proposes a listing at anytime after the date of CCD subscription, then subject to the Company having obtained prior consent of the holder, immediately prior to filing of a draft red herring prospectus (''DRHP'') with the Securities Exchange Board of India (SEBI) / Concerned authority in connection with such listing, or such later date as may be permitted by SEBI / concerned authority in accordance with the applicable law, all CCDs that have not been converted into equity shares shall convert into equity shares without any further Act by or on behalf of the holder of CCDs.

Since the company has filed Draft Red Herring Prospectus on 28 June 2022, Oriental Radios Private Limited has been allotted the Equity Shares pursuant to the conversion of 8,547,000 CCDs of face value of ''117 each, into 8,547,000 Equity Shares of the Company at a premium of ''115 per Equity Share on 20 June 2022.

63 ABD Foundation was incorporated on 4 September 2020 as a Section 8 private company limited by guarantee. The company was subscriber to the memorandum of association of ABD Foundation which was wholly guaranteed by the Company. ABD Foundation was formed to carry out CSR activities on behalf of the Company such as eradicate hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water, promoting education, including special education and employment enhancing vocational skills, etc. As per Ind AS 110, ABD Foundation is controlled by the company and hence the activities/ transactions of ABD Foundation has been considered/ included in the Standalone Financial Statements of the company. During the year, the company has given amount of Nil (31 March 2023''0.10 lakhs) and total outstanding as at the balance sheet date is '' 0.52 lakhs (31 March 2023''0.52 lakhs)

64 The Income Tax Department ("the Department") has conducted a search operation at some of the premises / plants related to the Company, its promoters, certain officials and few group companies over allegations of tax evasion from 11 December 2023 to 17 December 2023 under Section 132 of the Income Tax Act, 1961. The officials of the company have co-operated with the officials of the Income Tax Department and responded to all queries raised by them. During the course of search, the search team comprising of various IT authorities, have taken various soft and hard copy records along with written statements of various staff and employees of the company. No interim tax demand has been placed on the company by the Income tax authorities. The investigation has no material impact on the company''s operational performance. No interim tax demand and / or restriction has been imposed upon the company and / or any of its Promoters, Directors, Key Managerial Personnel or Senior Management Team. Till date, the company has not received any communication from the department in this regard. Based on the available information and facts as of date, the company believes, that there is no adjustment or provision required in the financial statements.

65 Subsequent to the year ended 31 March 2024, the Company completed its Initial Public Offer (IPO) of 53,390,079 equity shares of face value of '' 2 each at an issue price of '' 281 per share comprising fresh issue of 35,596,486 equity shares and offer for sale of 17,793,593 equity shares by selling shareholders, resulting in equity shares of the Company being listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on 02 July 2024.

66 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies 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 the accounting software SAP for maintaining books of account. During the year ended 31 March 2024, the Company had not enabled the feature of recording audit trail (edit log) at the database level for the said accounting software SAP to log any direct data changes on account of recommendation in the accounting software administration guide which states that enabling the same all the time consume storage space on the disk and can impact database performance significantly. Audit trail (edit log) is enabled at the application level.

67 The fig ures of the previous years have been regrouped / rearranged wherever necessary

68 Other Statutory Information

a. The title deeds of all the immovable properties held by the Company (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

b. The Company has not revalued its Property, Plant and Equipment or intangible assets during the year.

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

d. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

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

f. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

g. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

h. The Company have not any such transaction which is not recorded in the books of accounts that has