Accounting Policies of Vishwaraj Sugar Industries Ltd. Company

Mar 31, 2025

1.1. Company overview:

Vishwaraj Sugar Industries Limited, a public limited company
incorporated under the provisions of the Companies Act,
1956 having its registered office at BelladBagewadi, Taluka
Hukkeri, Belgaum - 591305, Karnataka, India. The company''s
operations comprises of Production of sugar, alcoholic spirits
by distillation including ethanol, blending and bottling of
Indian made foreign liquor (IMFL), vinegar and generation
of power.

These financial statements have been prepared using
presentation and disclosure requirements of the Schedule
III of Companies Act 2013 in conformity with the Ind AS
prescribed under section 133 of the Actread with the
Companies (Indian Accounting Standards) Rules,205, as
amended, ("Ind AS") and other accounting principles
generally accepted in India

1.2. Basis of preparation of financial statements

These financial statements are prepared in accordance with
Indian Accounting Standard (Ind AS), under the historical cost
convention on the accrual basis except for certain financial
instruments which are measured at fair values, the provisions
of the Companies Act, 2013 ("the Act") (to the extent
notified) and guidelines issued by the Securities and
Exchange Board of India (SEBI). The Ind AS are prescribed
under Section 133 of the Act read with Rule 3 of the
Companies (Indian Accounting Standards) Rules, 2015 and
relevant amendment rules issued thereafter. Accounting
policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision
to an existing accounting standard requires a change in the
accounting policy hitherto in use. As the year-end figures
are taken from the source and rounded to the nearest digits,
the figures reported for the previous quarters might not
always add up to the year figures reported in this statement.

1.3. Use of estimates and judgments

The preparation of the financial statements in conformity
with Ind AS requires the Management to make estimates,
judgments and assumptions. These estimates, judgments
and assumptions affect the application of accounting policies
and the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at the date of
the financial statements and reported amounts of revenues
and expenses during the period. The application of
accounting policies that require critical accounting estimates
involving complex and subjective judgments and the use of
assumptions in these financial statements have been
disclosed in Note 1.4. Accounting estimates could change
from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as the

Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which
changes are made and, if material, their effects are disclosed
in the notes to the financial statements.

1.4. Critical accounting estimates and judgments
Revenue Recognition:

The Company recognizes revenue from Sale of Goods when
it transfers the property in Goods to the buyer for a price or
all significant risks and rewards of ownership has been
transferred to the buyer and no significant uncertainty exists
as to the amount of consideration that would be derived
from such sale. The recognition event is usually the dispatch
of goods to the buyer such that the Company retains no
effective control over the goods dispatched. Sales have been
stated exclusive of Excise Duty (except IMFL sales) and GST.
Other revenue is recognized only when it is reasonably
certain that the ultimate collection will be made. The same
is in compliance with Ind AS-18 to the extent applicable.

1.5. Property, plant and equipment

Property, plant and equipment represent a significant
proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining
an estimate of an asset''s expected useful life and the
expected residual value at the end of its life. The useful lives
and residual values of Company''s assets are determined by
the Management at the time the asset is acquired and
reviewed periodically, including at each financial year end.
The lives are based on reference with Schedule-II to the
Companies act,2013 and historical experience with similar
assets as well as anticipation of future events, which may
impact their life, such as changes in technology.

1.6. Leases

Interests in leasehold land are recorded and classified as
operating leases or finance leases as per set definition and
classification criteria. An important consideration is that the
land has an indefinite economic life. Ind AS 116 requires
lessees to determine the lease term as the non-cancellable
period of a lease adjusted with any option to extend or
terminate the lease, if the use of such option is reasonably
certain. The Company makes an assessment on the expected
lease term on a lease-by-lease basis and thereby assesses
whether it is reasonably certain that any options to extend
or terminate the contract will be exercised. In evaluating the
lease term, the Company considers factors such as any
significant leasehold improvements undertaken over the
lease term, costs relating to the termination of the lease and
the importance of the underlying asset. Short-term leases

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Mar 31, 2024

1.1. Company overview:

Vishwaraj Sugar Industries Limited, a public limited company incorporated under the provisions of the Companies Act, 1956 having its registered office at BelladBagewadi, Taluka Hukkeri, Belgaum - 591305, Karnataka, India. The company''s operations comprises of Production of sugar, alcoholic spirits by distillation including ethanol, blending and bottling of Indian made foreign liquor (IMFL), vinegar and generation of power.

These financial statements have been prepared using presentation and disclosure requirements of the Schedule III of Companies Act 2013 in conformity with the Ind AS prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,205, as amended, ("Ind AS") and other accounting principles generally accepted in India

1.2. Basis of preparation of financial statements

These financial statements are prepared in accordance with Indian Accounting Standard (Ind AS), under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 ("the Act") (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. As the year-end figures are taken from the source and rounded to the nearest digits, the figures reported for the previous quarters might not always add up to the year figures reported in this statement.

1.3. Use of estimates and judgments

T The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the

date of the financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note 1.4. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

1.4. Critical accounting estimates and judgments

Revenue Recognition: The Company recognizes revenue from Sale of Goods when it transfers the property in Goods to the buyer for a price or all significant risks and rewards of ownership has been transferred to the buyer and no significant uncertainty exists as to the amount of consideration that would be derived from such sale. The recognition event is usually the dispatch of goods to the buyer such that the Company retains no effective control over the goods dispatched. Sales have been stated exclusive of Excise Duty (except IMFL sales) and GST. Other revenue is recognized only when it is reasonably certain that the ultimate collection will be made. The same is in compliance with Ind AS-18 to the extent applicable.

1.5. Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by the Management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on reference with Schedule-II t the Companies act,2013 and historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

1.6. Leases

Interests in leasehold land are recorded and classified as operating leases or finance leases as per set definition and classification criteria. An important consideration is that the land has an indefinite economic life. Ind AS 116 requires lessees to determine the lease term as the noncancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset.

1.7. Allowance for credit losses on receivables

The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considered current and anticipated future economic conditions relating to industries the Company deals with and it operates. In calculating expected credit loss, the Company has also considered related credit information for its customers to estimate the probability of default in future.

1.8. Income taxes:

The company has made Provision for Current taxes as per sec.115BAA tax rate as per Income tax act,1961 during the year. The option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance 2019. Accordingly, the Company has recognized provision for the income tax for the year ended 31.03.2024.

In assessing the realizability of deferred income tax assets, the Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. The Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, the Management believes that the Company will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. The DTA & DTL of various items has been accounted individually item wise from FY 2022-23 instead of giving only net effect to the opening balance.