Notes to Accounts of Vishwaraj Sugar Industries Ltd.

Mar 31, 2025

1.12. Provisions and Contingent Liabilities

Provisions are recognized 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.Contingent liabilities
are disclosed unless the possibility of an outflow is remote.

1.13. Foreign Currency Transactions

Transactions in foreign currencies are initially recorded at
the exchange rate on the date of the transaction.Monetary
assets and liabilities denominated in foreign currencies are
translated at the reporting date exchange rates.Exchange
differences are recognized in the Statement of Profit and Loss.

35. Segment Reporting:

The company has identified products wise and unit wise segments i.e. Sugar, Co-generation, Distillery, Vinegar & IML at factory site,
respectively of Products & Unit based on return and risk .Hence, the same becomes the reportable segments for the Company.
Accordingly, the Company has above operating and reportable segment, the disclosure requirements specified in paragraphs 22 to
30 are made. Accordingly, the Company shall present entity-wide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108.

36. Financial Risk Management:

The Company''s activities expose it to a variety of financial risks, including credit risk and Market risk. The Company''s risk management
assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk
limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes
are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors, risk management
committee and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and
processes.

A. Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit
risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers
to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful
debts and impairment that represents its estimate of expected losses in respect of trade and other receivables.

Trade and Other Receivables - The Company uses Expected Credit Loss (ECL) model for assessing the impairment loss on trade
and other receivables. For this purpose, the Company uses a provision matrix to compute the expected credit loss amount for
trade receivables. The provision matrix takes into account external and internal credit risk factors and historical data of credit
losses from various customers. The management believes that there is no change in allowance for credit losses for the periods
presented.

Financial assets that are neither past due nor impaired

None of the Company"s cash equivalents, including term deposits were past due or impaired for the periods presented.

The Company"s credit period for customers generally ranges from 30 - 90 days.

B. Market Risks:

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market
rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-
sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-
sensitive financial instruments, all foreign currency receivables and payables and all short-term and long-term borrowings. The
Company is exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, the Company''s
exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in
foreign currencies

C. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to
interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of

a change in market interest rates. Further, the Company''s investments in deposits is with banks and electricity authorities and
therefore do not expose the Company to significant interest rates risk. The Company''s variable rate borrowing is subject to
interest rate risk. However, the management considers the impact of fair value interest rate risk on variable rate borrowings to
be immaterial.

37. Capital Management

The Company"s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can
continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce
the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

38. Gratuity

The Company provides for gratuity for employees in India as per the Payment of the Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the
employees last drawn basic salary per month computed proportionally for 15 days salary multiplied for the number of the years of
service up to a maximum of Rs. 20 Lakhs.

48. Provisions and Contingent liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.

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. Such
liabilities are disclosed by way of notes to the financial statements. No disclosure is made if the possibility of an outflow on this
account is remote.

52. Balance appearing under the head Sundry Debtors, Creditors, Loans and Advances, Secured & Unsecured Loans is subject
to confirmation, adjustments if any on receipts and reconciliation of such accounts.

"As per our report of even date"
For, M/s P .G. Ghali & Co.,

Chartered Accountants
FRN:011092S
P.R.C.No.017013

Sd/-

(CA. Praveen P. Ghali)

Partner

Date: 27^th May, 2025 M. No: 215756

Place: Belagavi UDIN: 25215756BMJNGZ8162

---

Mar 31, 2024

35. Segment Reporting:

The company has identified products wise and unit wise segments i.e. Sugar, Co-generation, Distillery, Vinegar & IML at factory site, respectively of Products & Unit based on return and risk .Hence, the same becomes the reportable segments for the Company. Accordingly, the Company has above operating and reportable segment, the disclosure requirements specified in paragraphs 22 to 30 are made. Accordingly, the Company shall present entity-wide disclosures enumerated in paragraphs 32, 33 and 34 of Ind AS 108.

36. Financial Risk Management:

The Company''s activities expose it to a variety of financial risks, including credit risk and Market risk. The Company''s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors, risk management committee and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.

A. Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of trade and other receivables.

Trade and Other Receivables - The Company uses Expected Credit Loss (ECL) model for assessing the impairment loss on trade and other receivables. For this purpose, the Company uses a provision matrix to compute the expected credit loss amount for trade receivables. The provision matrix takes into account external and internal credit risk factors and historical data of credit losses from various customers. The management believes that there is no change in allowance for credit losses for the periods presented.

Financial assets that are neither past due nor impaired

None of the Company"s cash equivalents, including term deposits were past due or impaired for the periods presented.

The Company"s credit period for customers generally ranges from 30 - 90 days.

B. Market Risks:

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short-term and long-term borrowings. The Company is exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies

C. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of

a change in market interest rates. Further, the Company''s investments in deposits is with banks and electricity authorities and therefore do not expose the Company to significant interest rates risk. The Company''s variable rate borrowing is subject to interest rate risk. However, the management considers the impact of fair value interest rate risk on variable rate borrowings to be immaterial.

37. Capital Management

The Company"s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

38. Gratuity

The Company provides for gratuity for employees in India as per the Payment of the Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionally for 15 days salary multiplied for the number of the years of service up to a maximum of Rs. 10 Lakhs.

48. Provisions and Contingent liabilities:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

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. Such liabilities are disclosed by way of notes to the financial statements. No disclosure is made if the possibility of an outflow on this account is remote.

52. Balance appearing under the head Sundry Debtors, Creditors, Loans and Advances, Secured & Unsecured Loans is subject to confirmation, adjustments if any on receipts and reconciliation of such accounts.

"As per our report of even date" For, M/s P .G. Ghali & Co.,

Chartered Accountants FRN:011092S P.R.C.No.013376

Sd/-

(CA. Praveen P. Ghali)

Partner

^Date: H^th, May ²⁰²⁴ m. No: 215756

^{Place: Belagaai} UDIN: 24215756BKATIQ4389