2.12 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement, if any.
2.13 Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the standalone financial statements.
2.14 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. These exchange difference are presented in finance cost to the extent which the exchange loss does not exceed the difference between the cost of borrowing in functional currency when compared to the cost of borrowing in a foreign currency.
2.15 Earnings per equity share ('EPS')
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit
attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.
2.16 Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets and liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.
Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of financial asset gave rise on specified dates to cash flows that are solely payments of principal and interest on principal amount outstanding.
Financial asset at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payments of principal and interest on principal amount outstanding and selling financial assets.
Financial assets at fair value through profit or loss
Financial assets are measured at fair value through profit or loss unless it measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit and loss immediately recognized in statement of profit and loss.
Financial liabilities
Financial liabilities which carry a floating rate of interest are measured at amortised cost using the effective interest method
Equity Instruments
An equity instrument is a contract that evidences residual interest in the asset of the company after deducting all its liabilities. Equity instrument by the company are recognised at the proceeds received net of direct issue cost.
B. Financial risk management objectives and policies
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds unquoted investments in a wholly owned subsidiary.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Company's senior management ensures that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken. The senior management reviews and agrees policies for managing each of these risks, which are summarized below.
i) 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.Financial instruments affected by market risk include deposits, investmentsand borrowings.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the company's financial instruments will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rate relates primarily to the Company's borrowings with floating interest rates.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings affected, with all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows:
ii) Credit risk
Credit risk is the risk of financial loss arising from counter party failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and credit worthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.
Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue, investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the other financial instruments of the company result in material concentration of audit risk.
|
Interest Income
|
288.58
|
-
|
|
- Loans and advances to subsidiaries (refer note no. 6)
|
5,107.72 Dr
|
3,550.00 Dr
|
|
- Trade receivables (refer note no. 10)
|
986.51 Dr
|
617.72 Dr
|
|
Net Closing Balance
|
6,094.23 Dr
|
4,167.72 Dr
|
|
Investments (refer note no. 5)
|
3,500.00
|
3,500.00
|
|
Corporate guarantee given
|
4,433.00
|
2,971.00
|
|
Som Distilleries Private Limited
|
|
|
|
Purchases
|
2,589.00
|
1,800.36
|
|
Sales
|
92.37
|
198.82
|
|
Loan taken during the year
|
-
|
778.71
|
|
Loan repayment during the year
|
778.71
|
-
|
|
- Trade receivables (refer note no. 10)
|
-
|
113.43 Dr
|
|
- Borrowings - non current (refer note no. 17)
|
-
|
778.71 Cr
|
|
- Trade payables (refer note no. 21)
|
-
|
-
|
|
Net Closing Balance
|
-
|
665.28 Cr
|
|
Legend Distilleries Private Limited
|
|
|
|
Sales
|
0.99
|
-
|
|
- Trade receivables (refer note no. 10)
|
-
|
-
|
|
Aryavrat Projects and Developers Private Limited
|
|
|
|
Capital work in progress expenses
|
23.76
|
1,270.68
|
|
Advances given during the year
|
70.95
|
91.91
|
|
Corporate guarantee given
|
2,136.00
|
2,136.00
|
|
Key managerial personnel
|
|
|
|
Remuneration
|
447.59
|
321.02
|
|
Independent director
|
|
|
|
Sitting fees
|
9.90
|
7.20
|
43 Financial Ratios-
(Rs. in Lakhs)
|
Particulars
|
Terms
|
Numerator
|
Denominator
|
Year Ended 31.03.2024
|
Year Ended 31.03.2023
|
%
Variance
|
|
(a) Current Ratio,
|
in times
|
Current assets
|
Current liabilities
|
1.33
|
1.24
|
7.02%
|
|
(b) Debt-Equity Ratio*
|
in times
|
Total Debt
|
Shareholder's Equity
|
0.15
|
0.38
|
-59.30%
|
|
(c) Debt Service Coverage Ratio**
|
in times
|
Earnings available for debt service i.e Net profit after tax plus Depreciation and Finance Costs
|
Debt Service
|
3.75
|
2.32
|
61.44%
|
|
(d) Return on Equity Ratio***
|
%
|
Net Profits after taxes
|
Average Shareholder's Equity
|
10.78
|
8.04
|
34.14%
|
|
(e) Inventory turnover ratio
|
in times
|
Revenue from Operations
|
Average Inventory
|
9.09
|
9.19
|
-1.18%
|
|
(f) Trade Receivables turnover ratio
|
in times
|
Revenue from Operations
|
Average Trade Receivable
|
7.74
|
7.96
|
-2.78%
|
|
(g) Trade payables turnover ratio
|
in times
|
Cost of Materials Consumed Purchase of Stock - in - Trade Other Expenses
|
Average Trade Payables
|
11.98
|
10.08
|
18.89%
|
|
(h) Net capital turnover ratio
|
in times
|
Revenue from Operations
|
Working Capital
|
10.26
|
12.43
|
-17.48%
|
|
(i) Net profit ratio
|
%
|
Net Profit
|
Revenue from Operations
|
5.33
|
4.73
|
12.64%
|
|
(j) Return on Capital employed****
|
%
|
Earning before interest and taxes
|
Capital Employed = Shareholder's fund Current & Non-Current Borrowing
|
13.11
|
9.32
|
40.69%
|
|
(k) Return on investment*****
|
%
|
Increase in Shareholder's fund
|
Shareholder's Fund at the start of period
|
40.84
|
16.88
|
141.93%
|
130 | SDBL ANNUAL REPORT 2023-24
* Repayment of total debt and raising the equity
** Effective utilization of borrowed fund resulting reduction of finance cost and debt service *** Increase in net profit margin due to reduction of finance cost.
**** Increase in earning before interest and taxes
***** Shareholder's fund include the warrants issue and premium on issue of shares.
44) The Company's pending litigations pertain to claim and cases occuring in the normal course of business. The Company has reviewd its pending litigations and expects that the outcome of the proceedings will not have any material effect on its financial positions.
45) Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.
46) Previous year's figures have been regrouped/ restated wherever considered necessary to make them comparable to those of the current year.
As per our Report of even date
Som Distilleries and Breweries Limited
For AKB Jain & Co., „ , ...... „
For and on Behalf of the Board
Chartered Accountants
Firm Registration No. 003904C Sd/- Sd/-
Sd/- J.K. Arora Nakul K Sethi
Rahul Dewani (Chairman & Managing Director) (Director)
Partner DIN - 00224633 DIN - 06512548
Membership No. 435066
BHOPAL Sd/- Sd/-
Dated: 25.04.2024 Rajesh Dubey Om Prakash
UDIN : 24435066BKFOHB8956 (Chief Financial Officer) (Company ^cnstai^
|