xvi. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when there is a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future
operating losses.
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 is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation, or the amount of the obligation cannot be measured with sufficient reliability. The Company does not
recognize a contingent liability but discloses its existence in the financial statements
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company. Contingent assets are not recognized, but its existence is disclosed in the
financial statements
xviii. Impairment of Non-Financial Assets
The company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial assets are
impaired. If any such indication exists, the company estimates the amount of impairment loss.
For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows from other assets or group of assets is considered as cash generating unit. If any such indication exists, an estimate of the
recoverable amount of the individual asset / cash generating unit is made.
An impairment loss is calculated as the difference between an asset’s carrying amount and recoverable amount. Losses are recognized in statement of
profit and loss and reflected in an allowance account. When the company considers that there are no realistic prospects of recovery of the asset, the relevant
amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the
impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been in place had there been no
impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in
Statement of Profit and Loss.
xix 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 instruments also include derivative contracts such as foreign currency foreign exchange forward contracts, interest rate swaps and currency
options; and embedded derivatives in the host contract.
I. Financial assets
Classification
The Company classifies financial assets in the following measurement categories:
a. Those measured at amortised cost and
b. Those measured subsequently at fair value through other comprehensive income or fair value through profit or loss on the basis of its business model
for managing the financial assets and the contractual cash flow characteristics of the financial asset.
Initial recognition and measurement
All financial assets are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset are adjusted to fair
value in the case of financial assets not recorded at fair value through profit or loss. Purchases or sales of financial assets that require delivery of assets
within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the
company commits to purchase or sell the asset.
Measured at amortised cost
A financial asset is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal
amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is
included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This
category generally applies to trade and other receivables.
Measured at fair value through other comprehensive income (FVOCI)
A financial asset is measured at FVOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and
b) The asset’s contractual cash flows represent SPPI.
Financial assets included within the FVOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are
recognized in the other comprehensive income (OCI). However, the company recognizes interest income, impairment losses & reversals and foreign
exchange gain or loss in the profit and loss.
On derecognition of the non derivative debt instruments designated at FVOCI, cumulative gain or loss previously recognised in OCI is reclassified from
the equity to profit and loss. Whereas on derecognition of the equity instruments designated at FVOCI,cumulative or loss previously recognised in OCI is
reclassified from the equity to retained earning.
Interest earned whilst holding FVOCI debt instrument is reported as interest income using the EIR method.
Financial Asset at fair value through profit and loss (FVTPL)
FVTPL is a residual category for financial asset. Any financial asset, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is
classified as at FVTPL.
In addition, the company may elect to classify a financial asset, which otherwise meets amortized cost or FVOCI criteria, as at FVTPL. However, such
election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch’).
Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets) is primarily derecognised (i.e. removed
from the company’s balance sheet) when:
I. The rights to receive cash flows from the asset have expired, or
ii. The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a ‘pass-through’ arrangement; and either (a) the company has transferred substantially all the risks and rewards of the
asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
iii. When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the
asset, nor transferred control of the asset, the company continues to recognise the transferred asset to the extent of the company’s continuing involvement.
In that case, the company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the
rights and obligations that the company has retained.
iv. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset
and the maximum amount of consideration that the company could be required to repay.
Impairment of financial assets
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, and bank balance.
b) Trade receivables.
The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:
I. Trade receivables which do not contain a significant financing component.
The application of simplified approach recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition.
ii. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant
increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss.
However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there
is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-
month ECL.
ii. Financial liabilities
Classification
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or
loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or amortised costs.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction
costs.
The company’s financial liabilities include trade and other payables, loans and borrowings, financial guarantee contracts and derivative financial
instruments.
Financial liabilities at fair value through profit or loss.
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial
recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative financial instruments entered into by the company that are not designated as hedging instruments in
hedge relationships as defined by Ind-AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective
hedging instruments.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the
criteria in Ind-AS 109 Financial instruments are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit
risk are recognized in OCI. These gains/loss are not subsequently transferred to P&L. However, the company may transfer the cumulative gain or loss
within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the statement of profit and loss.
This category generally applies to interest-bearing loans and borrowings.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange
or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.
Offsetting
Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when, and when the company has a legally
enforceable right to set off the amount and it intends either to settle them at a net basis or to realize the asset and settle the liability simultaneously.
Measurement of fair values
The Company’s accounting policies and disclosures require the measurement of fair values, for financial instruments.
The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant
unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the
management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS,
including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorised into
different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is
categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
C. Recent Accounting Pronouncement
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 March 31,2025, MCA has notified Ind AS - 117 Insurance Contract and amendments to Ind AS - 116
Leases, relating to sale and leaseback transactions, these are effective from period beginning on or after 1st April, 2024. The company has reviewed the
new pronouncements and based on its evaluation has determined that it has no impact on the company’s financial position.
NOTE-41 Financial risk management objectives and policies
In its ordinary operations, the companies activities expose it to the various types of risks, which are associated with the financial instruments and markets in
which it operates. The company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and
liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main
risks:
a) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the companies
income or value of it’s holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
i) Interest rate risk
Interest rate risk is the risk the the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value
interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest
rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.
The Company’s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks. Currently company is not using any
mitigating factor to cover the interest rate risk.
ii) Foreign currency risk
The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk
as to which balances outstanding in currency other than the functional currency of that Company. The company enters in to derivative financial instrument such foreign
currency forward contract to mitigate the risk of changes in exchange rate on foreign currency exposure.
(b) Credit risk
"Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss.
Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial
insturments of the company results in material concentration of credit risk.
Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the
receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss.
The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward
looking estimates at the end of each balance sheet date."
"Trade and other receivables
To Manage trade and other receivables, the company periodically assesses the financial reliability of customers, taking in to account the financial
conditions, economic trends, analysis to historical bad debts and ageing of such receivables."
"Investments
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good credit rating. The
Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any
significant concentration of exposures to specific industry sectors or specific country risks."
"Cash & Cash Equivalent
The Company holds cash & cash equivalent with credit worthy banks of Rs. 116.12 lakh as at March 31, 2025 (Rs. 85.96 Lakh as at March 31,2024 ) . The
credit worthness of such banks is evaluated by the management on ongoing basis & is considered to be good."
(c) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.The Company has obtained fund and non¬
fund based working capital lines from various banks. The company's treasury department is responsible for liquidity, funding as well as settlement
management. In addition, process and policies related to such risk are overseen by senior management. Management moniters the company's net liquidity
position through rolling forecasts on the basis of expected cash flows."
Capital Management
"For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves
attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going
concern so that it can continue to provide returns to shareholders and other stake holders.
The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial
covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy
back its shares) or issue new shares.No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March,
2025 and 31st March, 2024."
NOTE-46 Additional Regulatory Information
"i. During the year under review the company have given loan and advances to its material subsidiary company, Revera Milk & Foods Private Limited, repayable on
demand, in compliance with section 185, 186 and 188 of the Companies Act, 2013, except that the company has not granted Loans or Advances in the nature of loans
to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are: (a)
repayable on demand or (b) without specifying any terms or period of repayment."
ii. The company neither have any Benami property nor any proceedings have been initiated or pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
iii. The company is not declared wilful defaulter by any bank or financial Institution or other lender.
iv. The company does not have any transactions with companies struck off under section 248 ofthe Companies Act, 2013 or section 560 of Companies Act, 1956.
v. The company has complied with investment in subsidiary for two layers of investment prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017 .
vi. (A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) 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 ofthe Ultimate Beneficiaries;
(B) The company has 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.
vii. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in
the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
viii. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
ix. The Company has no borrowings 5 crores from banks or financial institutions on the basis of security of current assets. No Quarterly returns or statements of
current assets filed by the Company with banks or financial institutions .
x. As informed and explained to us , the management has not revalued its property , plant and equipment (including right of use assets ) or intangible assets or both
during the year .
xi. Following Charges or satisfaction are pending to be registered with ROC beyond the statutory period :
NOTE-49 Anik industries limited had given the corporate Guarantee for a limited period to the IDBI bank Limited towards loan facilities availed by M/s Suman Agritech
Limited (“SAL”) in year 2010, for the purpose of setting up of edible oil plant in Patna, Bihar. Thereafter on the failure of re-payment of financial facilities on the
part of SAL, IDBI bank Limited filed various legal cases, against SAL as well as against Anik Industries Limited and also marked lien against substantial funds
of Anik Industries ltd. lying in the current account with IDBI bank Limited .
Therefore, During FY 2023-24, with the object of getting release of funds under lien as well as to conclude all the litigations with IDBI bank, the Company has
entered in settlement agreement dated 10.10.2023 with IDBI Bank Ltd for withdrawing of all its pending disputes at all the Forums and there against has made
payment of Rs. 6.50 crores to IDBI Bank Ltd. Consequently IDBI has withdrawn all the pending litigations against Anik Industries Limited, in the matter of
impugned corporate guarantee.
As per our report of even date attached
For B. Shroff & CO.
Chartered Accountants
(FRN 006514W)
CS SOURABH VISHNOI MANISH SHAHRA
CAPushkar Jain Company Secretary Chairman & Managing Director
Partner DIN:00230392
Membership No: 450290
GAUTAM JAIN ASHOK KUMAR TRIVEDI
Date: 30th May , 2025 Chief Financial officer Whole Time Director
Place:Indore DIN:00350507
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