Notes to Accounts of Som Distilleries & Breweries Ltd.

Mar 31, 2025

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.

iii) Liquidity risk

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank borrowings. The table
below summarises the maturity profile of the Company''s financial liabilities:

38. The Company has borrowing from banks on the basis of security of current assets, and the statements of current assets filed by the Company
with the banks are in agreement with books of accounts.

39. As per the information available with the company, the companies has no outstanding balances in respect of payables, receivables, investments,
share held by the company or any other outstanding balances with struck off companies.

40. The company is engaged in the business of manufacture and sale of Alcoholic beverages (Beer and IMFL) which constitutes a single business
segment. The company''s exports outside India did not exceed the threshold limits for disclosure as envisaged in IndAS 108 on "Operating
Segments” issued by the Institute of Chartered Accountants of India. In view of the above, primary and secondary reporting disclosures for
business/ geographical segment as envisaged in IndAS - 108 are not applicable to the Company.

45) 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.

46) Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

47) 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: 28.05.2025 Nitin Malviya Om Prakash

UDIN : 24435066BKFOHB8956 (Chief Financial Officer) (Company Secretary)

---

Mar 31, 2024

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) (Com}p^any ^cnstai^

---

Mar 31, 2023

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.

---

Mar 31, 2018

1. COMPANY INFORMATION

Som Distilleries & Breweries Limited is a public company domiciled in India and incorporated under the provisions of Companies Act, 1956. Its shares are listed on the National Stock Exchange and Bombay Stock Exchange. The Company is engaged in the manufacture and sale of Beer and Indian Made Foreign Liquor (IMFL). The Company is a market leader in Beer in the State of Madhya Pradesh. The Company caters to both domestic and international markets.

a) Measurement of borrowings

Under Ind AS the upfront fees for loans is amortized over the period of the loan. Under previous GAAP the upfront fees is transferred to profit and loss in the year in which the loan is disbursed. This has resulted in increase in equity of Rs. 1 7 lacs as at April 1, 2016 and decrease in equity of Rs. 21 lacs as at March 3, 2017.

b) Gratuity

Under Previous GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under Ind AS, the actuarial gain/losses form part of re-measurement of net defined benefit liability/asset which is recognised in other comprehensive income in the respective years. This difference has resulted in increase in net profit of Rs. 23, 40,415 for the year ended March 31, 201 7. However the same does not result in difference in other comprehensive income.

c) Tax adjustments

Tax adjustments include deferred tax impact on account of differences between previous GAAP and Ind As. These adjustments have resulted in a decrease in equity under Ind AS by Rs. 15,90,620 and Rs.10,81,869 as at March 31, 201 7 and April 1, 2016 respectively.

d) Recognition of Dividend

Under Ind AS, dividend to holders of equity instruments is recognized as a liability in the year in which the obligation to pay is established. Under previous GAAP, dividend payable was recorded as a liability in the year to which it relates. This has resulted in an increase in equity by Rs. 4,96,87,970 (including proposed dividend tax) as at March, 201 7 and April 1, 2016.

ii) Profit Reconciliation

Reconciliation of Net Profit with reported figures for the previous year ended 31.03.2017

Terms/Rights attached to the shares

(a) The Company has only one class of Equity Shares having par value of Rs.10 per share. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the company after the distribution of all preferential amounts, in proportion to their shareholding.

Notes:

(a) Loan from IFCI Venture Capital Funds Ltd. is secured by personal guarantees of promoters and collaterals given by related party.

(b) Loan from IFCI Ltd. is secured by mortgage of land and hypothecation of the factory plant & machinery.

(c) Interest on vehicle loans varies from 10.25% to 10.75% per annum. Tenor of these loans ranges from 3 to 5 years. Respective vehicles have been hypothecated to the lending institutions to secure their loans. Repayment of these loans is regular as per the fixed equated monthly instalments.

Notes:

(a) Deferred tax assets and Deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities.

(b) Deferred tax assets and Deferred tax liabilities relate to income taxes levied by the same taxation authority.

Other Notes

2) The Company had sought but has not received information from any of the suppliers of their being a Micro, Small or Medium Enterprise Unit under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, amounts due to Micro and Small Scale Enterprises outstanding as on 31 ^stMarch, 2018 are not ascertainable.

3) Employees Benefits:

The required disclosures of employees benefits as per Ind AS - 19 are given hereunder:-

(i) In respect of Short Term Employee Benefits:

The Company has at present only the scheme of cumulative benefit of leave encashment payable at the end of each calendar year and the same have been provided for on accrual basis.

(ii) In respect of Defined Benefit Scheme ( Based on Actuarial Valuation ) of Gratuity:

The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant facts.

Funding arrangements and funding policy

The company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the company. Any deficit in the assets arising as results of such valuation is funded by the company

Sensitivity Analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

4) Financial Instruments

The significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instruments are disclosed.

(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 summarised below.

a. 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, investments and borrowings.

(i) 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) Commodity price risk

The Group is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchase and manufacture of Beer and therefore require a continuous supply of Barley. The Company’s Board of Directors has developed and enacted a risk management strategy regarding commodity price risk and its mitigation. The following table shows the effect of price changes in Barley:

b. Credit risk

Credit risk is the risk of financial loss arising from counterparty 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 creditworthiness as well as concentration of risks. Credit risk is controlled by analysing 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.

c. Liquidity risk

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank borrowings. The table below summarises the maturity profile of the Company’s financial liabilities:

5) The company is engaged in the business of manufacture and sale of Alcoholic beverages (Beer and IMFL) which constitutes a single business segment. The company’s exports outside India did not exceed the threshold limits for disclosure as envisaged in Ind AS 108 on "Operating Segments" issued by the Institute of Chartered Accountants of India. In view of the above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in Ind AS - 108 are not applicable to the Company.

6) Disclosure Pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and section 186 of the Companies act, 2013

7) The company’s pending litigations pertain to claims and cases occurring in the normal course of business. The company has reviewed its pending litigations and expects that the outcome of the proceedings will not have any material effect on its financial position.

8) During the financial year 2017-18, the company has spent an amount of Rs. 111.16 lakhs (previous year Rs. 27.21 lakhs) on Corporate Social Responsibility for the purpose of children education and medical aid.

9) Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

10) Previous year’s figures have been regrouped/ restated wherever considered necessary to make them comparable to those of the current year.

11) All figures in the Balance Sheet, Profit & Loss Account and Schedules have been rounded off to the nearest rupee.

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Mar 31, 2016

(b) Loan from IFCI Ltd. is secured by mortgage of land and hypothecation of the factory plant fit machinery.

(c) Interest on vehicle loans varies from 8.5% to 12.75% per annum. Tenor of these loans ranges from 3 to 5 years. Respective vehicles have been hypothecated to the lending Institutions to secure their loans. Repayment of these loans is regular as per the fixed equated monthly instalments.

Notes:

(a) Deferred tax assets and Deferred tax liabilities have been offset wherever the company has a legally enforceable right to set off current tax assets against current tax liabilities.

(b) Deterred tax assets and Deferred tax liabilities relate to Income taxes levied by the same taxation authority.

Other Notes

[241 The Company had sought but has not received information from any of the suppliers of their being a Micro, Small or Medium Enterprise Unit under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, amounts due to Micro and Small Scale Enterprises outstanding as on March 31¹ 2016 are not ascertainable.

[1] Employees Benefits:

The required disclosures of employees benefits as per Accounting Standard -15 are given hereunder:-

(i) In respect of Short Term Employee Benefits:

The Company has at present only the scheme of cumulative benefit of leave encashment payable at the end of each calendar year and the same have been provided for on accrual basis,

(if) In respect of Defined Benefit Scheme { Based on Actuarial Valuation) of Gratuity:

The estimates of rate of escalation in salary considered in actuarial valuation, take into account Inflation, seniority, promotion and other relevant facts.

[2J The company is engaged in the business of manufacture and sale of Alcoholic beverages (Beer and IMFU which constitutes o singe business segment. The company''s exports outside India did not exceed the threshold limits for disclosure as envisaged in AS 17 on "Segment Reporting" Issued by the institute of Chartered Accountants of India.

In view of the above, primary and secondary reporting disclosures for business'''' geographical segment as envisaged in AS - 17 ore not applicable to the Company.

[3] Information as per Accounting Standard (AS) 18: "Related Party Disclosures" is;

b) Transactions with Related Parties

During the year SOM Distilleries Pvt, Ltd. ceased to be a relay party, hence details of transaction with this company are not given. Further, there are no transactions with 5. Lai, key managerial person, other than those undertaken in the ordinary course Of business.

4. The company’s pending litigations pertain to claims and cases occurring in the normal course of business. The company has reviewed Its pending litigations and expects that the outcome of the proceedings will not have any material effect on its financial position.

5. During the financial year 2015-16, the company has spent an amount of 27,21 lacs (previous year 23.38 Joes) on corporate social responsibility for the purpose of children education and medical aid.

6. Balances standing at the debit or credit In the accounts of various parties are subject to confirmation and reconciliation,

7. Previous year’s figures have been regrouped/ restated wherever considered necessary to make them comparable to 1 hose of the current year.

8. AN figures in the Balance Sheet. Profit & Loss Account and Schedules have been rounded off to the nearest rupee.

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Mar 31, 2015

(1) Company Information

Som Distilleries & Breweries Ltd. is a Public company domiciled in India and incorporated under the provisions of Companies Act, 1956. Its shares are listed on NSE and BSE. The Company is engaged in the manufacture and sale of Beer and Indian made foreign Liquor (IMFL). The Company is a market leader in Beer in the state of Madhya Pradesh. The company caters to both domestic and international markets.

Terms/Rights attached to the class of shares.

(a) The company has one class of equity shares having par value of Rs. 10 per Share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after the distribution of all preferential amounts in proportion to their shareholding.

(2) The Company had sought but has not received information from any of the suppliers of their being a Micro, Small or Medium Enterprise Unit under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, amounts due to Micro and Small Scale Enterprises outstanding as on March 31st 2015 are not ascertainable.

(3) Employees Benefits:

The required disclosures of employees benefits as per Accounting Standard -15 are given hereunder:- (i) In respect of Short Term Employee Benefits:

The Company has at present only the scheme of cumulative benefit of leave encashment payable at the end of each calendar year and the same have been provided for on accrual basis.

2014-15 2013-14

i) Claims against the Company not acknowledged as debts/ Disputed

- Commercial Tax Department 9,34,44,729 48,93,903

- Income Tax Department 2,17,50,660 --

ii) Guarantees given by Bankers on behalf of the company 15,00,000 10,00,000 not provided for

Corporate guarantee given to a bank 7,25,00,000 7,25,00,000 on behalf of another company

iii) Estimated amount of contracts remaining to be executed 2,96,00,000 2,93,00,000 on capital account and not provided for.

[4] The company is engaged in the business of manufacture and sale of Alcoholic beverages (Beer and IMFL) which constitutes a single business segment. The company's exports outside India did not exceed the threshold limits for disclosure as envisaged in AS 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India. In view of the above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS -17 are not applicable to the Company.

[5] The company's pending litigations pertain to claims and cases occurring in the normal course of business. The company has reviewed its pending litigations and expects that the outcome of the proceedings will not have any material effect on its financial position.

[6] Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

[7] All figures in the Balance Sheet, Profit & Loss Account and Schedules have been rounded off to the nearest rupee.

[8] Previous year's figures have been regrouped/ restated wherever considered necessary to make them comparable to those of the current year.

[9] During the financial year 2014-15, the company has spent an amount of Rs. 23.38 lacs on Corporate social responsibility for the purpose of children education and medical aid.

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Mar 31, 2014

[1] Contingent Liabilities

2013-14 2012-13

i) Claims against the Company not acknowledged as 48,93,903 48,93,903 debts - Disputed Entry Tax Demands

ii) Guarantees given by Bankers on behalf 10,00,000 9,00,000 of the company not provided for

Corporate guarantee given to a bank 7,25,00,000 - on behalf of another company

iii) Estimated amount of contracts remaining to be executed 2,93,00,000 2,93,00,000 on capital account and not provided for.

[2] The company is engaged in the business of manufacture and sale of Alcoholic beverages (Beer and IMFL) which constitutes a single business segment. The company''s exports outside India did not exceed the threshold limits for disclosure as envisaged in AS 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India. In view of the above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS -17 are not applicable to the Company.

[3] Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

[4] All figures in the Balance Sheet, Profit & Loss Account and Schedules have been rounded off to the nearest rupee.

[5] Previous year''s figures have been regrouped/ restated wherever considered necessary to make them comparable to those of the cu rrent year.

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Mar 31, 2013

[1] COMPANY INFORMATION

Som Distilleries & Breweries Ltd is a Public company domiciled in India and incorporated under the provisions of the Companies Act 1956 Its shares are sted on the Bombay Stock Exchange (BSE). The Company is engaged in the manufacture and sale of Beer and IMFL The Companv is a market leader in Beer in (he state of Madhya Pradesh.The Company caters to both domestic and international markets.

[2] Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

[3] All figures in the Balance Sheet, Profit & Loss Account and Schedules have been rounded off to the nearest rupee.

[4] Previous year figures have been regrouped/restated whenever considered necessary to make them comparable to those of current year.

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Mar 31, 2012

[1] COMPANY INFORMATION

Som Distilleries & Breweries Ltd. is a Public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange (BSE). The Company is engaged in the manufacture and sale of Beer and IMFL.The Company is a market leader in Beer in the state of Madhya Pradesh.

The Company caters to both domestic and international markets.

Notes:

(a) The company has one class of equity shares having par value of Rs. 10 per Share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after the distribution of all preferential amount in proportion to their shareholding.

Notes:

(a) The company has taken vehicle loans where interest rates vary from 8.5% to 12.75% p.a. Tenor of these loans range from 3 to 5 years. Respective vehicles have been hypothecated to the lending institutions for their loans. Repayment of these loans is regular as per the fixed equated monthly instalments.

(b) Madhya Pradesh State Industrial Development Corporation (MPSIDC) has recently crystallized its final liability at Rs. 791.20 Lakhs against which the company has made cumulative payments in FY 2010-11 and FY 2011-12 aggregating to Rs 75 Lakhs.

Notes:

(a) Deferred tax assets and Deferred tax liabilities have been offset wherever the company has a legally enforceable right to set off current tax assets against current tax liabilities.

(b) Deferred tax assets and Deferred tax liabilities relate to income taxes leived by the same taxation authority.

Notes: All the above Long term Loan and advances are unsecured and considered good.

[2] The Company has not received any information from any of the suppliers of their being a Micro, Small and Medium Enterprises Unit under Micro, Small and Medium Enterprises Development Act, 2006. Hence, amounts due to Micro and Small Scale Enterprises outstanding as on March 31st 2012 are not ascertainable.

[3] On the basis of actuarial valuation, as per the projected unit credit method by an insurance company, the company has made a suitable provision in the accounts for the payment of gratuity. The information as per "AS-15 Employee Benefits" is not available this year.

[4] Contingent Liabilities

2011-12 2010-11

Claims against the Company not acknowledged as debts.

(i) Disputed Entry Tax demands 48,93,903 4,85,850

(ii) Guarantees given by Bankers on behalf of the 8,25,000 7,25,000 Company not provided for

(iii)Estimated amount of contracts remaining to be 65,000,000 9,21,640 executed on capital account and not provided for

[5] The company is engaged in the business of manufacture and sale of Beverage Alcohol (Beer and IMFL) which constitutes a single business segment. The company's exports outside India did not exceed the threshold limits for disclosure as envisaged in AS 17 on 'Segment Reporting' issued by the Institute of Chartered Accountants of India. In view of the above, primary and secondary reporting disclosures for business/geographical segment as envisaged in AS - 17 are not applicable to the Company.

[6] The Secured Loan liability towards Kotak Mahindra Bank has been paid off during the year.However, the interest payable in excess of the amount paid has been retained in the books for the time being out of abudant caution to meet any other possible claim and/or to be appropriated against any other loan liability.

[7] Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

[8] The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this years' classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

[9] All figures in the Balance Sheet, Profit & Loss Account and Schedules have been rounded off to the nearest rupee.

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Mar 31, 2010

1. Contingent Liabilities

Claims against the Company not acknowledged as debts

i) Disputed Income Tax demands Nil 83,70,487

ii) Disputed Entry Tax demands 4,85,850 4,85,850

iii) Guarantees given by Bankers on behalf of the Company not provided for 51,15,312 48,15,312

iv) Estimated amount of contracts remaining to be executed on capital account and not provided for Nil 2,03,32,415

2. The company is engaged in the business of manufacture and sale of Beverage Alcohol ( Beer and IMFL) which constitutes a single business segment. The companys exports outside India did not exceed the threshold limits for disclosure as envisaged in AS 17 on Segment Reporting issued by the Institute of Chartered Accountants of India. In view of the above, primary and secondary reporting disclosures for business/geographical segment as envisaged in AS 17 are not applicable to the Company.

3. Balances standing at the debit or credit in the accounts of various parties are subject to confirmation and reconciliation.

4. Previous years figures have been regrouped/ restated wherever considered necessary to make them comparable to those of the current year.

5. All figures in the Balance Sheet, Profit & Loss Account and Schedules have been rounded off to the nearest rupee.