Heritage Foods Limited

Heritage Foods Limited 160 1. Corporate information Heritage Foods Limited (“Heritage” or “the Company”) is one of the leading Indian dairy Company, headquartered and having its registered o ffi ce at #6-3-541/C, Punjagutta, Hyderabad – 500082 Telangana, India. The Company operates through its two business divisions Dairy and Renewable Energy. The Company’s equity shares are listed and traded on the Indian Stock Exchanges viz., BSE Limited and the National Stock Exchange of India. 2. Basis of preparation of the standalone fi nancial statements These standalone fi nancial statements as at and for the year ended 31 March 2021 comply in all material aspects with the Indian Accounting Standards (“Ind-AS”) noti fi ed under the Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time and guidelines issued by the Securities Exchange Board of India (“SEBI”). These standalone fi nancial statements have been prepared by the Company as a going concern on the basis of relevant Ind-AS that are e ff ective or elected for early adoption at the Company’s annual reporting date, 31 March 2021. These standalone fi nancial statements were authorised for issuance by the Company’s Board of Directors on 19 May 2021. These standalone fi nancial statements have been prepared on historical cost convention, except for the following material items: (a) Derivative fi nancial instruments are measured at fair value. (b) Financial assets aremeasured at either at fair value or at amortised cost depending upon the classi fi cation. (c) Employee de fi ned bene fi ts assets / (liability) are recognised as the net total of the fair value of plan assets, plus actuarial losses, less actuarial gains and the present value of the de fi ned bene fi t obligations. (d) Long-term borrowings are measured at amortised cost using the e ff ective interest rate method. (e) Assets held for sale are measured at fair value less cost to sell; and (f) Right-of-use assets are recognised at present value of lease payments, that are not paid at that date, adjusted for any lease payments made at or before the commencement date, lease incentives received and initial direct cost incurred, if any. Summaryof thesigni fi cantaccountingpoliciesandotherexplanatory information The standalone fi nancial statements are presented in Indian Rupees ( ₹ )and all values are rounded to the nearest millions, except when otherwise indicated. 3. Summary of signi fi cant accounting policies a. Current versus non-current classi fi cation The Company presents assets and liabilities in the standalone balance sheet based on current/ non-current classi fi cation. An asset is treated as current when it is: • Expected to be realised or intended to be sold or consumed in normal operating cycle • Held primarily for the purpose of trading • Expected to be realised within twelve months after the reporting period, or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classi fi ed as non-current. A liability is current when: • It is expected to be settled in normal operating cycle • It is held primarily for the purpose of trading • It is due to be settled within twelve months after the reporting period, or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period All other liabilities are classi fi ed as non-current. Deferred tax assets and liabilities are classi fi ed as non- current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identi fi ed twelve months as its operating cycle. b. Foreign currencies The Company’s standalone fi nancial statements are presented in Indian Rupees ( ₹ ), which is also its functional currency.