Heritage Foods Limited

FINANCIAL STATEMENTS Consolidated 29 th Annual Report 2020-21 | 221 1. Corporate information Heritage Foods Limited (“the Company” or “Parent Company” or “Holding Company”) together with its subsidiaries (collectively referred as “the Group”), a joint venture and an associate, is a leading India based Dairy Company, headquartered, and having its registered o ffi ce at #6-3-541/C, Punjagutta, Hyderabad – 500 082 Telangana, India. The Group operates through its three business divisions (a) Dairy, (b) Renewable Energy and (c) Animal Feed Products. The Parent Company’s 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 consolidated fi nancial statements These consolidated 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 consolidated 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 Parent Company’s annual reporting date, 31 March 2021. These consolidated fi nancial statements were authorised for issuance by the Company’s Board of Directors on 19 May 2021. These consolidated 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. The Group has uniformly applied the accounting policies during the periods presented. The consolidated 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. Basis of consolidation Subsidiaries Subsidiaries are all entities (including special purpose entities) that are controlled by the Parent Company. Control exists when the Parent Company is exposed to or has rights to variable returns from its involvement with the entity and has the ability to a ff ect those returns through power over the entity. In assessing control, potential voting rights are considered only if the rights are substantive. The fi nancial statements of subsidiaries are included in these consolidated fi nancial statements from the date that control commences until the date that control ceases. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of pro fi t and loss, consolidated statement of changes in equity and consolidated balance sheet, respectively. For the purpose of preparing these consolidated fi nancial statements, the accounting policies of subsidiarieshavebeenchangedwherenecessary toalign them with the policies adopted by the Parent Company. Consolidation procedure: (a) Combine like items of assets, liabilities, equity, income, expenses and cash fl ows of the Parent Company with those of its subsidiaries. (b) O ff set (eliminate) the carrying amount of the Parent Company’s investment in each subsidiary and the Parent Company’s portion of equity of each subsidiary. (c) Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash fl ows relating to transactions between entities of the Group (pro fi ts or losses resulting from intragroup transactions Summaryof thesigni fi cantaccountingpoliciesandotherexplanatory information