Heritage Foods Limited | 30th Annual Report 2021-22

Financial Statements Company Overview Statutory Reports 223 35. Dividend The dividend amount per equity share proposed or declared in accordance with the provisions of Section 123 of the Act is as follows: For the year ended 31 March 2022 31 March 2021 Proposed final dividend on equity shares of ` 5 each * Per equity share (in absolute ` terms) 2.50 5.00 Amount 116.00 231.99 Interim dividend declared on equity shares of ` 5 each Per equity share (in absolute ` terms) 2.50 - Amount 116.00 - * The proposed final dividend, is subject to the approval of shareholders in the ensuing Annual General Meeting of the Company and accordingly not recognized as a liability in accordance with the applicable accounting principles. 36. Disclosure pursuant to requirements of Rule 11(e) (i) & (ii) of the Companies (Audit and Auditors) Rules (i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Group to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Group (Ultimate Beneficiaries). (ii) The Group has not received any fund from any party(s) (Funding Party) with the understanding that the Group shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Group (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. 37. Fair value hierarchy (i) Financial assets and financial liabilities at fair value on a recurring basis as of the reporting dates are as follows: As at 31 March 2022 As at 31 March 2021 Financial assets Fair value hierarchy (Level 1) Quoted equity shares 0.20 0.13 Fair value hierarchy (Level 3) Unquoted equity shares 2.60 2.60 There are no transfers between levels during the current year and previous year ended 31 March 2022 and 31 March 2021 respectively. The Group’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period. (ii) Valuation technique and inputs used for level 3 instruments: The fair value of the level 3 instruments has been estimated using the discounted cash flowmodel. The valuation requires management to make certain assumptions about the model inputs, including forecasting of cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in the management’s estimate of the fair value for these level 3 instruments. The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy as at 31 March 2022 and 31 March 2021 are as shown below. The impact on account of change in these assumptions are not considered as significant. Significant unobservable inputs Assumption made Future growth rate 3% Discount rate 20% Discount for lack of marketability (DFLM) 15% Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated) Consolidated