Consolidated STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS 288 32ND ANNUAL REPORT 2023-24 | HERITAGE FOODS LTD Notes: (a) The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2024, the Group has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2023: ₹Nil). This assessment is undertaken each financial year through examining the financial position of the related parties and the market in which such parties operates. (b) As at 31 March 2024, the Group has an outstanding guarantee given to a banker towards term loan and working capital facility availed by its joint venture i.e. Heritage Novandie Foods Private Limited. Amount outstanding to the banker by Heritage Novandie Foods Private Limited as at 31 March 2024 aggregates to ₹63.55 (31 March 2023: ₹110.21). (c) Post-employment and other long-term benefits, disclosed above, does not include those benefits which are computed for the Group as a whole. 42. Contingent liabilities and commitments As at 31 March 2024 31 March 2023 (a) Commitments (i) Estimated amount of contracts remaining to be executed on capital account and not provided for 221.60 500.01 (ii) Other commitment Investment in the Joint venture entity, Heritage Novandie Foods Private Limited 75.00 195.00 (b) Contingent liabilities, not provided for As at 31 March 2024 31 March 2023 Contingent Liability Paid under protest* Contingent Liability Paid under protest* In respect of income tax matters [refer (i) below] 7.43 0.48 7.43 0.48 In respect of sales tax / value added tax matters [refer (ii) below] 18.67 5.04 18.67 5.04 In respect of other matters [refer (iii) below] 80.93 42.21 60.33 42.21 (*) forms part of "balances with statutory authorities" under "other current assets" (i) The Holding Company had received following demand orders from the income tax authorities for: (a) the assessment year 2020-21 in relation to the initiation of penalty proceedings u/s 271D and; (b) the assessment years 2017-18 and 2020-21 in relation to the inadmissibility of expenditure claimed under Section 80G of the Income Tax Act, 1961. The management, on the basis of its internal assessment of the facts of the case, the underlying nature of transactions, is of the view that the probability of the case being settled against the Holding Company is remote and accordingly do not foresee any adjustment to these financial statements in this regard. The litigation is currently pending with the Commissioner of Income Tax (Appeals) (""CIT(A)""). The Holding Company has received a favourable order for the assessment year 2018-19 in relation to point (b) above." Summary of the material accounting policies and other explanatory information (All amounts in ₹ millions, except share data and where otherwise stated)
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