Heritage Foods Limited | 32nd Annual Report 2023-24

Consolidated STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS 289 HERITAGE FOODS LTD | 32ND ANNUAL REPORT 2023-24 As at 31 March 2024 31 March 2023 (ii) - Disputed purchase tax levied under Andhra Pradesh Value Added Tax Act, 2005 on purchase of milk @ 9.51 9.51 - Disputed Input tax credit disallowed under Andhra Pradesh Value Added Tax Act, 2005 @ 4.69 4.69 - Disputed Input tax credit disallowed under The Central Sales Tax, 1956 # 4.47 4.47 @ litigation pending with Hon’ble High Court of Telangana; # litigation pending with Joint Commissioner of commercial Taxes (Appeals), Bangalore. (iii) - Disputed entry tax levied under Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 on interstate purchases & 3.77 3.77 - Disputed entry tax levied under Telangana Tax on Entry of Goods into Local Areas Act, 2001 on interstate purchases @ 10.37 10.37 - Disputed penalty levied under Central GST Act, 2017 on classification of flavored milk product & 35.28 35.28 - Disputed milk cess levied on installed capacity under the Haryana Murrah Buffalo and other Milch Animal Breed Act, 2001 ^ 28.93 10.31 - Disputed RPPO (Renewable power purchase obligation) charges demand levied by the APERC (Andhra Pradesh Electricity Regulatory Authority) 2.86 0.60 & litigation pending with Hon’ble High Court of Andhra Pradesh; ^ litigation pending with Supreme Court of India Based on the internal assessment and / or legal opinion, the Management is confident that, for the aforesaid mentioned contingent liabilities under paragraph (ii) and (iii) above, no further provision is required to be made as at 31 March 2024. (c) Guarantees excluding financial guarantees 2.93 2.28 (d) Others Duty including interest liability in case of export obligation if not fulfilled as per EPCG scheme 129.81 49.27 43. Leases Group as a lessee The Group has lease arrangements for its office premises located in Hyderabad and various Heritage Distribution centres / Parlours / Sales offices located across India. These leases typically have original terms not exceeding 21 years and generally contain multiyear renewal options. The agreements entered into by the Company have, rent escalation upto 10%. There are no residual value guarantees provided by the third parties. The carrying amount for such right-of-use assets as at 31 March 2024 amounts to ₹287.14 (31 March 2023: ₹320.69). The Holding Company has also leased solar panels for a period of five years and has an option to purchase the asset at the end of the lease term. The carrying amount for such right-of-use assets as at 31 March 2024 amounts to ₹76.66 (31 March 2023: Nil). The Holding Company leases certain plant and equipments comprising of freezers, coolers, etc., with contract terms upto five years. These leases are short-term and/or leases of low-value items. The Holding Company has elected not to recognise right-of-use assets and lease liabilities for these leases. 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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