Consolidated STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS 293 HERITAGE FOODS LTD | 32ND ANNUAL REPORT 2023-24 (d) Commitments in respect of a joint venture As at 31 March 2024 31 March 2023 Commitment to provide Group's share of funding for joint venture's capital commitments, if called for 0.67 1.37 The joint venture had no contingent liabilities as on 31 March 2024 and 31 March 2023. (e) As the joint venture has been incurring year on year losses, resulting in substantial erosion of its net-worth on account of accumulated losses, indicating possible impairment indicators, the Holding Company with the help of an external valuation expert has carried out an impairment assessment to assess recoverability of the aforesaid investment in accordance with Ind AS 36, Impairment of Assets (‘Ind AS 36’) and has not recognized any impairment loss as at 31 March 2024. Further, basis the sensitivity analysis performed, management believes that any reasonable possible change in the key assumptions would not result in significant decrease in the carrying value of the Company's investment in the aforesaid joint venture. 31 March 2024 Carrying value of investment 176.84 Assessed Business value, to the extent of HFL’s holding (i.e. 50%) (241.50) Impairment loss, if any Nil (i) Key assumptions As at 31 March 2024 Weighted average cost of capital (WACC) 27.50% Terminal growth rate 5.00% Revenue growth - CAGR for 6 years ending FY30 84.20% (ii) Sensitivity analysis Reasonably possible changes as at 31 March 2024, holding other assumptions constant, can affect the impairment loss by the amounts shown below: As at 31 March 2024 Increase in assumption % Decrease in assumption % Impact on business value (HFL Share) Terminal growth rate (0.5% movement) 3.50 (4.00) WACC (1% movement) (22.50) 24.50 48. Interest in an immaterial associate The Group has interest in a single associate ("SKIL"), which, in the opinion of the Holding Company's Board of Directors, is immaterial to the Group. The Group's share in loss after tax and other comprehensive income for the year is ₹Nil (31 March 2023: Nil) and ₹Nil (31 March 2023: Nil) respectively in respect of such associate. 49. Segment reporting The Chief Operating Decision Maker (“CODM”) evaluates the Group’s performance and allocates the resources based on an analysis of various performance indicators by reportable segments. The measurement of each segment’s revenue, expenses, assets and liabilities is consistent with the accounting policies that are used in preparation of the Group’s consolidated financial statements. The Group has been organised into different verticals based on its products. Three verticals have been identified as reportable operating segments by the Group, which are as follows: 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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