Notes to Accounts of G M Breweries Ltd.

Mar 31, 2019

1. Company overview

G. M. Breweries Limited (“the Company”) is a public company incorporated in India. The Company is primarily engaged in the manufacturing of country liquor.

1) Stock of Raw Materials and Packing Material : At cost Including Local Taxes (Net of Setoff) or net realisable value whichever is lower

2) Stock in Process : At cost or net realisable value, whichever is lower

3) Stock of Finished Goods: At cost or net realisable value, whichever is lower

a) There are No (Previous year - No) rights, preference and restriction attaching to each class of shares including restriction on the distribution of dividend and the repayment of capital.

b) There are nil number of shares (Previous year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.

c) Shares in the company held by each shareholders holding more than 5% shares

d) There are nil number of shares ( Previous year Nil) reserved for issue under option and contracts/commitment for the sale of shares/dis-investment including the terms and amounts.

e) For the period of five years immediately preceding the date as at which the balance sheet is prepared

f) There are no securities (Previous year No) convertible into Equity/ Preferential Shares.

g) There are no calls unpaid (Previous year No )including calls unpaid by Directors and Officers as on balance sheet date.

Notes on Accounts forming part of accounts

2. Investment Properties

Investment property is measured at cost.

Investment property consists of residential flats, property occupied by tenants and property occupied as tenants. The fair Market Value of Investment Property based on ready recknor rates is 61.44 crores as on March 31, 2019.

In case of property occupied by tenants, rental income earned is disclosed in the accounts.

3. Clarification regarding note pertaining to “Transport Fee Liability” mentioned in earlier years.

The Company had, along with other manufacturers of Country Liquor and IMFL in the State of Maharashtra, filed a Writ Petition in the Hon’ble Bombay High Court challenging the applicability of “Transport Fee” under Bombay Rectified Spirit (Transport in Bond) Rules 1951.

The Hon’ble Bombay high Court by its Order and Judgment dated 6th May, 2011 had allowed the Writ Petitions and set aside the levy of Transport Fee under the said Rules. The Hon’ble Bombay High Court has also directed the Government of Maharashtra to Refund the “Transport Fee” Deposited pursuant to the Interim Order. The Government is yet to Refund the deposit of “Transport Fee” made by the Company.

The State of Maharashtra has also filed a Special Leave Petition in the Hon’ble Supreme Court of India against the said Order of the Bombay High Court which is pending for admission.

4. MVAT / Income Tax

As alcoholic liquor for human consumption has been kept out of the purview of Goods and Services Tax (GST) introduced from July 01, 2017, the company ’ s finished product namely country liquor continues to be taxed under Maharashtra Value Added Tax (MVAT).

Under the MVAT Act in force from 1/4/2005 there is no procedure for assessment. The Company is filing monthly MVAT returns on regular basis and all dues have been paid as per the returns. The MVAT department of Government of Maharashtra has completed Audit of the company’s transactions up to the financial year 201516. The Company has also filed the audit report as required under the MVAT Act up to the financial year 201718.

The company’s Income Tax assessment has been completed up to assessment year 2016-17 and the demands raised by the department has already been paid by the company.

5. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

6. Micro Small and Medium Enterprises

The Company has called for complete information from all the vendors regarding their status as small-scale/ micro industrial undertaking. Based on information received regarding the status of the vendors there are no amounts outstanding for more than Rs.1,00,000/- for more than 30 days.

7. Deferred Tax

During the year company has created and adjusted deferred tax asset against deferred tax liability of Rs.50.16 Lakhs on account of timing difference of depreciation as per Income Tax Act, 1961 & depreciation debited in the books of accounts as per the Company’s act 2013.

8. Segment Reporting:

The Company at present is engaged in the business of manufacture and sale of country liquor, which constitutes a single business segment.

The company has paid an amount of Rs. 10,77,635/- to LIC towards both the above policies based on provisional actuarial valuation done by LIC. Any shortfall or excess based on final working by LIC would be dealt with on receipt of final valuation.

9. The company has invested a sum of Rs.5.11 Crores in IL&FS by way of preference shares and the company has received dividend on these shares for the year 2017-18. Even though IL&FS is presently undergoing a liquidity crisis, the government and other public sector bodies are doing their best to infuse liquidity and resolve the matter. In view of the above the company is carrying its investments at cost.

10. The figures of the previous years have been regrouped / rearranged wherever necessary. The Figures or the previous years are given in brackets.

---

Mar 31, 2018

Notes on Accounts forming part of accounts

1. Investment Properties

Investment property is measured at cost.

Investment property consists of residential flats, property occupied by tenants and property occupied as tenants. The fair Market Value of Investment Property based on ready recknor rates is 41.58 crores as on March 31, 2018.

In case of property occupied by tenants, rental income earned is disclosed in the accounts.

2. Clarification regarding note pertaining to “Transport Fee Liability” mentioned in earlier years.

The Company had, along with other manufacturers of Country Liquor and IMFL in the State of Maharashtra, filed a Writ Petition in the Hon’ble Bombay High Court challenging the applicability of “Transport Fee” under Bombay Rectified Spirit (Transport in Bond) Rules 1951.

The Hon’ble Bombay high Court by its Order and Judgment dated 6th May, 2011 had allowed the Writ Petitions and set aside the levy of Transport Fee under the said Rules. The Hon’ble Bombay High Court has also directed the Government of Maharashtra to Refund the “Transport Fee” Deposited pursuant to the Interim Order. The Government is yet to Refund the deposit of “Transport Fee” made by the Company.

The State of Maharashtra has also filed a Special Leave Petition in the Hon’ble Supreme Court of India against the said Order of the Bombay High Court which is pending for admission.

3. MVAT / Income Tax

As alcoholic liquor for human consumption has been kept out of the purview of Goods and Services Tax (GST) introduced from July 01, 2017, the company’s finished product namely country liquor continues to be taxed under Maharashtra Value Added Tax (MVAT).

Under the MVAT Act in force from 1/4/2005 there is no procedure for assessment. The Company is filing monthly MVAT returns on regular basis and all dues have been paid as per the returns. The MVAT department of Government of Maharashtra has completed Audit of the company’s transactions up to the financial year 201516. No additional demands have been raised by department for these years. The Company has also filed the audit report as required under the MVAT Act up to the financial year 2016-17.

During the audit process for the financial year 2011-12 the MVAT department has raised a demand of Rs.8,24,42,800/- due to levy of tax on an inflated turnover arrived at on a presumptive basis. Legal experts have opined that the action of the MVAT department is devoid of authority and jurisdiction and the demand is certain to be quashed by the appellate authority. The company has filed an appeal challenging the demand notice and the demand has been stayed in toto. However, whatever liability that may arise out of the final outcome of the appeal will be met by the company out of its reserves.

The company’s Income Tax assessment has been completed up to assessment year 2016-17 and the demands raised by the department has already been paid by the company.

4. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

5. The Company has called for complete information from all the vendors regarding their status as small-scale/ micro industrial undertaking. Based on information received regarding the status of the vendors there are no amounts outstanding for more than Rs.1,00,000/- for more than 30 days.

6. Related Party Disclosures

(a) List of Related Parties Key Management Personnel

- Jimmy Almeida - Chairman & Managing Director

- Jyoti Almeida- Whole Time Director

- Kiran Parashare - Whole time Director

- S.Swaminathan- Chief Financial Officer

- Sandeep Kutchhi- Company Secretary & Manager Accounts

7. During the year company has created and adjusted deferred tax asset against deferred tax liability of Rs.11.05 Lakhs on account of timing difference of depreciation as per Income Tax Act, 1961 & depreciation debited in the books of accounts as per the Company''s act 2013.

8 Segment Reporting:

The Company at present is engaged in the business of manufacture and sale of country liquor, which constitutes a single business segment.

The company has paid an amount of Rs.34,50,105/- to LIC towards both the above policies based on provisional actuarial valuation done by LIC. Any shortfall or excess based on final working by LIC would be dealt with on receipt of final valuation.

9. The figures of the previous years have been regrouped / rearranged wherever necessary. The Figures or the previous years are given in brackets. The company has compiled the above accounts based on the revised/ Modified schedule III applicable for the accounting period 2017-2018. The disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act are made in the notes to accounts.

10. The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2017 and March 31, 2016 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by the predecessor auditor ( M/s. V.P.Mehta & Co.) who expressed an unmodified opinion vide reports dated April 06, 2017 and April 05, 2016 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by M/s. Priti V Mehta & Company

---

Mar 31, 2017

1. Notes on Accounts forming part of accounts

2. Clarification regarding note pertaining to "Transport Fee Liability" mentioned in earlier years.

The Company had, along with other manufacturers of Country Liquor and IMFL in the State of Maharashtra, filed a Writ Petition in the Hon''ble Bombay High Court challenging the applicability of "Transport Fee" under Bombay Rectified Spirit (Transport in Bond) Rules 1951.

The Hon''ble Bombay high Court by its Order and Judgment dated 6th May, 2011 had allowed the Writ Petitions and set aside the levy of Transport Fee under the said Rules. The Hon''ble Bombay High Court has also directed the Government of Maharashtra to Refund the "Transport Fee" Deposited pursuant to the Interim Order. The Government is yet to Refund the deposit of "Transport Fee" made by the Company.

The State of Maharashtra has also filed a Special Leave Petition in the Hon''ble Supreme Court of India against the said Order of the Bombay High Court which is pending for admission.

3. MVAT / Income Tax

Under the MVAT Act in force from 1/4/2005 there is no procedure for assessment. The Company is filing monthly MVAT returns on regular basis and all dues have been paid as per the returns. The MVAT department of Government of Maharashtra has completed Audit of the company''s transactions up to the financial year 2012-13. The Company has also filed the audit report as required under the MVAT Act up to the financial year 2015-16.

During the audit process for the financial year 2011-12 the MVAT department has raised a demand of Rs.8,24,42,800/- due to levy of tax on an inflated turnover arrived at on a presumptive basis. Legal experts have opined that the action of the MVAT department is devoid of authority and jurisdiction and the demand is certain to be quashed by the appellate authority. The company has filed an appeal challenging the demand notice and the demand has been stayed in toto. However, whatever liability that may arise out of the final outcome of the appeal will be met by the company out of its reserves.

For the year 2012-13 the audit process has been conducted by the MVAT department as in the earlier years and there has been no additional demand raised under the audit process.

The company''s Income Tax assessment has been completed up to assessment year 2014-15 and the demands raised by the department have already been paid by the company.

The information given in above table relates only for cash balance available as on closing hours of November 08, 2016. The subsequent transactions on account of cash sales, withdrawal from banks, deposits into banks are not considered for the above. The balance amount of “Other notes " as on November 08, 2016 was utilized to meet day to day expenses of the company.

4. State Excise

As per practice consistently followed, State Excise duty payable on finished goods held in works is neither included in expenditure nor included in such stocks, but is accounted for on clearance of the goods. This accounting treatment has no impact on profits.

5. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

6. The Company has called for complete intimation from all the vendors regarding their status as small-scale/ micro industrial undertaking. Based on information received regarding the status of the vendors there are no amounts outstanding for more than Rs.1, 00,000/- for more than 30 days.

7. Additional information pursuant to paragraph 3, 4(C) & 4(D) OF PART II to Schedule VI of the Companies Act, 1956 have been given to the extent applicable to the Company.

8. During the year company has created deferred tax liability of Rs.42.44 Lakhs on account of different rates of depreciation as per Income Tax Act, 1961 & depreciation debited in the books of accounts as per the Company''s act 2013.

9. Segment Reporting:

The Company at present is engaged in the business of manufacture and sale of country liquor, which constitutes a single business segment. In view of above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS -17 are not applicable to the Company.

10. Employees Benefits:

The company has made provisions in the accounts for gratuity base on actuarial valuation. The particulars under the As 15 (revised) furnished below are those which are relevant and available to company for this year.

11. The figures of the previous years have been regrouped / rearranged wherever necessary. The Figures or the previous years are given in brackets. The company has compiled the above accounts based on the revised/ modified schedule III applicable for the accounting period 2016-2017. The disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act are made in the notes to accounts.

---

Mar 31, 2015

1. Includes 23,39,525 shares on account of bonus issue during the year

a) There are No ( Previous year - No) rights, preference and restriction attaching to each class of shares including restriction on the distribution of dividend and the repayment of capital.

b) There are nil number of shares ( Previous year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.

c) There are NIL number of shares ( Previous year Nil) reserved for issue under option and contracts/ commitment for the sale of shares/disinvetment including the terms and amounts.

d) There are NO securities ( Previous year No) convertible into Equity/ Preferential Shares.

f) There are NO calls unpaid ( Previous year No )including calls unpaid by Directors and Officers as on balance sheet date.

2. The cost of various categories of inventory is determined as follows:

1) Stock of Raw Materials and Packing Material : At cost Including Local Taxes ( Net of Setoff) or net realisable value whichever is lower

2) Stock in Process : At cost or net realisable value, whichever is lower

3) Stock of Finished Goods: At cost or net realisable value, whichever is lower

4) Stock of Stores and Spares: At cost or net realisable value, whichever is lower

5) Stock of Scrap: At net realisable value

3. Clarification regarding note pertaining to "Transport Fee Liability" mentioned in earlier years.

The Company had, along with other manufacturers of Country Liquor and IMFL in the State of Maharashtra, filed a Writ Petition in the Hon''ble Bombay High Court challenging the applicability of "Transport Fee" under Bombay Rectified Spirit (Transport in Bond) Rules 1951.

The Hon''ble Bombay high Court by its Order and Judgment dated 6th May, 2011 had allowed the Writ Petitions and set aside the levy of Transport Fee under the said Rules. The Hon''ble Bombay High Court has also directed the Government of Maharashtra to Refund the "Transport Fee" Deposited pursuant to the Interim Order. The Government is yet to Refund the deposit of "Transport Fee" made by the Company.

The State of Maharashtra has also filed a Special Leave Petition in the Hon''ble Supreme Court of India against the said Order of the Bombay High Court which is pending for admission.

4. MVAT / Income Tax

Under the MVAT Act in force from 1/4/2005 there is no procedure for assessment. The Company is filing monthly MVAT returns on regular basis and all dues have been paid as per the returns. The MVAT department of Government of Maharashtra has completed Audit of the company''s transactions up to the financial year 2010-11. The Company has also filed the audit report as required under the MVAT Act up to the year 2013-14 and there are no over dues payables under the provisions of the MVAT Act as on March 31, 2015.

The company''s Income Tax assessment has been completed up to assessment year 2012-13 and the demands raised by the department has already been paid by the company.

5. State Excise

As per practice consistently followed, State Excise duty payable on finished goods held in works is neither included in expenditure nor included in such stocks, but is accounted for on clearance of the goods. This accounting treatment has no impact on profits.

6. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

7. The Company has not received complete intimation from all the vendors regarding their status as small-scale industrial undertaking. However, where the company has received the information regarding the status of the vendors there are no amounts outstanding for more than Rs.1,00,000/- for more than 30 days.

8. During the year company has created deferred tax liability of Rs.7.53 lacs on account of different rates of depreciation as per Income Tax Act 1961 and depreciation as debited in books of accounts as per Company''s Act 2013.

9. Segment Reporting:

The Company at present is engaged in the business of manufacture and sale of country liquor, which constitutes a single business segment. In view of above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS -17 are not applicable to the Company.

10. The figures of the previous years have been regrouped / rearranged wherever necessary. The Figures or the previous years are given in brackets. The company has compiled the above accounts based on the revised/Modified schedule III applicable for the accounting period 2014-2015. The disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act are made in the notes to accounts.

---

Mar 31, 2013

A) There are No ( Previous year - No) rights, preference and restriction attaching to each class of shares including restriction on the distribution of dividend and the repayment of capital.

b) There are nil number of shares ( Previous year Nil) in respect of each class in the company held by its holding company or its ultimate holding company including shares held by or by subsidiary or associates of the holding company or the ultimate holding company in aggregate.

d) There are nil number of shares ( Previous year Nil) reserved for issue under option and contracts/commitment for the sale of shares/disinvetment including the terms and amounts.

f) There are no securities ( Previous year No) convertible into Equity/ Preferential Shares.

g) There are no calls unpaid ( Previous year No )including calls unpaid by Directors and Officers as on balance sheet date.

The cost of various categories of inventory is determined as follows:

1) Stock of Raw Materials and Packing Material : At cost Including Local Taxes ( Net of Setoff) or net realisable value whichever is lower

2) Stock in Process : At cost or net realisable value, whichever is lower

3) Stock of Finished Goods: At cost or net realisable value, whichever is lower

4) Stock of Stores and Spares: At cost or net realisable value, whichever is lower

5) Stock of Scrap: At net realisable value

1. Clarification regarding note pertaining to "Transport Fee Liability" mentioned in earlier years.

The Company had, along with other manufacturers of Country Liquor and IMFL in the State of Maharashtra, filed a Writ Petition in the Hon''ble Bombay High Court challenging the applicability of "Transport Fee" under Bombay Rectified Spirit (Transport in Bond) Rules 1951.

The Hon''ble Bombay high Court by its Order and Judgment dated 6th May, 2011 had allowed the Writ Petitions and set aside the levy of Transport Fee under the said Rules. The Hon''ble Bombay High Court has also directed the Government of Maharashtra to Refund the "Transport Fee" Deposited pursuant to the Interim Order. The Government is yet to Refund the deposit of "Transport Fee" made by the Company.

The State of Maharashtra has also filed a Special Leave Petition in the Hon''ble Supreme Court Of India against the said Order of the Bombay High Court which is pending for admission.

2. MVAT / Income Tax

Under the MVAT Act in force from 1/4/2005 there is no procedure for assessment. The Company is filing monthly MVAT returns on regular basis and all dues have been paid as per the returns. The MVAT department of Government of Maharashtra has completed Audit of the company''s transactions up to the financial year 2009-10. The Company has also filed the audit report as required under the MVAT Act up to the year 2011-12 and there are no dues payable under the provisions of the MVAT Act as on March 31, 2013.

The company''s Income Tax assessment has been completed upto assessment year 2010-11 and the demands raised by the department has already been paid by the company.

3. State Excise

As per practice consistently followed, State Excise duty payable on finished goods held in works is neither included in expenditure nor included in such stocks, but is accounted for on clearance of the goods. This accounting treatment has no impact on profits.

4. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

5. The Company has not received complete intimation from all the vendors regarding their status as small-scale industrial undertaking. However, where the company has received the information regarding the status of the vendors there are no amounts outstanding for more than Rs.1,00,000/- for more than 30 days.

6. Additional information pursuant to paragraph 3,4(C) & 4(D) OF PART II to Schedule VI of the Companies Act, 1956 have been given to the extent applicable to the Company.

Note: Packing and other materials consumed are not considered as Raw materials and hence no separate figures are given

7. During the year company has created deferred tax liability of Rs. 32.38 lacs on account of different rates of depreciation as per Income Tax Act 1961 and depreciation as debited in books of accounts as per Company''s Act 1956.

8. Segment Reporting:

The Company at present is engaged in the business of manufacture and sale of country liquor, which constitutes a single business segment. In view of above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS -17 are not applicable to the Company.

9. The figures of the previous years have been regrouped / rearranged wherever necessary. The Figures or the previous years are given in brackets. The company has compiled the above accounts based on the revised/Modified schedule VI applicable for the accounting period 2012-2013. The disclosure require- ments are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act, are made in the notes to accounts.

---

Mar 31, 2012

1. Clarification regarding note pertaining to " Transport Fee Liability" mentioned in earlier years.

The Company had, along with other manufacturers of Country Liquor and IMFL in the State of Maharashtra, filed a Writ Petition in the Hon'ble Bombay High Court challenging the applicability of "Transport Fee" under Bombay Rectified Spirit(Transport in Bond) Rules 1951.

The Hon'ble Bombay high Court by its Order and Judgement dated 6th May, 2011 had allowed the Writ Petitions and set aside the levy of Transport Fee under the said Rules. The Hon'ble Bombay High Court has also directed the Government of Maharashtra to Refund the "Transport Fee" Deposited pursuant to the Interim Order. The Government is yet to Refund the deposit of "Transport Fee" made by the Company.

The State of Maharashtra has also filed a Special Leave Petition in the Hon'ble Supreme Court Of India against the said Order of the Bombay High Court which is pending for admission.

2. MVAT / Income Tax

Under the MVAT Act in force from 1/4/2005 there is no procedure for assessment. The Company is filing monthly MVAT returns on regular basis and all dues have been paid as per the returns. The MVAT department of Government of Maharashtra has completed Audit of the company's transactions up to the financial year 2009-10. The Company has also filed the audit report as required under the MVAT Act up to the year 2010-11 and there are no dues payable under the provisions of the MVAT Act as on 31st March 2012.

The company' s Income Tax assessment has been completed up to assessment year 2009-10 and the demands raised by the department has already been paid by the company.

3. Capital Contracts

4. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

5. The Company has not received complete intimation from all the vendors regarding their status as small-scale industrial undertaking. However, where the company has received the information regarding the status of the vendors there are no amounts outstanding for more than Rs. 1,00,000/- for more than 30 days.

6. Additional information pursuant to paragraph 3.4(C) & 4(D) OF PART II to Schedule VI of the Companies Act, 1956 have been given to the extent applicable to the Company.

7. During the year company has created deferred tax liability of Rs.26.34 lacs on account of different rates of depreciation as per Income Tax Act 1961 and depreciation as debited in books of accounts as per Company's Act 1956.

8. Segment Reporting:

The Company at present is engaged in the business of manufacture and sale of country liquor, which constitutes a single business segment. In view of above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS -17 are not applicable to the Company.

---

Mar 31, 2011

1. Contingent Liabilities not provided for:

The Companys basic raw material namely Rectified Spirit is purchased from various distilleries in Maharashtra on which a specific “Transport Fee” is levied by the State Excise Department , Government of Maharashtra under the Bombay Prohibition Rules. During the years 2002-03, 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 ,2008-09, 2009-10 & 2010-11the Company has purchased 94.40 lacs Bulks liters (BL), 97.50 Lacs (BL), 100 Lacs (BL) , 210 Lacs (BL) 215 Lacs (BL) 241 Lacs (BL), 258 Lacs (BL), 259 Lacs (BL) & 269 Lacs (BL) of Rectified Spirit respectively.

The Company has filed along with other manufacturers of Country Liquor & IMFL a writ petition in the Bombay High Court Challenging the applicability of the Transport Fees and the High Court in an interim order has restrained the concerned authorities from collecting the Transport Fees from the Company till the final disposal of the writ petition.

Based on the modified interim orders of the Supreme Court and the Bombay High Court, in the identical cases and pending final judgement of the High Court, the Company has deposited a sum of Rs.4,12,44,400/- with the State Excise Department towards 50 % transport fees for the period 01.10.2008 to 31.03.2011.

However the Company will be in a position to meet out any additional liability that may arise out of the final judgment of the High Court out of its reserves.

2. MVAT / Income Tax

Under the MVAT Act in force from 1/4/2005 there is no procedure for assessment. The Company is filing monthly MVAT returns on regular basis and all dues have been paid as per the returns. The MVAT department of Government of Maharashtra has completed Audit of the companys transactions up to the financial year 2008-09. The Company has also filed the audit report as required under the MVAT Act up to the financial year 2009-10 and there are no dues payable under the provisions of the MVAT Act as on 31st March 2011.

The companys Income Tax assessment has been completed upto assessment year 2008-09 and the demands raised by the department has already been paid by the company.

3. Capital Contracts

Estimated amount of contracts remaining to be 2010-2011 2009-2010 Executed on capital accounts and not provided for Nil Nil

4. State Excise

As per practice consistently followed, State Excise duty payable on finished goods held in works is neither included in expenditure nor included in such stocks, but is accounted for on clearance of the goods. This accounting treatment has no impact on profits.

5. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

6. There are no micro and small enterprises to which the company owes dues, which are outstanding for more than 45 days as at March 31, 2011(Rs. Nil). This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

7. Additional information pursuant to paragraph 3,4(C) & 4(D) OF PART II to Schedule VI of the Companies Act, 1956 have been given to the extent applicable to the Company.

8. During the year company has created deferred tax liability of Rs. 34.68 lacs on account of different rates of depreciation as per Income Tax Act and depreciation as debited in books of accounts as per Companys Act 1956.

9. Other Liabilities listed under the head Current Liabilities in Schedule 8(a) of the financial statements represent book over draft

10. Segment Reporting:

The Company at present is engaged in the business of manufacture and sale of country liquor, which constitutes a single business segment. In view of above, primary and secondary reporting disclosures for business/geographical segment as envisaged in AS -17 are not applicable to the Company.

11. The figures of the previous years have been regrouped/rearranged wherever necessary. The Figures or the previous years are given in brackets.

---

Mar 31, 2010

A. Contingent Liabilities not provided for:

The Companys basic raw material namely Rectified Spirit is purchased from various distilleries in Maharashtra on which a specific "Transport Fee" is levied by the State Excise Department, Government of Maharashtra under the Bombay Prohibition Rules. During the years 2002-03, 2003-04, 2004-05, 2005-06, 2006-07, 2007-08 ,2008-09 & 2009-10 the Company has purchased 94.40 lacs Bulks liters (BL), 97.50 Lacs (BL), 100 Lacs (BL), 210 Lacs (BL) 215 Lacs (BL) 241 Lacs (BL), 258 Lacs (BL) & 259 Lacs (BL) of Rectified Spirit respectively.

The Company has filed a writ petition in the Bombay High Court Challenging the applicability of the Transport Fees and the High Court in an interim order has restrained the concerned authorities from collecting the Transport Fees from the Company till the final disposal of the writ petition.

Based on the modified interim orders of the Supreme Court and the Bombay High Court in identical cases, the Company has deposited a sum of Rs.2,44,03,150/- with the State Excise Department towards 50 % transport fees for the period 01.10.2008 to 31.03.2010.

However the Company will be in a position to meet out any additional liability that may arise out of the final judgment of the High Court out of its reserves.

B. (i) Under the MVAT Act in force from 1/4/2005 there is no procedure for assessment. The Company is filing monthly MVAT returns on regular basis and all dues have been paid as per the returns. The MVAT department of Go vernment of Maharashtra has completed Audit of the company s transactions up to the financial year 2007- 08. The Company has also filed the audit report as required under the MVAT Act up to the year 2008-09 and there are no dues payable under the provisions of the MVAT Act as on 31s March 2010.

(ii) The companys Income Tax assessment has been completed upto assessment year 2007-08 and the demands ] raised by the department has already been paid by the company.

C. As per practice consistently followed, State Excise duty payable on finished goods held in works is neither included in expenditure nor included in such stocks, but is accounted for on clearance of the goods. This accounting treatment has no impact on profits.

D. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

E The Company has not received complete intimation from all the vendors regarding their status as small-scale industrial undertaking. However, where ever the company has received the information regarding the status of the vendors there are no amounts outstanding for more than Rs. 1,00,000/- for more than 30 days.

F. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any , relating to amounts unpaid as at year end together with interest paid / payable as required under the said Act have not been given.

I. Additional information pursuant to paragraph 3.4(C) & 4(D) OF PART II to Schedule VI of the Companies Act, 1956 have been given to the extent applicable to the Company.

G. Related Party Disclosures

(a) List of Related Parties i) Associate

- Almeida Country Liquor Shop

ii) Key Management Personnel

- Jimmy William Almeida - Chairman & Managing Director

- Jyoti Jimmy Almeida- Whole Time Director

- John William Almeida- Whole Time Director

- Celina William Almeida- Director

H. During the year company has created deferred tax liability of Rs. 48.68 lacs on account of different rates of depreciation as per Income Tax Act and depreciation as debited in books of accounts as per Companys Act 1956.

I. Other Liabilities listed under the head Current Liabilities in Schedule 8(a) of the financial statements represent book over draft

J. Segment Reporting:

The Company at present is engaged in the business of manufacture and sale of country liquor, which constitutes a single business segment. In view of above, primary and secondary reporting disclosures for business/geographical segment as envisaged in AS -17 are not applicable to the Company.

Q. The figures of the previous years have been regrouped/rearranged wherever necessary. The Figures of the previous years are given in brackets.