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Notes to Accounts of Jagatjit Industries Ltd.

Mar 31, 2016

b) Segment revenue and expenses:

Segment revenue and expenses are directly attributable to segment. It does not include interest income on inter-corporate deposits, interest expense and income tax.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue/expenses/assets/liabilities".

# As per the records of the Company, including its register of members.

1. TERMS/RIGHTS ATTACHED TO EQUITY SHARES

a) 18,438,112 shares referred to as equity shares are having face value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share and dividend, if declared.

b) 25,210,000 underlying Equity Shares of Rs.10/- each fully paid up ranking pari-passu with existing shares were issued in the name of the Depository, The Bank of New York, representing the Global Depository Receipt (GDR) issue. GDRs do not carry any voting rights until they are converted into underlying equity shares.

c) 2,500,000 Equity Shares of Rs 10/- each are held by LPJ Holdings Pvt. Ltd., fully paid up at a premium of Rs 20/- per share, as a special series with differential rights to dividend and voting, were issued during the financial year 2004-05. These shares have no right to the dividend and each share carries twenty voting rights per share as compared to one voting right per existing equity share and were under the lock-in-period of three years from the date of allotment.

d) The holders of all the above equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in event of liquidation of the Company.

2. Nature of Security and terms of repayment for Long Term Secured Borrowings:

Nature of Security Terms of Repayment

i. Term Loan amounting to Rs.93 lacs ( Previous year Repayable in 28 equal quarterly installments commencing

Rs. 467 lacs) for installation of Water Pollution Control from September, 2009. Last installment Due in June, 2016.

Equipments is secured by all the machineries and Rate of Interest 13.65% p.a.(Previous year 14.00% p.a.) as accessories including Civil work related to at year end. aforementioned equipments installed at its works at Jagatjit Nagar, Distt Kapurthala.

ii Term Loan amounting to Rs. 30 lacs ( Previous year Repayable in 20 equal quarterly installments commencing Rs.168 lacs ) for machinery (IS machine) is secured by from September, 2011. Last installment due on July, 2016 all the machineries and accessories including civil work Rate of interest 13.65% p.a (Previous year 14.00% p.a ) as related to the aforementioned machinery installed at at year end.

its works at Site IV , Plot No.17 Sahibabad Industrial Area Sahibabad (U.P).

iii Term Loan amounting to Rs.688 lacs (Previous year Repayable in 20 equal quarterly installments commencing Rs. 1,112 lacs) for Boiler is secured by all the from April, 2013. Last installment due on January, 2018. machineries and accessories including civil work Rate of interest 12.65% p.a (Previous year 13.20% p.a) as related to the aforementioned machineries installed at at year end.

its works at Jagatjit Nagar, Distt Kapurthala.

iv Term Loan amounting to Rs.232 lacs (Previous year Repayable in 60 equal monthly installments commencing Rs. 348 lacs) for turbine is secured by all the from April, 2013. Last installment due on March, 2018. Rate machineries and accessories including civil work of interest 13.65% p.a. (Previous year 14.00% p.a) as at related to turbine installed at its works at Jagatjit Nagar, year end.

Distt Kapurthala.

v Term Loan amounting to Rs.Nil (Previous year Rs.5,759 Repayable in 88 structured monthly installments lacs) is secured against lease rent receivables of leased commencing from June, 2013. Last installment due on Sept. space at Plot No. 78 Institutional area ,Sactor-18, 2020. Rate of interest 11.65% p.a. (Previous year 12.00% Gurgaon, Haryana and 9th and 10th floor, Ashoka p.a.) as at year end.

Estate, 24 Barakhamba Road, New Delhi for purpose of Working Capital needs of the company

vi Term Loan amounting to Rs.1,829 lacs (Previous year Repayable in 60 monthly equal installments commencing Rs. 2,016 lacs) for expansion of Malted Milkfood Plants from June, 2015. Last installment due on May, 2021. Rate secured against exclusive first charge on plant & of interest 13.65% p.a. (Previous year 13.25% p.a.) as at machinery of the new Malted Milkfood Plant and year end.

country liquor plant including instrumentation etc. at its works at Jagatjit Nagar, Distt Kapurthala

vii Term Loan amounting to Rs.6,533 lacs (Previous year Repayable in 18 structured quarterly installments Rs. 3,700 lacs ) for General Corporate Purpose is commencing from August 2015 . Last installment due on secured by Exclusive charge by way of mortgage on November, 2019. Rate of interest 14.50% p.a. (Previous Land & Building sitatuated at Village Hamira,Distt year 15% p.a.) as at year end.

Kapurthala and Escrow on Proceeds received from M/s. Galxo Smithkline and lien on Fixed Deposit in favour of IFCI.

viii Term Loan amounting to Rs.7,908 lacs (Previous year Repayable in 120 structured monthly installments Rs.Nil) is secured against lease rent receivables of commencing from April 2015 . Last installment due on leased space at Plot No. 78 Institutional area, Sector- March , 2025. Rate of interest 11.65% p.a. (Previous year 18, Gurgaon, Haryana and 9th and 10th floor, Ashoka Nil ) as at year end.

Estate,24 Barakhamba Road,New Delhi for purpose of working Capital needs of the company

ix Car Loans are secured by hypothecation of the related Repayable in 36-60 equal monthly installments. Rate of cars. interest 8.25% to 11.25% p.a.

3. Terms of repayment for Long Term Unsecured Borrowings:

i. Unsecured Inter Corporate deposit Rs. 59 lacs Rate of Interest 8% on Rs. 24 lacs and 12% on Rs 35 lacs; (Previous year Rs. 59 lacs) from related party ( Fast Previous year 8% on Rs 24 lacs and 12% on Rs. 35 lacs. Buck Investment and Trading Pvt. Ltd).

Note: Installments falling due in respect of all the above loans up to 31.3.2017 have been grouped under "Current maturity of long-term debt" (Refer Note 10).

*This includes Amount Rs. 196 lacs on account of transitional provision of depreciation as per schedule II of Companies Act, 2013

The deferred tax asset arising on carried forward losses and unabsorbed depreciation is not being recognized as a matter of prudence as their recoverability cannot be commented on a virtual certainty basis.

4. Cash credit limits are part of working capital facilities availed from consortium of banks. These consortium limits are secured by first pari passu charge on stock and book debts.

5. The Company continued acceptance of deposits from the members only upto 10% of the paid up capital, free reserves and securities premium account (upto 30th September, 2015) during the financial year 2015-16.

6. This working capital loan is secured by fixed deposits furnished by third party to bank.

7. This information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

**Deletion/Adjustment include tangible assets retired from active use held for sale of the Glass Unit at Sahibabad (U.P) shown under ''Other Current Assets'' (Refer Note-21) during financial year 2014-15: gross block Rs. 10,311 lacs, accumulated depreciation Rs.6,365 lacs and net block Rs. 3,946 lacs.

8.. CONTINGENT LIABILITIES:

The following are the details of Contingent liabilities the outflow of which is uncertain at this stage:

30.1 Particulars of various claims against the Company not acknowledged as debts Rs. 7,237 lacs (Previous year Rs. 1,953 lacs):

i) Claim by Punjab Government in respect of amount paid to Mahalaxmi Sugar Mills pending before the ''The Court of Civil Judge (Senior Division ), Kapurthala'' Rs. 22 lacs (Previous year Rs. 22 lacs).

ii) Claim in respect of case filed by ESI Corporation Rs. 6 lacs (Previous year Rs. 6 lacs)

iii) Employees related claims Rs. 194 lacs (Previous year Rs. 179 lacs)

iv) In terms of Gas Sales Agreement dated 27.12.2008 between GAIL (India) Limited (supplier) and the company, for the supply of RLNG by former, the company has not utilised the minimum stipulated quantity of RLNG, due to closure of Glass unit situated at Sahibabad (UP). The supplier has raised demand towards Annual Take or Pay deficiency basis for contract year 2014, amounting to Rs. 1,746 lacs and for contract year 2015, amounting to Rs. 5,269 lacs, aggregating to Rs. 7,015 lacs.

The company has represented to the supplier, that due to reasons beyond their control, the Glass unit had to be closed down permanently and production discontinued. Consequently, as there no longer any requirement of gas the parties may be treated as discharged in this regard. Further, management is confident that there will not be any material amount on resolution/ settlement.

v) There are certain claims against the Company relating to usage of trade mark etc., which have not been acknowledged as debts. The outcome of such claims is not ascertainable at this stage.

9. Particulars of various Excise & Service Tax demands under dispute Rs. 1,155 lacs (Previous year Rs. 1,150 lacs) which have not been deposited on account of

dispute:

i) Demand of Service Tax and penalty in respect of wrong a ailment of Service Tax Cenvat Credit Rs. 261 lacs (Previous year Rs. 261 lacs).

ii) Demand of Excise Duty in respect of reversal of Cenvat Credit on Turbine Rs. 74 lacs (Previous year Rs.74 lacs).

iii) Demand in respect of service tax ,interest and penalty on income from Tie-up operations and royalty Rs. 569 lacs (Previous year Rs. 569 lacs).

iv) Demand of cess and penalty under Central Excise Act on manufacturing of corrugated paper board Rs. 1 lac ( Previous year Rs.1 lac).

v) Demand of service tax on renting of immovable property Rs. 127 lacs ( Previous year Rs. 127 lacs).

vi) Demand of service tax under service of supply if tengible goods Rs. 62 lacs ( Previous year Rs. 62 lacs).

vii) Demand of service tax and penalty under management, maintenance and repair services Rs. 48 lacs ( Previous year Rs. 48 lacs).

viii) Demand of Excise duty in respect of clearance of broken glass generated during the handling of bottles used for IMFL and country Liquor Rs. 13 lac (Previous year Rs 8 lac)

10. Particulars of various Sales tax demands under dispute Rs. 370 lacs (Previous year Rs. 6 lacs) :

i) Demand of Sales Tax under Central Sales Tax Act on account of incomplete submission of sales tax forms Rs. 6 lacs (Previous year Rs.6 lacs).

ii) Demand of Sales Tax & Penalty under Telangana VAT Act on account of VAT on Royalty Rs.103 lacs (Previous year Rs. Nil).

iii) Demand of Sales Tax & penalty under Punjab VAT Act on account of input VAT credit denied on rice husk Rs. 221 lacs (Previous year Rs. Nil).

iv) Demand of Sales Tax under Haryana VAT Act on account of disallowance of credit of excess VAT deposited due to rate difference Rs. 40 lacs (Previous year Rs. Nil).

11. Certain matters relating to various assessment years of Income Tax are pending at the various levels of tax authorities and High Court. Further the Income Tax

Department has issued notice u/s 153A to the Company during F.Y. 2016-17 for assessment / reassessment of assessment years 2009-10 to 2015-2016. The

financial impact, if any, on the outcome of these matters is not determinable at this stage.

12.. The additions to fixed assets includes interest on borrowing which has been capitalised amounting to Rs. Nil (Previous year Rs. 113 Lac)

13. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.5 lacs (Previous year Rs. 20 lacs).

14. Maximum amount of advances due from Subsidiary companies at any time during the year:

S.R.K. Investments Pvt. Limited : Rs.2,977 lacs (Previous year Rs.2,977 lacs)

JIL Trading Pvt. Ltd : Rs.15 lacs (Previous year Rs. 9 lacs)

L.P Investments Limited : Rs.213 lacs (Previous year Rs. 276 lacs)

15. At the end of the year unclaimed deposits of Rs.163 lacs (previous year Rs. 124 lacs) disclosed under current liabilities are not required to be transferred to the Investor Education and Protection Fund (IEPF) in terms of section 205C of the Companies Act, 1956, as these deposits are unclaimed for less than 7 years from the date of their maturity. Additional unclaimed deposits of Rs. 1 lac as on 31.3.2016 (Previous year Rs. 0.49 lacs) lying unclaimed for more than 7 years have been deposited in the IEPF on 2th June, 2016 (Previous year 11th April, 2015).

16. In accordance with ASI 14 on ''Disclosure of Revenue from Sales Transactions'' issued by Institute of Chartered Accountants of India, excise duty on turnover amounting to Rs. 46,148 lacs (Previous year Rs. 40,850 lacs) has been reduced from turnover in Statement of Profit & Loss.

Differential excise duty on opening and closing stock of finished goods amounting to Rs. 148 lacs (Previous year Rs. 37 lacs) has been separately shown in Manufacturing Expenses under ''Other Expenses Schedule'' (Refer Note 29).

Notes:

The Company does not have any outstanding dilutive potential equity shares. Consequently the basic and diluted earnings per share of the Company remain the same. * The preferential allotment of 2,500,000 equity shares, having no right to dividend has not been considered in the above computation of EPS (Refer Note 2.6c).

NOTES:

i) The Company is focused on the segment of Beverages (including Liquor) in India. The commercial terms and conditions of Liquor sales being identical in India, there are no differential risks and return on the basis of such business segmentation. The Company''s year to date export turnover being less than 1% of its total turnover (Previous year more than 1%), the commercial risks and returns involved on the basis of geographic segmentation are therefore considered insignificant and immaterial.

ii) Segment assets include Capital Work- in- Progress & Capital Advances aggregating to Rs.220 lacs (Previous year-Rs. 216 lacs). While most assets are directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis.

iii) Capital expenditure pertains to additions made to Fixed Assets/ Capital Work-in-Progress (including Capital Advances) during the year.

iv) Unallocated assets includes land, administration building and cash & bank balances etc. at Jagatjit Nagar.

v) Unallocated liabilities include interest bearing liabilities and tax provisions and deferred tax liability.

vi) Non cash items includes bad debts, advances and stocks written off, provision for doubtful debts & advances and fixed assets written off.

vii) Sales Services and other Income of Beverages segment includes rental income (net) of Rs. 1,610 lacs (Previous year Rs. 1,617 lacs) from the surplus properties of the Company.

viii) The Packaging segment is not appearing this year as it does not satisfy the threshold limits stipulated in AS-17 issued by the Institute of Chartered Accountants of India (ICAI).

In the previous year that is F.Y. 2014-15, Packaging Segment included manufacturing and supplies of Glass to open market and for its captive consumption. 40. Related Party Disclosures

In accordance with the requirements of "Accounting Standard 18" issued by The Institute of Chartered Accountants of India on the Related Party Disclosures, the transactions and Related Parties with whom transactions have taken place during the year are as follows:

17 Related parties and transactions with them as identified by the management and relied upon by the Auditors are given below:

Subsidiary Companies

JIL Trading Pvt. Ltd.

S.R.K. Investments Pvt. Ltd Sea Bird Securities Pvt. Ltd.

L.P. Investments Limited.

18. Enterprises over which Major shareholders, Key Management Personnel and their relatives have significant influence / control :

Milk food Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme Pashupati Properties & Estates Pvt. Limited Qube Corporation Pvt. Ltd.

19. Key Management Personnel and their relatives:

Mr. Narender Sapra (Managing Director)

Mr. Ravi Manchanda (Director)

Mrs. Nimmi Manchanda (Relative of Director)

Notes:

1) The above information has been compiled on the basis of disclosures received from all directors of the Company.

2) Managerial Remuneration (These payments do not include expenses incurred by / reimbursed to directors during the course of performance of duties).

Mr. Narender Sapra (Managing Director) Rs.103 lacs (Previous year Rs. 101 lacs)

Mr. Ravi Manchanda (Director) Rs.47 lacs (Previous year Rs.45 lacs)

Key Management Persons and their relatives does not include the persons who were directors any time during the previous financial year but did not hold any position of director during the current financial year.

3) Sales of Goods (Refer Note 3 below.)

Milkfood Ltd. Rs. 8 lacs (Previous year Rs. Nil)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 21 lacs (Previous year Rs.40 lacs)

4) Interest Accrued is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 6 lacs (Previous year Rs. 6 lacs)

5) Reimbursement of Payments Made on behalf of the Company is in respect of the following :

Milkfood Ltd. Rs. 29 lacs (Previous year Rs. 71 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 20 lacs (Previous year Rs.10 lacs)

JIL Trading Pvt. Ltd. Rs 11 lacs (Previous Year Rs. 4 lacs)

6) Expenses paid by the Company on behalf of related parties is in respect of the following :

Milk food Ltd. Rs. 14 lacs (Previous year Rs. 20 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 157 lacs (Previous year Rs. 86 lacs)

S. R. K. Investments Pvt. Ltd. Rs. Nil (Previous year Rs. 0)

L. P. Investments Pvt. Ltd. Rs Nil (Previous year Rs.0)

7) Loans including interest repaid is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 9 lacs (Previous year Rs. 3 lacs)

8) Advances Given

L.P. Investments Ltd. Rs. 14 lacs (Previous year Rs. Nil)

JIL Trading Pvt. Ltd.Rs.9 lacs (Previous year Rs. 2 lacs)

Relatives of Director Rs. Nil lac (Previous year Rs. 100 lacs)

9) Lease Rent paid

Pashupati Properties & Estates Pvt. Limited Rs. 12 lacs (Previous year Rs. 12 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 55 lacs (Previous year Rs. 135 lacs)

Mrs. Nimmi Manchanda Rs. Nil ( Previous year Rs. 8 lacs)

10) Refund of Advance

L.P. Investments Ltd. Rs. 28 lacs (Previous year Rs. 51 lacs)

11) Unsecured Advances Outstanding

S.R.K. Investments Pvt. Ltd. Rs. 2,977 lacs (Previous year Rs. 2,977 lacs)

L.P. Investments Ltd. Rs. 185 lacs (Previous year Rs. 199 lacs)

JIL Trading Pvt. Ltd. Rs. 4 lacs (Previous year Rs. 6 lacs)

12) Investments

S.R.K. Investments Pvt. Ltd. Rs. 1 lacs (Previous year Rs. 1 lacs)

L.P. Investments Ltd. Rs. 1,020 lacs (Previous year Rs. 1,020 lacs JIL Trading Pvt. Ltd. Rs. 1 lacs (Previous year Rs. 1 lacs)

Sea Bird Securities Pvt. Ltd. Rs. 1 lacs ( Previous year Rs. 1 lacs)

Qube Corporation Pvt. Ltd. Rs. 135 lacs ( Previous year Rs. 36 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate) Rs. 2 lacs ( Previous year Rs. 2 lacs)

20. In the previous financial year, the Company has provided first time for depreciation adopting the useful lives of the assets (except for some plant and Machinery) as prescribed in Schedule II of the Companies Act, 2013. However some plants and machinery have been depreciated on the re-evaluated useful life assessed by the technical experts which are different from the useful life prescribed in Schedule - II read with the relevant provisions thereof. Had the Company continued with the previously assessed useful life, charge for depreciation and loss for the period ended 31st March, 2015 would have been higher by Rs.575 Lacs for the assets held as at 1st April, 2014. Further, based on transitional provisions provided in clause 7(b) of Schedule II of the Companies Act,2013, an amount of Rs.439 lacs (net of deferred tax assets Rs.196 lacs) representing the carrying value of those Assets which have become nil, has been charged to the retained earnings as at 1st April, 2014.

21. During the year, net profit amounting to Rs 324 lacs and (previous year Rs 375 lacs) has been earned by the Company from sale of its second industrial property situated In Block C, Sector 57, Noida, Gautam Budh Nagar (U.P).


Mar 31, 2015

1. Changes in Share Capital During Last Five Years 5,794,112 Equity Shares of Rs. 10 each fully paid up were bought back by the company in FY-2009-10 as directed by the Hon'ble Company Law Board (CLB), vide their order dated 12.03.2009.

# As per the records of the Company, including its register of members.

2. Terms/Rights Attached to Equity Shares

a) 18,438,112 shares referred to as equity shares are having face value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share and dividend, if declared.

b) 25,210,000 underlying Equity Shares of Rs.10/- each fully paid up ranking pari-passu with existing shares were issued in the name of the Depository, The Bank of New York, representing the Global Depository Receipt (GDR) issue. GDRs do not carry any voting rights until they are converted into underlying equity shares.

c) 2,500,000 Equity Shares of Rs. 10/- each are held by LPJ Holdings Pvt. Ltd., fully paid up at a premium of Rs. 20/- per share, as a special series with differential rights to dividend and voting, were issued during the financial year 2004-05. These shares have no right to the dividend and each share carries twenty voting rights per share as compared to one voting right per existing equity share and were under the lock-in-period of three years from the date of allotment.

d) The holders of all the above equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in event of liquidation of the Company.

3. Nature of Security and terms of repayment for Long Term Secured Borrowings:

Nature of Security Terms of Repayment

i. Term Loan amounting to Rs. Nil (Previous year Rs. 39 Repayable in 20 equal quarterly installments commencing lacs) for Malt Extract Extension is secured by all the from June, 2009. Last installment was due in March, 2014.

machineries and accessories including Civil work Rate of Interest Nil. (Previous year 13.20% p.a.) as at year related to Filter and instrumentation installed at its end. Last installment of March, 2014 was paid on 1st April works at Jagatjit Nagar, Distt Kapurthala. 2014.

ii. Term Loan amounting to Rs. 467 lacs (Previous year Repayable in 28 equal quarterly installments commencing Rs. 841 lacs) for installation of Water Pollution Control from September, 2009. Last installment due in June, 2016.

Equipments is secured by all the machineries and Rate of Interest 14.00% p.a. (Previous year 14.25% p.a.) as accessories including Civil work related to at year end. aforementioned equipments installed at its works at Jagatjit Nagar, Distt Kapurthala.

iii Term Loan amounting to Rs. 168 lacs (Previous year Repayable in 20 equal quarterly installments commencing Rs. 306 lacs ) for machinery (IS machine) is secured from September, 2011. Last installment due on July, 2016 by all the machineries and accessories including civil Rate of interest 14.00% p.a (Previous year 14.75% p.a) as work related to the aforementioned machinery installed at year end. at its works at Site IV, Plot No.17 Sahibabad Industrial Area Sahibabad (U.P). 33

iv. Term Loan amounting to Rs. 1,112 lacs (Previous year Repayable in 20 equal quarterly installments commencing Rs. 1,519 lacs) for Boiler is secured by all the from April, 2013. Last installment due on January, 2018. machineries and accessories including civil work Rate of interest 13.20% p.a (Previous year 13.20% p.a) as related to the aforementioned machineries installed at at year end. its works at Jagatjit Nagar, Distt Kapurthala.

v Term Loan amounting to Rs.Nil (Previous year Rs. Repayable in 25 equal Monthly installments commencing 1,200 lacs) is secured by land with building thereon from January 2013. Last installment was due on January where the Hamira(Punjab) plant of company is situated. 2015. Rate of interest Nil: (Previous year 13.95% p.a) as at Loan was taken for General Corporate purpose year end. including strengthening of Net Working Capital and to meet normal capex of the company

vi Term Loan amounting to Rs. 348 lacs (Previous year Repayable in 60 equal monthly installments commencing Rs. 464 lacs) for turbine is secured by all the from April, 2013. Last installment due on March, 2018. Rate machineries and accessories including civil work of interest 14.00% p.a (Previous year 14.25% p.a) as at year related to turbine installed at its works at Jagatjit Nagar, end. Distt Kapurthala.

vii Term Loan amounting to Rs. 5,759 lacs (Previous year Repayable in 88 structured monthly installments Rs. 4,432 lacs) is secured against lease rent receivables commencing from June, 2013. Last installment due on Sept, of leased space at Plot No. 78 Institutional area, Sector- 2020. Rate of interest 12.00% p.a. (Previous year 12.25% 18, Gurgaon, Haryana and 9th and 10th floor, Ashoka p.a.) as at year end. Estate, 24 Barakhamba Road, New Delhi for purpose of Working Capital needs of the company

viii Term Loan amounting to Rs. 2,016 lacs (Previous year Repayable in 60 monthly equal installments commencing Rs. Nil) for expansion of Malted Milk food Plants from June, 2015. Last installment due on May, 2021. Rate secured against exclusive first charge on plant & of interest 13.25% p.a. (Previous year Nil) as at year end. machinery of the new Malted Milk food Plant and country liquor plant including instrumentation etc. at its works at Jagatjit Nagar, Distt Kapurthala

ix Term Loan amounting to Rs. 3,700 lacs (Previous year Repayable in 18 structured quarterly installments Rs. Nil) for General Corporate Purpose is secured by commencing from August, 2015 . Last installment due on exclusive charge by way of mortgage on Land & November, 2019. Rate of interest 15.00% p.a. (Previous Building situated at Village Hamira,Distt Kapurthala year Nil) as at year end. and Escrow on Proceeds received from M/s Glaxo Smithkline and lien on Fixed Deposit in favour of IFCI.

x Car Loans are secured by hypothecation of the related Repayable in 36-60 equal monthly installments. Rate of cars. interest 8.25% to 11.25% p.a.

4. Terms of repayment for Long Term Unsecured Borrowings:

i. Unsecured Inter Corporate deposit Rs. 59 lacs (Previous Rate of Interest 8% on Rs. 24 lacs and 12% on Rs. 35 lacs; year Rs. 59 lacs) from related party (Fast Buck Previous year 8% on Rs. 24 lacs and 12% on Rs. 35 lacs. Investment and Trading Pvt. Ltd).

Note: Installments falling due in respect of all the above loans up to 31.3.2016 have been grouped under "Current maturity of long-term debt" (Refer Note 10).

5. CONTINGENT LIABILITIES:

The following are the details of Contingent liabilities the outflow of which is uncertain at this stage:

5.1 Particulars of various claims against the Company not acknowledged as debts Rs. 1,953 lacs (Previous year Rs. 195 lacs):

i) Claim by Punjab Government in respect of amount paid to Mahalaxmi Sugar Mills pending before the 'The Court of Civil Judge (Senior Division), Kapurthala'

Rs. 22 lacs (Previous year Rs. 22 lacs). ii) Claim in respect of case filed by ESI Corporation Rs. 6 lacs (Previous year Rs. 6 lacs) iii) Employees related claims Rs. 179 lacs (Previous year Rs. 167 lacs)

iv) Liability in respect of notice received from GAIL (India) Limited on account of Annual Take or Pay Deficiency Claim for the Contract Year 2014 Rs. 1,746 lacs (Previous year Nil)

v) There are certain claims against the Company relating to usage of trade mark etc., which have not been acknowledged as debts. The outcome of such claims is not ascertainable at this stage.

5.2 Particulars of various Excise & Service Tax demands under dispute Rs. 1,150 lacs (Previous year Rs. 1,111 lacs) which have not been deposited on account of dispute:

i) Demand of Service Tax and penalty in respect of wrong a ailment of Service Tax Cenvat Credit Rs. 261 lacs (Previous year Rs. 261 lacs).

ii) Demand of Excise Duty in respect of reversal of Cenvat Credit on Turbine Rs. 74 lacs (Previous year Rs. 74 lacs).

iii) Demand in respect of service tax, interest and penalty on income from Tie-up operations and royalty Rs. 569 lacs (Previous year Rs. 569 lacs).

iv) Demand of cess and penalty under Central Excise Act on manufacturing of corrugated paper board Rs. 1 lac (Previous year Rs.1 lac).

v) Demand of service tax on renting of immovable property Rs.127 lacs (Previous year Rs. 127 lacs).

vi) Demand of service tax under service of supply of tangible goods Rs. 62 lacs (Previous year Rs. 62 lacs).

vii) Demand of service tax and penalty under management, maintenance and repair services Rs. 48 lacs (Previous year Rs. 17 lacs).

viii) Demand of Excise Duty in respect of clearance of broken glass generated during the handling of bottles used for IMFL and Country Liquor Rs. 8 lacs (Previous year Nil).

5.3 Particulars of various Sales tax demands under dispute Rs. 6 lacs (Previous year Rs. 82 lacs) :

i) Demand of Sales Tax under Central Sales Tax Act on account of incomplete submission of sales tax forms Rs. 6 lacs (Previous year Rs.9 lacs). ii) Demand of Sales Tax under UP Sales Tax Act & Central Sales Tax Act Rs. Nil (Previous year Rs. 73 lacs).

5.4 Certain matters relating to various assessment years of Income Tax are pending at the various levels of tax authorities and High Court. The financial impact, if any, on the outcome of these matters is not determinable at this stage.

6. The additions to fixed assets includes interest on borrowing which has been capitalized amounting to Rs. 113 Lacs (Previous year Rs. Nil)

7. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 20 lacs (Previous year Rs. 262 lacs).

8. Maximum amount of advances due from Subsidiary companies, "S.R.K. Investments Pvt. Limited", "JIL Trading Pvt. Ltd " and "L.P Investments Limited" at any time during the year is Rs.3,262 lacs (Previous year Rs. 3,251 lacs).

9. At the end of the year unclaimed deposits of Rs.124 lacs (previous year Rs. 77 lacs) disclosed under current liabilities are not required to be transferred to the Investor Education and Protection Fund (IEPF) in terms of section 205C of the Companies Act, 1956, as these deposits are unclaimed for less than 7 years from the date of their maturity. Additional unclaimed deposits of Rs. 0.49 lacs as on 31.3.2015 (Previous year 0.37 lacs) lying unclaimed for more than 7 years have been deposited in the IEPF on 11th April, 2015 (Previous year 12th April, 2014).

10. In accordance with ASI 14 on 'Disclosure of Revenue from Sales Transactions' issued by Institute of Chartered Accountants of India, excise duty on turnover amounting to Rs. 40,850 lacs (Previous year Rs. 43,140 lacs) has been reduced from turnover in Statement of Profit & Loss.

Differential excise duty on opening and closing stock of finished goods amounting to Rs. 37 lacs [Previous year Rs. (207) lacs] has been separately shown in Manufacturing Expenses under 'Other Expenses Schedule' (Refer Note 29).

Notes:

The Company does not have any outstanding dilutive potential equity shares. Consequently the basic and diluted earnings per share of the Company remain the same.

* The preferential allotment of 2,500,000 equity shares, having no right to dividend has not been considered in the above computation of EPS (Refer Note 2.7c).

i) The Company is focused on the segment of Beverages (including Liquor) in India. The commercial terms and conditions of Liquor sales being identical in India, there are no differential risks and return on the basis of such business segmentation. The Company's year to date export turnover being less than 1% of its total turnover (Previous year less than 1%), the commercial risks and returns involved on the basis of geographic segmentation are therefore considered insignificant and immaterial.

ii) Segment assets include Capital Work- in- Progress & Capital Advances aggregating to Rs. 216 lacs (Previous year-Rs. 697 lacs). While most assets are directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis.

iii) Capital expenditure pertains to additions made to Fixed Assets/ Capital Work-in-Progress (including Capital Advances) during the year.

iv) Unallocated assets includes land, administration building and cash & bank balances etc. at Jagatjit Nagar.

v) Unallocated liabilities include interest bearing liabilities and tax provisions and deferred tax liability.

vi) Noncash items includes bad debts, advances and stocks written off, provision for doubtful debts & advances and fixed assets written off.

vii) Sales Services and other Income of Beverages segment includes rental income (net) of Rs. 1,617 lacs (Previous year Rs. 1,479 lacs) from the surplus properties of the Company.

11. Related Party Disclosures

In accordance with the requirements of "Accounting Standard 18" issued by The Institute of Chartered Accountants of India on the Related Party Disclosures, the transactions and Related Parties with whom transactions have taken place during the year are as follows:

11.1 Related parties and transactions with them as identified by the management and relied upon by the Auditors are given below: Subsidiary Companies

JIL Trading Pvt. Ltd. S.R.K. Investments Pvt. Ltd. Sea Bird Securities Pvt. Ltd. L.P. Investments Ltd.

11.2 Enterprises over which Major shareholders, Key Management Personnel and their relatives have significant influence / control : Milkfood Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme

Pashupati Properties & Estates Pvt. Ltd.

Qube Corporation Pvt. Ltd.

40.3 Key Management Personnel and their relatives:

Ms. Roshini Sanah Jaiswal (Director w.e.f. 14.8.2014 to 30.09.2014)

Mr. Karamjit Jaiswal (Relative of Director)

Mrs. Shakun Jaiswal (Relative of Director)

Mr. Narender Sapra (Managing Director)

Mr. Ravi Manchanda (Director)

Mrs. Nimmi Manchanda (Relative of Director)

Notes:

1) The above information has been compiled on the basis of disclosures received from all directors of the Company.

2) The above payments does not include expenses incurred by / reimbursed to directors during the course of performance of duty.

3) Interest Accrued is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 6 lacs (Previous year Rs. 6 lacs)

4) Reimbursement of Payments Made on behalf of the Company is in respect of the following : Milk food Ltd. Rs. 71 lacs (Previous year Rs. 94 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 10 lacs (Previous year Rs.10 lacs) JIL Trading Pvt. Ltd. Rs 4 (Previous Year Rs. 0)

5) Expenses paid by the Company on behalf of related parties is in respect of the following : Milk food Ltd. Rs. 20 lacs (Previous year Rs. 13 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 86 lacs (Previous year Rs. 13 lacs) S. R. K. Investments Pvt. Ltd. Rs. 0 (Previous year Rs. 0) L. P. Investments Pvt. Ltd. Rs 0 (Previous year Rs.0)

6) Loans including interest repaid is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 3 lacs (Previous year Rs. 2 lacs)

7) Lease Rent paid

Pashupati Properties & Estates Pvt. Limited Rs. 12 lacs (Previous year Rs. 12 lacs) Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 135 lacs (Previous year Rs. 135 lacs) Mrs. Nimmi Manchanda Rs. 8 lacs (Previous year Rs. 10 lacs)

8) Advances Given

S. R. K. Investments Pvt. Ltd. Rs.Nil (Previous year Rs. 4 lacs) JIL Trading Pvt. Ltd.Rs. 2 lacs (Previous year Rs. 6 lacs) Relatives of Director Rs. 100 lac (Previous year Rs. Nil)

9) Refund of Advance

L.P. Investments Ltd. Rs. 51 lacs (Previous year Rs. 15 lacs) S. R. K. Investments Pvt. Ltd. Rs.Nil (Previous year Rs. 2 lacs)

10) Unsecured Advances Outstanding

S.R.K. Investments Pvt. Ltd. Rs. 2,977 lacs (Previous year Rs. 2,977 lacs) L.P. Investments Ltd. Rs. 199 lacs (Previous year Rs. 252 lacs) JIL Trading Pvt. Ltd. Rs. 6 lacs (Previous year Rs. 7 lacs)

11) Investments

S.R.K. Investments Pvt. Ltd. Rs. 1 lac (Previous year Rs. 1 lac)

L.P. Investments Ltd. Rs. 1,020 lacs (Previous year Rs. 1,020 lacs)

JIL Trading Pvt. Ltd. Rs. 1 lac (Previous year Rs. 1 lac)

Sea Bird Securities Pvt. Ltd. Rs. 1 lac (Previous year Rs. 1 lac)

Qube Corporation Pvt. Ltd. Rs. 36 lacs (Previous year Rs. 90 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate) Rs. 2 lacs (Previous year Rs. 2 lacs)

12. The Company normally acquires vehicles under operational lease with the respective underlying assets as security. Minimum lease payments outstanding as on March 31, 2015 in respect of these assets are Nil (Previous year Nil).

Lease payments of Rs. Nil (Previous year Rs. 9 lacs) have been recognized as an expense in the profit and loss account for the year ended March 31, 2015

13. The Company has provided for depreciation adopting the useful lives of the assets (except for some Plant and Machinery) as prescribed in Schedule II of the Companies Act, 2013. However some plants and machinery have been depreciated on the re-evaluated useful life assessed by the technical experts which are different from the useful life prescribed in Schedule - II read with the relevant provisions thereof. Had the Company continued with the previously assessed useful life, charge for depreciation and loss for the period ended 31st March, 2015 would have been higher by Rs. 575 Lacs for the assets held as at 1st April, 2014. Further, based on transitional provisions provided in clause 7(b) of Schedule II of the Companies Act,2013, an amount of Rs. 439 lacs (net of deferred tax assets Rs.196 lacs) representing the carrying value of those Assets which have become nil, has been charged to the retained earnings as at 1st April, 2014.

14. During the year, net profit amounting to Rs. 375 lacs and (previous year Rs Nil) has been earned by the Company from sale of its industrial property situated In Block C, Sector 57, Noida, Gautam Budh Nagar (U.P).


Mar 31, 2014

1. CONTINGENT LIABILITIES:

The following are the details of Contingent liabilities the outflow of which is uncertain at this stage:

1.1 Particulars of various claims against the Company not acknowledged as debts Rs. 195 lacs (Previous year Rs. 184 lacs):

i) Claim by Punjab Government in respect of amount paid to Mahalaxmi Sugar Mills pending before the ''The Court of Civil Judge (Senior Division ), Kapurthala'' Rs. 22 lacs (Previous year Rs. 22 lacs).

ii) Claim in respect of case filed by ESI Corporation Rs. 6 lacs (Previous year Rs. 6 lacs) iii) Employees related claims Rs. 167 lacs (Previous year Rs. 156 lacs)

iv) There are certain claims against the Company relating to usage of trade mark etc., which have not been acknowledged as debts. The utcome of such claims is not ascertainable at this stage.

2.2 Particulars of various Excise & Service Tax demands under dispute Rs. 1,111 lacs (Previous year Rs. 902 lacs) which have not been deposited on account of dispute:

i) Demand of Service Tax and penalty in respect of wrong availment of Service Tax Cenvat Credit Rs. 261 lacs (Previous year Rs. 247 lacs).

ii) Demand of Excise Duty in respect of reversal of Cenvat Credit on Turbine Rs. 74 lacs (Previous year Rs. 74 lacs).

iii) Demand in respect of service tax, interest and penalty on income from Tie-up operations and royalty Rs. 569 lacs (Previous year Rs. 569 lacs).

iv) Demand of cess and penalty under Central Excise Act on manufacturing of corrugated paper board Rs.1 lac (Previous year Rs.1 lac).

v) Demand of service tax on renting of immovable property Rs.127 lacs ( Previous year Rs. 11 lacs).

vi) Demand of service tax under service of supply of tangible goods Rs. 62 lacs ( Previous year Nil ).

vii) Demand of service tax and penalty under management, maintenance and repair services Rs. 17 lacs ( Previous year Nil ).

2.3 Particulars of various Sales tax demands under dispute Rs. 82 lacs (Previous year Rs. 76 lacs) :

i) Demand of Sales Tax under Central Sales Tax Act on account of incomplete submission of sales tax forms Rs. 9 lac (Previous year Rs.0 lacs). ii) Demand of Sales Tax under UP Sales Tax Act & Central Sales Tax Act Rs. 73 lacs (Previous year Rs. 74 lacs). iii) Demand on account of non-submission of sales tax forms Rs. Nil (Previous year Rs. 2 lacs)

2.4 Certain matters relating to various assessment years of Income Tax are pending at the various levels of tax authorities and High Court. The financial impact, if any, on the outcome of these matters is not determinable at this stage.

3. Land, Building and Plant & Machinery at various locations have been revalued as on 31st March, 1998 by an independent approved valuer on a current replacement cost basis. The excess on revaluation of Rs. 4,832 lacs has been transferred to Revaluation Reserve.

2013-14 2012-13 (Rs. in lacs) (Rs. in lacs)

Depreciation for the year calculated in accordance with accounting policy mentioned [Refer Note 1.4 (a) and 12] on Tangible assets 2,134 2,056

Depreciation for the year calculated in accordance with accounting policy mentioned

[Refer Note 1.4 (b) and 12] on Intangible assets 3 3

Less: Adjusted against Revaluation Reserve 288 309

Net depreciation for the year charged to Profit & Loss Account 1,849 1,750

4. The additions to fixed assets includes interest on borrowing which has been capitalised amounting to Rs. Nil (Previous year Rs. 263 lacs)

5. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 262 lacs (Previous year Rs. 5 lacs).

6. Maximum amount of advances due from Subsidiary companies,''S.R.K. Investments Pvt. Limited'', ''JIL Trading Pvt. Ltd'', ''Sea Bird Securities Pvt. Ltd.'' and L.P Investments Limited at any time during the year is Rs. 3,251 lacs (Previous year Rs. 4,244 lacs).

7. In the earlier years, the company had given unsecured advances amounting to Rs. 122 lacs which was unrecoverable from its wholly owned subsidiary Anjani Estates Ltd. (formerly known as Binnies Estate Ltd.). Out of the aforesaid amount, a provision of Rs. 81 lacs had been made against the unsecured advance. During the financial year 2011-12, the company has been able to recover the entire unsecured advance of Rs. 122 lacs from Anjani Estates Ltd. (AEL) therefore, necessitating write-back of earlier provision amount of Rs. 81 Lacs. There was also an investment amounting to Rs. 5 lacs (against which provision for diminution was made in earlier years) that the company had made in Anjani Estates Ltd. (AEL) which was sold during the financial year 2011-12. Consequently, Anjani Estates Ltd (AEL) ceased to be a wholly owned subsidiary of the company as on March 31st 2012. AEL again became the subsidiary of the company by virtue of the provisions of section 4 (3) (b) of the Companies Act, 1956 during the previous financial year. However during the current financial year, AEL ceased to be subsidiary of the company.

8. At the end of the year unclaimed deposits of Rs.77 lacs (previous year Rs. 117 lacs) disclosed under current liabilities are not required to be transferred to the Investor Education and Protection Fund (IEPF) in terms of section 205C of the Companies Act, 1956, as these deposits are unclaimed for less than 7 years from the date of their maturity. Additional unclaimed deposits of Rs. 0.37 lacs as on 31.3.2014 (Previous year Rs. 0.68 lacs) lying unclaimed for more than 7 years have been deposited in the IEPF on 12th April, 2014 ( Previous year 15th April, 2013).

9. In accordance with ASI 14 on ''Disclosure of Revenue from Sales Transactions'' issued by Institute of Chartered Accountants of India, excise duty on turnover amounting to Rs. 43,140 lacs (Previous year Rs. 45,092 lacs) has been reduced from turnover in Statement of Profit & Loss. Differential excise duty on opening and closing stock of finished goods amounting to Rs. (207) lacs (Previous year Rs. 998 lacs) has been separately shown in Manufacturing Expenses under ''Other Expenses Schedule'' (Refer Note 29).

Notes: The Company does not have any outstanding dilutive potential equity shares. Consequently the basic and diluted earning per share of the Company remain the same.

* The preferential allotment of 2,500,000 equity shares, having no right to dividend has not been considered in the above computation of EPS (Refer Note 2.7c).

10. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure, and the internal financial reporting systems. The Company''s business segments are as under:

Beverages : Segment includes manufacturing and supply of Bottled Indian Made Foreign Liquor, Country Liquor, Industrial Alcohol and licensing use of its IMFL brands.

Food : Segment includes manufacturing and supplies of food products and providing services for manufacture of food products.

Packaging : Segment includes manufacturing and supplies of Glass to open market and for its captive consumption.

Others : Segment includes sale of Petroleum products and Khad . It also includes dividend from and profit on sale of investments and income from marketing services.

ii) As part of Secondary reporting, revenues are attributed to geographical areas based on the location of the customers.

iii) Inter Segment Pricing - At cost plus margin.

NOTES:

i) The Company is focused on the segment of Beverages (including Liquor) in India. The commercial terms and conditions of Liquor sales being identical in India, there are no differential risks and return on the basis of such business segmentation. The Company''s year to date export turnover being less than 1% of its total turnover (Previous year less than 1%), the commercial risks and returns involved on the basis of geographic segmentation are therefore considered insignificant and immaterial.

ii) Segment assets include Capital Work- in- Progress & Capital Advances aggregating to Rs.697 lacs (Previous year-Rs. 342 lacs). While most assets are directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis.

iii) Capital expenditure pertains to additions made to Fixed Assets/ Capital Work-in-Progress (including Capital Advances) during the year.

iv) Unallocated assets includes land, administration building and cash & bank balances etc. at Jagatjit Nagar.

v) Unallocated liabilities include interest bearing liabilities and tax provisions and deferred tax liability.

vi) Non cash items includes bad debts, advances and stocks written off, provision for doubtful debts & advances and fixed assets written off. vii) Sales Services and other Income of Beverages segment includes rental income (net) of Rs. 1,479 lacs (Previous year Rs. 1,602 lacs) from the surplus properties of the Company.

11. Related Party Disclosures

In accordance with the requirements of "Accounting Standard 18" issued by The Institute of Chartered Accountants of India on the Related Party Disclosures, the transactions and Related Parties with whom transactions have taken place during the year are as follows:

11.1 Related parties and transactions with them as identified by the management and relied upon by the Auditors are given below: Subsidiary Companies

JIL Trading Pvt. Ltd. S.R.K. Investments Pvt. Ltd. Sea Bird Securities Pvt. Ltd. L.P. Investments Limited.

11.2 Enterprises over which Major shareholders, Key Management Personnel and their relatives have significant influence / control : Milkfood Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme

Pashupati Properties & Estates Pvt. Limited

Qube Corporation Pvt. Ltd.

42.3 Key Management Personnel (Directors) and their relatives : Mr. Narender Sapra ( Managing Director)

Mr. Arvind Behl (Ceased to be Director of the Company w.e.f. 7th July, 2012)

Mr. Ravi Manchanda (Director)

Mrs. Mansi Behl ( Wife of Mr. Arvind Behl)

Mrs. Nimmi Manchanda ( Wife of Mr. Ravi Manchanda)

Notes:

1) The above information has been compiled on the basis of disclosures received from all directors of the Company.

2) The above payments does not include expenses incurred by / reimbursed to directors during the course of performance of duty.

3) Interest Accrued is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 6 lacs (Previous year Rs. 6 lacs)

4) Reimbursement of Payments Made on behalf of the Company is in respect of the following : Milkfood Ltd. Rs. 94 lacs (Previous year Rs. 92 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 10 lacs (Previous year Rs.16 lacs)

5) Expenses paid by the Company on behalf of related parties is in respect of the following : Milkfood Ltd. Rs. 13 lacs (Previous year Rs. 15 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 13 lacs (Previous year Rs. 4 lacs)

Anjani Estates Ltd. Rs. Nil (Previous year Rs. 1 lacs)

JIL Trading Pvt. Ltd. Rs 0 (Previous Year Rs. Nil)

S. R. K. Investments Pvt. Ltd. Rs. 0 (Previous year Rs. Nil)

L. P. Investments Pvt. Ltd. Rs 0 (Previous year Rs. Nil)

6) Loans including interest repaid is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 2 lacs (Previous year Rs. 3 lacs)

7) Lease Rent paid

Pashupati Properties & Estates Pvt. Limited Rs. 12 lacs (Previous year Rs. 12 lacs) Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 135 lacs (Previous year Rs. 135 lacs) Mrs. Nimmi Manchanda Rs. 10 lacs ( Previous year Rs. 10 lacs) Mrs. Mansi Behl Rs. Nil ( Previous year Rs. 3 lacs)

8) Advances Given

S. R. K. Investments Pvt. Ltd. Rs.4 lacs (Previous year Rs. Nil) JIL Trading Pvt. Ltd.Rs. 6 lacs (Previous year Rs. 2 lacs)

9) Refund of Advance

L.P. Investments Ltd. Rs. 15 lacs (Previous year Rs. 1,000 lacs) S. R. K. Investments Pvt. Ltd. Rs.2 lacs (Previous year Rs. Nil)

10) Provision for Permanent Diminution in value of Investments written back L.P. Investments Ltd. Rs. Nil (Previous year Rs. 20 lacs)

11) Unsecured Advances Outstanding

S.R.K. Investments Pvt. Ltd. Rs. 2,977 lacs (Previous year Rs. 2,975 lacs) L.P. Investments Ltd. Rs. 252 lacs (Previous year Rs. 266 lacs) JIL Trading Pvt. Ltd. Rs. 7 lacs (Previous year Rs. 2 lacs)

12) Investments

S.R.K. Investments Pvt. Ltd. Rs. 1 lacs (Previous year Rs. 1 lacs)

L.P. Investments Ltd. Rs. 1,020 lacs (Previous year Rs. 1,020 lacs

JIL Trading Pvt. Ltd. Rs. 1 lacs (Previous year Rs. 1 lacs)

Sea Bird Securities Pvt. Ltd. Rs. 1 lacs (Previous year Rs. 1 lacs)

Qube Corporation Pvt. Ltd. Rs. 90 lacs (Previous year Rs. 180 lacs)

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate) Rs. 2 lacs (Previous year Rs. 2 lacs)

12. During the year, production activities at the Glass Division of the company situated at Sahibabad (U.P) have been discontinued w.e.f. 3rd April, 2013. The glass container business of the company became unviable due to substantially higher price of natural gas charges from the company by GAIL (I) Ltd (based upon imported LNG prices) as compared to prices (based on Administered Price Mechanism of Govt of India) charged by GAIL (I) Ltd from similar glass manufacturers in Agra-Firozabad (U.P) area.

13. During the previous financial year, the company acquired 1 crore shares of M/s L.P. Investments Ltd, by conversion of outstanding loan of Rs. 10 crores. By virtue of this transaction M/s L.P. Investments Ltd. has became subsidiary of the company in the previous financial year.

14. Previous year''s figures have been regrouped / reclassified whenever necessary to correspond with the current year''s classification/disclosure.


Mar 31, 2013

1. CONTINGENT LIABILITIES:

The following are the details of Contingent liabilities the outflow of which is uncertain at this stage:

1.1 Particulars of various claims against the Company not acknowledged as debts Rs. 184 lacs (Previous year Rs. 173 lacs):

i) Claim by Punjab Government in respect of amount paid to Mahalaxmi Sugar Mills pending before the ''The Court of Civil Judge (Senior Division), Kapurthala'' Rs. 22 lacs (Previous year Rs. 22 lacs).

ii) Claim in respect of case filed by ESI Corporation Rs. 6 lacs (Previous year 6 lacs)

iii) Employees related claims Rs. 156 lacs (Previous year 145 lacs)

iv) There are certain claims against the Company relating to usage of trade mark etc., which have not been acknowledged as debts. The outcome of such claims is not ascertainable at this stage.

1.2 Particulars of various Excise & Service Tax demands under dispute Rs. 902 lacs (Previous year Rs. 890 lacs) which have not been deposited on account of dispute:

i) Demand of Service Tax and penalty in respect of wrong availment of Service Tax Cenvat Credit Rs. 247 lacs (Previous year Rs. 247 lacs).

ii) Demand of Excise Duty in respect of reversal of Cenvat Credit on Turbine Rs. 74 lacs (Previous year Rs. 74 lacs).

iii) Demand in respect of service tax, interest and penalty on income from Tie-up operations and royalty Rs. 569 lacs (Previous year Rs. 569 lacs).

iv) Demand of cess and penalty under Central Excise Act on manufacturing of corrugated paper board Rs. 1 lac (Previous year Nil).

v) Demand of service tax on renting of immovable property Rs. 11 lacs (Previous year Nil).

1.3 Particulars of various Sales tax demands under dispute Rs.76 lacs (Previous year Rs. 78 lacs) :

i) Demand of Sales Tax under Central Sales Tax Act on account of incomplete submission of sales tax forms Rs. 0 lac (Previous year Rs.3 lacs).

ii) Demand of Sales Tax under UP Sales Tax Act & Central Sales Tax Act Rs. 74 lacs (Previous year 73 lacs).

iii) Demand on account of non-submission of sales tax forms Rs 2 lacs (Previous year Rs. 2 lacs)

1.4 Certain matters relating to various assessment years of Income Tax are pending at the various levels of tax authorities and High Court. The financial impact, if any, on the outcome of these matters is not determinable at this stage.

2. Land, Building and Plant & Machinery at various locations have been revalued as on 31 st March, 1998 by an independent approved valuer on a current replacement cost basis. The excess on revaluation of Rs. 4,832 lacs has been transferred to Revaluation Reserve.

3. The additions to fixed assets and work-in-progress includes interest on borrowing which has been capitalised amounting to Rs. 263 lacs (Previous year Rs. 3 lacs) and Rs.Nil (Previous year Rs.24 lacs) respectively.

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 5 lacs (Previous year Rs. 1,142 lacs).

5. Company has reviewed the future earning of all its cash generating units in accordance with the accounting policy on impairment of assets [Notes 1.5 ]. Consequent to such review and due to change in market demand, during the previous year, the Company had impaired the carrying value of Dairy plant located at Jagatjit Nagar, Kapurthala being Rs. 228 lacs (Gross block Rs. 1,521 lacs and accumulated depreciation thereon, Rs. 1,293 lacs) to its estimated recoverable amount Rs. 42 lacs (being the estimated net value in use, determined on the basis of an independent valuation and estimated future cash Inflow as per AS-28). Out of impairment loss of Rs.186 lacs arising thereon, Rs. 123 lacs has been adjusted against Revaluation Reserve.

6. Maximum amount of advances due from Subsidiary companies, ''Anjani Estates Limited'', ''S.R.K. Investments Pvt. Limited'', ''JIL Trading Pvt. Ltd'' and L.P Investments Limited at any time during the year is Rs. 4,244 lacs (Previous year Rs. 3,111 lacs).

7. Jagatjit Brown Forman (I) Limited (JBFL), a joint venture of the Company with Brown Forman Mauritius Limited (BFML) had been ordered to be wound up by the Hon''ble High Court of Delhi vide their order dated 30th September, 2011. The Official Liquidator was directed to make payment/create provisions towards the Goverment Fee, Audit Fee and liquiditaon expenses from the account of the company in liquidation and transfer the balance funds available, if any, to the Common Pool Fund maintained in the Office of the Official Liquidator, Delhi. As the Company stands wound up, the investment of 1,528,880 equity shares of Rs. 153 lacs against which provision of Rs. 153 lacs had been made in earlier years, has been written off during the previous year and no amount was recieved by the company against these shares from the Official Liquidator.

8. "In the earlier years , the company had given unsecured advances amounting to Rs. 122 lacs which was unrecoverable from its wholly owned subsidiary Anjani Estates Ltd. (formely known as Binnies Estate Ltd.). Out of the aforesaid amount, a provision of Rs. 81 lacs had been made against the unsecured advance. During the previous financial year, the company has been able to recover the entire unsecured advance of Rs. 122 lacs from Anjani Estates Ltd. (AEL) therefore, necessitating write-back of earlier provision amount of Rs. 81 Lacs. There was also an investment amounting to Rs. 5 lacs (against which provision for diminution was made in earlier years) that the company had made in Anjani Estates Ltd. (AEL) which was sold during the previous financial year. Consequently, Anjani Estates Ltd (AEL) ceased to be a wholly owned subsidiary of the company as at last balance sheet date. AEL has again become the subsidiary of the company by virtue of the provisions of section 4 (3) (b) of the Companies Act, 1956 during the current financial year."

9. At the end of the year unclaimed deposits of Rs.117 lacs (previous year Rs. 101 lacs) disclosed under current liabilities are not required to be transferred to the Investor Education and Protection Fund (IEPF) in terms of section 205C of the Companies Act, 1956, as these deposits are unclaimed for less than 7 years from the date of their maturity. Additional unclaimed deposits of Rs. 0.68 lacs as on 31.3.2013 (Previous year 0.69 lacs) lying unclaimed for more than 7 years have been deposited in the IEPF on 15th April, 2013 (Previous year 18th April, 2012).

10. "In accordance with ASI 14 on ''Disclosure of Revenue from Sales Transactions'' issued by Institute of Chartered Accountants of India, excise duty on turnover amounting to Rs. 45,092 lacs (Previous year Rs. 44,270 lacs) has been reduced from turnover in Statement of Profit & Loss.

Differential excise duty on opening and closing stock of finished goods amounting to Rs. 998 lacs (Previous year Rs. 1,629 lacs) has been separately shown in Manufacturing Expenses under ''Other Expenses Schedule'' (Refer Note 29)."

11. Earnings per share (EPS): Numerators and denominators used to calculate basic and diluted earning per share

12. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure, and the internal financial reporting systems. The Company''s business segments are as under:

Beverages : Segment includes manufacturing and supply of Bottled Indian Made Foreign Liquor, Country Liquor, Industrial Alcohol and licensing use of its IMFL brands.

Food : Segment includes manufacturing and supplies of food products and providing services for manufacture of food products.

Packaging : Segment includes manufacturing and supplies of Class to open market and for its captive consumption.

Others : Segment includes sale of Petroleum products and Khad. It also includes dividend from and profit on sale of investments and income from marketing services.

13. Related Party Disclosures

In accordance with the requirements of "Accounting Standard 18" issued by The Institute of Chartered Accountants of India on the Related Party Disclosures, the transactions and Related Parties with whom transactions have taken place during the year are as follows:

13.1 Related parties and transactions with them as identified by the management and relied upon by the Auditors are given below:

Subsidiary Companies

JIL Trading Pvt. Ltd.

S.R.K. Investments Pvt. Ltd

Sea Bird Securities Pvt. Ltd.

L.P. Investments Limited.

Anjani Estates Limited

13.2 Enterprises over which Major shareholders, Key Management Personnel and their relatives have significant influence / control :

Milkfood Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme Pashupati Properties & Estates Pvt. Limited Grand Regency Hospitalities Pvt Ltd.

Qube Corporation Pvt. Ltd.

Jagatjit Spirits & Wine Ltd.

13.3 Key Management Personnel (Directors) and their relatives:

Mr. Narender Sapra

Mr. Arvind Behl Mr. Ravi Manchanda Mrs. Mansi Behl Mrs. Nimmi Manchanda

14. During the year, net profit amounting to Rs. Nil (Previous year Rs. 7,942 lacs) has been earned by the Company from sale of its idle residential property situated at B-69, G.K-1, New Delhi .

15. During the year, the company acquired 1 crore shares of M/s L.P. Investments Ltd, by conversion of outstanding loan of Rs. 10 crores. By virtue of this transaction M/s L.P. Investments Ltd. has become subsidiary of the company.

16. Previous year''s figures have been regrouped / reclassified whenever necessary to correspond with the current year''s classification/ disclosure.


Mar 31, 2012

1. Nature of Security and terms of repayment for Long Term Secured Borrowings:

Nature of Security

i. Term Loan amounting to Rs. 21 lacs (Previous year Rs. 119 lacs) for Turbine is secured by all the machineries and accessories including Civil work related to Turbine installed at its works at Jagatjit Nagar, Distt Kapurthala.

ii. Term Loan amounting to Rs. 308 lacs (Previous year Rs. 467 lacs) for Malt Extract Extension is secured by all the machineries and accessories including Civil work related to Filter and instrumentation installed at its works at Jagatjit Nagar, Distt Kapurthala.

iii. Term Loan amounting to Rs.1,588 lacs (Previous year Rs. 1,961 lacs for installation of Water Pollution Control Equipments is secured by all the machineries and accessories including Civil work related to aforementioned equipments installed at its works at Jagatjit Nagar, Distt Kapurthala.

Terms of Repayment

Repayable in 20 equal quarterly installments commencing from July, 2007. Last installment due in April, 2012. Rate of interest 14.75% : Previous year 14.00% p.a. as at year end.

Repayable in 20 equal quarterly installments commencing from June, 2009. Last installment due in March, 2014. Rate of Interest 13.75%: Previous year 12.50% p.a. as at year end.

Repayable in 28 equal quarterly installments commencing from September, 2009. Last installment due in June, 2016. Rate of Interest 14.65% : Previous year 13.50% p.a. as at year end.

iv. Term Loan amounting to Rs.447 lacs (Previous year Rs. 670 lacs) for Malt Spirit Plant and Malted Milk Food Plant is secured by all the machineries and accessories including Civil work related to Plants installed at its works at Jagatjit Nagar, Distt Kapurthala.

v. Short Term Loan amounting to Rs Nil (Previous year Rs. 5,000 lacs) for General Corporate Purpose is secured by hypothecation of property situated at 78, Institutional Area, Sector -18 Curgaon and property at its works at Jagatjit Nagar, Distt Kapurthala.

vi. Term Loan amounting to Rs. 582 lacs (Previous year Nil) for machinery (IS machine) is secured by all the machineries and accessories including civil work related to the aforementioned machineries installed at its works at Site IV , Plot No.17 Sahibabad Industrial Area Sahibabad

vii Term Loan amounting to Rs. 89 lacs (Previous year Rs. Nil) for Turbine is secured by all the machineries and accessories including civil work related to Turbine installed at its works at Jagatjit Nagar, Distt Kapurthala.

viii Term Loan amounting to Rs. 342 lacs (Previous year Rs. Nil) for plant & machinery is secured by all the machineries and accessories including civil work related to aforementioned machinery installed at its works at Jagatjit Nagar, Distt Kapurthala.

ix Term Loan amounting to Rs. 664 lacs (Previous year Rs. Nil) for Boiler is secured by all the machineries and accessories including civil work related to the aforementioned machineries installed at its works at Jagatjit Nagar, Distt Kapurthala.

x Term Loan amounting to Rs. 50 lacs (Previous year Rs. 250 lacs) for Furnace is secured by land and building and all tangible and movable machineries and plant with spares, tools and accessories, both present & future, installed at its works at Site IV, Plot No.17 Sahibabad Industrial Area, Sahibabad (UP).

xi Term Loan amounting to Rs. Nil (Previous year Rs. 200 lacs) for Furnace is secured by land and building and all tangible and movable machineries and plant with spares, tools and accessories, both present & future, installed at its works at Site IV, Plot No.17 Sahibabad Industrial Area, Sahibabad (UP).

xii Term Loan amounting to Rs. NIL (Previous year Rs. 37 lacs) for DG Set is secured by hypothecation of DG set and related equipments, accessories acquired out of bank loan both present and future at its works at Site IV, Plot No.17 Sahibabad Industrial Area, Sahibabad (UP).

xiii. Car Loans are secured by hypothecation of the related cars.

2. Terms of repayment for Long Term Unsecured Borrowings:

i. Unsecured Inter Corporate deposit Rs. 59 lacs (Previous year Rs. 59 lacs) from related party (Fast Buck Investment and Trading Pvt. Ltd).

Repayable in 20 equal quarterly installments commencing from April, 2009. Last installment due on January 2014. Rate of interest 14.75%: Previous year 14% p.a. as at year end.

Repayable in 12 months from date of first disbursement date June 08, 2010 . Rate of interest Nil : Previous Year 13.50% p.a.

Repayable in 20 equal quarterly installments commencing from September, 2011. Last installment due on July, 2016. Rate of interest 14.65% p.a (Previous year NIL ) as at year end.

Repayable in 60 equal monthly installments commencing from April, 2013. Last installment due on March, 2018. Rate of interest 14.65% p.a (Previous year NIL ) as at year end.

Repayable in 20 equal quarterly installments commencing from April, 2012. Last installment due on January 2017. Rate of interest 15.25% p.a (Previous year Nil) as at year end.

Repayable in 20 equal quarterly installments commencing from April, 2013. Last installment due on January, 2018. Rate of interest 13.75% p.a (Previous year Nil) as at year end.

Repayable in 20 equal quarterly installments commencing from July, 2007. Last installment due on April, 2012. Rate of interest 13.75% (Previous year 12.50% p.a.) as at year end.

Repayable in 20 equal quarterly installments commencing from June, 2007. Last installment due on March 2012. Rate of interest Nil (Previous year 13.50% p.a.) as at year end.

Repayable in 20 equal quarterly installments commencing from June, 2008. Last installment due on July, 2011. Rate of interest Nil (Previous year 13.50% p.a.) as at year end.

Repayable in 36-60 equal monthly installments. Rate of interest 8.25% to 11.25% p.a.

Rate of Interest 8% on Rs. 24 lacs and 12% on Rs. 35 lacs; Previous year 8% on Rs. 24 lacs and 12% on Rs. 35 lacs.

Note: Installments falling due in respect of all the above loans up to 31.3.2013 have been grouped under "Current maturity of long-term debt" (Refer Note 10).

3. CONTINGENT LIABILITIES

The following are the details of Contingent liabilities the outflow of which is uncertain at this stage:

4. Particulars of various claims against the Company not acknowledged as debts Rs. 173 lacs (Previous year Rs. 167 lacs):

i) Claim by Punjab Government in respect of amount paid to Mahalaxmi Sugar Mills pending before the 'The Court of Civil Judge (Senior Division), Kapurthala' Rs. 22 lacs

(Previous year Rs. 22 lacs). ii) Claim in respect of case filed by ESI Corporation Rs. 6 lacs (Previous year 6 lacs).

iii) Employees related claims Rs. 145 lacs (Previous year 139 lacs).

iv) There are certain claims against the Company relating to usage of trade mark etc., which have not been acknowledged as debts. The outcome of such claims is not ascertainable at this stage.

5. Particulars of various Excise & Service Tax demands under dispute Rs. 890 lacs (Previous year Rs. 828 lacs) which have not been deposited on account of dispute: i) Demand of Service Tax and penalty in respect of wrong availment of Service Tax Cenvat Credit Rs. 247 lacs (Previous year Rs. 247 lacs).

ii) Demand of Excise Duty in respect of reversal of Cenvat Credit on Turbine Rs. 74 lacs (Previous year Rs. 74 lacs).

iii) Demand in respect of service tax, interest and penalty on income from Tie-up operations arid royalty Rs. 569 lacs (Previous year Rs. 507 lacs).

6. Particulars of various Sales tax demands under dispute Rs. 78 lacs (Previous year Rs. 143 lacs).

i) Demand of Sales Tax under Centra) Sales Tax Act on account of incomplete submission of sales tax forms Rs. 3 lacs (Previous year Rs. 3 lacs).

ii) Demand of Entry Tax under UP Sales Tax Rs. Nil (Previous year Rs. 65 lacs).

iii) Demand of Sales Tax under UP Sales Tax Act Rs. 73 lacs (Previous year Rs. 73 lacs).

iv) Demand on account of non-submission of sales tax forms Rs. 2 lacs (Previous year Rs. 2 lacs).

7. Certain matters relating to various assessment years of Income Tax are pending at the various levels of tax authorities and High Court. The financial impact, if any, on the outcome of these matters is not determinable at this stage.

8. The additions to fixed assets and work-in-progress includes interest on borrowing which has been capitalised amounting to Rs. 3 lacs (Previous year Rs. 3 lacs) and Rs. 24 lacs (Previous year Rs. Nil) respectively.

9. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 1,142 lacs (Previous year Rs. 622 lacs).

10. Company reviewed the future earning of all its cash generating units in accordance with the accounting policy on impairment of assets [Notes 1. 5}. Consequent to such review and due to change in market demand, during the FY 2010-11 the Company impaired the carrying value of Building and Plant & Machinery of plant located at Sikandrabad being Rs. 1,104 lacs (Gross block Rs. 2,598 lacs and accumulated depreciation thereon, Rs. 1,495 lacs) to its estimated recoverable amount Rs. 149 lacs (being the estimated net selling price, determined on the basis of an independent valuation). Out of impairment loss of Rs. 955 lacs arising thereon, Rs. 61 lacs was adjusted against Revaluation Reserve. 35.2. Company has reviewed the future earning of all its cash generating units in accordance with the accounting policy on impairment of assets [Notes 1.5]. Consequent to such review and due to change in market demand, during the year, the Company has impaired the carrying value of Dairy plant located at Jagatjit Nagar, Kapurthala being Rs. 228 lacs (Cross block Rs. 1,521 lacs and accumulated depreciation thereon, Rs. 1,293 lacs) to its estimated recoverable amount Rs. 42 lacs (being the estimated net value in use, determined on the basis of an independent valuation and estimated future cash Inflow as per AS-28). Out of impairment loss of Rs.186 lacs arising thereon, Rs. 123 lacs has been adjusted against Revaluation Reserve.

11. Maximum amount of advances due from Subsidiary Company, 'Anjani Estates Limited' and S.R.K Investment Limited at any time during the year is Rs. 3,111 lacs (Previous year Rs. 3,123 lacs). However, it is clarified that as on 31 st March, 2012, Anjani Estates Limited ceased to be subsidiary of the Company.

12. Jagatjit Brown Forman (I) Limited (JBFL), a joint venture of the Company with Brown Forman Mauritius Limited (BFML) has been ordered to be wound up by the Hon'ble High Court of Delhi vide their order dated 30th September, 2011. The Official Liquidator was directed to make payment/create provisions towards the Goverment Fee, Audit Fee and liquiditaon expenses from the account of the company )n liquidation and transfer the balance funds available, if any, to the Common Pool Fund maintained in the Office of the Official Liquidator, Delhi. As the Company stands wound up, the investment of 1,528,880 equity shares of Rs. 153 lacs against which provision of Rs. 153 lacs had been made in earlier years, has been written off during the year and no amount was recieved by the company against these shares from the Official Liquidator.

13. As at the last balance sheet date, the company had given unsecured advances amounting to Rs. 122 lacs which was unrecoverable from its wholly owned subsidiary Anjani Estates Ltd. (formely known as Binnies Estate Ltd.). Out of the aforesaid amount, a provision of Rs. 81 lacs had been made against the unsecured advance.

During the financial year, the company has been able to recover the entire unsecured advance of Rs. 122 lacs from Anjani Estates Ltd. (AEL) therefore, necessitating write-back of earlier provision amount of Rs. 81 Lacs.

There was also an investment amounting to Rs. 5 lacs (against which provision for diminution was made in earlier years) that the company had made in Anjani Estates Ltd. (AEL) which was sold during the financial year. Consequently, Anjani Estates Ltd (AEL) ceased to be a wholly owned subsidiary of the company as at this balance sheet date.

14. At the year end unclaimed dividend Rs.Nil (Previous Year Rs. 2 lacs) and unclaimed deposits Rs. 101 lacs (previous year Rs. 93 lacs) disclosed under current liabilities need not be transferred to Investor Education and Protection Fund in terms of provisions of Section 205C of the Companies Act, 1956 (Refer Note 10).

15. In accordance with ASI 14 on 'Disclosure of Revenue from Sales Transactions' issued by Institute of Chartered Accountants of India, excise duty on turnover amounting to Rs. 44,270 lacs (Previous year Rs. 37,990 lacs) has been reduced from turnover in Statement of Profit & Loss.

Differential excise duty on opening and closing stock of finished goods amounting to Rs. 1,629 lacs (Previous year Rs. 1,293 lacs) has been separately shown in Manufacturing Expenses under 'Other Expenses Schedule' (Refer Note. 29).

16. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure, and the interna! financial reporting systems. The Company's business segments are as under:

Beverages : Segment includes manufacturing and supply of Bottled Indian Made Foreign Liquor, Country Liquor, Industrial Alcohol and licensing use of its IMFL brands. Food : Segment includes manufacturing and supplies of food products and providing services for manufacture of food products. Packaging : Segment includes manufacturing and supplies of Glass to open market and for its captive consumption. Others ; Segment includes sale of Petroleum products and Khad. It also includes dividend from and profit on sale of investments and income from marketing services.

17. Related Party Disclosures

In accordance with the requirements of "Accounting Standard 18" issued by The Institute of Chartered Accountants of India on the Related Party Disclosures, the transactions and Related Parties with whom transactions have taken place during the year are as follows:

18. Related parties and transactions with them as identified by the management and relied upon by the Auditors are given below: Subsidiary Companies

JIL Trading Pvt. Ltd.

S.R.K. Investments Pvt. Ltd.

Sea Bird Securities Pvt. Ltd.

Anjani Estates Limited (Ceased to be subsidiary during the year)

44.2 Enterprises over which Major shareholders, Key Management Personnel and their relatives have significant influence/control :

Milkfood Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme

Pashupati Properties & Estates Pvt. Limited

L.P. Investments Limited. (Associate)

Grand Regency Hospitalities Pvt. Ltd.

Qube Corporation Pvt. Ltd.

19. Key Management Personnel (Directors) and their relatives : Mr. Narender Sapra

Mr. Arvind Behl Mr. Ravi Manchanda

20. During the last financial year the Company has recognised revenue from goods sold by contract manufacturers on behalf of company as per the accounting policy in respect of income recognition. In this connection total revenue of the Company, for this financial year includes the revenue amounting to Rs. 24,549 lacs (Previous year Rs. 22,882 lacs) from its contract manufacturing units. All expenditure, assets and liabilities related to operations with contract manufacturing units are consolidated in the respective accounting heads. (Note 1.8a).

21. During the year, net profit amounting to Rs 7,942 lacs and previous year Rs 2,939 lacs has been earned by the Company from sale of its idle residential property situated at B-69, G.K-1, New Delhi and 12, Rajdoot Marg, New Delhi respectively.

22. During the year ended 31st March, 2012, the revised format of accounts was notified by modifying Schedule VI under the Companies Act, 1956. The new format has been followed for preparation and presentation of the financial statements. The adoption of revised Schedule VI, as aforesaid does not impact recognition and measurement principles followed for preparation of the financial statements. The Company has reclassified the previous year's figure in accordance with the requirements applicable in the current year. The figures have been rounded off to the nearest lac.


Mar 31, 2011

(A) CONTINGENT LIABILITIES: The following are the details of Contingent liabilities the outflow of which is uncertain at this stage

1. Particulars of various claims against the Company not acknowledged as debts Rs. 16,731 thousand (Previous year Rs. 44,078 thousand):

i) Claim by Punjab Government in respect of amount paid to Mahalaxmi Sugar Mills pending before the 'The Court of Civil Judge (Senior Division ), Kapurthala' Rs. 2,174 thousand (Previous year Rs. 2,1 74 thousand).

ii) Claim in respect of case filed by ESI Corporation Rs. 615 thousand (Previous year Rs. 615 thousand).

iii) Employee related claims Rs. 13,942 thousand (Previous year Rs. 15,409 thousand).

iv) Demand and penalty on Sales Promotion Expenses disallowed by income tax Department in respect of Tie Up Unit Rs. Nil (Previous year Rs. 25,880).

v) There are certain claims against the Company relating to usage of trade mark etc., which have not been acknowledged as debts. The outcome of such claims is not ascertainable at this stage.

2. a) Particulars of various Excise demands under dispute Rs. 82,755 thousand (Previous year Rs. 33,107 thousand) which have not been deposited on account of dispute:

i) Penalty and Cess on Corrugated cartons manufactured for own consumption Rs. Nil (Previous year Rs. 15 thousand)

ii) Demand of Service Tax and penalty in respect of wrong availment of Service Tax Cenvat Credit Rs. 24,705 thousand (Previous year Rs. 25,681 thousand)

iii) Demand of Excise Duty in respect of reversal of Cenvat Credit on Turbine Rs. 7,411 thousand (Previous year Rs. 7,411 thousand)

iv) Demand in respect of service tax, interest and penalty on income from Tie-up Operations and Royalty Rs. 50,639 (Previous year Rs. Nil).

b) Particulars of various Sales tax demands under dispute Rs.14,281 thousand (Previous year Rs. 14,156 thousand).

i) Demand on account of non-submission of sales tax forms Rs. 240 thousand (Previous year Rs. 240 thousand).

ii) Demand of Entry tax under U P Sales Tax Act Rs. 6,446 thousand (Previous year Rs- 6,446 thousand).

iii) Demand of Sales tax under U P Sales Tax Act Rs. 7,301 thousand (Previous year Rs. 7,301 thousand ).

iv) Demand of Sales Tax under Central Sales Tax Act on account of incomplete submission of sales tax forms Rs. 294 thousand (Previous year Rs. 169 thousand).

c) Certain matters relating to various assessment years of Income Tax are pending at the various levels of tax authorities and High Court. The financial impact, if any, on the outcome of these matters is not determinable at this stage.

(B) OTHER NOTES AND ADDITIONAL INFORMATION

3. The additions to fixed assets and work-in-progress includes interest on borrowing capitalised amounting to Rs. 323 thousand (Previous year Rs. 11,153 thousand) and Rs.Nil (Previous year Rs. Nil).

4. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 62,222 thousand (Previous year- Rs. 1 7,466 thousand).

5. "Company has reviewed the future earning of all its cash generating units in accordance with the accounting policy on impairment of assets "[ Note 21 15 above ]. Consequent to such review and due to change in market demand, during the Year the Company has impaired the carrying value of Building and Plant & Machinery of plant located at Sikandrabad being Rs. 110,353 thousand ( Gross block Rs. 259,833 thousand and accumulated depreciation thereon, Rs. 149,480 thousand) to its estimated recoverable amount Rs. 14,864 thousand (being the estimated net selling price, determined on the basis of an independent valuation). Out of impairment loss of Rs.95,489 thousand arising thereon, Rs. 6,135 thousand has been adjusted against Revaluation Reserve."

6. Amount due from Directors and Company Secretary as at March 31, 2011 is Rs. 2,727 thousand (Previous year Rs. 3,020 thousand). Maximum amount due at any time during the year Rs. 6,284 thousand (Previous year Rs. 3,954 thousand).

7. Maximum amount of advances due from Subsidiary company, 'Anjani Estates Limited and S.R.K. Investments Pvt Ltd.' at any time during the year is Rs. 312,257 thousand (Previous year Rs. 8,110 thousand).

8. lagatjit Brown Forman (I) Limited (JBFL), a joint venture with Brown Forman Mauritius Limited (BFML), is under advanced stage of liquidation and official liquidator has been appointed by the Hon'ble High Court of Delhi. The Company entered into deed of settlement, release and indemnification with the BFML in the year 2004-05 to wind up JBFL. As per the terms of settlement, the Company received Rs. 9,671 thousand from BFML in earlier years. During the earlier years the Company has netted off Rs. 24,495 thousand (being recoverable from JBFL on account of various supplies/services) against the provisions made by the Company in earlier years, in view of lack of funds with JBFL.

9. (a) (i) Term Loan for Furnace is secured by Land and Building and all tangible and movable machinery and plant with spares, tools and accessories, both present and future at its works at Site IV, Plot No 1 7, Sahibabad Industrial Area, Sahibabad.

(ii) Term Loan for D.G. Set is secured by hypothecation of D.G. Set and related equipments / accessories acquired out of bank loan both present and future at its works at Site IV, Plot No 1 7, Sahibabad Industrial Area, Sahibabad.

(iii) Term Loan for Turbine is secured by all the machineries and accessories including Civil work related to Turbine installed at its works at Jagatjit Nagar, Distt Kapurthala.

(iv) Term Loan for Malt Extract Extension is secured by all the machineries and accessories including Civil work related to Filter and instrumentation installed at its works at Jagatjit Nagar, Distt Kapurthala.

(v) Term Loan for installation of Water Pollution Control Equipments is secured by all the machineries and accessories including Civil work related to aforementioned equipments installed at its works at Jagatjit Nagar, Distt Kapurthala.

(vi) Term Loan for Malt Spirit Plant and Malted Milk Food Plant is secured by all the machineries and accessories including Civil work related to Plants installed at its works at Jagatjit Nagar, Distt Kapurthala.

(vii) Short Term Loan for General Corporate Purpose is secured by hypothecation of property situated at 78, Institutional Area, Sector -18 Gurgaon and property at its works at Jagtjit Nagar.

(b) Cash Credit/Overdraft and Working Capital Demand Loan from Banks are secured by hypothecation of stocks, stores, spares and book debts.

(c) A Fixed deposit of Rs. 160,039 thousand (Previous year Rs. 221,132 thousand) is guaranteed by Directors

(d) Car Loans are secured by hypothecation of the related cars.

10. The Company has given unsecured advance to Anjani Estates Limited formerly known Binnies Estates Limited (AEL-a wholly owned Subsidiary) amounting to Rs. 12,241 thousand (Previous Year Rs. 8,111 thousand) to be repaid as per the applicable stipulation/restipulation. The Company also has an investment in equity/preference shares capital of AEL amounting to Rs. 501 thousand (Previous year Rs. 501 thousand). The accumulated losses of AEL have exceeded its capital and reserves. Accordingly, as an abundant caution the Company had made provision against unsecured advance of Rs.Nil (Previous year Rs.Nil). Further, in earlier years the company has made provision for diminution in value of investments amounting to Rs. 499 thousand and unsecured advances amounting to Rs. 8,109 thousand.

11. At the year end unclaimed dividend Rs. 159 thousand (Previous Year Rs. 610 thousand) and unclaimed deposits Rs. 9,324 thousand (previous year Rs. 8,164 thousand) disclosed under current liabilities (Schedule 12) need not be transferred to Investor Education and Protection Fund in terms of provisions of Section 205C of the Companies Act, 1956.

12. Details of dues to Micro, Small and Medium Enterprises as per MSMED ACT, 2006

This information (refer Schedule 12 - Current Liabilities & Provisions) regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

13. In accordance with ASI 14 on 'Disclosure of Revenue from Sales Transactions' issued by Institute of Chartered Accountants of India, excise duty on turnover amounting to Rs. 3,798,998 thousand (Previous year Rs. 2,381,032 thousand) has been reduced from turnover in profit & loss account and differential excise duty on opening and closing stock of finished goods amounting to Rs. 129,333 thousand (Previous year Rs. 49,054 thousand) has been separately shown in Profit and Loss Account.

14. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure and the internal financial reporting systems. The Company's business segments are as under:

Beverages : Segment includes manufacturing and supply of Bottled Indian Made Foreign Liquor, Country Liquor, Industrial Alcohol and licensing use of its IMFL brands.

Food : Segment includes manufacturing and supplies of food products and providing services for manufacture of food products.

Packaging : Segment includes manufacturing and supplies of Glass and Plastic containers to open market and for its captive consumption.

Others ; Segment includes sale of Petroleum products and Khad . It also includes dividend from and profit on sale of investments and income from marketing services.

ii) As part of Secondary reporting, revenues are attributed to geographical areas based on the location of the customers.

iii) Inter Segment Pricing - At cost plus margin.

NOTES:

i) The Company is focused on the segment of Beverages (including Liquor) in India. The commercial terms and conditions of Liquor sales being identical in India, there are no differential risks and return on the basis of such business segmentation. The Company's year to date export turnover being less than 1 % of its total turnover (Previous year 1 %), the commercial risks and returns involved on the basis of geographic segmentation are therefore considered insignificant and immaterial.

ii) Segment assets include Capital Work- in- Progress & Capital Advances aggregating to Rs.30,495 thousand (Previous year-Rs. 42,955 thousand). While most assets are directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis.

iii) Capital expenditure pertains to additions made to Fixed Assets/ Capital Work-in-Progress (including Capital Advances) during the year.

iv) Unallocated assets includes land, administration building and cash & bank balances etc. at Jagatjit Nagar.

v) Unallocated liabilities include interest bearing liabilities and tax provisions and deferred tax liability.

vi) Non cash items includes bad debts, advances and stocks written off, provision for doubtful debts & advances and fixed assets written off.

vii) Sales, Services and other Income of Beverages segment includes rental income (net) of Rs. 92,686 thousand (Previous year Rs. 123,376 thousand) from the surplus properties of the Company.

15. Movement of purchase and sale of investment.

JIL Trading Pvt. Limited 10000 shares of Rs. 10 each fully paid

Sea Bird Securities Pvt. Limited 5200 shares of Rs. 10 each fully paid

S.R.K. Investments Private Limited 10000 Shares of Rs 10 each fully paid

16. Related Party Disclosures

In accordance with the requirements of "Accounting Standard 18" issued by The Institute of Chartered Accountants of India on the Related Party Disclosures, the transactions and Related Parties with whom transactions have taken place during the year are as follows:

(a) Related parties as identified by the management and relied upon by the Auditors are given below:

Subsidiary Companies

Anjani Estates Ltd.

JIL Trading Pvt. Ltd.

S.R.K. Investments Pvt. Ltd.

Sea Bird Securities Pvt. Ltd.

(b) Enterprises over which Major shareholders, Key Management Personnel and their relatives have significant influence / control : Milkfood Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd.

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme

Pashupati Properties & Estates Pvt. Limited

L.P. Investments Limited.

Grand Regency Hospitalities Pvt. Ltd.

Qube Corporation Pvt. Ltd.

(c) Key Management Personnel (Directors} and their relatives :

Mr. Narender Sapra

Mr. Arvind Behl

Mr. Ravi Manchanda

(d) Details of transactions carried out with the related parties in the ordinary course of business:

Notes:

1) The above information has been compiled on the basis of disclosures received from all directors of the Company.

2) The above payments does not include expenses incurred by / reimbursed to directors during the course of performance of duty.

3) Sale of goods includes sales to the following :

Milkfood Ltd. Rs. 7,204 thousand (Previous year Rs. 6,406 thousand)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 1,623 thousand (Previous year Rs. 301 thousand)

4) Purchase of goods includes purchases from the following :

Milkfood Ltd. Rs. 41,405 thousand (Previous year - Rs. 33,682 thousand)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs.130 thousand (Previous year Rs. 154 thousand)

5) Interest Accrued is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 610 thousand (Previous year Rs. 692 thousand)

6) Reimbursement of Payments made on behalf of the Company is in respect of the following :

Milkfood Ltd. Rs. 9,317 thousand (Previous year Rs. 7,980 thousand)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 405 thousand (Previous year Rs. 3,531 thousand)

Fast Buck Investments & Trading Pvt. Ltd. Rs. 6 thousand (Previous year Rs. Nil)

Grand Regency Hospitalities Pvt Ltd. Rs 25 thousand (Previous Year Rs. 400 thousand)

JIL Trading Pvt. Ltd. Rs. 5 thousand (Previous year Rs. Nil)

Anjani Estates Ltd. Rs. 39 thousand (Previous year Rs. Nil)

7) Expenses paid by the Company on behalf of related parties is in respect of the following :

Milkfood Ltd. Rs. 869 thousand (Previous year Rs. 1,093 thousand)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 360 thousand (Previous year Rs. 493 thousand)

Anjani Estates Ltd. Rs. 128 thousand (Previous year Rs. 10 thousand )

Grand Regency Hospitalities Pvt. Ltd. Rs 107 thousand (Previous Year Rs. Nil)

S.R.K. Investments Pvt. Ltd. Rs.16 thousand (Previous Year Rs. Nil)

8) Loans including interest repaid is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 261 thousand (Previous year Rs. 5,194 thousand)

9) Lease Rent paid

Pashupati Properties & Estates Pvt. Limited Rs. 1,200 thousand (Previous year Rs. 1200 thousand)

Hyderabad Distilleries & Wineries Pvt. Ltd Rs. 14,615 thousand (Previous year Rs. 1 3,236 thousand)

17. Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmation and are in the process of reconciliation.

18. In a petition filed against the Company and its Board of Directors under section 397 and 398 of the Companies Act, 1956, in the Hon'ble Company Law Board (CLB), the CLB vide its order dated 12th March, 2009 has directed the Company to buy back the shares of the petitioners and their associates aggregating to 5,794,112 equity shares in the Company alongwith their holdings of 600 Equity Shares in M/s LPJ Holdings Pvt, Ltd. (formely known as M/s L.P. Jaiswat & Sons Pvt Ltd) at an aggregate value of Rs. 7300 lacs. Accordingly, during the financial year 2009-2010 in order to avoid any further adverse effects on the business operations and to facilitate smooth business operations, the Company paid total sum of Rs.7,300 lacs to the petitioners before the fast date of payment, i.e. 11th June, 2009. The company made payment of (i) Rs. 579 lacs towards Face value of the Share Capital bought back and cancelled (ii) Rs. 5816 lacs as Premium paid on buy back of shares of the petitioners in the Company and (iii) Rs. 905 lacs towards 600 Shares of M /s L.P. Jaiswal & Sons Pvt Ltd acquired from the Petitioners and disclosed as Investments.

In view of the management, the premium paid on Buy-back of shares amounting to Rs 5,816 lacs as mentioned above has not been charged to Profit & Loss Account due to insufficiency of the Profits of the Company during the Financial Year 2009-2010. Instead as required under section 77A of the Companies Act, 1956 this amount has been set off against the brought forward balance in Profit & Loss Account, even though the CLB order as mentioned above exempts the company from the same. Further as required under section 77AA of the Companies Act, 1956 a sum equivalent to the nominal value of the shares so cancelled has been transferred to the Capital Redemption Reserve Account.

19. During the current financial year the company has recognised revenue from goods sold by contract manufacturers on behalf of company as per the accounting policy in respect of income recognition. In this connection total turnover of the Company, for this financial year includes the Sales amounting to Rs. 2,274,892 thousand (Previous year Rs. Nil) from its contract manufacturing units. All expenditure, assets and liabilities related to operations with contract manufacturing units are consolidated in the respective accounting heads.

20. During the year net profit amounting to Rs. 293,854 thousand has been earned by the Company from sale of its idle residential property situated at 12, Rajdoot Marg, New Delhi.

21. Previous year's figures have been regrouped/recast wherever necessary to conform to the current year's classification.


Mar 31, 2010

(A) CONTINGENT LIABILITIES: The following are the details of Contingent liabilities the outflow of which is uncertain at this stage

1. Particulars of various claims against the Company not acknowledged as debts Rs. 44,078 thousand (Previous year—Rs. 51,518 thousand):

i) Claim by Punjab Government in respect of amount paid to Mahalaxtni Sugar Mills pending before the The Court of Civil Judge (Senior Division), Kapurthala Rs. 2,174 thousand (Previous year Rs. 2,174 thousand).

ii) Claim in respect of case filed by ESI Corporation Rs. 615 thousand (Previous year Rs. 615 thousand).

iii) Claim by Excise & Taxation Commissioner in respect of renewal of Distillery License Rs. Nil (Previous year Rs. 9,591 thousand) pending before Honble Punjab & Haryana High Court. ,

iv) Employee related claims Rs. 15,409 thousand (Previous year Rs. 1 3,258 thousand).

v) Demand and penalty on Sales Promotion Expenses disallowed by income tax Department in respect of Tie Up Unit Rs. 25,880 thousand (Previous year Rs. 25,880 thousand).

vi) There are certain claims against the Company relating to usage of trade mark etc., which have not been acknowledged as debts. The outcome of such claims is not ascertainable at this stage.

2. a) Particulars of various Excise demands under dispute Rs. 33,107 thousand (Previous year Rs. 19,064 thousand) which have not been deposited on account of dispute:

i) Penalty on excess stock found at the unit Rs. Nil (Previous year Rs. 50 thousand).

ii) Demand in respect of service tax, interest and penalty on utilisation of Service Tax Credit Rs. Nil (Previous year Rs. 406 thousand).

iii) Demand of Service tax on bottling charges amounting to Rs. Nil (Previous year Rs. 53 thousand).

iv) Penalty and Cess on Corrugated cartons manufactured for own consumption Rs. 15 thousand (Previous year Rs. 301 thousand).

vi) Demand of Service Tax and penalty in respect of wrong availment of Service Tax Cenvat Credit Rs. 25,681 thousand (Previous year Rs. 10,764 thousand).

vii Demand of Excise Duty in respect of reversal of Cenvat Credit on Turbine Rs. 7,411 thousand (Previous year Rs. 7,411 thousand).

viii) Penalty u/s 76 under Service Tax Rs. Nil (Previous year Rs. 79 thousand).

b) Particulars of various Sales tax demands under dispute Rs. 14,156 thousand (Previous year Rs. 14,363 thousand). i) Demand on account of non-submission of sales tax forms Rs. 240 thousand (Previous year Rs. 483 thousand). ii) Demand of Entry tax under U P Sales Tax Act Rs. 6,446 thousand (Previous year Rs. 6,446 thousand).

iii) Demand of Sales tax under U P Sales Tax Act Rs. 7,301 thousand (Previous year Rs. 7,301 thousand).

iv) Demand of penalty on account of submission of wrong sales tax form Rs. Nil (Previous year Rs. 133 thousand).

v) Demand of Sales Tax under Central Sales Tax Act on account of incomplete submission of sales tax forms Rs. 169 (Previous year Rs. Nil).

c) Certain matters relating to various assessment years of Income Tax are pending at the various levels of tax authorities and High Court. The financial impact, if any, on the outcome of these matters is not determinable at this stage.

3. Bills and cheques discounted but not retired as on March 31, 2010 Rs. Nil (Previous year Rs. 299 thousand).

The above Managerial Remuneration does not include provision for Gratuity and Leave Encashment, as separate figures applicable to managerial personnel are not available.

2. Land, Building and Plant & Machinery at various locations have been revalued as on 31st March, 1998 by an independent approved valuer on a current replacement cost basis. The excess on revaluation of Rs. 483,217 thousand has been transferred to Revaluation Reserve.

3. The additions to fixed assets and work-in-progress includes interest on borrowing capitalised amounting to Rs.11,153 thousand (Previous year Rs. 7,054 thousand) and Rs.Nil (Previous year Rs. 8,330 thousand).

4. Estimated amount of contracts remaining to be executed on capital account and not provided for {Net of advances) Rs. 17,466 thousand (Previous year— Rs. 10,571 thousand).

5. During the Financial Year 2008-09, the operations of the Company was affected due to temporary reduction in the distillation capacity by 50% at its distillery at Hamira, Oistt. Kapurthala, Punjab. The loss of production of Extra Neutral Alcohol (ENA) was compensated by procurement of ENA from other manufacturers. The reduction in the capacity was ordered by Punjab Pollution Control Board, Punjab, pending compliance of certain activities (including installation of Multi Effect Evaporator and Slops Fired Boiler/ incinerator) relating to effluent treatment. All the activities were required to be completed by 30th June, 2009 and after the completion of all the activities, the capacity was to be reinstated at its original level. The Company has since complied with all the requirements of the order of Honble Punjab & Haryana High Court and the capacity has since been reinstated to the original level vide order of Honble Punjab & Haryana High Court dated 9th June 2009.

6. Amount due from Directors and Company Secretary as at March 31, 2010 is Rs. 3,020 thousand (Previous year Rs. 2,065 thousand). Maximum amount due at any time during the year Rs. 3,954 thousand (Previous year Rs. 3,521 thousand).

7. Maximum amount of advances due from Subsidiary Company, Anjani Estates Limited at any time during the year is Rs. 8,118 thousand (Previous year Rs. 8,110 thousand).

8. Jagatjit Brown Forman (I) Limited (JBFL), a joint venture with Brown Forman Mauritius Limited (BFML), is under advanced stage of liquidation and official liquidator has been appointed by the Honble High Court of Delhi. The Company entered into deed of settlement, release and indemnification with the BFML in the year 2004-05 to wind up JBFL. As per the terms of settlement, the Company received Rs. 9,671 thousand from BFML in earlier years. During the earlier years the Company has netted off Rs. 24,495 thousand (being recoverable from JBFL on account of various supplies/services) against the provisions made by the Company in earljer years, in view of lack of funds with JBFL.

9. (a) (i) Term Loan for Furnace is secured by Land and Building and all tangible and movable machinery and plant with spares, tools and accessories, both present and future at

its works at Site IV, Plot No 17, Sahibabad Industrial Area, Sahibabad. (ii) Term Loan for D.G. Set is secured by hypothecation of D.G. Set and related equipments/accessories acquired out of bank loan both present and future at its works at Site

IV, Plot No 17, Sahibabad Industrial Area, Sahibabad. (iii) Term Loan for Turbine is secured by all the machineries and accessories including Civil work related to Turbine installed at its works at Jagatjit Nagar, Distt Kapurthala. (iv) Term Loan for Malt Extract Extension is secured by all the machineries and accessories including Civil work related to Filter and instrumentation installed at its works at Jagatjit Nagar, Distt Kapurthala.

(v) Term Loan for installation of Water Pollution Control Equipments is secured by all the machineries and accessories including Civil work related to aforementioned equipments installed at its works at Jagatjit Nagar, Distt Kapurthala.

(vi) Term Loan for Malt Spirit Plant and Malted Milk Food Plant is secured by all the machineries and accessories including Civil work related to Plants installed at its works at Jagatjit Nagar, Distt Kapurthala.

(vii) Short Term Loan for General Corporate Purpose is secured by hypothecation of property situated at 78, Institutional Area,Sector -18 Gurgaon, property at 12 Rajdoot Marg, New Delhi and property at its Works at Jagatjit Nagar.

(b) Cash Credit/Overdraft and Working Capital Demand Loan from Banks are secured by hypothecation of stocks, stores, spares and book debts.

(c) A Fixed deposit of Rs. 221,132 thousand (Previous year Rs. 15 thousand) is guaranteed by Directors.

(d) Car Loans are secured by hypothecation of the related cars.

12. The Company has given unsecured advance to Anjani Estates Liimited formely Binnies Estates Limited (AEL-a wholly owned Subsidiary) amounting to Rs. 8,111 thousand (Previous Year Rs. 8,109 thousand) to be repaid as per the applicable stipulation/restipulation. The Company also has an investment in equity/preference shares capital of AEL amounting to Rs. 501 thousand (Previous year Rs. 501 thousand). The accumulated losses of AEL have exceeded its capital and reserves. Accordingly, as an abundant caution the Company had made provision against unsecured advance of Rs-Nil (Previous year Rs. 1 thousand). Further, in earlier years the company has made provision for diminution in value of investments amounting to Rs. 499 thousand and unsecured advances amounting to Rs. 8,109 thousand.

13. At the year end unclaimed dividend Rs. 610 thousand (Previous Year Rs. 615 thousand) and unclaimed deposits Rs. 8,164 thousand (previous year Rs. 7,226 thousand) disclosed under current liabilities (Schedule 12) need not be transferred to Investor Education and Protection Fund in terms of provisions of Section 205C of the Companies Act, 1956.

14. Details of dues to Micro, Small and Medium Enterprises as per MSMED ACT, 2006

This information (refer Schedule 12 - Current Liabilities & Provisions) regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

15. In accordance with ASI 14 on Disclosure of Revenue from Sales Transactions issued by Institute of Chartered Accountants of India, excise duty on turnover amounting to Rs. 2,381,032 thousand (Previous year Rs. 2,259,482 thousand) has been reduced from turnover in profit & loss account and differential excise duty on opening and closing stock of finished goods amounting to Rs. 49,054 thousand (Previous year Rs. 80,516 thousand) has been separately shown in Profit and Loss Account.

16. Earnings per share (EPS): Numerators and denominators used to calculate basic and diluted earning per share

Notes:

The Company does not have any outstanding dilutive potential equity shares. Consequently the basic and diluted earning per share of the Company remain the same.

* The preferential allotment of 2,500,000 equity shares, having no right to dividend has not been considered in the above computation of EPS (Refer Schedule 1 Note 2).

17. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure, and the internal

financial reporting systems. The Companys business segments are as under:

Beverages : Segment includes manufacturing and supply of Bottled Indian Made Foreign Liquor, Country Liquor, Industrial Alcohol and licensing use of its IMFL brands.

Food : Segment includes manufacturing and supplies of food products and providing services for manufacture of food products.

Packaging : Segment includes manufacturing and supplies of Glass and Plastic containers to open market and for its captive consumption.

Others : Segment includes sale of Petroleum products and Khad . It also includes dividend from and profit on sale of investments and income from marketing services. ii) As part of Secondary reporting, revenues are attributed to geographical areas based on the location of the customers. iii) Inter Segment Pricing - At cost plus margin.

i) The Company is focused on the segment of Beverages (including Liquor} in India. The commercial terms and conditions of Liquor sales being identical in India, there are no differential risks and return on the basis of such business segmentation. The Companys year to date export turnover being less than 1 % of its total turnover (Previous year 2%), the commercial risks and returns involved on the basis of geographic segmentation are therefore considered insignificant and immaterial.

ii) Segment assets include Capital Work- in- Progress & Capital Advances aggregating to Rs. 42,955 thousand (Previous year-Rs. 369,602 thousand). While most assets are directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is aWocated to the segments on a reasonabie basis.

iii) Capital expenditure pertains to additions made to Fixed Assets/ Capital Work-in-Progress (including Capital Advances) during the year.

iv) Unallocated assets includes land, administration building and cash & bank balances etc. at Jagatjit Nagar.

v) Unallocated liabilities include interest bearing liabilities and tax provisions and deferred tax liability.

vi) Non cash items includes bad debts, advances and stocks written off, provision for doubtful debts & advances and fixed assets written off.

vii) Sales and other Income of Beverages segment includes rental income (net) of Rs. 123,376 thousand (Previous year Rs. 104,839 thousand) from the surplus properties of the Company.

18. Movement of purchase and sale of investment.

Principaf PNB Long Term Equity Fund- 3 year Plan - Principal Emerging Blue chip Fund-Growth (Purchased during the year 50,000 units of Rs. 10 each (Previous year - 50,000)|.

Qube Corporation Pvt. Ltd. 1,800,000 Cumulative redeemable pereference Shares Purchased During the year

L P Jaiswal & Sons Pvt. Ltd. 600 Shares Purchased During the year

Sea Bird Securities Pvt Ltd. 10,000 Shares purchased during the year and 5,200 sold during the year

19. Related Party Disclosures

In accordance with the requirements of "Accounting Standard 18" issued by The Institute of Chartered Accountants of India on the Related Party Disclosures, the transactions and Related Parties with whom transactions have taken place during the year are as follows:

(a) Related parties and transactions with them as identified by the management and relied upon by the Auditors are given below: Subsidiary Company Anjani Estates Ltd.

(b) Enterprises over which Major shareholders, Key Management Personnel and their relatives have significant influence / control: Milkfood Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd. Fast Buck Investment & Trading Pvt. Ltd. lagatjit Industries Limited Employees Superannuation Scheme Pashupati Properties & Estates Pvt. Limited L.P. Investments Limited. Grand Regency Hospitalities Pvt Ltd. Qube Corporation Pvt. Ltd.

{c) Key Management Personnel (Directors) and their relatives : Mr. Arvind Behl Mr. Ravi Manchanda Mr. Narender Sapra

Notes:

1) The above information has been compiled on the basis of disclosures received from all directors of the Company.

21 The above payments does not include expenses incurred by / reimbursed to directors during the course of performance of duty.

3) Sale of goods includes sales to the following :

Milkfood Ltd. Rs. 6,406 thousand (Previous year Rs. 2,715 thousand)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 301 thousand (Previous year Rs. 278 thousand)

4) Purchase of goods includes purchases from the following :

Milkfood Ltd. Rs. 33,682 thousand (Previous year - Rs. 53,791 thousand)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs.154 thousand (Previous year Rs. 433 thousand)

5) Interest Accrued is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 692 thousand (Previous year Rs. 507 thousand)

6) Reimbursement of Payments Made on behalf of the Company is in respect of the following : Milkfood Ltd. Rs. 7,980 thousand (Previous year Rs. 2,837 thousand)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 3,531 thousand (Previous year Rs. 1,052 thousand) Pashupati Properties & Estates Pvt. Limited Rs. Nil (Previous year Rs. 100 thousand) Grand Regency Hospitalities Pvt Ltd. Rs 400 thousand (Previous Year Rs. Nil)

7) Expenses paid by the Company on behalf of related parties is in respect of the following : Milkfood Ltd. Rs. 1,093 thousand (Previous year Rs. 1,029 thousand)

Hyderabad Distilleries & Wineries Pvt. Ltd. Rs. 493 thousand (Previous year Rs. 5,488 thousand) Anjani Estates Ltd. Rs. 10 thousand (Previous year Rs. 1 thousand )

8) Provision for Doubtful Advances

Anjani Estates Ltd. Rs. Nil (Previous year Rs. 1 thousand)

9) Loans including interest repaid is in respect of the following :

Fast Buck Investments & Trading Pvt. Ltd. Rs. 5,194 thousand (Previous year Rs. 172 thousand)

10) Lease Rent paid

Pashupati Properties & Estates Pvt. Limited Rs. 1,200 thousand (Previous year Rs, 790 thousand) Hyderabad Distilleries & Wineries Pvt. Ltd Rs. 13,236 thousand (Previous year Rs. 13,459 thousand)

20. Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmation and are in the process of reconciliation.

21. In the month of October 2006, the Company acquired licensed capacity of 34 lakhs Proof Litres for the remaining period of financial year on lease from M/s Hyderabad Distilleries & Wineries Pvt. Ltd., Hyderabad (HDWL) for manufacturing of IMFL. Consequent to this change, the Company had started producing IMFL in its own name. In the previous year the Company increased its acquired capacity from 34 lakhs Proof Litres to 68.58 lakhs Proof Litre. In the month of February 2010, the Company acquired licensed capacity of 7.78 fakhs Proof Litres for the remaining period of financial year on lease from M/s Sree Venkateshwara Winery & Distillery Pvt. Ltd., Hyderabad for manufacturing of IMFL. Consequent to this change, the Company had started producing IMFL in its own name.

22. In a petition filed against the Company and its Board of Directors under section 397 and 398 of the Companies Act, 1956, in the Honble Company Law Board (CLB), the CLB vide its order dated 12th March, 2009 has directed the Company to buy back the shares of the petitioners and their associates aggregating to 5,794,112 equity shares in the Company afongwith their holdings of 600 Equity Shares in M/s L.P. jaiswal & Sons Pvt Ltd at an aggregate value of Rs. 7300 lacs. Accordingly, during the financial year 2009-2010 in order to avoid any further adverse effects on the business operations and to facilitate smooth business operations, the Company paid total sum of Rs. 7300 lacs to the petitioners before the last date of payment, i.e. 11th June, 2009. The company made payment of (i) Rs. 579 lacs towards Face value of the Share Capital bought back and cancelled (ii) Rs. 5816 lacs as Premium paid on buy back of shares of the petitioners in the Company and (iii) Rs. 905 lacs towards 600 Shares of M /s L.P. (aiswal & Sons Pvt Ltd acquired from the Petitioners and disclosed as Investments.

In view of the management, the premium paid on Buy-back of shares amounting to Rs. 5816 lacs as mentioned above has not been charged to Profit & Loss Account due to insufficiency of the Profits of the Company during the Financial Year 2009-2010. Instead as required under section 77A of the Companies Act, 1956 this amount has been set off against the brought forward balance in Profit & Loss Account, even though the CLB order as mentioned above exempts the company from the same. Further as required under section 77AA of the Companies Act, 1956 a sum equivalent to the nominal value of the shares so cancelled has been transferred to the Capital Redemption Reserve Account.

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