Jun 30, 2015
1. CORPORATE INFORMATION:
The Company was incorporated in January 1993. The equity shares of the
Company are listed and actively traded on the platform of BSE Limited.
The Company operates mainly in the Brewery segment, where it
manufactures Beer under the Brand name of Thunderbolt, Punjab-6000,
Thunder-10000 & Golden Peacock etc. The Company diversified its
operations in restaurants business segment,
2. Rights, Preferences and restrictions attached to each class of
shares:
The Company has one class of equity shares having a par value of Rs. 10
per share. Each shareholder is eligible for one vote per share held.
The dividend proposed, if any, by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend. In the event of liquidation, the
equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion
to their shareholding.
Figures in Rs.
Year ended Year ended
June 30, 2015 June 30, 2014
3. CONTINGENT LIABILITIES AND COMMITMENTS:
Contingent Liabilities:
* Outstanding Bank Guarantees 1,000,000 1,000,000
* Sales Tax Demand (Disputed in Appeal)
(Refer Note-31 below) 846,678,493 607,772,122
Commitments
* Estimated amount of contracts remaining
to be executed on capital - 589,259
account and not provided for
4. Sales Tax Demand:
* The Assistant Commissioner, Anti Evasion, Jaipur, Rajasthan has, by
an order dated June 2, 2014 treated, as Inter State Sales, the stock
transfers by the Company, of beer to Patna and Hazaribagh during the
financial years 2010-11, 2011-12, 2012-13 and 2013-14(only 1st Quarter)
and had demanded Central Sales Tax including interest and penalty to
the extent of Rs. 86,51,63,060, which was subsequently (vide order
dated October 16, 2014) revised downward to Rs.60,77,72,122 . The
Company 's appeal with Rajasthan Tax Board, Ajmer, Rajasthan has been
negated. Company is contesting these Assessment orders for all the
years in Appeal at Central Sales Tax Appelate Tribunal, New Delhi after
its appeal having been negated in Rajasthan Tax Board, Ajmer, Rajasthan
and has obtained stay of the said demand from the Hon'ble Rajasthan
High Court, Jaipur till the decision of the Appelate Tribunal. The same
Anti Evasion Authority has later on issued an assessment order on the
similar point for the financial year 2009-10 and raised demand for
Rs.31,92,37,896, which was subsequently revised to Rs.23,89,06,371
which is being contested in appeal in Rajasthan Tax Board, Ajmer.
* In respect of the above mentioned years (except 2013-14), regular
assessments had already been framed and the requisite demands paid
based on the factual position of the sales being effected locally in
the above mentioned locations.
* "The management contends that based on the factual position of the
transferred goods being sold locally in the above locations, the same
is covered by a local VAT law and there is no further liability in
respect of the said goods under the Central Sales Tax Act. The
management is confident that the above mentioned demands will be
withdrawn on final decision in appeal.
5. Excise Duty:
Liability towards excise duty on the company's products (beer) is the
primary responsibility of the purchaser in whose favour the goods are
released and is applicable to the state in which the goods are intended
for sale/consumption. Provision has, therefore, not been made in
respect of excise duty liability and uncleared/undespatched finished
goods lying as at the year-end in factory/in bond. Such duty is also
not determinable as it varies according to the states to which goods
are despatched for sale. Even otherwise, the non-provision of such
liability has no effect on the net profits/(loss) for the year or on
the Net Current Assets as at the year-end.
6. There are no amounts payable to Micro, Small and Medium Enterprises
as defined under the Micro, Small and Medium Enterprises Development
Act, 2006 based on information available with the Company. Further,
the Company has not paid any interest to any Micro, Small and Medium
Enterprises during the current year. This information has been
determined to the extent such parties have been identified on the basis
of information available with the Company and relied upon by the
Auditors.
7. i) BOTTLING RESIDUAL PROCEEDS:
Other operating revenue includes income from contract brewing, which
comprises the net revenue derived by / attributable to the Company in
respect of its beer brands manufactured in terms of arrangement with a
Contract Brewer (CB). The arrangement, inter alia, envisaged the
Company's responsibility for marketing the goods manufactured from
contract brewing under the related agreement, as also the responsibility
for balances irrecoverable out of sales so effected by / through the CB.
In order to comply with relevant statutory/ regulatory obligations, the
CB recorded in its books, sales of such beer brands, on a gross basis,
based on invoices raised by it on the customers, discharges the related
liability towards statutory dues/ taxes / levies and, net of its
stipulated retentions as per the contractual obligations, transmits the
residual proceeds to the Company as the Company's Contract brewing
income. The Company considers it relevant to disclose the information
relating to the Contract brewing sales and cost of sales hereinbelow:
ii)a) By a Fresh Agreement with the Contract Brewer, the status of the
party has changed with effect from 1st January, 2015 from Contract
Brewer to Franchisee of the Company's Brand for the State of Bihar at
monthly fixed Franchisee fee of Rs 29,16,667.
b) Consequent upon the commencement of Franchise arrangement the
Unsecured Interest free Security Deposit made by the Contract Brewer of
an amount of Rs.12,50,00,000/- (Rupees Twelve Crore Fifty Lakhs) has
been rendered non- refundable to the Contract Brewer. This amount of
Rs.12,50,00,000/- (Rupees Twelve Crore Fifty Lakhs) has therefore, been
taken as Revenue Income of the Current year.
8. EMPLOYEE BENEFITS:
The Company has provided various benefits to employees detailed as
under :
i) Employee Contribution Plans:
Contribution to:
a) Provident fund b) Employee's State Insurance Corporation
c) Superannuation fund d) Other benefits
ii) Defined Benefit Plans:
a) Gratuity b) Unavailed Leaves
9. The Plan assets for Gratuity are maintained with Life Insurance
Corporation of India Gratuity Scheme. The Details of Investments
maintained by the Life Insurance Corporation are not made available to
the Company and have therefore not been disclosed.
10. DISCLOSURE OF RELATED PARTIES/RELATED PARTY TRANSACTIONS:
In accordance with the requirements of Accounting Standard - 18 '
Related Party Disclosures' the names of the related party where
control/ability to exercise significant influence exists, alongwith the
aggregate amount of transactions and year end balances with them, as
identified and certified by the management, are given below:
11. Name of related parties and description of relationship
i) Key Management Personnel and their relatives:
a) * Shri B. D. Bali Chairman and Managing Director
* Mrs. Nita Rani Bali (Wife)
* Shri Monish Bali (Son)
b) *Shri Sanjiv Bali Managing Director
* Mrs. Kavita Bali (Wife)
c) *Shri Rajiv Bali Director
* Mrs. Geeta Bali (Wife)
d) *Shri K. C. Garg Director Finance
* Mrs. Shashi Garg (Wife)
ii) Entities Controlled through key management personnel
* Mount Shivalik Breweries Ltd. (Only upto 31st March, 2015)
* Mount Shivalik Investments Ltd.
* Mount Shivalik Hotels & Resorts Pvt. Ltd.
* Ranika Investments Pvt. Ltd.
* Mount Shivalik Packaging Pvt. Ltd.
12. Segment Reporting:
a. Business Segments
Based on the guiding principles given in Accounting Standard (AS)-17
'Segment Reporting' notified by the Companies (Accounting Standard)
Rules, 2006, the company's business segment include : (i) Manufacture
of and dealing in beer and (ii) Hospitality (running and maintenance of
restaurants).
b. Geographical Segment
Since the Company's activities / operations are primarily within the
country and considering the nature of products / services it deals in,
the risk and return are same and as such there is only one geographical
segment.
c. Segment Accounting Policies
i) The generally accepted accounting principles used in the preparation
of the financial statements are applied to record revenue and
expenditure in individual segments.
ii) Expenses that are directly identifiable to segments are considered
for determining the segment results. Expenses which relates to the
company as a whole are not allocated to segments are included under
unallocated corporate expenses.
iii) Segment assets and liabilities include those directly identifiable
with the respective segments. Most of the assets / liabilities can be
directly attributable to individual segments. Unallocated corporate
assets and liabilities represents the assets and liabilities that
relate to the company as a whole and not allocable to any segment.
Segment assets and liabilities do not include deferred income taxes.
13. (a) Upon the approval of the annual financial statements for the
year 2012-13 in the Annual General Meeting held on December 30, 2013 and
based on the status of the net worth as computed, the Company had made,
within the prescribed time, a formal reference u/s 15 (1) of SICA 1985
to the Board for Industrial and Financial Reconstruction and the same
had been registered as case No. 24 of 2014. BIFR has concluded hearings
and has determined by order dated 5th October, 2015 that the company has
become a Sick industrial company.
(b) The accumulated losses having exceeded the paid up capital and
reserves, has crossed the net worth of the Company. Considering the
nature of the Company's predominant business (regulated by State
Excise), the Company's operating results continue to be adversely
affected by various factors, mainly the State regulated pricing
pressures having direct impact on revenues and the related costs, being
accelerated by inflationary conditions. Due to such pressures and the
consequential negative profit margins, the Company is reluctant to make
inroads in other markets (States), that if persued, could be
detrimental to the Company's interests, unless the State regulated
applicable pricing/tax structure is favourably revised and the duties
are rationalised to yield economic recoveries. In the meanwhile steps
taken by, the management to address the controllable issues, including
operational efficiency and cost & expense reduction; and other
appropriate measures as price increase, fresh investments and contract
bottling for others are expected to result in sustainable cash flows
and profitability. The management is of the opinion that subsequent to
these effective remedial significant steps (including upward
renegotiation of prices with the buyers being the State Governments)
reversal of the trend would arise that shall result in positive and
sustainable cash inflows.
Notwithstanding what is stated in para (a) above and on account of the
initiatives taken, the management considers that the concept of the
going concern does not get vitiated and the financial statements have,
accordingly, been prepared on a going concern basis whereby the
realisation of assets and discharge of liabilities are expected to
occur in the normal course of business.
14. In the opinion of the Board, all the assets (other than fixed
assets) have a value on realisation in the ordinary course of business
at least to the amount at which they are stated in the Balance Sheet.
15. Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
Jun 30, 2013
1 CorPorate inForMation:
The Company was incorporated in January, 1993. The equity shares of the
Company are listed and actively traded on the platform of BSE Limited.
The Company operates mainly in the Brewery segment, where it
manufactures Beer under the Brand name of Thunderbolt, Golden Peacock
etc. The Company diversifed its operations in Restaurants business
segment, where it is expanding its operations at a brisk pace.
Figures in
Particulars Year ended Period ended
June 30, 2013 June 30, 2012
2 ContinGent liaBilitieS
and CoM- MitMentS:
Contingent liabilities:
- Outstanding Bank Guarantees 1,000,000 1,100,000
Commitments
- Estimated amount of contracts
remaining to be executed on capital
account and not provided for 589,259 -
3 excise duty:
Liability towards excise duty on the company''s products (beer) is the
primary responsibility of the purchaser in whose favour the goods are
released and is applicable to the state in which the goods are intended
for sale/consumption. Provision has, therefore, not been made in
respect of excise duty liability and uncleared/undespatched fnished
goods lying as at the year-end in factory/in bond. Such duty is also
not determinable as it varies according to the states to which goods
are despatched for sale. Even otherwise, the non-provision of such
liability has no effect on the net profts for the year or on the Net
Current Assets as at the year-end.
4 There are no amounts payable to Micro, Small and Medium Enterprises
as defned under the Micro, Small and Medium Enterprises Development
Act, 2006 based on information available with the Com- pany. Further,
the Company has not paid any interest to any Micro, Small and Medium
Enterprises during the current year. This information has been
determined to the extent such parties have been identifed on the basis
of information available with the Company and relied upon by the
Auditors.
5 eMPloYee BeneFitS:
The Company has provided various benefts to employees as under :
i) employee Contribution Plans Contribution to:
a) Provident fund b) Superannuation fund
c) Employee''s state insurance corporation d) Other benefts
ii) defned Beneft Plans:
a) Gratuity b) Unavailed Leaves
6 diSCloSure oF related PartieS/related PartY tranSaCtionS:
In accordance with the requirements of Accounting Standard - 18 ''
Related Party Disclosures'' the names of the related party where
control/ability to exercise signifcant infuence exists, alongwith the
aggregate amount of transactions and year end balances with them, as
identifed and certifed by the management, are given below:
6.1 name of related parties and description of relationship
i) Key Management Personnel and their relatives:
a) - Shri B.D.Bali Chairman and Managing Director
- Mrs. Nita Rani Bali (Wife)
- Shri Monish Bali (Son)
b) - Shri Sanjiv Bali Managing Director
- Mrs. Kavita Bali (Wife)
c) - Shri Rajiv Bali Director
- Mrs. Geeta Bali (Wife)
d) - Shri K. C. Garg Director Finance
- Mrs. Shashi Garg (Wife)
ii) Entities Controlled through key management personnel
- Mount Shivalik Breweries Ltd.
- Mount Shivalik Investments Ltd.
- Mount Shivalik Hotels & Resorts Pvt. Ltd.
- Ranika Investments Pvt. Ltd.
- Mount Shivalik Packaging Pvt. Ltd.
7 Segment reporting:
7.1 Business Segments
Based on the guiding principles given in Accounting Standard (AS)-17
''Segment Reporting'' notifed by the Companies (Accounting Standard)
Rules, 2006, the company''s business segment include : (i) Manufacture
of and dealing in beer and (ii) Hospitality (running and maintenance of
restaurants).
7.2 Geographical Segment
Since the Company''s activities / operations are primarily within the
country and considering the nature of products / services it deals in,
the risk and return are same and as such there is only one geographical
segment.
7.3 Segment Accounting Policies
i) The generally accepted accounting principles used in the preparation
of the fnancial statements are applied to record revenue and
expenditure in individual segments.
ii) Expenses that are directly identifable to segments are considered
for determining the segment results. Expenses which relates to the
company as a whole are not allocated to segments are included under
unallocated corporate expenses.
iii) Segment assets and liabilities include those directly identifable
with the respective segments. Most of the assets / liabilities can be
directly attributable to individual segments. Unallocated corporate
assets and liabilities represents the assets and liabilities that
relate to the company as a whole and not allocable to any segment.
Segment assets and liabilities do not include deferred income taxes.
8 As at the year end, the net worth of the Company has been adversely
affected due to the accumulated losses having exceeded the paid up
capital. The management has taken effective remedial signifcant steps
consequent upon which there is a reversal of the trend which would also
involve positive & sustainable cash infows. Considering the nature of
the predominant business, such steps include upward renegotiation of
prices with the buyers being the State Governments. On account of the
initiatives taken, the management considers that the status of the
year-end net worth does not have effect on the accounts being drawn up
on the basis of a going concern and the fnancial statements have been
drawn up accordingly.
9 In the opinion of the Board, all the assets (other than fxed assets)
have a value on realisation in the ordinary course of business at least
to the amount at which they are stated in the Balance Sheet.
10 The fnancial year for the previous period consists of 15 months from
April 1, 2011 to June 30, 2012; accordingly, previous period fgures are
not comparable with the current year''s fgures. Previous period''s fgures
have been regrouped / reclassifed / restated wherever necessary to
correspond with the current year''s classifcation / disclosure.
Mar 31, 2010
1 Contingent Liabilities:
1.1 Outstanding bank guarantees, Letters of Credit and bills
discounting - Rs.8.05 million (Previous year Rs.6.23 million)
1.2 Commitments on Capital account (net of advances) not provided for
Rs. Nil (Previous year Rs.4.46 million)
2 Excise Duty:
Liability towards Excise Duty on the companys products (beer) is the
primary responsibility of the purchaser in whose favour the goods are
released and is applicable to the State in which the goods are intended
for sale/consumption. Provision has, therefore, not been made in
respect of Excise Duty liability in respect of uncleared/undespatched
finished goods lying as at the year-end in factory/in bond. Such duty
is also not determinable as it varies according to the States to which
goods are despatched for sale. Even otherwise, the non-provision of
such liability has no effect on the net profits for the year or on the
Net Current Assets as at the year-end.
3 As per Accounting Standard 15 Employee Benefits, the disclosures of
Employee benefits as defined in the Accounting Standard are given
below:
Disclosure Pursuant to Accounting Standard 15 (Revised) Employee
Benefits:
The Company has adopted Accounting Standard 15 (Revised) "Employee
Benefits", issued by The Institute of Chartered Accountants of India.
As per Accounting Standard 15 (Revised) "Employee Benefits", the
disclosure of Employee Benefits as defined in the Accounting Standard
are given below:
The Provident Fund Contribution as contributed to the Regional
Provident Fund Commissioner.
The contribution to Superannuation are managed by Life Insurance
Corporation of India.
b) Defined Benefit Plan:
The Employee Gratuity Fund Scheme is a defined benefit plan. The
present value of the obligation is based on the actuarial valuation
using Projected Unit Credit Method.
4 Taxation:
4.1 Provision for current year income-tax has been made in accordance
with the provisions of the Income Tax Act, 1961 and Provision for
Wealth-tax has been made in accordance with the provisions of the
Wealth Tax Act , 1957.
4.2 The Net Deferred Tax adjustments for the year amounting to Rs. 2.05
million has been recognised in the Profit and Loss Account in
accordance with the Accounting Standard (AS-22) "Accounting for Taxes
on Income" issued by The Institute of Chartered Accountants of India.
5 Additional information pursuant to requirements of Part-II of the
Schedule-VI to the Companies Act, 1956 (As certified by the
management.)
6. There are no amounts payable to Micro, Small and Medium Enterprises
as defined under the Micro, Small and Medium Enterprises Development
Act, 2006 based on information available with the Com- pany. Further,
the Company has not paid any interest to any Micro, Small and Medium
Enterprises during the current year. This information has been
determined to the extent such parties have been identified on the basis
of information available with the Company and relied upon by the
Auditors.
7. Segment Reporting:
7.1 Business Segments
Based on the guiding principles given in Accounting Standard (AS-17)
Segment Reporting noti- fied by the Companies (Accounting Standard)
Rules, 2006 the companys business segment include : manufacture of and
dealing in beer and Hospitality (running and maintenance of restau-
rants).
7.2 Geographical Segment
Since the Companys activities / operations are primarily within the
country and considering the nature of products / services it deals in,
the risk and return are same and as such there is only one geographical
segment.
7.3 Segment Accounting Policies
i) The generally accepted accounting principles used in the preparation
of the financial state- ments are applied to record revenue and
expenditure in individual segments.
ii) Expenses that are directly identifiable to segments are considered
for determining the segment results. Expenses which relates to the
company as a whole are not allocated to segments are included under
unallocated corporate expenses.
iii) Segment assets and liabilities include those directly identifiable
with the respective seg- ments. Most of the assets / liabilities can be
directly attributable to individual segments. Unallocated corporate
assets and liabilities represents the assets and liabilities that
relate to the company as a whole and not allocable to any segment.
Segment assets and liabilities do not include deferred income taxes.
Note : Previous year figures are indicated in brackets.
8 Disclosure of Related Parties/Related Party transactions:
I) Related Parties where Control Exists:
i) Entities Controlled through Directors;
a) Mount Shivalik Breweries Ltd.
b) Mount Shivalik Investments Ltd.
c) Mount Shivalik Hotels & Resorts Pvt. Ltd.
d) Ranika Investments Pvt. Ltd.
e) Mount Shivalik Packaging Pvt. Ltd.
f) Trinity Terminal Enterprises Pvt. Ltd.
ii) Key Management Personnel and their relatives;
a) Shri B.D.Bali Chairman & Managing Director
Mrs. Nita Rani Bali (Wife)
Shri S.K.Bali (Brother)
Shri Monish Bali (Son)
b) Shri Sanjiv Bali Managing Director
Mrs. Kavita Bali (Wife)
c) Shri Rajiv Bali Director
d) Shri K.C. Garg Director Finance
Mrs. Shashi Garg (Wife)
Note: Previous year figures are indicated in brackets.
9. Previous years figures have been regrouped/rearranged wherever
necessary.
10 . Schedules 1 to 14 are annexed to and form an integral part of the
Balance Sheet as at March 31, 2010 and the Profit and Loss Account for
the year ended on that date.
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