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Notes to Accounts of Tilak Nagar Industries Ltd.

Mar 31, 2015

I) Estimated amount of contracts remaining to be executed on capital accounts and not provided for is Rs. 50 million (net of advances) (P.Y. Rs. 200 million )

ii) Operating Lease:

a) The Company has taken bottling units under cancellable operating lease at various locations and during the financial year Rs. 15.25 million (P.Y. Rs. 14.08 million) paid towards lease rentals has been charged to Statement of Profit and Loss.

b) The Company has taken various residential / commercial premises under cancellable operating lease. Lease rental expenses included in the Statement of Profit and Loss for the financial year is Rs. 15.39 million (P.Y. Rs. 15.29 million).

c) Except for escalation clauses contained in certain lease arrangements providing for increase in the lease payment by a specified percentage / amounts after completion of specified period, the lease terms do not contain any exceptional / restrictive covenants other than the prior approval of the lessee before the renewal of lease.

d) There are no restrictions such as those concerning dividend and additional debt other than in some cases where prior approval of lessor is required for further leasing. There is no contingent rent payment.

iii) The disclosure of Accounting Standard 15 "Employee Benefits" is as follows:

Defined Contribution Plan

The Company has charged in the Statement of Profit and Loss during the financial year an amount of Rs. 24.99 million (P.Y. Rs. 24.38 million) under defined contribution plan as employer's contribution to Provident Fund.

Defined Benefit Plan

The Employees gratuity fund scheme managed by LIC is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

iv) Employee Stock Option Scheme

a) The Shareholders of the Company at the Annual General Meetings held on August 06, 2008 and September 20, 2010 had approved the Employee Stock Option Scheme (ESOP) 2008 and Employee Stock Option Scheme (ESOP) 2010 respectively and also approved Employee Stock Option Scheme (ESOP) 2012 on May 24, 2012 by way of Postal Ballot.

v) Segment Reporting:

The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor and its related products which constitute a single business segment.

vi) Depreciation note

a) During the current year, the Company has revised its accounting policy in respect of depreciation method of its fixed assets where depreciation was provided in the previous years under the 'written down value method'. Based on an evaluation carried out by the management in the current year, fixed assets are now being depreciated on 'straight line method' over the expected useful life of the fixed assets as against written down value method. This change in accounting policy has been made as it would result in a more appropriate presentation of the financial statements. As a result of this change, depreciation has been calculated retrospectively on straight line method and accordingly the Company has recorded reversal of depreciation expense amounting to Rs. 58.75 million pertaining to previous years in the current year's Statement of Profit and Loss.

b) Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets (determined after considering the change in the method of depreciation from WDV to SLM), after retaining the residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and has adjusted an amount of Rs. 38.65 million (Net of tax Rs. 19.90 million) against the Statement of Profit and Loss.

c) The depreciation expense in the Statement of Profit and Loss for the year is lower by Rs. 49.84 million consequent to the above change in the method of depreciation and is higher by Rs. 39.79 million due to change in estimates.

vii) Provision of excise duty on finished goods manufactured but yet to be cleared from the factory as at March 31, 2015 estimated at Rs. 35.26 million (P.Y. Rs. 38.67 million) has been provided in the books and also been considered in valuation of closing stock of finished goods. Provision for excise duty on finished goods charged in the Statement of Profit and Loss for the financial year is as follows:

viii) There are no amounts outstanding in respect of unpaid dividend / fixed deposits for more than seven years to be transferred to Investor Education & Protection Fund.

ix) Micro, Small and Medium enterprises has been identified by the Company on the basis of the information available. Total outstanding dues of Micro and Small enterprises, which are outstanding for more than the stipulated period are given below:

Consequent to the losses during the current year in the Company, remuneration paid to the Managerial Personnel and Directors is in excess of the limit prescribed under Companies Act, 2013 by Rs. 40.51 million. The said amount is subject to approval from Central Government and therefore the amount paid is held in trust by the concerned managerial personnel and disclosed as a receivable.

x) The Company prefers to use dual feed technology and has applied accordingly for permission to run this technology on one of its plants and the same is awaited.

xi) Subsequent to the survey proceedings u/s 133 of the Income Tax Act initiated by the Department in the month of March 2013, the Company has fled an application before the Income Tax Settlement Commission for Assessment Years 2012-13 and 2013-14 which has been admitted for further hearings. The Income Tax liability arising thereof had been provided for in the accounts for the year ended March 31, 2014. The hearings are under process.

xii) Other operating income for the year ended March 31, 2015 includes Rs. 1,152.90 million on account of entitlement of MVAT and CST refund (for the year 2013-14 and 2014-15) as compared to Rs. 123.76 million included in the year ended March 31, 2014 (for the year 2012-13). The Company is awaiting disbursement of the sanctioned amount of Rs. 107.79 million for the year 2012-13.

xiii) Other significant notes

a) The Company's glass manufacturing unit was given to Ramnath Glass Containers Pvt. Ltd. (RGCPL) managed by Mehta Brothers on lease for carrying out their business, which had discontinued the operations in the year 2003 and handed over the unit back to the Company in totally unworkable conditions without fulfilling their legal obligations under the agreement. Due to this the Company had to pay the statutory liabilities and settle the dues of the workmen on behalf of RGCPL / Mehta Brothers. The Company has initiated the legal action against the RGCPL / Mehta Brothers for recovery of amount paid together with interest and damages amounting to Rs. 76.20 million. As on date, the Honourable Court has orally pronounced the order for dismissal of our suit on the grounds on non-joiner of RGCPL as a party to the said suit. The Company will file an appeal to the said order after receiving the detailed copy of the order from the Court.

b) The Company's distributor Ding Dong Liquors has fled a suit pursuant to the Division Bench order of Bombay High Court for recovery of Rs. 41.20 million after their termination. They have fled Notice of Motion for interim relief in the suit for withdrawing and / or transferring Security Deposit. The Hon'ble Bombay High Court has agreed with the Company's contention of the issue of limitation and has accordingly framed limitation as the main issue. The matter is posted for hearing for leading evidence of plaintiff on the limitation issue.

The Company has fled a suit for recovery of Rs. 39.00 million for the sales proceeds not remitted by Ding Dong Liquors and also towards amount charges wrongly claimed by them. Defendants did not file written statement and the suit was directed as undefended. Thereafter, the Defendants fled a Notice of Motion for condoning the delay in fling written statement. The Honourable Court has allowed the notice of motion.

c) Anupama Wine Distributors has fled a suit before the City Civil Court, Bangalore claiming Rs. 73.11 million towards refund of security deposit and other dues. The Hon'ble Court vide its Order dated December 22, 2007 dismissed their application for attachment of property for recovery of the above dues. The Company has fled a counter claim for Rs. 119.30 million against Anupama Wine Distributors and the matter is pending before City Civil Court, Bangalore. The matter is posted for fling evidence by Anupama Wine Distributors. The Company has fled a transfer petition to club both the matters related to Anupama Wine Distributors and Anupama Distributors as the evidences are the same.

d) The Company has fled a winding up petition against its bottler and manufacturer Rhizome Distilleries Pvt. Ltd., Hyderabad at Hyderabad High Court for the recovery of its pending dues of Rs. 69.00 million against the sales proceeds received by them against Company's products which they have failed to provide to the Company. The High Court, Hyderbad have passed an order restraining Rhizome Distilleries Pvt. Ltd. from alienating its assets and now the matter is placed for final orders. The Company has also fled a separate civil suit against Rhizome Distilleries Pvt. Ltd. for the recovery. The complaints against the Rhizome Distillery Pvt. Ltd.'s directors under section 138 of Negotiable Instruments Act has also been fled regarding the bouncing of cheques which they had provided against our sales proceeds.

e) A body corporate has fled a legal suit on the Company to obtain restraining order on the use of certain trademarks owned by the Company. An interim order was passed by the Bombay High Court upholding the ownership of the Company in the aforesaid trade marks and allowing the Company continuous and uninterrupted use of the said trademarks without any restraint.

xiv) Consequent to the financial difficulties faced by the principal bottler of the Company in Tamilnadu, the Company was constrained to discontinue its operations from the said bottler in Tamilnadu resulting in considerable drop in sales turnover and adversely affecting the profitability. In order to protect its financial interests from the bottler, the Company negotiated with the bottler and agreed to absorb certain conversion and miscellaneous costs on the condition that the overdues shall be repaid within an agreed and stipulated period. However, the principal bottler has failed to repay the said overdues. The Company is exploring various options including third party equity participation and / or fling a legal suit for recovery and is confident that the principal bottler shall commence its operations in the near future and that it will be able to recover its legitimate dues. The Company has estimated an amount of Rs. 463.00 million receivable on account of outstanding dues from all the bottling units of Tamilnadu which has been considered good and recoverable and hence no provision is made in the books of accounts.

xv) In accordance with proviso to Section 129 (3) read with Rule 5 of the Companies (Accounts) Rules, 2014, a statement containing salient features of the financial statements of the Company's subsidiaries in Form AOC-1 is attached to the financial statements of the Company.

xvi) Figures of previous year have been regrouped, reclassified and recast, wherever considered necessary.


Mar 31, 2014

1. SHARE CAPITAL

a) Terms / rights attached to equity shares

Each holder of equity share is entitled to one vote per share with a right to receive per share dividend by the Company, when declared. In the event of liquidation, the equity shareholders will be entitled to receive remaining assets of the Company after distribution of all preferential amounts in the proportion to the number of equity shares held by them.

2. Other Notes to on Accounts

i) Contingent Liability not provided for:

(Rs. in million)

Particulars As at As at March 31,2014 March 31,2013

a)Corporate guarantees issued to banks 330.55 686.10 on behalf of subsidiary Company

b)Bank guarantees issued on behalf of 150.75 159.40 the Company

c)In respect of disputed Income tax matters, pending before the appropriate Income tax authorities, contested by the Company

A.Y. 2011-2012 253.83 -

A.Y. 2010-2011 1.90 1.90

A.Y. 2009-2010 6.13 6.13

A.Y. 2007-2008 86.07 86.07

d) In respect of disputed Sales tax matters, pending before the appropriate tax authorities, contested by the Company

F.Y. 2008-2009 (TOT- Kerala) 0.11 0.11

F.Y. 2008-2009 (VAT- Kerala) 0.22 0.22

F.Y. 2007-2008 (TOT- Kerala) 0.11 0.11

F.Y. 2007-2008 (VAT- Kerala) 0.55 0.55

F.Y. 2006-2007 (Central Sales Tax) 79.94 -

F.Y. 2004-2005 (Bombay Sales Tax) 4.67 4.67

F.Y. 2004-2005 (Central Sales Tax) 2.03 2.03

F.Y. 2003-2004 (Bombay Sales Tax) 6.28 6.28

F.Y. 2003-2004 (Central Sales Tax) 4.83 4.83

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for is Rs. 200 million (net of advances) (P.Y. Rs. 250 million).

iii) Operating Lease:

a) The Company has taken Bottling units under cancellable operating lease at various locations and during the financial year Rs. 14.08 million (P.Y. Rs. 28.51 million) paid towards lease rentals has been charged to Statement of Profit and Loss.

b) The Company has taken various residential / commercial premises under cancellable operating lease. Lease rental expenses included in the Statement of Profit and Loss for the financial year is Rs. 15.29 million (P.Y. Rs. 14.90 million).

c) Except for escalation clauses contained in certain lease arrangements providing for increase in the lease payment by a specified percentage / amounts after completion of specified period, the lease terms do not contain any exceptional / restrictive covenants other than the prior approval of the lessee before the renewal of lease.

d) There are no restrictions such as those concerning dividend and additional debt other than in some cases where prior approval of lessor is required for further leasing. There is no contingent rent payment.

iv) The disclosure of Accounting Standard 15 "Employee Benefits" is as follows:

Defined Contribution Plan

The Company has charged in the Statement of Profit and Loss during the financial year an amount of Rs. 24.38 million (P.Y. Rs. 22.07 million) under defined contribution plan as employer's contribution to Provident Fund.

Defined Benefit Plan

The Employees' gratuity fund scheme managed by LIC is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

v) Employee Stock Option Scheme

a) The Shareholders of the Company at the Annual General Meetings held on August 06, 2008 and September 20, 2010 had approved the Employee Stock Option Scheme (ESOP) 2008 and Employee Stock Option Scheme (ESOP) 2010 respectively and also approved Employee Stock Option Scheme (ESOP) 2012 on May 24, 2012 by way of Postal Ballot.

b) The weighted average fair value of stock options granted during the financial year was Rs. 50.74 million (P.Y. Rs. 101.83 million). The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:

vi) Segment Reporting:

The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor and its related products which constitute a single business segment.

vii) Related Party Disclosures:

The disclosures pertaining to the related parties as required by the Accounting Standard 18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India, as applicable, are as under:

a) List of subsidiary companies : Prag Distillery (P) Ltd.

: Vahni Distilleries Private Limited

: Kesarval Springs Distillers Pvt. Ltd.

: Punjab Expo Breweries Private Limited

: Mykingdom Ventures Pvt. Ltd.

: P. P. Caps Private Limited

: Studd Projects P. Ltd.

: Srirampur Grains Private Limited

: Shivprabha Sugars Ltd.

b) Key Managerial Personnel : Mr. Amit Dahanukar

: Mrs. Shivani Amit Dahanukar

c) Company in which Key : M.L. Dahanukar & Co. Pvt. Ltd. Managerial Personnel has substantial interest : Arunoday Investments Pvt. Ltd.

: Maharashtra Sugar Mills Pvt. Ltd.

: Smt. Malati Dahanukar Trust

d) Relative of Key Managerial : Dr. Priyadarshini A. Dahanukar Personnel

viii) Provision of excise duty on finished goods manufactured but yet be cleared from the factory as at March 31, 2014 estimated at Rs. 38.67 million (P.Y. Rs. 47.20 million) has been provided in the books and also been considered in valuation of closing stock of finished goods. Provision for excise duty on finished goods charged in the Statement of Profit and Loss for the financial year is as follows:

ix) There are no amounts outstanding in respect of unpaid dividend / fixed deposits for more than seven years to be transferred to Investor Education & Protection Fund.

x) The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to Micro, Small and Medium Enterprises have not been made.

xi) During February 2014, the Company has acquired the Indian Made Foreign Liquor (IMFL) brands of IFB Agro Industries Ltd., Kolkata vide assignment in perpetuity.

xii) Subsequent to the survey proceedings u/s 133 of the Income Tax Act initiated by the Department in the month of March 2013, the Company has filed an application before the Income Tax Settlement Commission for Assessment Years 2012-2013 and 2013-2014 which has been admitted for further hearings. The Income Tax liability arising thereof has been provided for in the accounts for the year ended March 31,2014.

xiii) Other operating income for the year ended March 31, 2014 includes Rs. 123.76 million on account of entitlement of MVAT and CST refund for the previous year 2012-2013 as compared to Rs. 109.84 million included in year ended March 31, 2013 for the year 2011-12 pursuant to the grant of Mega Project Status under Package Scheme of Incentives 2007 by the Government of Maharashtra vide its eligibility certificate dated April 11,2012.

xiv) Other significant notes

a) The Company's glass manufacturing unit was given to Ramnath Glass Containers Pvt. Ltd (RGCPL) managed by Mehta Brothers on lease for carrying out their business, which had discontinued the operations in the year 2003 and handed over the unit back to the Company in totally unworkable conditions without fulfilling their legal obligations under the agreement. Due to this the Company had to pay the statutory liabilities and settle the dues of the workmen on behalf of RGCPL / Mehta Brothers. The Company has initiated the legal action against the RGCPL / Mehta Brothers for recovery of amount paid together with interest and damages amounting to Rs. 76.20 million.

b) The Company's distributor Ding Dong Liquors has filed a suit pursuant to the Division Bench order of Bombay High Court for recovery of ' 41.20 million after their termination. They have filed Notice of Motion for interim relief in the suit for withdrawing and / or transferring Security Deposit. The Hon'ble Bombay High Court has agreed with the Company's contention of the issue of limitation and has accordingly framed limitation as the main issue. The matter is posted for hearing for leading evidence of plaintiff on the limitation issue.

The Company has filed a suit for recovery of Rs. 39.00 million for the sales proceeds not remitted by Ding Dong Liquors and also towards amount charges wrongly claimed by them. Defendants did not file written statement and the suit was directed as undefended. Thereafter, the Defendants file a Notice of Motion for condoning the delay in filing written statement.

c) Anupama Wine Distributors has filed a suit before the City Civil Court, Bangalore claiming Rs. 73.11 million towards refund of security deposit and other dues. The Hon'ble Court vide its Order dated December 22, 2007 dismissed their application for attachment of property for recovery of the above dues. The Company has filed a counter claim for Rs. 119.30 million against Anupama Wine Distributors and the matter is pending before City Civil Court, Bangalore. The matter is posted for filing evidence by Anupama Wine Distributors.

d) The Company has filed a winding up petition against its bottler and manufacturer Rhizome Distilleries Pvt. Ltd., Hyderabad at Hyderabad High Court for the recovery of its pending dues of Rs. 69.00 million against the sales proceeds received by them against Company's products which they have failed to provide to the Company. The High Court, Hyderbad have passed an order restraining Rhizome Distilleries Pvt. Ltd. from alienating its assets and now the matter is placed for final orders. The Company has also filed a separate civil suit against Rhizome Distilleries Pvt. Ltd. for the recovery. The complaints against the Rhizome Distillery Pvt. Ltd.'s directors under section 138 of Negotiable Instruments Act has also been filed regarding the bouncing of cheques which they had provided against our sales proceeds.

xv) The Ministry of Corporate affairs, Government of India, vide General Circular No 2 and 3 dated February 08, 2011 and February 21, 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

xvi) During the year the Company has sold the entire stake in its wholly owned subsidiary P. P. Caps Private Limited.

xvii) Figures of previous year have been regrouped, reclassified and recast, wherever considered necessary.


Mar 31, 2013

I) Estimated amount of contracts remaining to be executed on capital accounts and not provided for is approx Rs.250 million (net of advances) (P.Y. Rs.40 million).

ii) Operating Lease:

a) The Company has taken Bottling units under cancellable operating lease at various locations and during the financial year T28.51 million (P.Y. T22.50 million) paid towards lease rentals has been charged to Statement of Profit and Loss.

b) The Company has taken various residential / commercial premises under cancellable operating lease. Lease rental expenses included in the Statement of Profit and Loss for the financial year is T14.90 million (P.Y. T23.25 million).

c) Except for escalation clauses contained in certain lease arrangements providing for increase in the lease payment by a specified percentage / amounts after completion of specified period, the lease terms do not contain any exceptional / restrictive covenants other than the prior approval of the lessee before the renewal of lease.

d) There are no restrictions such as those concerning dividend and additional debt other than in some cases where prior approval of lessor is required for further leasing. There is no contingent rent payment.

iii) The disclosure of Accounting Standard 15 "Employee Benefits" is as follows:

Defined Contribution Plan

The Company has charged in the Statement of Profit and Loss during the financial year an amount of T22.07 million (P.Y. T19.14 million) under defined contribution plan as employer''s contribution to Provident Fund.

Defined Benefit Plan

The Employees'' gratuity fund scheme managed by LIC is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

iv) Employee Stock Option Scheme

a) The Shareholders of the Company at the Annual General Meetings held on August 06, 2008 and September 20, 2010 had approved the Employee Stock Option Scheme (ESOP) 2008 and Employee Stock Option Scheme (ESOP) 2010 respectively and also approved Employee Stock Option Scheme (ESOP) 2012 on May 24, 2012 by way of Postal Ballot.

b) During the financial year ended March 31, 2013, the following schemes were in operation :

v) Segment Reporting:

The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor and its related products which constitute a single business segment.

vi) Related Party Disclosures:

The disclosures pertaining to the related parties as required by the Accounting Standard 18 "Related Party Disclosure" issued by the Institute of Chartered Accountants of India, as applicable, are as under:

a) List of Subsidiary Companies Prag Distillery (P) Ltd.

Vahni Distilleries Private Limited

Kesarval Springs Distillers Pvt. Ltd.

Punjab Expo Breweries Private Limited

Mykingdom Ventures Pvt. Ltd.

P.P. Caps Private Limited

Studd Projects P. Ltd.

Srirampur Grains Private Limited

Shivprabha Sugars Ltd.

b) Key Managerial Personnel Mr. Amit Dahanukar

Mrs. Shivani Amit Dahanukar

c) Company in which Key Managerial M.L. Dahanukar and Co. Pvt. Ltd.

Personnel has substantial interest Arunoday Investments Pvt. Ltd.

d) Relative of Key Managerial Personnel Dr. Priyadarshini A. Dahanukar

vii) Provision of excise duty on finished goods manufactured but yet to be cleared from the factory as at March 31, 2013 estimated atRs.47.20 million (P.Y. T92.05 million) has been provided in the books and also been considered in valuation of closing stock of finished goods. Provision for excise duty on finished goods charged in the Statement of Profit and Loss for the financial year is as follows:

viii) There are no amounts outstanding in respect of unpaid dividend / fixed deposits for more than seven years to be transferred to Investor Education & Protection Fund.

ix) The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to Micro, Small and Medium Enterprises have not been made.

x) The Company has not entered into any forward exchange contracts to hedge against its foreign Currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes. The foreign currency exposure not hedged as at March 31, 2013 are as under:

xi)During October 2012, the Company has acquired 26% stake in Mason & Summers Marketing Services Pvt Ltd (MSMSPL), a Company engaged in the business of sales, marketing and distribution of branded products of IMFL.

xii) During the financial year, the Income tax department conducted survey on the Company. The Company is in the process of submitting all the necessary documents and replies to the Income Tax Department. The Company has not received any notice of demand in consequence of the survey till the date of signing of the financial statements.

xiii) The Company has been granted Mega Project status for its new facilities at Shrirampur Factory under Package Scheme of Incentives (PSI) 2007 by the Government of Maharashtra. With its mega project status, the Company is entitled to monetary benefits which includes Industrial Promotional Subsidy in the form of refunds equivalent to 100% of eligible investment of Rs.2,546.21 million or to the extent of taxes payable under Maharashtra Value Added Tax Act, 2002 and Central Sales Tax Act, 1956 in respect of sale of finished goods eligible for incentives after adjustment of set off or other credit available within a period of seven years whichever is lower.Other operating income for the year includes Rs.109.84 million on account of entitlement of MVAT and CST refund for the previous year 201 1 -2012.

xiv) Other significant notes

a) The Company''s glass manufacturing unit was given to Ramnath Glass Containers Pvt. Ltd (RGCPL) managed by Mehta Brothers on lease for carrying out their business, which had discontinued the operations in the year 2003 and handed over the unit back to the Company in totally unworkable conditions without fulfilling their legal obligations under the agreement. Due to this the Company had to pay the statutory liabilities and settle the dues of the workmen on behalf of RGCPL / Mehta Brothers. The Company has initiated the legal action against the RGCPL / Mehta Brothers for recovery of amount paid together with interest and damages amounting to T76.20 million.

b) The Company''s distributor Ding Dong Liquors has filed a winding up petition on the Company in the High Court of Judicature of Bombay for recovery of Security Deposit of T25.00 million. The Company withheld the Security Deposit on the grounds that Ding Dong Liquors had failed to deliver the ''C'' Forms and other amounts due to the Company. The Hon''ble High Court vide its Order directed the Company to deposit a sum of Rs.12.70 million out of the total amount claimed by Ding Dong Liquors. The Company has deposited the above sum with the Court and filed an appeal against the said Order.

Further, the Company has filed a separate suit for recovery of dues of T39.00 million and C-forms against Ding Dong Liquors which has been upheld by the Bombay High court by dismissing the winding up petition and directed Ding Dong Liquors to avail remedy from the Hon''ble Court for recovery of the amount failing which the Company will be entitled to an amount of Rs.12.70 million deposited with the Court.Ding Dong has filed a seperate suit claiming recovery but have failed to get the transfer of the deposited amount in that suit inspite of praying for the same.

c) Anupama Wine Distributors has filed a suit before the City Civil Court, Bangalore claiming Rs.73.11 million towards refund of security deposit and other dues. The Hon''ble Court vide its Order dated December 22, 2007 dismissed their application for attachment of property for recovery of the above dues. The Company has filed a counter claim for Rs.119.30 million against Anupama Wine Distributors and the matter is pending before City Civil Court, Bangalore.

d) Anupama Wine Distributors has filed a Company petition against the Company before Bombay High Court and against that the Hon''ble Bombay H igh Court has vide order dated March 16 , 2009 directed to the Company to Deposit a security worth Rs.42.10 million. The Company deposited a Bank Guarantee worth the said amount with the High Court, Mumbai and filed an appeal against the said Order which has been upheld the Hon''ble Bombay High Court by dismissing the winding up petition and allowed the Company to discharge the bank guarantee. The said order of Bombay High Court was challenged by Anupama Wine Distributors by filing a Special Leave Application at Hon''ble Supreme Court. The Hon''ble Supreme Court has rejected their Special Leave Application. Accordingly, Company has discharged the said bank guarantee.

e) The Company has filed a winding up petition against its bottler and manufacturer Rhizome Distilleries Pvt. Ltd., Hyderabad at Hyderabad High Court for the recovery of its pending dues of T69.00 million against the sales proceeds received by them against Company''s products which they have failed to provide to the Company. The High Court, Hyderbad have passed an order restraining Rhizome Distilleries Pvt. Ltd. from alienating its assets and now the matter is placed for final orders. The Company has also filed a seperate civil suit against Rhizome Distilleries Pvt. Ltd. for the recovery. The complaints against the Rhizome Distillery Pvt. Ltd.''s directors under section 138 of Negotiable Instruments Act has also been filed regarding the bouncing of cheques which they had provided against our sales proceeds.

xv)The Ministry of Corporate affairs, Government of India, vide General Circular No 2 and 3 dated February 08, 2011 and February 21, 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

xvi) Figures of previous year have been regrouped, reclassified and recast, wherever considered necessary.


Mar 31, 2012

A) Terms / rights attached to equity shares

Each holder of equity share is entitled to one vote per share with a right to receive per share dividend by the Company, when declared. In the event of liquidation, the equity shareholders will be entitled to receive remaining assets of the Company after distribution of all preferential amounts in the proportion to the number of equity shares held by them.

(a) The term loans are secured against first charge on the land, building, plant & machinery of the Company situated at Shrirampur, Dist Ahmednagar and second charge on stock and debtors.

(b) Term loans from banks carry interest @ 14.25% to 15.50%. The loans are repayable in monthly / quarterly installments each along with interest from the date of the loan.

(c) The amounts of secured loans from banks outstanding at the end of the financial year have been guaranteed by the personal guarantee of Chairman & Managing Director of the Company.

(Against hypothecation of stock of raw materials, work-in-progress, finished goods, stores, chemicals & book debts and second charge on the fixed assets of the Company situated at Shrirampur, Dist. Ahmednagar)

The amounts of secured loans from banks outstanding at the end of the financial year have been guaranteed by the personal guarantee of Chairman & Managing Director of the Company.

The Company has entered into arrangements with certain distilleries and bottling units in other states for manufacturing and marketing of its own brands. The manufacture under the said arrangement, wherein each party's obligations are stipulated, is carried out under Company's close supervision. The marketing is entirely the responsibility of the Company. The Company is also required to ensure adequate finance to the distilleries, where required. Accordingly, it is considered appropriate to disclose the following quantitative and value information for the year, as applicable to such activities.

i) Contingent Liability not provided for (Rs. in million)

Particulars As at As at March 31,2012 March 31,2011

(a) Corporate guarantees issued to banks on behalf of Subsidiary Company 562.72 200.00

(b) Bank guarantees issued on behalf of the Company 135.58 43.92

(c) In respect of disputed Income tax matters, pending before the appropriate Income tax authorities, contested by the Company

For A.Y 2009-10 6.13 6.13

For A.Y. 2007-08 86.07 86.07

For A.Y. 2004-05 22.27 22.27

(d) In respect of disputed Sales tax matters, pending before the appropriate tax authorities, contested by the Company

For F.Y. 2003-04 (Bombay Sales Tax) 6.28 6.28

For F.Y. 2003-04 (Central Sales Tax) 4.83 4.83

For F.Y. 2004-05 (Bombay Sales Tax) 4.67 4.67

For F.Y. 2004-05 (Central Sales Tax) 2.03 2.03

(e) In respect of disputed service tax matter, pending before the appropriate Nil 2.02 Central Excise authorities, contested by the Company

ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for is approx Rs. 40 million (net of advances) (P.Y. Rs.55 million).

iii) Operating Lease:

The Company has taken Bottling units on operating lease at various locations and during the financial year Rs. 22.50 million (P.Y. Rs. 3.61 million) paid towards lease rentals has been charged to Statement of Profit and Loss.

Except for escalation clauses contained in certain lease arrangements providing for increase in the lease payment by a specified percentage / amounts after completion of specified period, the lease terms do not contain any exceptional / restrictive covenants other than the prior approval of the lessee before the renewal of lease.

There are no restrictions such as those concerning dividend and additional debt other than in some cases where prior approval of lessor is required for further leasing. There is no contingent rent payment.

iv) The disclosure of Accounting Standard 15 "Employee Benefits" is as follows:

Defined Contribution Plan

The Company has charged in the Statement of Profit and Loss during the financial year an amount of Rs. 19.14 million (P.Y. Rs. 11.99 million) under defined contribution plan as employer's contribution to Provident Fund.

Defined Benefit Plan

The Employees' gratuity fund scheme managed by LIC is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the manner as gratuity.

v) Employee Stock Option Scheme

(a) The Shareholders of the Company at the Annual General Meetings held on August 06, 2008 and September 20, 2010 had approved the Employee Stock Option Scheme (ESOP) 2008 and Employee Stock Option Scheme (ESOP) 2010.

(b) During the financial year ended March 31, 2012, the following schemes were in operation.

(d) The weighted average fair value of stock options granted during the financial year was Rs. 58.70 million (P.Y. Rs. 33.70 million). The Black Scholes valuation model has been used for computing the weighted average fair value considering the following inputs:

vi) Segment Reporting:

The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor and its related products which constitute a single business segment.

vii) Provision of excise duty on finished goods manufactured but yet to be cleared from the factory as at March 31, 2012 estimated at Rs. 92.05 million (P.Y. Rs. 0.53 million) has been provided in the books and also been considered in valuation of closing stock of finished goods. Provision for excise duty on finished goods charged in the Statement of Profit and Loss for the financial year is as follows :

viii) There are no amounts outstanding in respect of unpaid dividend / fixed deposits for more than seven years to be transferred to Investor Education & Protection Fund.

ix) The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to Micro, Small and Medium Enterprises have not been made.

x) Other Significant notes

(a) The Company's glass manufacturing unit was given to Ramnath Glass Containers Pvt. Ltd (RGCPL) managed by Mehta Brothers on lease for carrying out their business, which had discontinued the operations in the year 2003 and handed over the unit back to the Company in totally unworkable conditions without fulfilling their legal obligations under the agreement. Due to this the Company had to pay the statutory liabilities and settle the dues of the workmen on behalf of RGCPL / Mehta Brothers. The Company has initiated the legal action against the RGCPL / Mehta Brothers for recovery of amount paid together with interest and damages amounting to Rs.76.20 million.

(b) The Company's distributor Ding Dong Liquors has filed a winding up petition on the Company in the High Court of Judicature of Bombay for recovery of Security Deposit of Rs.25 million. The Company withheld the Security Deposit on the grounds that Ding Dong Liquors had failed to deliver the 'C' Forms and other amounts due to the Company. The

Hon'ble High Court vide its Order directed the Company to deposit a sum of Rs.12.70 million out of the total amount claimed by Ding Dong Liquors. The Company has deposited the above sum with the Court and filed an appeal against the said Order.

Further, the Company has filed a separate suit for recovery of dues of Rs.39.00 million and C-forms against Ding Dong Liquors which has been upheld by the Bombay High court by dismissing the winding up petition and directed Ding Dong Liquors to avail remedy from the Hon'ble Court for recovery of the amount failing which the Company will be entitled to an amount of Rs. 12.70 million deposited with the Court.

(c) Anupama Wine Distributors has filed a suit before the City Civil Court, Bangalore claiming Rs.73.11 million towards refund of security deposit and other dues. The Hon'ble Court vide its Order dated December 22, 2007 dismissed their application for attachment of property for recovery of the above dues. The Company has filed a counter claim for Rs.119.30 million against Anupama Wine Distributors and the matter is pending before City Civil Court, Bangalore.

(d) Anupama Wine Distributors has filed a Company petition against the Company before Bombay High Court and against that the Hon'ble Bombay High Court has vide order dated March 16, 2009 directed to the Company to Deposit a security worth Rs.42.10 million. The Company deposited a Bank Guarantee worth the said amount with the High Court, Mumbai and filed an appeal against the said Order which has been upheld the Hon'ble Bombay High Court by dismissing the winding up petition and allowed the Company to discharge the bank guarantee. The said order of Bombay High Court was challenged by Anupama Wine Distributors by filing a Special Leave Application at Hon'ble Supreme Court. The Hon'ble Supreme Court has rejected their Special Leave Application. Accordingly, Company has discharged the said bank guarantee.

xi) During the year, the Company has allotted 4,284,236 equity shares to Promoters of the Company against conversion of warrants at a price of Rs. 73/- per equity share.

xii) During the year, the Company has acquired 100% stake in Mykingdom Ventures Pvt. Ltd., P. P. Caps Private Limited, Studd Projects P. Ltd., Srirampur Grains Private Limited and 90% stake in Shivprabha Sugars Ltd. on March 19, 2012 and these companies have become subsidiaries of the Company w.e.f March 19, 2012.

xiii) The Company has been granted Mega Project status for its new facilities at Shrirampur Factory under Package Scheme of Incentives (PSI) 2007 by the Government of Maharashtra. With its mega project status, the Company is entitled to monetary benefits which includes Industrial Promotional Subsidy in the form of refunds equivalent to 100% of eligible investment of Rs. 2,546.21 million or to the extent of taxes payable under Maharashtra Value Added Tax Act, 2002 and Central Sales Tax Act, 1956 in respect of sale of finished goods eligible for incentives after adjustment of set off or other credit available within a period of seven years whichever is lower.

xiv) The Ministry of Corporate affairs, Government of India, vide General Circular No 2 and 3 dated February 8, 2011 and February 21, 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

xv) During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for the preparation of financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

xvi) Figures of previous year have been regrouped, reclassified and recast, wherever considered necessary.


Mar 31, 2011

(i) Contingent liability not provided for:

(Rs.in million)

As at As at March 31, March 31, 2011 2010

(a) Corporate guarantees issued to banks on behalf of Subsidiary Company 1,395.00 250.00

(b) Bank guarantees issued on behalf of the Company 43.92 51.77

(c) In respect of disputed Income tax matters, pending before the appropriate Income tax authorities, contested by the Company For A.Y. 2009-10 6.13 Nil

For A.Y. 2007-08 86.07 86.07

For A.Y. 2004-05 22.27 22.27

(d) In respect of disputed Sales tax matters, pending before the appropriate tax authorities, contested by the Company

For F.Y 2003-04 (Bombay Sales Tax) 6.28 Nil

For F.Y 2003-04 (Central Sales Tax) 4.83 Nil

For F.Y. 2004-05 (Bombay Sales Tax) 4.67 Nil

For F.Y. 2004-05 (Central Sales Tax) 2.03 Nil

(e) In respect of disputed Service Tax matter, pending before the appropriate 2.02 2.02 Central Excise authorities, contested by the Company

(f) Disputed matters under arbitration pending disposal Nil 20.14

(ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for is approx Rs. 55 million (net of advances) (P.Y. Rs. Nil)

(iv) Operating Lease:

The Company has taken Bottling units on operating lease at various locations and during the financial year Rs. 3.61million ( P. Y. Rs. 20.97 million) paid towards lease rentals has been charged to Profit and Loss Account.

Except for escalation clauses contained in certain lease arrangements providing for increase in the lease payment by a specified percentage / amounts after completion of specified period, the lease terms do not contain any exceptional / restrictive covenants other than the prior approval of the lessee before the renewal of lease.

There are no restrictions such as those concerning dividend and additional debt other than in some cases where prior approval of lessor is required for further leasing. There is no contingent rent payment.

(v) The disclosure of Accounting Standard 15 “Employee Benefits” is as follows:

Defined Contribution Plan

The Company has charged in the Profit and Loss Account during the financial year an amount of Rs. 11.99 million ( P. Y. Rs. 13.24 million) under defined contribution plan as employer's contribution to Provident Fund.

Defined Benefit Plan

The Employees' gratuity fund scheme managed by LIC is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the manner as gratuity.

(vi) Employee Stock Option Scheme

(a) The Shareholders of the Company at the Annual General Meetings held on August 06, 2008 and September 20, 2010 had approved the Employee Stock Option Scheme (ESOP) 2008 and Employee Stock Option Scheme (ESOP) 2010.

(vii) Segment Reporting:

The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor and its related products which constitute a single business segment.

(viii) Related Party Disclosures:

The disclosures pertaining to the related parties as required by the Accounting Standard 18 “Related Party Disclosure” issued by the Institute of Chartered Accountants of India, as applicable, are as under:

(xiii) There are no amounts outstanding in respect of unpaid dividend / fixed deposits for more than seven years to be transferred to Investor Education & Protection Fund.

(xiv) The amount of secured loans from banks outstanding at the end of the financial year have been guaranteed by the personal guarantee of Chairman & Managing Director of the Company.

(xv) The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to Micro, Small and Medium Enterprises have not been made.

(xvii) Other Significant notes:

(a) The Company's glass manufacturing unit was given to Ramnath Glass Containers Pvt. Ltd. (RGCPL) managed by Mehta Brothers on lease for carrying out their business, which had discontinued the operations in the year 2003 and handed over the unit back to the Company in totally unworkable conditions without fulfilling their legal obligations under the agreement. Due to this the Company had to pay the statutory liabilities and settle the dues of the workmen on behalf of RGCPL / Mehta Brothers. The Company has initiated the legal action against the RGCPL / Mehta Brothers for recovery of amount paid together with interest and damages amounting to Rs. 76.2 million.

(b) The Company's distributor Ding Dong Liquors has filed a winding up petition on the Company in the High Court of Judicature of Bombay for recovery of Security Deposit of Rs. 25 million. The Company withheld the Security Deposit on the grounds that Ding Dong Liquors had failed to deliver the 'C' Forms and other amounts due to the Company. The Hon'ble High Court vide its Order directed the Company to deposit a sum of Rs. 12.70 million out of the total amount claimed by Ding Dong Liquors. The Company has deposited the above sum with the Court and filed an appeal against the said Order.

Further, the Company has filed a separate suit for recovery of dues of Rs. 39 million and C-forms against Ding Dong Liquors which has been upheld by the Bombay High court by dismissing the winding up petition and directed Ding Dong Liquors to avail remedy from the Hon'ble Court for recovery of the amount failing which the Company will be entitled to an amount of Rs. 12.70 million deposited with the Court.

(c) Anupama Wine Distributors has filed a suit before the City Civil Court, Bangalore claiming Rs. 73.11 million towards refund of security deposit and other dues. The Hon'ble Court vide its Order dated 22.12.2007 dismissed their application for attachment of property for recovery of the above dues. The Company has filed a counter claim for Rs. 119.30 million against Anupama Wine Distributors and the matter is pending before City Civil Court, Bangalore.

(d) Anupama Wine Distributor has filed a company petition against the Company before Bombay High Court and against that the Hon'ble Bombay High Court has vide order dated March 16, 2009 directed to the Company to Deposit a security worth Rs. 42.10 million. The Company has deposited a Bank Guarantee worth the said amount with the High Court, Mumbai and has filed an appeal against the said Order which has been upheld the Hon'ble Bombay High Court by dismissing the winding up petition and the Company will be entitled to discharge the Bank Guarantee after the time limit available to Anupama Wine Distributor if they fail to do so.

(e) An amount of Rs. 20.14 million disclosed under Deposits with Court as contingent liability has been charged of in terms of out of court settlement with Rairu Distilleries Limited by filing consent terms and included in finance charges.

(xviii) During the year, the Company has allotted 8.30 million warrants of Rs. 73/- each (Rs. 18.25 /- paid up) to the Promoter Groups which are convertible into one equity share at a price of Rs. 73/- per equity share and out of the said warrants, 4.02 million warrants have been converted into equity shares by the promoters and balance 4.28 million warrants is lying outstanding as on March 31, 2011.

(xix) During the year, the Company has acquired 100% stake in Kesarval Springs Distillers Pvt. Ltd. (KSDPL) and KSDPL has became a 100% subsidiary of the Company with effect from November 21, 2010.

(xx) Additional information pursuant to the provisions of paragraph 3, 4 (c) & (d) of part II of Schedule VI of Companies Act, 1956, is annexed hereto.

(xxi) The Ministry of Corporate affairs, Government of India, vide General Circular No 2 and 3 dated 08-02-2011 and 21-02-2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The company has satisfied the conditions stipulated in the circular and is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

(xxii) Figures of previous year have been regrouped, reclassified and recast, wherever considered necessary.


Mar 31, 2010

(i) Contingent liability not provided for

(Amount in Rs.)

As at As at

Particulars 31st March, 2010 31st March, 2009

(a) Corporate guarantees issued to banks on behalf of Subsidiary Company 250,000,000 Nil

( b) Bank guarantees issued on behalf of the Company 51,766,600 6,200,000

(c) In respect of disputed sales tax matter, pending before the sales tax tribunal, contested by the Company Nil 1,340,750

(d) In respect of disputed income tax matters, pending before the appropriate Income tax authorities, contested by the Company

For A.Y. 2007-08 86,069,844 Nil

For A.Y. 2004-05 22,267,678 Nil

For A.Y. 1992-93 Nil 1,000,000

(e) In respect of disputed service tax matter, pend ing before the appropriate Central 2,017,760 Nil

Excise authorities, contested by the Company

(f ) Disputed matter under arbitration pending disposal 20,137,685 20,137,685

(ii) Estimated amount of contracts remaining to be executed on capital accounts and not provided for is approx Rs. Nil (net of advances) (previous year Rs. 90 million)

(iv) Operating lease

The Company has taken Bottling units on operating lease at various locations and during the financial year Rs. 20.97 million paid towards lease rentals has been charged to Profit & Loss Account.

(v) The disclosure of Accounting standard 15 "Employee Benefits" is as follows

Defined Contribution Plan

The Company has charged in the Profit & Loss Account during the financial year an amount of Rs. 13.24 million under defined contribution plan as employers contribution to Provident Fund.

Defined Benefit Plan

The Employees gratuity fund scheme managed by LIC is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the manner as gratuity.

(vi) Segment Reporting

The Company is predominantly engaged in the business of manufacture and sale of Indian Made Foreign Liquor and its related products which constitute a single business segment.

Note: The above amounts do not include contribution to Gratuity Fund, as separate amount is not available for Managing Director and Whole Time Directors.

(vii) There are no amounts outstanding in respect of unpaid dividend / fixed deposits for more than seven years to be transferred to Investor Education & Protection Fund.

(viii) The amount of secured and unsecured loans from banks outstanding at the end of the financial year have been guaranteed by the personal guarantee of Chairman & Managing Director of the Company.

(ix) The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to Micro, Small and Medium Enterprises have not been made.

(x) Other Significant notes

(a) The Companys glass manufacturing unit was given to Ramnath Glass Containers Pvt. Ltd (RGCPL) managed by Mehta Brothers on lease for carrying out their business, which had discontinued the operations in the year 2003 and handed over the unit back to the Company in totally unworkable conditions without fulfilling their legal obligations under the agreement. Due to this the Company had to pay the statutory liabilities and settle the dues of the workmen on behalf of RGCPL / Mehta Brothers. The Company has initiated the legal action against the RGCPL / Mehta Brothers for recovery of amount paid together with interest and damages amounting to Rs. 76.2 million.

( b) The Companys distributor Ding Dong Liquors has filed a winding up petition on the Company in the high Court of Judicature of Bombay for recovery of Security Deposit of Rs. 25 million. The Company withheld the Security Deposit on the grounds that Ding Dong Liquors had failed to deliver the C forms and other amounts due to the Company. The honble high Court vide its Order directed the Company to deposit a sum of Rs. 12.70 million out of the total amount claimed by Ding Dong Liquors. The Company has deposited the above sum with the Court and filed an appeal against the said Order.

Further, the Company has filed a separate suit for recovery of dues of Rs. 39 million and ‘C forms against Ding Dong Liquors.

(c) Anupama Wine Distributors has filed a suit before the City Civil Court, Bangalore claiming Rs. 73.11 million towards refund of security deposit and other dues. The honble Court vide its Order dated 22nd December, 2007 dismissed their application for attachment of property for recovery of the above dues. The Company has filed a counter claim for Rs. 119.30 million against Anupama Wine Distributors and the matter is pending before City Civil Court, Bangalore.

(d) Anupama Wine Distributor has filed a Company petition against the Company before Bombay high Court and against that the honble Bombay high Court has vide Order dated 16th March, 2009 directed to the Company to Deposit a sum of Rs. 42.10 million. The Company has deposited a bank guarantee worth the said amount with the high Court, Mumbai and has filed an appeal against the said Order.

(xi) Additional information pursuant to the provisions of paragraph 3, 4 (c) & (d) of part II of Schedule VI of Companies Act, 1956, is annexed hereto

(xii) Figures of previous year have been regrouped, reclassified and recast, wherever considered necessary.