Notes to Accounts of Associated Alcohols & Breweries Ltd.

Mar 31, 2018

1. CORPORATE AND GENERAL INFORMATION

Associated Aicohois & Breweries Limited ("the Company") is a public limited company domiciled and incorporated in India under the Companies Act 1956 and has its listing on the BSE Limited. The registered office of the Company is situated at Kolkata, West Bengal. The Company is one of the leading and largest liquor manufacturers in Central India. The Company''s principal business is manufacturing and trading of ENA, Indian Made Indian Liquor (Country Liquor) and Indian Made Foreign Liquor.

1. BASIS OF PREPARATION & PRESENTATION OF FINANCIAL STATEMENT

1.1. Statement of Compliance

These financial statements have been prepared in accordance with the Indian Accounting Standards ("Ind AS”) as prescribed by Ministry of Corporate Affairs pursuant to Section 155 of the Companies Act, 2015 ("the Act”), read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), other relevant provisions of the Act and other accounting principles generally accepted in India.

The financial statements for all periods up to and including the year ended 51st March, 2017, were prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India, which includes the accounting standards prescribed under section 155 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 and other provisions of the Act (collectively referred to as "Indian GAAP”). These financial statements for the year ended 51st March, 2018 are the first Ind AS Financial Statements with comparatives, prepared under Ind AS. The Company has consistently applied the accounting policies used in the preparation of its opening Ind AS Balance Sheet at 1st April, 2016 throughout all periods presented, as if these policies had always been in effect and are covered by Ind AS 101 "First Time Adoption of Indian Accounting Standards”.

An explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash flows of the Company is provided in Note No. 48. Certain of the Company''s Ind-AS accounting policies used in the opening Balance Sheet differed from its Indian GAAP policies applied as at 51st March, 2016 and accordingly the adjustments were made to restate the opening balances as per Ind-AS. The resulting adjustment arising from events and transactions before the date of transition to Ind-AS were recognized directly through retained earnings as at 1st April, 2016 as required by Ind- AS 101. The financial statements of the Company for the year ended 51st March, 2018 has been approved by the Board of Directors in their meeting held on 28th May, 2018.

2.2. Basis of Measurement

The Company maintains accounts on accrual basis following the historical cost convention, except for followings:

- Certain Financial Assets and Liabilities is measured at Fair value/ Amortized cost (refer accounting policy regarding financial instruments);

- Defined Benefit Plans - Plan assets measured at fair value.

2.3. Functional and Presentation Currency

The Financial Statements are presented in Indian Rupee (INR), which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates. All amounts disclosed in financial statements and notes have been rounded off to the nearest lacs (with two places of decimal) as per the requirements of Schedule III, unless otherwise stated.

2.4. Use of Estimates and Judgements

The preparation of financial statements in conformity with Ind AS requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

2.5. Presentation of Financial Statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 ("the Act”). The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7 "Statement of Cash flows”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along with the other notes required to be disclosed under the notified Indian Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended).

2.6. Operating Cycle for current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS l.The Company has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

An asset is classified as current when it is:

- Expected to be realized or intended to sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

- Expected to be realized within twelve months after the reporting period; or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All the other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period; or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current. Deferred Tax Assets and Liabilities are classified as non-current assets and liabilities respectively.

2.7. Measurement of Fair Values

A number of the Company''s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable and

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

External valuers are involved for valuation of significant assets & liabilities. Involvement of external valuers is decided by the management of the company considering the requirements of Ind AS and selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

2.8. New Standards / Amendments to Existing Standard issued but not yet effective upto the date of issuance of the Company''s Financial Statement are disclosed below:

On 28th March, 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contracts with Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the Company from 1st April 2018.

- Ind AS 115-Revenue from Contracts with Customers

Ind AS 115 supersedes Ind AS 11, Construction Contracts and Ind AS 18, Revenue. Ind AS 115 requires an entity to report information regarding nature, amount, timing and uncertainty of revenue and cash flows arising from contract with customers. The principle of Ind AS 115 is that an entity should recognize revenue that demonstrates the transfer of promised goods and services to the customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.

Based on preliminary assessment performed by the Company, the impact of the application of the standard is not expected to be material.

- Amendment to Existing issued Ind AS

Ind AS 12 - Income Taxes

Ind AS 21 - The Effects of Changes in Foreign Exchange Rates

Ind AS 28 - Investment in Associates and Joint Ventures

Ind AS 112 - Disclosure of Interests in Other Entities

The impact of the above standards on the financial statements, as assessed by the Company, is not expected to be material.

Notes:

5.1 As permitted by para D5-D8B of Ind AS 101, the Company has elected to measure items of property, plant and equipment at its carrying value as Deemed cost at the transition date as on 1st April 2016.

5.2 Refer note no. 41 for information on property, plant and equipment pledged as securities by the Company

Notes:

6.1 As permitted by para D5-D8B of Ind AS 101, the Company has elected to measure intangible assets at its carrying value as Deemed cost at the transition date as on 1st April 2016.

6.2 Refer note no. 41 for information on Intangibles Assets pledged as securities by the Company

11.2 Refer note no. 41 for information on inventories pledged as securities by the Company.

11.3 The net provision on Obsolete & Non moving item is recognized as expense during the year and included in Other manufacturing expense in Statement of Profit & Loss amounting to Rs.9.73 lacs [PY 2017 "Nil" & PY 2016 "Nil"].

18.4 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.

18.5 Terms/ Rights attached to Equity Shares :

The Company has only one class of issued shares i.e. Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of 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 payment of all preferential amounts, in proportion to their shareholding.

18.6 Shareholding Pattern with respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.

18.8 No equity shares have been reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

18.9 No equity shares have been bought back by the Company during the period of 5 years preceding the date as at which the Balance Sheet is prepared.

18.10 9039600 nos. of equity shares have been issued as bonus shares during the financial year 2015-16 in the ratio of 1:1 to all the equity shareholders.

18.11 No securities convertible into equity shares have been issued by the Company during the year.

18.12 No calls are unpaid by any Director or Officer of the Company during the year.

Nature/ Purpose of each reserve

a) Securities Premium: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. This reserve is utilised in accordance with the provisions of the Companies Act 2013.

b) General Reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies Act 1956.

c) Retained Earning: Generally represents the undistributed profit/amount of accumulated earnings of the company.

d) Other Comprehensive Income(OCI): Other Comprehensive Income (OCI) represents the balance in equity for items to be accounted under OCI and comprises of the following:

i) Equity Instruments through OCI: The company has elected to recognise changes in the fair value of certain investment in equity instrument in other comprehensive income.

ii) Re-measurement of defined benefit obligations: The actuarial gains and losses arising on defined benefit obligations have been recognised in OCI.

2.9 Details of Security:

a. Rupee Term loan of Rs.1,246.85 Lacs from a bank is secured by pari passu charge over entire fixed assets of the Company and second pari passu charge over entire current assets of the Company. The loan is repayable in remaining six equal quarterly instalments. The interest rate is 9.90% p.a. The loan outstanding as on 31st March 2017 and 31st March 2016 from another bank were repaid in current/ earlier year. The loan is further secured by personal guarantees of certain KMPs/Employees of the Company.

b. Vehicle loans from a bank amounting to Rs. 30.82 Lacs are secured against hypothecation of vehicles purchased against the loan. The loans are repayable in monthly instalments ranging from 36 to 60 months and carrying an interest rate varying from 8.50% p.a. to 10.86% p.a. The loan outstanding as on 31st March 2017 and 31st March 2016 was Rs. 30.55 Lacs & Rs. 44.54 Lacs respectively.

c. Vehicle loans from a bank amounting to Rs. 54.79 lacs are secured against hypothecation of vehicles purchased against the loan. The loans are repayable in 36 monthly instalments and carrying an interest rate varying from 9.65% p.a. to 9.83% p.a. The loan outstanding as on 31st March 2017 and 31st March 2016 was Rs. 109.05 Lacs & Rs. 140.13 Lacs respectively.

2.10 The Carrying amount of the Financial and Non financial assets pledged as security for current and non current borrowings is given in note. 41.

2.11 Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income tax levied by the same taxation authority

2.12 Details of Security

a. Working capital facilities from the banks (fund based and non fund based) are secured by first pari passu charge over entire current assets of the Company and second pari passu charge over entire fixed assets of the Company. The facilities are also secured by personal guarantees of certain KMPs/Employees of the Company. The interest rates are varying from 9.90% p.a. to 10.50% p.a.

b. Other lease obligation are secured by asset underlying lease.

2.12 Refer note no. 41 for information on the carrying amounts of financial and non-financial assets pledged as security for current borrowings.

3. In absence of any clarity in respect of levy of Goods & Service Tax on sale of Rectified spirit (RS) & Extra Neutral Alcohol (ENA), the Company continues to collect Value Added Tax (VAT) and Central Sales Tax (CST) for intra-state and inter-state respectively on sales of these products w.e.f 1st July 2017. Pending clarification, VAT collected during the year (from 1st July 2017 to 31st March 2018) on sales of Rs & ENA amounting to Rs. 197.23 Lacs has been withheld by the company and would be deposited upon receipt of necessary clarification. Differential liability, if any, is not presently ascertainable at this point and will be accounted for upon getting necessary clarification.

4 During the year, the Income Tax department had carried out a search u/s 132 of the Income Tax Act, 1961 at the premises of the Company. The Company did not receive any communication in the nature of show cause/demand from the department till date. The Management does not foresee any implication/material impact in this regard on the financial statement of the company.

5 In respect of above, future cash flows are determinable only on receipt of judgements pending at various forums/ authorities which in the opinion of the Company is not tenable and there is no possibility of any future cash outflow in case of above.

6 Leases

6.1 Operating Lease as lessee

The Company has Operating [eases for certain Land & Premises which include both cancellable and non-cancellable leases, ranging between 11 months to 30 years generally and are usually renewable by mutual consent at agreeable terms. With respect to non-cancellable operating lease, the future minimum lease payment at the balance sheet date is as under.

7. Disclosure pursuant to Indian Accounting Standard -19 ''Employee Benefits'' as notified u/s 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014.

7.1 Defined Contribution Plan:

7.2 Provident Fund & Employee''s State Insurance Contribution

Provident Fund as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952. Employee State Insurance contribution as per the provisions of the Employees State Insurance Act, 1948.

7.3 Defined Benefit Plan:

The following are the types of defined benefit plans

7.4 Gratuity Plan

Every employee who has completed five years or more of service is entitled to Gratuity as per the provisions of the Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.

7.5 Risk Exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:

ASSET VOLATILITY

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. The Company has made investment in Plan Asset through Life Insurance Corporation in Qualified Insurance Policy.

CHANGES IN BOND YIELDS

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans'' bond holdings.

SALARY GROWTH RISK

The present value of defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of plan participants will increase the plan liabilities.

LIFE EXPECTANCY

The plan liability are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans'' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The Gratuity Scheme is invested in a New Group Gratuity Cash Accumulation Plan Policy offered by Life Insurance Corporation (LIC). The information on the allocation of the fund into major asset classes and expected return on each major class are not readily available. The expected rate of return on plan assets is based on market expectations, at the beginning of the period, for returns over the entire life of the related obligation

7.6 Asset-Liability Matching Strategy

The Company''s investment are being managed by Life Insurance Company and at the year end interest is being credited to the fund value. The company has not changed the process used to manage its risk from previous periods . The Company''s investment are fully secured and would be sufficient to cover its obligations.

7.7 The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

7.8 At 31st March 2018, the weighted average duration of the defined benefit obligation was 10 years (previous year 11 years). The distribution of the timing of benefits payment i.e., the maturity analysis of the benefit payments is as follows:

7.9 The Company expects to contribute Rs."NIL" (previous year Rs.37.75 Lacs) to its gratuity fund in 2018-19

8. Sensitivity Analysis

The sensitivity analysis below have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:

* Post-empioyment benefits and other Long-term benefits is being disclosed based on actual payment made on retirement/resignation of services, but does not includes provision made on actuarial basis as the same is available for all the employees together.

8.1 Major terms and conditions of transactions with related parties

Transactions with related parties are carried out in the normal course of business.

9. Segment Reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker, in deciding how to allocate resources and assessing performance. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. Based on the management approach as defined in Ind AS 108, the Chief Operating Decision Maker evaluates the Company''s performance based on only one segment i.e. manufacturing and trading of Potable Alcohol.

No customer individually accounts for more than 10% of the revenues from the external customers during the years.

10. Transition to Ind AS

10.1 Basis for Preparation

For all period up to and including the year ended March 31, 2017, the Company has prepared its financial statements in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended March 31, 2018 are the Company''s first annual Ind AS Financial Statements and have been prepared in accordance with Ind AS.

The Company has prepared the opening balance sheet as per Ind AS as at April 1, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying certain items from Previous GAAP to Ind AS as required under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities. The accounting policies that the Company has used in its opening Ind-AS Balance Sheet may have differed from those that it used for its previous GAAP. The resulting adjustments arising from events and transactions occurring before the date of transition to Ind-AS has been recognized directly in retained earnings at the date of transition.

The accounting policies set out in note 3 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the date of transition). This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.

10.2 Exceptions and Exemptions Applied

Ind AS 101 "First-time adoption of Indian Accounting Standards” (hereinafter referred to as Ind AS 101) allows first time adopters certain exemptions from the retrospective application of certain IND AS, effective for April 1, 2016 opening balance sheet. In preparing these financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

10.2.1 Optional Exemptions Availed

a Property Plant and Equipment and Intangible Assets

As permitted by Para D5-D8B of Ind AS 101, the Company has elected to measure items of property, plant and equipment and intangible assets at its previous GAAP carrying value on the transition date as deemed cost.

b Determining whether an arrangement contains a Lease

Para D9-D9AA of Ind AS 101 includes an optional exemption that permits an entity to apply the relevant requirements in Appendix C of Ind As 17 "Leases” for determining whether an arrangement existing at the date of transition contains a lease by considering the facts and circumstances existing at the date of transition (rather than at the inception of the arrangement). The Company has applied the above transition provision and has assessed all the arrangements at the date of transition.

c Designation of previously recognised financial instruments

Para D19B of Ind AS 101 permits an entity to designate particular investments in equity instruments as at fair value through other comprehensive income (FVOCI) based on facts and circumstances at the date of transition to Ind AS (rather at initial recognition). The Company has opted to avail this exemption to designate its investments in equity instruments as FVOCI on the date of transition.

10.2.2 Mandatory Exceptions a Estimates

As per Para 14 of Ind AS 101, an entity''s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity''s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Para 16 of the standard, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition or at the end of the comparative period.

The Company''s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statement that were not required under the previous GAAP are listed below:

Fair Valuation of financial instruments carried at FVTPL and/ or FVOCI.

Impairment of financial assets based on the expected credit loss model.

Determination of the discounted value for financial instruments carried at amortized cost.

b De-recognition of Financial Assets and Liabilities

As per Para B2 of Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, "Financial Instruments”, prospectively for transactions occurring on or after the date of transition to Ind AS. However, Para B3 gives an option to the entity to apply the derecognition requirements from a date of its choice if the information required to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the initially accounting for those transactions. The company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

c Classification and measurement of Financial Assets

Para B8 - B8C of Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost has been done retrospectively.

10.3 Impact of Transition to Ind AS

The following is a summary of the effects of the differences between IND AS and Indian GAAP on the Company''s total equity shareholders'' funds and profit and loss for the financial periods previously reported under Indian GAAP following the date of transition to IND AS.

10.3.1 Notes to First Time Adoption

a Measurement of Financial Assets and Financial Liabilities

i Investment in Equity instruments: Under the previous GAAP, investments in Equity instruments were classified as long-term investments or current investments based on the intended holding period and reliability Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31 March 2017.

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognised in other equity under Equity Investment through FVOCI as at the date of transition and subsequently in the other comprehensive income for the year ended 31 March 2017.

ii Fair valuation of interest free security deposits : Under previous GAAP, interest free security deposit were carried at cost. Under Ind AS the same are measured at fair value on initial recognition and subsequently measured at amortised cost.

iii Application of effective interest rate on borrowing: Under Indian GAAP, transaction costs incurred in connection with borrowings are amortised upfront and charged to the Statement of Profit and Loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method.

b Expected Credit Loss Model

Under Ind AS, the impairment allowances for doubtful receivables/advances has been determined based on expected credit loss model as per the requirements of Ind AS 109. The provision created on the date of transition has been adjusted with retained earning and subsequent adjustments in the provision has been taken to statement of profit and loss account.

c Derecognition of Goodwill

The Company has derecognised goodwill at the date of transition as it does not meet the recognition criteria of Intangible Assets.

d Proposed Dividend

Under Indian GAAP, proposed dividends are recognized as liability in the period to which they relate irrespective of the approval by shareholders. Under Ind AS, a proposed dividend is recognised as a liability in the period in which it is declared by the entity (on approval of Shareholders in a general meeting) or paid.

In the case of the entity, the declaration of dividend occurs after period end. Therefore, the liability for the year ended 31 March 2016 recorded for dividend has been derecognised against retained earnings on 1 April 2016.

e Deferred Tax

Indian GAAP requires Deferred tax accounting using the Income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to different temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or Other comprehensive income reserve.

f Remeasurements of post-employment benefit obligations

Under the previous GAAP, these Remeasurements were forming part of statement of profit or loss for the year. Under Ind AS, Remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of statement of profit or loss.

g Spare Part considered as Property, Plant and Equipment

As per Ind AS 16, Spare parts, Stand- by equipment and Servicing equipment are recognised as Property, Plant and Equipment (''PPE'') when they meet the following criteria:

Are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and

Are expected to be used during more than one period.

Based on the above provision, Stores and Spares satisfying above criteria are de-recognised from Inventory and capitalized as PPE from the date of purchase.

h Leasehold land considered as Operating Lease

Under IGAAP, Leasehold Land were classified as Fixed Assets as the standard on leases excluded Land. However, as per Ind AS 17, where the substantial risks and rewards incidental to ownership of an asset has not been transferred in the name of Company, the Company has classified such land under Operating Leases. The amount paid towards such leases has been shown as prepayments under Other non-current assets & Other current assets.

i Reclassification between Previous GAAP and Ind AS

i. Excise duty and Export duty which were earlier netted off with revenue now has been grossed up and separately shown as expenses.

ii. Trade discounts, Rebates to customers (both primary and secondary) has been reclassified from other expenses to revenue.

iii. Other necessary reclassification are in line with Ind AS.

j Retained Earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

11. The management assessed that the fair values of cash and cash equivalents, trade receivables, trade payables, current borrowings, current loans and other financial assets & liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments.

12. The management considers that the carrying amounts of Financial assets and Financial liabilities recognised at nominal cost/amortised cost in the Financial statements approximate their fair values.

13. Non current borrowings has been contracted at floating rates of interest, which are reset at short intervals. Fair value of floating interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost.

14. Fair Value Hierarchy

The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 "Fair Value Measurement". An explanation of each level follows underneath the tables.

14.1 During the year ended March 31, 2018 and March 31, 2017, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

14.2 Explanation to the Fair Value hierarchy

The Company measures Financial instruments, such as, unquoted investments and financial guarantee at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The valuation of unquoted shares and financial guarantee have been made based on level 3 inputs as per the hierarchy mentioned in the Accounting Policies. The valuation of unquoted equity instrument and financial guarantee have been valued based on the valuation technique applicable.

15. Financial Risk Management

Financial management of the Company has been receiving attention of the top management of the Company. The management considers finance as the lifeline of the business and therefore, financial management is carried out meticulously on the basis of detailed management information systems and reports at periodical intervals extending from daily reports to long-term plans. Importance is laid on liquidity and working capital management with a view to reduce over-dependence on borrowings and reduction in interest cost. Various kinds of financial risks and their mitigation plans are as follows:

15.1Credit Risk

The credit risk is the risk of financial loss arising from counter party failing to discharge an obligation. The credit risk is controlled by analysing credit limits and credit duration for customers on continuous basis. Further, in order to manage the credit risk, the security deposits are obtained from customers where ever considered necessary.

On account of adoption of Ind AS 109, the Company uses an expected credit loss model to assess the impairment loss. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables.

15.2 Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for funding from banks and inter corporate and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain fixed deposits which provides flexibility to liquidate.

d. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements (if any). The interest payments on variable interest rate loans in the tables above reflect market forward interest rates at the respective reporting dates and these amounts may change as market interest rates change. Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

15.3 Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of Foreign Exchange Risk and Interest Rate Risk.

15.3.1 Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of the movement in foreign exchange rate. The Company does not have any material foreign currency exposure at the balance sheet date except a capital commitment of Rs.91.58 Lacs (equivalent to 1,13,600 Euros). The Foreign currency exposure is Unhedged at the balance sheet date.

15.3.2 Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market rates. The company''s exposure to the risk of changes in market interest rate relates primarily to company''s borrowing with floating interest rates. The Company do not have any significant interest rate risk on its current borrowing due to their short tenure.

The Company is also exposed to interest rate risk on surplus funds parked in loans. To manage such risks, such loans are granted for short durations with fixed interest rate in line with the expected business requirements for such funds.

16. Capital Management

The Company objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/internal accruals and borrowings, both short term and long term. Net debt (total borrowings less cash and cash equivalents) to equity ratio is used to monitor capital.

17. The Board of Directors at its meeting held on 28th May, 2018 recommended final dividend of Rs.1 per equity share of face value of Rs. 10 each for the financial year ended 31st March, 2018. The same amounts to Rs. 217.95 Lacs (including dividend distribution tax of Rs. 37.16 Lacs). The above is subject to approval at the ensuing Annual General Meeting of the Company and hence not recognized as a liability.

18. Previous GAAP figures have been reclassified/regrouped to confirm the presentation requirements under IND AS and the requirements laid down in Division-ll of the Schedule-Ill of the Companies Act, 2013.

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Mar 31, 2017

1. The company has only one class of equity shares having par value of '' 10 each. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. During the Financial Year 2015-16 Company has issued Bonus shares in the ratio of 1:1 to all the existing shareholders.

The company has deposited cash amounting to Rs, 1360.21 Lakhs, mainly consisting of cash sales collections and other receipts, in its bank accounts during 9th November 2016 to 30th December 2016. During the course of enquiry of such deposits by Income-tax authorities, the company was unable to furnish confirmations to the satisfaction of the Income-tax authorities for a sum of Rs, 100 Lakhs. Therefore, in the month of March 2017, in order to avoid harsher tax consequences and unwarranted future litigation, the company has declared a sum of Rs, 100 Lakhs, received in part payment of ''Other Receivables'' and deposited in bank account, as undisclosed income under the Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY 2016) and paid applicable tax, surcharge & penalty aggregating to Rs, 49.90 Lakhs. As required under the PMGKY 2016, the company has made a deposit of Rs, 25 Lakhs in the Bond Ledger Account maintained with Reserve Bank of India in respect of Pradhan Mantri Garib Kalyan Deposit Scheme, 2016.

Note 3

Other loan & Advances include noncurrent portion of loans to employees and loans to body corporate.

Other loans & advances include prepaid expenses, statutory receivables, deposits with government departments, advance to employees, advance to suppliers and to service providers.

Note 4

Details of Short Term Loan given to Body Corporate are as follows:

1. Amount of Rs, 293.51 Lakhs (Previous Year Nil) to Mount Everest Breweries Limited for the brewery establishment & working capital as joint business strategy which will be repaid within a period of 12 months with interest @ 12%.

2. Amount of Rs, 71.05 Lakhs (Previous Year Rs, 78.10 Lakhs ) to Smilington Holdings Private Limited for the renovation of corporate office building which will be repaid within a period of 12 months with interest @ 12%.

3. Amount of Rs, 300.41 Lakhs (Previous Year Rs, 250.82 Lakhs ) to Millennium Urja Limited for the proposed investment in energy sector which will be repaid within a period of 12 months with interest @ 12%.

4. Amount of Rs, 158.21 Lakhs (Previous Year Rs, 150.44 Lakhs ) to Malwa Realities Private Limited for the back end tie up with major Liquor Contractor of the state as part of Marketing strategy which will be repaid within a period of 12 months with interest @ 12%.

*The cash deposited by the buyers/contractors in special collection accounts bearing the name of the company, with designated branches of Punjab National Bank for IMFL supplies, are not included in the aforesaid deposits, as the same are under the control & supervision of State Excise Authorities & company does not have any control over operations of these accounts.

B) Defined Benefit Plan

i) The obligation of leave encashment is recognized, provided and paid on yearly basis. There is no accumulation of the same except current year

ii) The Company has taken Group Gratuity Policy of Insurance Companies. 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.

Note 5 [RELATED PARTY DISCLOSURE

A List of Related Parties where control exists and related parties with whom transactions have taken place.

Mr Ashish Kumar Gadia Key Managerial Personnel (Stepped down on 5th January 2017)

Mr Tushar Bhandari Key Managerial Personnel

Mr Sumit Jaitely Key Managerial Personnel

Mr Anand Kumar Kedia Individual owning voting power giving control or significant influence.

Mr Prasann Kumar Kedia Individual owning voting power giving control or significant influence.

Mrs Ram Dulari Kedia Individual owning voting power giving control or significant influence.

Mrs Sangita Kedia Individual owning voting power giving control or significant influence.

Mrs Sweta Kedia Individual owning voting power giving control or significant influence.

Mr Anshuman Kedia Relative of individual owning voting power giving control or significant influence.

Ms Ravisha Kedia Relative of individual owning voting power giving control or significant influence.

Mr Vedant Kedia Relative of individual owning voting power giving control or significant influence.

Mr H.K. Bhandari Relative of Key Managerial Person

Mrs Udita Bhandari Relative of Key Managerial Person

Note 6 [SEGMENT REPORTING

The Company has identified primarily reportable segment viz. Potable Alcohol segment same has been identified and reported taking into account nature of product and service, the differing risks and returns and the internal business reporting systems. The company is not having more than one reportable business segment so segment information as per AS 17 is not required.

---

Mar 31, 2016

1. a) Term loan includes Rs, 184.78 Lacs (previous year Rs, 63.49 Lacs) as car loan, secured by hypothecation on assets acquired under the scheme and personal guarantee of a director.

b) Financial assistance of Rs, 1943.59 Lacs (previous year Rs, 2572.88 Lacs) as term loan, secured by pari passu first charge on entire fixed assets, present & future, of the company through hypothecation for movable assets and mortgage of immovable assets, pledge of FDRs of Rs, 105.80 Lacs (previous year Rs, 172.20 Lacs) and personal guarantee of a director.

c) Financial assistance of Rs, 278.63 Lacs (previous year Rs, 526.63 Lacs) are unsecured loans.

2.

Balance of Rs, 2.63 Lacs (previous year Rs, 2.37 Lacs) with IDBI Bank Limited earmarked for unpaid dividend.

3.

Fixed Deposits with banks include deposits of Rs, 61.33 Lacs (previous year Rs, 161.88 Lacs) with maturity of more than 12 months.

Fixed Deposits with banks amount to Rs, 147.58 Lacs (previous year f 83.28 Lacs) earmarked for issuance of Bank Guarantees and f 105.80 Lacs (previous year Rs, 172.20 Lacs) earmarked for borrowings of Rs, 1868.71 Lacs (previous year Rs, 2366.68 Lacs).

Other loans & advances include prepaid expenses, statutory receivables, deposits with government departments, advance to employees, advance to suppliers and to service providers.

4. Other Non operating Income includes profit/loss on sale of assets, Misc. income, balances written off/written back.

5. RELATED PARTY DISCLOSURE

A List of Related Parties where control exists and related parties with whom transactions have taken place.

Name of Related Party Relationship

Mr.Ashish Kumar Gadia Key Managerial Personnel

Mr.Anand Kumar Kedia Individual owning voting power giving control or significant influence.

Mr.Prasann Kumar Kedia Individual owning voting power giving control or significant influence.

Mrs.Ram Dulari Kedia Individual owning voting power giving control or significant influence.

Mrs.Sangita Kedia Individual owning voting power giving control or significant influence.

Mrs.Sweta Kedia Individual owning voting power giving control or significant influence.

Mr. Anshuman Kedia Relative of individual owning voting power giving control or significant influence.

Ms Ravisha Kedia Relative of individual owning voting power giving control or significant influence.

Mr. Vedant Kedia Relative of individual owning voting power giving control or significant influence.

Venkareshwar Inv. & Fin. (P) Ltd Enterprise over which persons referred hereinabove have been able to exercise

significant influence.

Snehsil Hirise (P) Ltd Enterprise over which persons referred hereinabove have been able to exercise

significant influence.

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Mar 31, 2015

1. Defined Benefit Plan

i) The obligation of leave encashment is recognized, provided and paid on yearly basis. There is no accumulation of leave encashment.

ii) The Company has taken Group Gratuity Policy of LIC of India. 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.

2. Expenditure on account of corporate Social Responsibility as per Section 135 of Companies Act, 2013 amounting to Rs. 12.28 Lacs has not been spent by the company during the financial year.

3. The income amounting to Rs. 244.85 Lacs appearing under the head exceptional item relates to profit/ gain arising from disposal off certain old and outdated plant and machinery upon commissioning of new plant.

4. CONTINGENT LIABILITIES AND COMMITMENTS

(Rs. In Lacs)

PARTICULARS 31.03.2015 31.03.2014

I Contingent Liabilities

(A) Guarantees

(i) Guarantees to Banks and Financial Institutions against credit facilities extended to third parties 3200.00 3200.00

(ii) Bank Guarantees to other parties 223.97 251.97

(B) Dues

(iii) Entry Tax payable 133.62 53.00

(iv) State Excise Duty payable 536.18 208.15

(v) MPGATSAVA Tax 13.65 7.16

(vi) Income Tax demand 13.92 12.35

(vii) Central Sales Tax Payable 2089.21 0.00

(viii) M.P. VAT Payable 93.38 0.00

II Commitments

(A) Estimated amount of contracts remaining to be executed on capital account and not provided for 47.30 107.46

5. RELATED PARTY DISCLOSURE

A List of Related Parties where control exists and related parties with whom transactions have taken place.

Name of Related Party Relationship

Mr.Ashish Kumar Gadia Key Managerial Personnel

Mr.Anand Kumar Kedia Individual owning voting power giving control or significant influence.

Mr.Prasann Kumar Kedia Individual owning voting power giving control or significant influence.

Mrs.Ram Dulari Kedia Individual owning voting power giving control or significant influence.

Mrs.Sangita Kedia Individual owning voting power giving control or significant influence.

Mrs.Sweta Kedia Individual owning voting power giving control or significant influence.

Mr. Anshuman Kedia Relative of individual owning voting power giving control or significant influence.

Miss Ravisha Kedia Relative of individual owning voting power giving control or significant influence.

Enterprise over which persons referred Venkareshwar Inv. & Fin. (P) hereinabove have been able to exercise Ltd significant influence.

Enterprise over which persons referred hereinabove have been able to exercise Snehsil Hirise (P) Ltd significant influence.

Vedant Energy Pvt. Ltd. Subsidiary Company

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Mar 31, 2014

1. The Cash Flow Statement has been prepared under the " Indirect Method" as set out in Accounting Standard - 3 on Cash Flow Statement issued by the Institute of Chartered Accountants of India.

2. The following have been considered under financing activities :- Cash credit / Working capital demand loan and other borrowings being source of finance.

3. Proceeds from borrowings are shown net of repayments.

4. Purchase of fixed assets are shown inclusive of movements in capital work - in - progress.

5. Cash and cash equivalents represent cash & bank balances and bank deposits.

6. Previous year''s figures have been regrouped wherever necessary.

Note 1.2

The company has only one class of equity shares having par value of ''10 each. Each holder of equity share is entitled to one vote per share.

Note 1.3

Details of shares in the company held by each shareholder holding more than 5% shares

a) Term loan includes Rs. 50.50 Lacs (previous year Rs. 39.46 Lacs) as car loan, secured by hypothecation on assets acquired under the scheme and personal gurantee of a director.

b) Financial assistance of Rs. 3366.70 Lacs (previous year Rs. 3103.81 Lacs) as term loan, secured by pari passu first charge on entire fixed assets of the company through hypothecation for movable and mortgage of immovable on present and future net block of the company, pledge of FDRs of Rs. 205.59 Lacs (previous year Rs. 189.95 Lacs) and personal guarantee of a director.

Financial assistance of Rs. 1786.41 Lacs (previous year Rs. 1703.55 Lacs) as cash credit facility, repayable on demand, secured by first charge by way of hypothecation of inventory and book debts and second charge by way of hypothecation of movable and mortgage of immovable on entire present and future net block and personal guarantee of a director.

Note 6.2

Financial assistance of Rs. 412.16 Lacs (previous year Nil) as Bill discounting facility, tenor of a particular bill not to exceed 90 days.

Unpaid dividend has been accounted for with enhanced amount Rs. 0.13 Lacs upon reconciliation with list of unpaid amount as received from company''s Registrar & Transfer Agent.

Note 8.2

Other Payables includes advance from debtors, expenses and statutory liabilities payables.

NOTE 9

SHORT TERM PROVISIONS

NOTE 12

LONG TERM LOANS & ADVANCES (Unsecured and Considered Good)

Note 12.1

Other loan & Advances include loans, advances to employees, loans to body corporates. NOTE 13

OTHER NON-CURRENT ASSETS

Inventories are valued at lower of cost or net realizable value except cost of work in progress, which is determined on absorption costing method.

NOTE 15

TRADE RECEIVABLES (Unsecured and Considered Good)

Note 16.1

Balance of Rs. 1.31 Lacs (previous year Rs. 1.18 Lacs) with IDBI Bank Limited earmarked for unpaid dividend.

Note 16.2

Fixed Deposits with banks include deposits of Rs. 172.57 Lacs (previous year Rs. 204.47 Lacs) with maturity of more than 12 months. Fixed Deposits with banks amount to Rs. 95.75 Lacs (previous year Rs. 124.51 Lacs) earmarked for issuance of Bank Guarantees and Rs. 162.77 Lacs (previous year 189.95 Lacs) earmarked for borrowings of Rs. 3022.98 Lacs (previous year 2622.57 Lacs).

NOTE 17

SHORT TERM LOAN & ADVANCES (Unsecured and Considered Good)

Note 17.1

Other loans & advances include prepaid expenses, statutory receivables, deposits with government departments, advance to employees, advance to suppliers and to service providers.

As per Accounting Standard 15 " Employee Benefits ", the disclosures of Employee benefits as defined in the Accounting Standard are given below :

B) Defined Benefit Plan

i) The obligation of leave encashment is recognized, provided and paid on yearly basis. There is no accumulation of the sam except current year

ii) The Company has taken Group Gratuity Policy of LIC of India. 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.

Other Selling & Administration expenses includes prior period expenses (net of income) of Rs. 13.41 Lacs (previous year Rs. (0.32) Lacs).

NOTE 27

CONTINGENT LIABILITIES AND COMMITMENTS

(RsIn Lacs) PARTICULARS 31.03.2014 31.03.2013

Contingent Liabilties

(A) Guarantees

(i) Guarantees to Banks and Financial Institutions

against credit facilities extended to third parties 3200.00 3200.00

(ii) Bank Guarantees to other parties 251.97 227.66

(B) Dues

(iii) Entry Tax payable 53.00 49.93

(iv) State Excise Duty payable 208.15 348.53

(v) MPGATSAVA Tax 7.16 2.65

(vi) Income Tax demand 12.35 75.54

(vii) Fringe Benefit Tax demand 0.00 0.42

Commitments

(A) Estimated amount of contracts remaining to be executed on capital account and not provided for 107.46 946.30

A List of Related Parties where control exists and related parties with whom transactions have taken place.

Name of Related Party Relationship

Mr.Ashish Kumar Gadia Key Managerial Personnel

Mr.Anand Kumar Kedia Individual owning voting power giving control or significant influence.

Mr.Prasann Kumar Kedia Individual owning voting power giving control or significant influence.

Mrs.Ram Dulari Kedia Individual owning voting power giving control or significant influence.

Mrs.Sangita Kedia Individual owning voting power giving control or significant influence.

Mrs.Sweta Kedia Individual owning voting power giving control or significant influence.

Mr. Anshuman Kedia Relative of individual owning voting power giving control or significant influence.

Miss Ravisha Kedia Relative of individual owning voting power giving control or significant influence.

Venkareshwar Inv.& Enterprise over which persons referred Fin.(P) Ltd hereinabove have been able to exercise significant influence.

Snehsil Hirise (P) Ltd Enterprise over which persons referred hereinabove have been able to exercise significant influence.

Vedant Energy Pvt. Ltd. Subsidiary Company

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Mar 31, 2013

Note 1.1

As per Accounting Standard 15" Employee Benefits ", the disclosures of Employee benefits as defined in the

Accounting Standard are given below :

A) Defined Contribution Plan

Contribution to Defined Contribution Plan, recognized as expense for the year are as under:-

B) Defined Benefit Plan

i) The obligation of leave encashment is recognized, provided and paid on yearly basis. There is no accumulation of the same except current year

ii) The Company has taken Group Gratuity Policy of LIC of India. 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.

Note 1.2

Other Selling & Administration expenses includes foreign currency fluctuation expenses amounting to Nil (previous year Rs. 0.60 Lacs) and prior period expenses (net of income) of Rs. (0.32) Lacs/- (previous year Rs. (15.89) Lacs).

NOTE 2

CONTINGENT LIABILITIES AND COMMITMENTS

(Rs. In Lacs) PARTICULARS 31.03.2013 31.03.2012

Contingent Liabilties

(A) Guarantees

(i) Guarantees to Banks and Financial Institutions against credit facilities extended to third parties 3200.00 3100.00

(ii) Bank Guarantees to other parties 227.66 341.79

(B) Dues

(Hi) VAT payable 0.00 40.18

(iv) Entry Tax payable 49.93 34.13

(v) State Excise Duty payable 348.53 0.00

(vi)MPGATSAVATax 2.65 0.00

(v) Income Tax demand 75.54 5.50

(vi) Fringe Benefit Tax demand 0.42 0.42

Commitments

(A) Estimated amount of contracts remaining to be executed on capital account and not provided for 946.3 2849.94

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Mar 31, 2012

Note 1.1

a) Term loan includes Rs. 47.16 Lacs (previous yearRs. 45.84 Lacs) as car loan, loan repayable on monthly basis, secured by hypothecation on assets acquired under the scheme and personal guarantee of directors.

b) Financial assistance of Rs. 1018.77 (previous year Rs. 628.99 Lacs) as term loan, loan repayable on quarterly basis, secured by pari passu first charge on entire fixed assets of the company through hypothecation for movable and mortagage of immovable on present and future net block of the company and personal gurantee of director.

c) Financial assistance of Rs. 1437.65 Lacs (previous year Rs. 1028.32 Lacs) as unsecured loans are repayable after one year.

Note 2.1

Financial assistance of Rs. 1684.90 Lacs (previous year Rs. 1769.47 Lacs) as cash credit facility, repayable on demand, secured by first charge by way of hypothecation of inventory and book debts and second charge by way of hypothecation of movable and mortgage of immovable on entire present and future net block and personal guarantee of a director.

Note 3.1

Inventories are valued at lower of cost or net realizable value except cost of work in progress, which is determined on absorption costing method.

Note 4.1

Balance of Rs. 1.19 Lacs (previous year Rs. 1.19 Lacs) with IDBI Bank Limited earmarked for unpaid dividend.

Note 5.1

Fixed Deposits with banks include deposits of Rs. 8.09 Lacs (previous year Rs. 31.08 Lacs) with maturity of more than 12 months.

Fixed Deposits with banks amount to Rs. 66.54 Lacs (previous year Rs. 44.96 Lacs) earmarked for issuance of Bank Guarantees.

Note 6.1

Other loans & advances include prepaid expenses, statutory receivables, deposits with government departments, advance to employees, advance to suppliers and to service providers.

Note 7.1

Other operating revenue consists of compensation received from brand owner manufacturing activity.

Note 8.1

Other Non-operating income inculdes profit on sale of fixed assets, rent income and recovery from written off debtors .

B) Defined Benefit Plan

i) The obligation of leave encashment is recognized, provided and paid on yearly basis. There is no accumulation of the same except Current year

ii) The Company has taken Group Gratuity Policy of LIC of India. 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

Note 9.1

Other Selling & Administration expenses includes foreign fluctuation currency expenses amounting to Rs. 6.00 Lacs (previous year 7 0.34 Lacs) and prior period expenses (net of income) of (715.90 Lacs) (previous yearRs. 34.75)

NOTE 10

CONTINGENT LIABILITIES AND COMMITMENTS

Rs. in Lacs

PARTICULARS 31.03.2012 31.03.2011

II Contingent Liabilities

(A) Guarantees

(i) Guarantees to Banks and Financial Institutions against credit facilities extended to third parties 3100.00 3100.00

(ii) Bank Guarantees to other parties 341.79 255.52

(B) Dues

(iii) VAT payable 40.18 40.18

(iv) Entry Tax payable 34.13 0.00

(v) Income Tax demand 5.50 5.50

(vi) Fringe Benefit Tax demand 0.42 0.42 Commitments

(A) Estimated amount of contracts remaining to be executed on capital account and not provided for 2849.94 290.62

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Mar 31, 2011

1. Subscribed and Paid up Share Capital includes 16,38,700 Equity shares (Previous Year-16,38,700 Equity shares) allotted earlier as fully paid bonus shares by capitalization of revaluation reserve of Rs. 163.87 lacs.

2. Estimated amount of capital contracts remaining to be executed on capital accounts not provided for Rs. 290.62 Lacs (Previous Year: Rs. 466.99 Lacs).

3. Contingent Liabilities in respect of following not provided for -

i) Bank guarantee amounting to Rs.255.52 Lacs (Previous Year Rs. 102.66 Lacs).

ii) Corporate Guarantee amounting to Rs.31.00 Crores (Previous year Rs.25.50 Crores) given to secure borrowings of M/s. Mount Everest Breweries Ltd.

iii) VAT Tax Payable of Rs. 40.18 lacs on country Liquor Bottles written off against the bottle Deposit due to change in the M.P. State Government Excise Policy.

4. Depreciation includes Rs.30,000/- (previous year Rs.30,000/-) being the proportionate amount of Lease Premium, of lease hold Factory Land divided overthe tenure of lease amortized for the year.

5. Loan given includes Rs.6.54 Crores (Previous Year Rs. 5.17 Crores) given free of interest to a company within the group.

6. The Company has filed a case under Section 138 of Negotiable Instrument Act, for recoveriy of dues from M/s. Jaipur Distilleries Ltd. for dishonour of cheque of Rs. 70 lacs for which a provision was made in earlier year.

7. Loans, Advances, Deposits, Creditors and Debtors accounts have been taken as per books of accounts and these are subject to confirmation.

8. In the opinion of the Board, the current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance sheet and provision of know liabilities is adequate and not in excess of the amount, reasonable and necessary.

9. Tax deducted at source on interest income Rs.12,23,506/- (Previous Year Rs. 8,11,786/-).

10. Other Income includes interest income Rs. 1,21,60,905/- (Previous year Rs. 70,98,986/-), Duty Draw Back Rs. 1,74,640/- (previous year Rs. 94,400/-), Profit on Sale of fixed assets Rs.54,022/- (previous year Rs. 2,65,360/-), Misc. Insurance claim Receipts Rs. 14,34,664/- (previous year Rs. 3,05,659/-), Foreign Currency fluctuation gain Nil (Previous Year Rs. 2,661/-) and Keyman Policy receipts NIL (Previous Year Rs. 66,15,000/-).

11. As per clause 6(xiv) of the Terms and Conditions of the Tender Notice No. 5(1)2011-3 dated 22nd January 2011 issued by the Office of the Excise Commissioner Madhya Pradesh, Gwalior and published in the Official Gazette (S.No. 27) of the State of Madhya Pradesh, with effect from 1st April, 2011, the Company is not under an obligation to take back old glass bottles from the retailers against bottle deposits in respect of its Country Liquor sale. Accordingly, the Company is not under an obligation to refund the security deposit lying with it for empty glass bottles. Owing to aforesaid change in State Government Excise Policy for manufacture and supply of Country Liquor, the bottles lying with third parties and security deposit on such bottles as on 31st March 2011 has been written off which resulted in an extra ordinary income of Rs. 1,46,66,222/-.

12. Directors' remuneration represents aggregate amount of salary paid to Whole-Time Directors.

13. Misc. office, administration and selling expenses include loss on sale of assets Rs. 1,27,420/- (Previous year Rs. 36,596/-), Foreign Currency fluctuation Loss Rs. 34,432/- (Previous Year Nil), Sundry Balances written off Rs. 14,92,423/- (Previous Year Nil) and Rs.2,32,48,282/- (previous year nil) being loss on derivative business.

14. Manufacturing expenses includes Rs. 14,65,826/- (Previous Year Rs. 1,44,735/-), Office, administrative Expenses includes Rs. 14,40,855/- (Previous Year Rs. 2,62,210/-) and financial charges includes Rs. 5,68,774/- (Previous Year Nil) forthe prior periods.

15. As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

16. Related parties disclosure as per Accounting Standard -18 is given hereunder:

A. List of Related Parties where control exists and related parties with whom transactions have taken place.

S. Name of the Related Party Relationship No

01.Mr. Santosh Kumar Kedia Key Managerial Personnel

02.Mr. Harshan Kumar Bhandari Key Managerial Personnel

03.Mr. Ashish Kumar Gadia Key Managerial Personnel

04.Mrs. Chandadevi Kedia Relative of Key Managerial Personnel

05.Mrs. Udita Bhandari Relative of Key Managerial Personnel

06.Mr. Anand Kumar Kedia Individual owning voting power giving control or significant influence.

07.Mr. Prasann Kumar Kedia Individual owning voting power giving control or significant influence.

08.Mrs. Ram Dulari Kedia Individual owning voting power giving control or significant influence.

09.Mrs. Sangita Kedia Individual owning voting power giving control or significant influence.

10.Mrs. Sweta Kedia Individual owning voting power giving control or significant influence.

11.Venkareshwarlnv. & Fin. (P) Enterprise over which persons Ltd referred hereinabove have been able to exercise significant influence.

12.Snehsil Hirise (P) Ltd Enterprise over which persons referred hereinabove have been able to exercise significant influence.

1. SEGMENT REPORTING:

The Company has identified primary reportable segments viz Potable Alcohols & Wind Power Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting,

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprises as a whole and not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

17. Previous Year's figures have been regrouped, re-casted and/or rearranged wherever necessary.

---

Mar 31, 2010

1. Subscribed and Paid up Share Capital includes 16,38,700 Equity shares (Previous Year-16,38,700 Equity shares) allotted earlier as fully paid bonus shares by capitalization of revaluation reserve of Rs. 163.87 lakes.

2. Estimated amount of capital contracts remaining to be executed on capital accounts not provided for Rs.466.99 Lacs (Previous Year: Rs.33.67 Lacs)

3. Contingent Liabilities in respect of following not provided for -

i) Bank guarantee amounting to Rs. 102.66 Lacs (Previous Year Rs. 130.66 Lacs).

ii). Corporate Guarantee amounting to Rs.25.50 Crores (Previous year Rs.25.50 Crores) given to secure borrowings of Mount Everest Breweries Ltd.

iii). Contingent Liability not provided for (a) Rs. 5,50,167/- being income tax demand for the year ended on 31 st March, 2007 against which an appeal has been preferred, (b) Rs.42,145/- being Fringe Benefit Tax for the year ended on 31st March, 2007, against which a rectification petition has been filed.

4. Other Liabilities include Rs.515.74 lacs /- (31.03.2009 Rs. 398.08 lacs) being amount received from customers in the ordinary course of business as refundable deposits against bottles issued to them incase of country liquor business of the company.

5. Depreciation includes Rs.2,70,000/- (inclusive of prior period amount of Rs.2,40,000/-) (previous year Rs.30000/-) being the proportionate amount of Lease Premium divided over the tenure of lease amortized for the year

6. Loan given includes Rs.5.17 Crores (31.03.2009 Rs. 5.62 Crores) given free of interest to a company within the group.

7. The Company has filed a case under Section 138 of Negotiable Instrument Act, for recovering of dues from M/s. Jaipur Distilleries Ltd. for dishonour of cheque of Rs. 70 lacs.

8. Advances, creditors and debtors accounts have been taken as per books of accounts and these are subject to confirmation

9. In the opinion of the Board, the current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance sheet and provision of know liabilities is adequate and not in excess of the amount, reasonable and necessary.

10. Tax deducted at source on interest income Rs.8,11,786/-(Previous Year Rs. 13,65,037/-).

11. Other Income includes Rs.70,98,986/- (Previous Year: Rs. 65,46,834/-), interest income, Rs.94,400/- (Previous Year Rs. 4,18,800/-) Duty Draw Back, Rs.2661/- (Previous year Rs. 2,569 /-) on account of foreign currency fluctuation and Profit on Sales of Assets Rs. 2.65,360/- (Previous Year Nil). Interest Income includes the interest amount of Rs.25,97,469/- for the prior period provided during the year.

12. Directors remuneration represents aggregate amount of salary paid to Whole-Time Directors.

13. Miscellaneous office, administrative and selling expenses include loss on sale of capital assets Rs.36,596/- (Previous Year Rs. 12,093/-), Warehouses expenses of Rs. 5,06,49,546/- (Previous year Rs. 4,10,83,506/-) and loss on impairment assets Rs. 4,90,496/- (Previous year Nil).

14. Manufacturing expenses includes Rs. 1,44,735/- (Previous Year Rs. 6,13,742/-), Office and administrative Expenses includes Rs. 2,62,210/- (Previous Year Rs. 2,74,085/-) and Depreciation includes Rs. 2,51,150/- (Previous Year Nil) for the prior period.

15. Miscellaneous manufacturing expenses includes Excise Duty of Rs.27,69,83,043/- (Previous year of Rs. 26,28,75,510/-).

16. As per Accounting Standard 15 " Employee Benefits ", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

DEFINED CONTRIBUTION PLAN

Contribution to Defined Contribution Plan, recognized as expense for the year are as under. -

Employers Contribution to Provident Fund Rs. 8,02,789/- (9,60,291/-)

DEFINED BENEFIT PLAN

The Company has taken Group Gratuity Policy of LIC of India. 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.

17. Related parties disclosure as per Accounting Standard 18 is given hereunder.

A. List of Related Parties where control exists and related parties with whom transactions have taken place.

S.No. Name of the Related Party Relationship

01. Mr. Santosh Kumar Kedia Key Managerial Personnel

02. Mr.Harshan Kumar Bhandari Key Managerial Personnel

03. Mr.Ashish Kumar Gadia Key Managerial Personnel

04. Mrs.Chandadevi Kedia Relative of Key Managerial Personnel

05. Mrs. Udita Bhandari Relative of Key Managerial Personnel

06. Mr.Anand Kumar Kedia Individual owning voting power giving control or significant influence.

07. Mr.Prasann Kumar Kedia Individual owning voting power giving control or significant influence.

08. Mrs. Ram Dulari Kedia Individual owning voting power giving control or significant influence.

09. Mrs.Sangita Kedia Individual owning voting power giving control or significant influence.

10. Mrs. Sweta Kedia Individual owning voting power giving control or significant influence.

11. Mount Everest Breweries Limited Enterprise over which persons referred hereinabove able to exercise significant influence.

12. Millennium Urja Limited Enterprise over which persons referred hereinabove able to exercise significant influence.

18. SEGMENT REPORTING:

The Company has identified two reportable segments viz. Potable Alcohols & Wind Power. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprises as a whole and not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been closed as "Unallocable".

19. Previous Years figures have been regrouped, re-casted and/or rearranged wherever necessary.