Mar 31, 2018
Note 1 - General information and Significant Accounting Policies
Note 1.1 - General information
Globus Spirits Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act. The registered office of the Company is located at F-0, Ground Floor, The Mira Corporate Suites, Plot No. 1 & 2, Ishwar Nagar, Mathura Road, New Delhi - 110065. The Company is primarily engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Bulk Alcohol and Franchise Bottling.
Note 1.2 - Statement of compliance
These standalone Ind AS financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under the Companies (Indian Accounting Standards) Rules, 2015. The financial statements up to the year ended March 31, 2017 were prepared in accordance with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the Act (âPrevious GAAPâ). These are Companyâs first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer note 46 for an explanation of the transition from previous GAAP to Ind AS and the effect on the Companyâs financial position, financial performance and cash flows.
(c) Market risk
âMarket risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in market prices. Market risk com prise of three types of risk i.e interest rate risk, foreign currency risk and other price risk.Financial instruments affected by market risk include trade receivables and advances.The Company enters into derivative contracts to manage its exposure to foreign currency risk.â
Foreign Currency risk management
Foreign currency risk also known as Exchange Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Foreign currency risk in the Company is attributable to Companyâs operating activities.
The carrying amounts of the Companyâs foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period demoninated in Rupees are as follows:
Forward foreign exchange contracts
The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business. The Company manages its foreign currency risk by hedging transactions that are expected to occur within of 2 to 3 months for hedges of forecasted sales. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable that is denominated in the foreign currency. All identiled exposures are managed as per the policy duly approved by the Board of Directors.
Note 2 - Employee benefits plans
Sensitivity analysis of the defined benefit obligation
The significant actuarial assumption for the determination of defined benefit obligations are discount rate and expected salary increase.
(b) Defined contribution Plans
âThe Company makes contribution towards employeesâ provident fund for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes.
Note 3 - Segment reporting
The Company is engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Bulk Alcohol and Franchise Bottling. This is the only activity performed and is thus also the main source of risks and returns. The Companyâs segments as reviewed by the Chief Operating Decision Maker (CODM) does not result in to identification of different ways/ sources into which they seethe performance of the Company. Accordingly, the Company has a single reportable segment.
Note 4 - Information about majorcustomer
Included in revenue are revenues of approximately Rs. 37,651.63 lacs (2016-17 K 27,811.54 lacs) which arose from sales to the companyâs largest customer (refer note 12). No other single customer contributed 10% or more to the companyâs revenue for both 2017-18 and 2016-17.
Note 5 - Related party disclosures under Ind-AS-24 âRelated Party Disclosuresâ
a) Subsidiaries:
Unibev Limited (Formerly known as Uber Blenders & Distillers Limited)
b) Key managerial personnel and their relatives:
Key management personnel
Mr. Ajay Kumar Swarup Mr. Shekhar Swarup Dr. Bhaskar Roy Mr. Manik Lai Dutta Mr. AjayGoyal
c) Enterprises over which key managerial personnel and / or their relatives exercise significant influence: Biotech India Limited Chandbagh Investments Limited GRAS education and training Services Private Limited Himalayan Spirits Limited Globus Spirits (Jharkhand) Limited Globus Trois Freres India Limited Globus Feeds Private Limited VC technologies Private Limited Northern India Alcohol Sales Private Limited Rajasthan Distilleries Private Limited ADL Agrotech Limited (Formerly known as Assocaited Distilleries Limited)
Note 6- Fair value hierarchy
Some of the companyâs financial assets are measured at fair value at the end of each reporting period.
The following table presents fair vale hierachy of financial assets measured at fair value on a recurring basis:
During the year ended March 31, 2018, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfes in to and out of Level 3 fair value measurements.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2 inputs other than quoted prices included within level 1 that are observable for the assets or liability, either directly or indirectly.
Level 3 inputs are unobservable in puts for the assets or liability.
Note 7 (a) - Transition to Ind AS - principle and reconciliations
Overall principleThese are the Companyâs first financial statement prepared in accordance with Ind AS, accordingly the Company has prepared the opening balance sheet as per Ind AS at of April 1, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the exception and certain optional exemptions availed by the Company as detailed below:
A. Mandatory exceptions Estimates
The estimates as at April 1,2016 and as at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of Indian GAAP did not require estimation:
(i) Fair value through profit or loss (FVTPL) - unquoted equity shares
(ii) Impairment of financial assets based on expected credit loss modelThe estimates used by the Company to present these amounts are in accordance with the Ind AS which reflects conditions as at April 1,2016, the date of transition to Ind AS and as at March 31,2017.
Derecognition of financial assets and financial liabilities
The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after transition date.
Classification and measurement of financial instruments (I) Financial Instruments: (Security deposits)
Financial assets / liabilities like security deposits has been classified and measured at amortised cost on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
{II) Impairment of financial assets
The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.
B. Optional exemptions
Deemed cost for property, plant and equipment and intangible assets
The Company has opted to measure all of its property, plant and equipment and intangible assets at the fair value and use that fair value as its deemed cost.
I nvestment i n eq u ity shares of su bsidiaries at deemed cost
The Company has opted to measure its investment in subsidiary at their previous GAAP carrying value in separate financial statement and use that carrying value as deemed cost.
Determining whether an arrangement contains a lease
Append ixC to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements based on conditions in place as at the date of transition.
Designate of previously recognised financial instrument
The Company has elected this exemption and opted to designate financial asset at FVTPL as per Ind AS 109 based on facts and circumstances that exist as on transition date.
Note: -
(a) Leasehold land
Under previous GAAP, the leasehold land was considered as part of property, plant and equipment as being long lease, accordingly in the financial year 2016-17 no amortisation was charged. As per Ind AS-17 leasehold land of Rs.1,056.48 lacs has now been classified as operating lease and the premium paid on leasehold land is amortized over the period of the lease which amounts to Rs.10.72 lacs in financial year 2016-17. The proportionate unamortized amount of Rs. 17.83 lacs upto the date of transition is adjusted against retained earnings in the opening balance sheet.
(b) Property, plant and equipment
The Company has elected to recognise its Property, plant and equipment (PPE) at fair value as on April 1, 2016 and use that as its deemed cost as of transition date. As on the transition date such fair value adjustment resulted in net increase of PPE by Rs. 40.65 lacs with corresponding increase in retained earnings. Depreciation amounting toRs. 400.66 lacs in financial year 2016-17 has been adjusted in the statement of prof it and loss. The fair value adjustment resulted in increase of freehold land by Rs.1,543.63 lacs and decrease of other PPE By Rs.1,502.98 lacs which resulted in deferred tax income of Rs. 160.55 lacs.
(c) Intangible Assets
Under previous GAAP, knowhow and new brand development was being amortised. Under the Ind AS 38, such intangible assets fair valued as at the transition date and accordingly, the intangible assets have been written down to Rs. Nil. Consequently, Rs.1 ,443.30 lacs has been charged off from Retained earnings as on the transition date and Rs. 721.64 has been adjustment has been passed for reversal of amortisation booked under Indian GAAP for the year ended March 31,2017.
(d) Investments
Under the previous GAAP, long term investments were measured at cost less diminuition which is other than temporary. Under Ind AS 40, these financial assets have been classified as FVTPL. On the transition date these financial assets have been measured at their fair value which is greater than the cost as per previous GAAP, resulting in increase in carrying amount byRs. 2.69 lacs as at transition date with resulting gain adjusted in retained earnings.
(e) Capital subsidy
Under the previous GAAP, Capital subsidy was treated as part of retained earnings treating the same in the nature of Pro motor contribution, now under Ind AS 20 the same has been deferred as subsidy received and to be amortised over the period of related property, plant and equipment. The resulting amount for the period ended March 31,2017 amounting to Rs. 181.84 lacs is treated as deferred liability
(f) Borrowings
Under previous GAAP, transaction costs incurred in connection with long term borrowings were charged off in the year of borrowing. Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the statement of profit and loss over the tenure of the borrowings as part of interest expense using effective interest rate method. The resulting net impact of Rs. 11.76 lacs is charged in the statement of profit and loss for the year ended March 31,2017.
(g) Security deposits
Under the previous GAAP, interest free security deposits given were recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Difference between the fair value and transaction value of the security deposits has been recognised as prepaid expenses and is amortised over the period of security deposit on straight line basis. Notional interest income on such deposits is recognised over the security period using effective interest method. The resulting net impact of Rs. 4.33 lacs is charged in the statement of profit and loss for the year ended March 31,2017.
(h) Actuarial gains/losses on defined benefit obligation
Under previous GAAP in respect of defined benefit plan, actuarial gains and losses were recognised in the statement of profit or loss. Under Ind AS, the actuarial gains and losses forming part of re-measurement of the net defined benefit liability / asset is recognised in other comprehensive income. The tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of the statement of profit and loss. There is no impact on the total equity
(i) Excise duty
Under previous GAAP, revenue from sale of goods was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of goods includes excise duty. The corresponding excise duty expense of Rs.33,396.24 lacs is presented separately on the face of the statement of profit and loss. The change does not affect total equity as on April 1,2016 and March 31,2017 and the profit for the year ended March 31,2017.
(j) Other comprehensive income
Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains, or losses are required to be presented in other comprehensive income.
(k) Deferred tax assets / liabilities
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 the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has accounted for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings ora separate component of equity. Such adjustments amounting to Rs. 270.33 lacs as at March 31,2017 andRs. 652.24 lacs as at April 01,2016.
(I) Rebate and discount
Under previous GAAP, rebate and discount was shown under other expenses. However, under Ind AS, sale of goods is presented net of discount of Rs. 1,487.91 lacs. Thus sale of goods under Ind AS has decreased for the year ended March 31,2017 with a corresponding decrease in other expenses. The change does not affect total equity as on April 1,2016 and March 31,2017 and profit for the year ended March 31,2017.
(m) Recognition of Mark to Market (MTM) gain/loss of foreign forward exchange contracts through profit or loss. (As at April 01, 2016 : Rs. 5.25 lacs andRs. 5.65 lacs for the year ended March 31,2017)
(n) The transition from Indian GAAPtolnd-AS had no significant impact on cash flows generated by the Company
Note 8 - Approval of financial statements
The financial statements were approved for issue by the Board of Directors on May 21,2018.
Mar 31, 2016
(ii) Terms/ rights attached to equity shares
The Company has only one class of equity shares entitled to one vote per share.
(iii) Conversion of cumulative compulsorily convertible preference shares (CCCPS) into equity shares 5,038,168, 4.75% CCCPS of Rs. 140 each allotted to Templeton Strategic Emerging Markets Fund IV, has been converted into equity shares of the face value of Rs.10 each at a premium of Rs. 130 each on 18 September, 2014 and accordingly 5,038,168 equity shares of Rs. 10/- each has been allotted to Templeton Strategic Emerging Markets Fund IV.
(iv) Details of shares held by each shareholder holding more than 5% shares:
Note 1 Previous year''s figures
Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
Mar 31, 2015
1 Corporate information
Globus Spirits Limited (the Company) is a public Company domiciled in
India and incorporated under the provisions of the Companies Act. The
Company is primarily engaged in the business of manufacture and sale of
Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL),
Bulk Alcohol and Franchise Bottling.
2.1 Disclosures required under Section 22 of the Micro, Small and
Medium Enterprises De velopment Act, 2006
There are no dues to enterprises as defined under Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no
interest has been paid under the terms of MSMED Act, 2006. Micro and
Small Enterprises have been determined to the extent such parties have
been identified on the basis of information collected by the
Management. This has been relied upon by the auditors.
2.2 Details on derivative instruments and unhedged foreign currency
exposures:
Forward exchange contracts, which are not intended for trading or
speculative purposes but for hedge purposes to establish the amount of
reporting currency available at the settlement date of certain
receivables.
3.1 Defined contribution plans
The Company makes Provident Fund and Employee State Insurance Scheme
contributions which are defined contribution plans, for qualifying
employees. Under the Schemes, the Company is required to contribute a
specified percentage of the payroll costs to fund the benefits. The
Company recognised Rs. 32.43 lac (Year ended 31 March, 2014 Rs. 29.53
lac) for Provident Fund contributions, and Rs. 2.33 lac (Year ended 31
March, 2014 Rs. 2.89 lac) for Employee State Insurance Scheme
contributions in the Statement of Profit and Loss. The contributions
payable to these plans by the Company are at rates specified in the
rules of the schemes.
3.2 Defined benefit plans
The Company's defined benefit scheme represents gratuity scheme for its
employees:
The following table sets out the funded status of the defined benefit
scheme and the amount recognised in the financial statements:
Note 4 Previous year's figures
Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
Mar 31, 2014
1 Corporate information
Globus Spirits Limited (the Company) is a public Company domiciled in
India and incorporated under the provisions of the Companies Act,1956.
The Company is primarily engaged in the business of manufacture and
sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor
(IMFL), Bulk Alcohol and Franchise Bottling.
Note 2 Additional information to the financial statements
2.1 Money received against share warrants
The Board of Directors of the Company at their meeting held on
7January, 2013 and as approved at its Extra ordinary General Meeting
held on 6 February, 2013 have resolved to create, offer, issue and
allot up to 1,428,572 warrants, convertible into e quivalent number of
equity shares of Rs.10 each on a preferential allotment basis, pursuant
to Section 81(1A) of the Comp anies Act, 1956, at a conversionp rice of
Rs.140 per equity share of the Company, arrived at in accordance with the
SEBI Guidelines in this regard and subsequently 763,359 warrants were
allotted on 19 March, 2013 to the Promoters and 25% application money
amounting to Rs.267.17 lacs was received from them. The warrants may be
converted into equivalent number of shares on payment of the balance
amount at any time on or before 18 September, 2014. In the event the
warrants are not converted into shares within the said period, the
Company is eligible to forfeit the amounts received towards the
warrants.
2.2 Contingent liabilities and commitments (to the extent not provided
for)
(Rs. in lacs)
As at As at
31 March, 2014 31 March, 2013
(i) Contingent liabilities
(a) Claims against the Company
not acknowledged as debt
Excise duty matters 180.81 38.75
Income tax matters 215.44 -
Other matters 75.86 -
(b) Guarantees
Guarantees by bank on behalf
of company 367.33 13.79
(ii) Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account and not provided for
Tangible assets 233.09 -
2.3 Disclosures required under Section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006
There are no dues to enterprises as defined under Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no
interest has been paid under the terms of MSMED Act, 2006. Micro and
Small Enterprises have been determined to the extent such parties have
been identified on the basis of information collected by the
Management. This has been relied upon by the auditors.
2.4 Details on derivative instruments and unhedged foreign currency
exposures:
Forward exchange contracts, which are not intended for trading or
speculative purposes but for hedge purposes to establish the amount of
reporting currency available at the settlement date of certain
receivables.
3.1 Defined contribution plans
The Company makes Provident Fund and Employee State Insurance Scheme
contributions which are defined contribution plans, for qualifying
employees. Under the Schemes, the Company is required to contribute a
specified percentage of the payroll costs to fund the benefits. The
Company recognised Rs. 29.53 lacs (Year ended 31 March, 2013 Rs.34.10 lacs)
for Provident Fund contributions, and Rs.2.89 lacs (Year ended 31March,
2013 Rs.3.20lacs) forEmployee State Insurance Scheme contributions in the
Statement of Profit and Loss. The contributions payable to these plans
by the Company are at rates specified in the rules of the schemes.
3.2 Defined benefit plans
The Company''s defined benefit scheme represents gratuity scheme for its
employees:
The following table sets out the funded status of the defined benefit
scheme and the amount recognised in the financial
The discount rate is based on the prevailing market yields of
Government of India securities as at the balance sheet date for the
estimated term of the obligations.
The estimate of future salary increases considered, takes into account
the inflation, seniority, promotion, increments and other relevant
factors.
* Information pertaining to experience adjustment have been furnished
to the extent available with the Company.
Segment information
Based on the guiding principles given in Accounting Standard on
''Segment Reporting'' (AS-17), the Company''s primary business segment is
Industrial and Potable Alcohol. The alcohol business incorporates
product groups viz. IMIL, IMFL, Bulk Alcohol and Franchise operations,
which mainly have similar risks and returns. As the Company''s business
activity falls within a single primary business segment the disclosure
requirements of AS -17 in this regard are not applicable.
Note 4 Related party transactions
4.1 Details of related parties:
Description of relationship Names of related parties
(i) Associates Chandbagh Investments Limited
(ii) Key Management Personnel (KMP) Mr. Ajay Kumar Swarup
Mr. Shekhar Swarup
Dr. Bhaskar Roy
Mr. Manik Lal Dutta
Mr. R.D Aggarwal- Up to November 11, 2013
(iii) Relatives of Key Management Personnel (KMP) Mrs. Madhavi Swarup-
Wife of Mr. Ajay Kumar Swarup
Mrs. Saroj Rani Swarup- Mother of Mr. Ajay Kumar Swarup Mrs. Pratima
Roy- Wife of Dr. Bhaskar Roy Mrs. Anju Aggarwal- Wife of Mr. R.D
Aggarwal
(iv) Entities in which KMP can exercise Biotech India Limited
significant influent Chandbagh Investments Limited
GRAS education and training Services Private Limited
Himalayan Spirits Limited
Globus Spirits (Jharkhand) Limited
Globus Trois Freres India Limited
Globus Feeds Private Limited
V C technologies Private Limited
Northen India Alcohol Sales Private Limited
Rajasthan Distilleries Private Limited
Associated Distilleries Limited
4.2 Based on projections for future taxable income, which has been
approved by the Board of Directors, Minimum Alternate Tax (MAT) Credit
of Rs.1,287.98 lacs (including Rs.1,195.95 lacs pertaining to earlier
years) has been recognised during the year.
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
Mar 31, 2013
Corporate Information
Globus Spirits Limited (the Company) is a public Company domiciled in
India and incorporated under the provisions of the Companies Act,1956.
The Company is primarily engaged in the business of alcohol industry
including Indian Made Indian Liquor( IMIL), Indian Made Foreign Liquor(
IMFL), IMFL Francise Bottling and Bulk Alcohol.
1. Taxes on Income
(i) Current tax is the provision made for the MAT payable during the
year in accordance with the provisions u/s 115JB of the Income Tax Act,
1961
(ii) Current Tax is determined as per the provisions of the Income Tax
Act, 1961 in respect of Taxable Income for the year. Deferred tax is
recognized, on timing differences, being the difference resulting from
the recognition of items in the fnancial statements & in estimating its
current income tax provision. Deferred Tax Assets and Deferred Tax
Liabilities are computed by applying tax rates and tax laws that have
been enacted or substantively enacted by the Balance Sheet Date.
2. Related party disclosures as required in terms of ÂAccounting
Standard - 18Â are given below :
(i) Key Management Personnel Sh. Ajay K. Swarup
(ii) Associate Companies M/s Biotech India Limited
M/s Rajasthan Distilleries Pvt. Ltd.
M/s Associated Distilleries Ltd.
M/s Chandbagh Investments Ltd. (No transaction done during the year)
3. Contingent Liabilities not provided for:-
a Contingent Liabilities not provided in the book of account of
Rs.38,75,173/- Security executed in favour of Excise authorities for
bottling case pending before the high court for Punjab & Haryana which
is related to Demerged undertaking of M/s Associated Distilleries Ltd.
b Bank Guarantees issued by the Company in favour of various parties
amounting to Rs.1,378,820/-
4. Deferred Revenue Expenditure
ÂDeferred revenue- Brand Promotion Expenses appearing in Asset side in
the Balance Sheet are the expenditure incurred on promoting company''s
new IMFL brands already launched during the year 2007 and which have
perpetual beneft to the company and thus it was shown under the head
Deferred revenue- Brand Promotion Expenses, which is being written off
in fve years & the current year being the ffth year, thus it is fully
written off.
5. SSI Liabilities
As explained, there is no amount due to small-scale industries over Rs. 1
lac shown under the head Âsundry CreditorsÂ
6. Balances of Debtors, Creditors and Advances to and from parties
are subject to Reconciliation and confrmation.
7. In the opinion of the Board, the value of Current Assets, Loans &
Advances in the ordinary course of business will not be less than the
value at which they have been stated in the Balance Sheet.
8. The proft & loss account and Balance sheet comply with Accounting
Standard referred to in section 211 (3C) of the Companies Act, 1956
9. Insurance claim which are of not signifcant value are accounted
for on receipt basis.
10. An Inter unit transaction of Rs.6075.51lacs for the FY2012-13
(Rs.5045.25lacs for the FY2011-12) towards generation & consumption of
steam & energy has been deducted from total turnover & also deducted
from manufacturing expenses under the sub-heading consumption of power
& fuel. However till the period ending 31st December 2012, we used to
include the fgure for Âgeneration & consumption of steam & energy in
the turnover side & consumption of power & fuel side. Hence the new
practice has been adopted & given effect in the abovementioned quarter
ending & year ending results for their proper comparision.
11. Previous year fgures have neen regrouped where necessary to
conform to revised schedule VI requirement
Mar 31, 2012
(a) Contingent Liabilities and Contingent Assets (AS-29)
Contingent Liabilities not provided in the book of account of
Rs.SSJSJTS/- Security executed In favour of Excise authorities for
bottling case pending before the high court for Punjab & Haryana which
Is related to Demerged undertaking of IWs Associated Distilleries
Limited.
(b) SSI Liabilities
As explained' there Is no amount due to small-scale industries over
Rs.1 Sac shown under the head "sundry Creditors*
(c) Cash Flow Statement
Cash flows are reported using the indirect method' whereby profit
before tax is adjusted for the effects of transactions Of a non-cash
nature' any deferrals Or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating'
investing and financing activities of the Company are segregated.
(b) Foreign Currency Transaction
(I) Transaction denominated in foreign currants a re recorded
at the exchan gerate prevai tin g on the date of the transaction
or that approximates the actual rate at the date of the transaction.
(II) Monetary Items denominated in foreign currencies at the year end
are restated at year end rates' in case of items which are covered by
forward exchange contracts' the difference between the year end rate
and rate on the date of the contract is recognized as exchange
difference end the premium paid on forward contracts is recognized over
the life of the contract.
(e) Capital commitment related to capacity expansion is Rs. S1 S.94 lac
as on 31st March 2012.
(f) Related party disclosures as required in terms of "Accounting
Standard -18th are given below:
(i) Key Ma pavement Personnel Sh. Ajay K. Swarup
(ii) Associate Companies M/s Biotech India Limited
M/s Rajasthan Distilleries Pvt. Ltd.
M/s Rambagh Estates Pvt. Ltd.
M/s Chandbagh Investments Ltd. (No transaction done during the year)
(g) Previous year figures have been regrouped where necessary to
conform to revised schedule VI requirement
(h) Balances of Debtors' Creditors and Advances to and from parties are
subject to Recndliation and confirmation'
(i) In the opinion of the Board' the value of Current Assets' Loans &
Advances in the ordinary course of business will not be less than the
value at which they have been stated in the Balance Sheet.
(j} The profit & loss account and Blaine sheet com ply with
Accountings Standard nefierre d to in section 211 (3C) of the
Companies Act 1956 insurance claim which are of not significant value
are accounted for on receipt basis.
k. attached to equity sharw*
The company has only one class of equity shares having a par value of
Rs. 10 per Shane. Each holder of equity scares Is entitled to one vote
per share. The company declares and pays dividend In Indian Rupees. The
dividend proposed by the board of directors is subject to approval of
the shareholder* in the ensuing Annual General Meeting.
Mar 31, 2011
1. Demerger of Demerged undertaking of Associated Distilleries
Limited(Demerged Company) into Globus Spirits Limited
(Resulting Company)
During the current year Pursuant to the scheme of Arrangement provided
for demerger of Demerged Undertaking of Associated Distilleries Limited
("Transferor Company") into Globus Spirits Limited ("Transferee
Company") which has been applied u/s 391 to 394 and other relevant
provisions of the Companies Act, 1956 vide CA (M) No. 37 of 2011 dated
17th February 2011 and sanctioned by Hon'ble High court of Delhi vide
order dated 24th August 2011, the demerger has been taken place w.e.f.
01st April 2010 ("The Appointed Date"). The salient particulars of the
scheme and the related accounting treatment are as under: ÷ Pursuant to
the scheme, the entire undertaking of Associated Distilleries Limited
consisting of assets situated at
Hisar - Haryana (except Freehold Land, Road, Building and Mandir) and
liability stood transferred and become vested with the Globus Spirits
Limited. The following assets & liabilities of Demerged undertaking of
Associated
On and from the appointed dated, all the assets (except Freehold Land,
Road, Building and Mandir) and liabilities pertaining to the Demerged
Company have been recorded in the book of the company At Book Value.
Pursuant to Demerger, Upon Scheme becoming effective and without any
further application, act or deed, the Transferee Company, in
consideration of the transfer and vesting of the Demerged Undertaking
in the Transferee Company, the Transferee Company shall issue and allot
to the members of the Transferor Company ("Members"), 6 (Six) equity
shares of Rs. 10/- each for every 1 (one) fully paid equity share of
Rs.10/- each held by the Member whose names appear in the Register of
Members of the Transferor Company, as on the Record Date, fixed in
respect of the Transferor Company or to such of their respective heirs,
executors, administrators or other legal representatives or other
successors in title as may be recognized by the Board of Transferor
Company. Hence Rs.3,24,00,000/- has been shown in the share capital
suspense account, as 32,40,000 equity shares of Rs.10/- each to be
allotted on 03/10/2011 to the shareholders of transferor company
holding 5,40,000 equity shares of Rs.10/- each in Associated
Distilleries Limited.
The excess of aggregate value of asset over aggregate value liabilities
of the Demerged Undertaking, over the the aggregate value of the equity
share issued and allotted is Rs.667,46,687 which is transferred to
Revenue Reserve as specified in para 16(d) of the Scheme approved by
Hon'ble High court of Delhi.
On and from the appointed dated, all the assets (except Freehold Land,
Road, Building and Mandir) and liabilities pertaining to the Demerged
Company have been recorded in the book of the company At Book Value. ÷
Pursuant to Demerger, Upon Scheme becoming effective and without any
further application, act or deed, the Transferee Company, in
consideration of the transfer and vesting of the Demerged Undertaking
in the Transferee Company, the Transferee Company shall issue and allot
to the members of the Transferor Company ("Members"), 6 (Six) equity
shares of Rs. 10/- each for every 1 (one) fully paid equity share of
Rs.10/- each held by the Member whose names appear in the Register of
Members of the Transferor Company, as on the Record Date, fixed in
respect of the Transferor Company or to such of their respective heirs,
executors, administrators or other legal representatives or other
successors in title as may be recognized by the Board of Transferor
Company. Hence Rs.3,24,00,000/- has been shown in the share capital
suspense account, as 32,40,000 equity shares of Rs.10/- each to be
allotted on 03/10/2011 to the shareholders of transferor company
holding 5,40,000 equity shares of Rs.10/- each in Associated
Distilleries Limited. ÷ The excess of aggregate value of asset over
aggregate value liabilities of the Demerged Undertaking, over the the
aggregate value of the equity share issued and allotted is
Rs.667,46,687 which is transferred to Revenue Reserve as specified in
para 16(d) of the Scheme approved by Hon'ble High court of Delhi.
With effect from the Appointed Date and upto the Effective Date:- The
Transferor Company shall be deemed to have been carrying on all
business and activities relating to the Demerged Undertaking and stand
possessed of the properties to be transferred to Transferee Company for
and on account of and in trust for Transferee Company .account of and
in trust for Transferee Company .
All income, receipts, profits of whatsoever nature accruing to the
Transferor Company or losses,expenses and payments of whatsoever nature
arising or incurred by it relating to the Demerged Undertaking shall
for all purposes, be treated as profits, income, receipts, or losses,
expenses, payments, as the case may be, of the Transferee Company .
Tax Deducted at Source (TDS), if any, by the Transferee Company under
the Income Tax Act, in respect of the payments made by the Transferee
Company to the Transferor Company, on or after the Appointed Date,
which pertain to the Demerged Undertaking, shall be treated as advance
tax paid by the Transferee Company and accordingly, the Transferee
Company shall be entitled to claim the the credit for such TDS as
advance tax paid , notwithstanding the fact that the challans or
deposit receipts are towards TDS. The TDS certificate(s), if any,
issued by the Transferee Company to the Transferor Company for such
payments shall stand cancelled without any further act or deed and no
credit on such TDS certificates shall be made available to the
Transferor Company on the Scheme becoming effective.
It is specifically declared that the tax deducted at source (TDS) from
the income of the Demerged Undertaking of the Transferor Company, in
terms of the provisions of Chapter XVII of the Income Tax Act or any
advance tax paid by the Transferor Company in respect of the Demerged
Undertaking, for the period beginning from the Appointed Date and
ending as on the Effective Date, shall be deemed to be tax paid by the
Transferee Company and the Transferee Company shall be entitled to
claim credit for such taxes deducted or paid, whether by way of TDS or
advance tax, notwithstanding that certificates / challans or other
documents for payment of such taxes are in the name of the Transferor
Company and not in the name of the Transferee Company.
2. Segment Reporting
In the opinion of the management, company is involved in only one type
of product Industrial & Potable Alcohol as envisaged by AS 17 'Segment
Reporting', prescribed by the Companies (Accounting Standards) Rules,
2006. Accordingly, no separate disclosure for segment reporting is
required to be made in the financial statements of the Company.
Secondary segmentation based on geography has not been presented as the
Company operates primarily in India and the Company perceives that
there is no significant difference in its risk and returns in operating
from different geographic areas within India.
3. Deferred Revenue Expenditure:
"Deferred revenue- Brand Promotion Expenses" appearing in Schedule G in
the Balance Sheet are the expenditure incurred on promoting company's
new IMFL brands already launched during the year 2007 and which will
give perpetual benefit to the company and thus it is shown under the
head Deferred revenue- Brand Promotion Expenses, which is being written
off in five years.
4. Related party relationships and transactions
In accordance with the Accounting Standards (AS-18) on Related Party
Disclosures, where control exists and where key management personnel
are able to exercise significant influence and, where transactions have
taken place during the year, along-with description of relationship as
identified, are given below:-
A. Relationships
I. Subsidiary Company NIL
II. Joint Venture/Joint Control Associates NIL
III. Key Management Personnel
Name Designation
Sh. Ajay K. Swarup Managing Director
IV. Associates
M/s Chandbagh Investments Limited (Holding Company) (no transaction has
been entered into during the period) M/s Rambagh Estates Private
Limited.
5. Taxation
A) Current tax is the provision made for the MAT payable during the
year in accordance with the provisions under section 115JB of the
Income Tax Act, 1956.
B) Deferred tax is recognized, on timing differences, being the
difference resulting from the recognition of items in the financial
statements & in estimating its current income tax provision.
C) Deferred tax assets are recognized on unabsorbed depreciation to the
extent there is virtual certainty supported by convincing evidence & on
others to extent that there Is reasonable certainty of their
realization
D) Deferred tax assets & liabilities are measured using the tax rates &
the laws that have been enacted or substantially enacted at the balance
sheet date.
6. Impairment of Assets
The indicators listed in paragraph 8 of Accounting Standard (AS)-28 "
impairment of assets " issued by Institute of Chartered Accountants of
India have been examined & on such examination , it has been found that
none of the indicators are present in the case of company . There is no
indication of a potential impairment loss, so estimation of recoverable
amount has not been made.
7. Contingent Liability:
Contingent Liabilities not provided in the book of account of
Rs.38,75,173/- Security executed in favour of Excise authorities for
bottling case pending before the high court for Punjab & Haryana which
is related to Demerged undertaking of M/s Associated Distilleries
Limited.
8. Guarantees:
The FDR's amounting to Rs.28,03,188/- are under the lien of bank. NSC
of Rs.50,000/- is with directorate of Industries which is also related
to Demerged undertaking of M/s Associated Distilleries Limited.
9. In the opinion of the Board, the value of Current Assets, Loans &
Advances in the ordinary course of business will not be less then the
value at which they have been stated in the Balance sheet.
10. Balances of Debtor & creditors and Advances to and from parties are
subject to Reconciliation & Confirmation which pertains to both
Demerged company & Resulting company.
11. The amount falling due with in one year in respect of secured loans
is Rs. 5,08,65,262/- which pertains to both Demerged company &
Resulting company.
12. There is no amount due to small-scale industries over Rs.1 lac
shown under the head "Sundry Creditors"
13. The profit & loss account and Balance sheet comply with accounting
standards referred to in section 211(3C) of the companies Act 1956.
14. Insurance claims which are of not significant value are accounted
for on receipt basis.
15. Figures for the financial year 2010-2011 are post-demerger of
demerged undertaking of Associated Distilleries Limited into Globus
Spirits Limited & hence not comparable with those of the previous year
figures.
16. Figures has been rounded off to the nearest rupee.
17. Other information pursuant to para 3 to 4D of partÃII of schedule
VI of the Companies Act 1956 has not been furnished as the same is not
applicable.
Mar 31, 2010
1. In the opinion of the Board, the value of Current Assets, Loans &
Advances in the ordinary course of business will not be less then the
value at which they have been stated in the Balance sheet
2. Balances of Debtor & creditors and Advances to and from parties are
subject to Reconciliation & Confirmation
3. The amount falling due with in one year in respect of secured loans
is Rs.4,86,00,000/-.
4. The profit & loss account and Balance sheet comply with accounting
standards referred to in section 211 (3C) of the companies Act 1956.
5. Accounting Standard (AS) -17 "Segment Reporting " is not applicable
in case of company because company is involved in only one type of
product Industrials Potable Alcohol.
6. There is no amount due to small-scale industries over Rs.1 lac
shown under the head "sundry Creditors"
7. "Deferred revenue- Brand Promotion Expenses" appearing in Schedule
G in the Balance Sheet are the expenditure incurred on promoting
companys new IMFL brands already launched during the year 2007 and
which will give perpetual benefit to the company and thus it is shown
under the head Deferred revenue- Brand Promotion Expenses, which is
being written off in five years.
8. During the year the company has raised Rs.75crores through the
initial public issue of 75,00,000 equity shares of Rs.10/- each at a
premium of Rs.90/- per equity share for the purpose of expansion of
capacity & modernization of existing distilleries. The expenditure
incurred towards IPO to the tune of Rs. 12,57,83,784/- is being shown
under the head Capital work-in-progress & it will be capitalized as &
when the upcoming project will be completed.
9. In accordance with the Accounting Standards (AS-18) on Related
Party Disclosures, where control exists and where key management
personnel are able to exercise significant influence and, where
transactions have taken place during the year, along-with description
of relationships identified, are given below :-
A. Relationships
I. Subsidiary Company NIL
II. Joint Venture/Joint Control Associates NIL
III. Key Management Personnel
Name Designation
Sh.AjayK. Swarup Managing Director
IV. Associates
M/s Chandbagh Investments Limited (Holding Company) (no transaction has
been entered into during the period)
M/s Associated Distilleries Ltd. (ADL)
M/s Rambagh Estates Private Limited.
10. Taxation
A) Current tax is the provision made as per the normal income tax rate.
B) Deferred tax is recognized, on timing differences, being the
difference resulting from the recognition of items in the financial
statements & in estimating its current income tax provision.
C) Deferred tax assets are recognized on unabsorbed depreciation to the
extent there is virtual certainty supported by convincing evidence & on
others to extent that there Is reasonable certainty of their
realization
D) Deferred tax assets & liabilities are measured using the tax rates &
the laws that have been enacted or substantially enacted at the balance
sheet date.
11. The indicators listed in paragraph 8 of Accounting Standard
(AS)-28" impairment of assets" issued by Institute of Chartered
Accountants of India have been examined & on such examination , it has
been found that none of the indicators are present in the case of
company. There is no indication of a potential impairment loss, so
estimation of recoverable amount has not been made.
12. Insurance claims which are of not significant value are accounted
for on receipt basis.
13. Previous years figures has been regrouped, rearranged & reworked
wherever necessary to make them comparable with the current year
figures.
14. Figures has been rounded off to the nearest rupee.
15. Other information pursuant to para 3 to4D of part-II of schedule
VI of the Companies Act 1956 has not been furnished as the same is not
applicable.