Notes to Accounts of Jagatjit Industries Ltd.

Mar 31, 2023

(i) For details of property, plant and equipment charged as security against borrowings. Refer Note 15B[ii] &[iii).

(ii) Title deeds of all freehold immovable properties and lease deed of lease hold properties are in the name of the Company, except property having carrying value of '' 39 Lakhs in respect of which the execution of flat buyers agreement with the builder is under process. However the Company is in effective physical possession of the property since inception.

(iii) Estimated amount of capital contracts remaining to be executed is '' 4 Lakhs [Previous year : '' 2 Lakhs].

(iv) For leasehold land refer note 2.3(b) regarding Significant Accounting Policy.

(vi) Estimation of fair value

The company obtained independent valuations for its investment properties on April 01, 2016. The best evidence of fair value is current prices in an active market for similar properties.

All resulting fair value estimates for investment properties are as per level 2. The company is of view that there is no significant change in fair value as on March 31,2023. However, the fresh valuation will be taken in the subsequent financial year.

(vii) For details of investment property charged as security of borrowings refer note 15 (i)(a)&(b).

(viii) Title deeds of investment properties comprising of Flat Buyer''s agreement and free hold land are held in the name of the Company.

(i) From the above loan [61% of total loan), a sum of '' 143 lakhs [28%] has been subsequently realised and for the balance loan the Company is making efforts to recover.

(ii) [a] Includes '' 197 Lakhs [Previous year : '' 234 Lakhs] recoverable from a senior employee which has been provided as a matter

of abundant caution in earlier year. The Company has recovered '' 37 Lakhs during the year.

[b] It also includes a sum of '' 201 Lakhs [Previous year : '' 201 Lakhs] due from an Ex-employee and Management is hopeful to recover this loan in the subsequent period.

(iii) No Loans are due by Directors or other officers of the company or any of them either severally or jointly with any other person or by firms or private companies in which any director is a partner, director or member.

(iv) In line with circular no. 4/201 5 issued by the Ministry of Corporate Affairs dated 1 0.03.201 5, loans and advances given to employees as per company''s policy are not covered for the purpose of disclosures under section 186 [4] of the Companies Act, 2013.

(i) Includes an amount of '' 152 Lakhs [Previous year : Nil] for participating in an event which company could not proceed due to statutory reasons. The Company is pursuing the same with the organiser for refund.

(ii) Includes fixed deposit of '' 650 Lakhs [Previous year : '' 1438 Lakhs] with IndusInd Bank for security against borrowings. [Also refer note no 1 5[i][c]].

(iii) Towards bank guarantees against contractual/statutory obligations.

(iv) [a] Includes '' 16 Lakhs [Previous year : '' 16 Lakhs] security deposit against loan taken from related party [refer note 15], '' 56

Lakhs [Previous year : '' 50 Lakhs] as advance to other party including interest for which management is hopeful to recover the amount as mentioned in note 10[i].

[b] Includes Settlement of insurance claims of earlier years of '' 237 Lakhs [including interest of '' 106 Lakhs] pending realisation, settlement of other claims [mesne] profits of '' 45 Lakhs subsequently realised and '' 139 Lakhs unbilled revenue, out of which '' 121 Lakhs has been realised subsequently.

(ii) The Company has obtained confirmations from the trade receivables for substantial value. The confirmation requests sent by the management in respect of amount due from state owned Beverage Corporations are awaited. The adjustment entries if any will be made in the subsequent year on receipt of the confirmation.

(iii) No debts are due from directors or other officers of the Company or any of them either severally or jointly with any other person or from firms or private companies, in which any director is a partner or a director or a member.

(iv) Allowance for expected credit loss is made on the simplified approach as followed in earlier years.

(v) Refer Note 38(a) and 38(b) in respect of market risk and credit risk.

(i) During the financial year 2017-18, the Company entered into an agreement of sale for development and disposal thereafter a part of Leasehold land of Glass division at Sahibabad due to discontinuity of operations. In pursuance of the said agreement, the Company has received a sum of '' 4627 Lakhs (grouped under other current liabilities) towards part performance of the agreement. Recognition of revenue has been deferred, pending approval from the lessor (UPSIDC). Tripartite MOU for development of entire property in pursuance of Board Resolution dated 14.08.2021 has been cancelled on 08.08.2022 without any rights and obligations. The Company is hopeful of receiving the approval from the authority in the next financial year.

(ii) Terms/ rights attached to equity shares

(a) 1,86,05,628 shares referred to as equity shares are having face value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share and dividend, if declared.

(b) 2,52,10,000 underlying Equity Shares of '' 10/- each fully paid up ranking pari-passu with existing shares were issued in the name of the Depository, The Bank of New York, representing the Global Depository Receipts (GDR) issue. GDRs do not carry any voting rights until they are converted into equity shares.

(c) 25,00,000 Equity Shares of '' 10/- each, fully paid up at a premium of '' 20/- per share, as a special series with differential rights to dividend and voting, were issued during the financial year 2004-05. These shares have no right to the dividend and

each share carry twenty voting rights as compared to one voting right per existing equity share and were under the lock-inperiod of three years from the date of allotment. These shares are held by the promoters and promoter group companies.

(d) The holders of all the above Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in event of liquidation of the Company in the proportion to their shareholdings.

(i) Capital Redemption Reserve:

Capital Redemption Reserve was created pursuant to buy back of equity shares in earlier years out of free reserves. The Capital Redemption Reserve amount may be applied by the company, in paying up unissued share of the Company to be issued to shareholders of the Company as fully paid bonus shares.

(ii) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. Where the Company issues shares at premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium account". Additions during the year represents premium received on allotment of 1,67,516 equity shares under ESOP. The Company may issue fully paid-up bonus shares to its members out of balance lying in the Securities Premium Account and the Company can also use this reserve for buy-back of shares.

(iii) General Reserve

General reserve is created out of profit earned by the company by way of transfer from surplus in the statement of profit & loss. There are no restrictions on utilisation of the reserve except in case of declaration of dividend out of Reserves as prescribed under

The Companies [Declaration and Payment of Dividend) Rules, 2014 read with Section 123 of The Companies Act 2013.

(iv) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. It also Includes revaluation reserve of '' 24,490 Lakhs (Previous year : '' 24,501 Lakhs) related to

land situated at Hamira and Behror.

[v] The company has utilised the borrowings from banks and others for the specific purposes for which it has been borrowed. There has been no default with regard to repayment of borrowing and interest during the year and there are no overdue amount on this account as on the date of balance sheet. The company has not been declared as wilful defaulter by any bank or financial institution or any other lender.

[i] Includes interest of '' 40 Lakhs [Previous year : '' 13 Lakhs) on income tax refund, '' 96 Lakhs interest on FD [Previous year : '' 83 Lakhs], '' 44 Lakhs interest on loans given to related party and others (Previous year : '' 26 Lakhs].

[ii] Includes an item of exceptional nature being gain on sale of investment held in associates of '' 198 Lakhs [Previous year : '' Nil ] made to a group entity at arms length price determined on the report of Registered Valuer.

[iii] Includes:

[a] Reversal of provision in respect of bad and doubtful debts, advances written off, recovered during the year, write back of

Advances from customers, Trade and expenses payable, security deposit aggregating to '' 1 373 Lakhs as no longer required/ payable.

[b] items of exceptional nature being reversal of provision of '' 185 Lakhs [Previous year : '' Nil] for earlier years in respect of loans given to subsidiary company as subsequently realised.

[iv] Includes items of exceptional nature:

[a] settlement of insurance claims of earlier years of '' 237 Lakhs [including interest of '' 106 Lakhs] [Previous year : '' Nil] pending realisation.

[b] settlement of other claims [mesne] Profits of '' 45 Lakhs [Previous year : '' Nil] subsequently realised.

[c] '' 52 Lakhs [Previous year : '' 45 Lakhs] gain on foreign exchnage fluctuation.

31. EARNINGS PER SHARE (EPS)

Basic EPS is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events such

as Bonus share, other than potential equity shares.

For the purpose of calculating the diluted EPS the net profit for the year attributable to equity shareholders and weighted average number of equity shares outstanding during the year are adjusted for the effects all dilutive potentenial equity shares.

(ii) Sales tax / VAT

[a] Demand of sales tax & penalty under Telangana VAT Act on account of VAT on royalty '' 103 Lakhs [Previous year : '' 103 Lakhs).

[b] Demand of sales Tax & penalty under Punjab VAT Act on account of input VAT credit denied on rice husk '' 220 Lakhs [Previous year : '' 220 Lakhs].

[c] Demand of sales tax under Haryana VAT Act on account of disallowance of credit of excess VAT deposited due to rate difference

'' 40 Lakhs [Previous year : '' 40 Lakhs].

[d] Demand for disallowance of ITC on purchase of rice flour '' 108 Lakhs [Previous year : '' 108 Lakhs].

[e] Demand of sales tax under Ranchi VAT Act Assessment for FY 2015-16''65 Lakhs [Previous year : '' 65 Lakhs].

[f] Demand of sales tax under Ranchi VAT Act Assessment for FY 2016-17''8 Lakhs [Previous year : '' 8 Lakhs].

[g] Demand of sales tax under Dehradun VAT Act Assessment for FY 2016-17''71 Lakhs [Previous year : '' 71 Lakhs].

(iii) Employee state insurance/employee related

[a] Claim in respect of case filed by ESI Corporation '' 6 Lakhs [Previous year : '' 6 lakhs].

[b] Employees related claims '' 208 Lakhs [Previous year : '' 208 Lakhs].

(iv) Others

[a] Claim by Punjab Government in respect of amount paid to Mahalaxmi Sugar Mills pending before the ''The Court of Civil Judge [Senior Division ], Kapurthala'' '' Nil [Previous year : '' 22 Lakhs].

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

[c] Includes '' 60 lakhs deposited pending completion of assessment in response to Notice of Demand u/s 1 00[1 ] Of NDMC ACT 1994.

(v) Income Tax Act, 1961

[a] Protective addition of '' 5657 Lakhs and substantive addition of '' 107 Lakhs made in the assessment proceedings u/s 153 A in earlier years [AY 2009-1 0 to AY 201 3-14] on account of excessive sales promotion expenses and alleged accommodation purchases respectively were deleted by CIT [A] [except sales promotion expenses of '' 77 Lakhs which was confirmed by CIT [A].] against which department has filed appeal[s] and company has filed cross objection to the confirmed addition before the ITAT which is pending for adjudication. For assessment year 2009-1 0 and 201 0-11, ITAT has dismissed the second appeal of Department regarding relief of sales promotion expenses of '' 2655 Lakhs. The company has strong legal reasons that appeal of the Department for remaining years will be dismissed and the company will get the remaining relief of '' 77 Lakhs.

[b] Assessment under section 147 in respect of assessment year 201 6-1 7 has been made by making certain disallowances/ addition of '' 445 Lakhs on account of late deposit of provident fund and alleged bogus purchases resulting in reduction of

carry forward of losses to the same extent. The Company have filed appeal before first appellate authority and has strong legal reasons to get relief.

[c] Rectification order U/ s 154 for AY 201 7-1 8 making total additions of '' 1012 Lakhs on account of disallowance of expenses u/ s 36[1 ] [va], 201 [1A]/206 C[7] and provision for obsolete inventory has been passed. The additions made by the Assessing officer purports to reduction of carry forward of losses without any current tax impact. Aggrieved by the disallowances made by the A.O. the assessee company have preferred an appeal before first appellate authority which is pending. The company expects substantial releif considering the legal position and past record.

(vi) The Company is contesting these above demands and the management, based on advise of its advisors, believes that its position will likely be upheld in the appellate process. No expense has been accrued in the standalone financial statements for these demands raised. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company''s financial position and results of operations. The Company does not expect any reimbursements in respect of the above contingent liabilities.

(vii) In addition, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company''s management reasonably does not expect that these legal actions, when ultimately concluded and determined, will have material effect on the Company''s results of operations or financial condition.

(B) Defined benefit plans

The benefit of Gratuity is payable as per the Payment of Gratuity Act, 1972 or maximum gratuity payable under the said Act, which ever is lower. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The gratuity benefits payable to the employees are based on the employee''s service and last drawn salary at the time of leaving. The employees do not contribute towards this plan and the full cost of providing these benefits are met by the Company. The company does not have any funded plan.

The company''s operating segments are established on the basis of those components of the group that are evaluated regularly by the chief operating officer (the ''Chief Operating Decision Maker'' as define in Ind As 1 08 -''Operating Segments''), in deciding how to allocate resources and in assessing performance. These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The CODM does not review assets and liabilities for each operating segment separately, hence segment disclosures relating to total assets and toal liabilities have not been furnished. The Company''s business segments are as under:

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

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

Others: Segment includes trading of Petroleum products.

The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

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 enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as ''Unallocable''.

36. FAIR VALUE

Fair value measurement:

(i) All the financial assets and financial liabilities of the company are carried at amortised cost except investment. Investment in subsidiaries are carried at cost less impairment and other investments are carried at fair value.

(ii) The management assessed that the carrying values of trade and other receivables, deposit, cash and short term deposits, other assets, borrowings, trade and other payables reasonably approximate their fair values because these instruments have short-term maturities.

37. CAPITAL MANAGEMENT

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to shareholders through the optimisation of the debt and equity. For the purpose of the Company''s capital management, includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, all noncurrent and current borrowings reduced by cash and cash equivalents. The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of the financials covenants. To maintain or adjust the capital structure,

the Company may adjust the dividend payments to shareholders, return capital to shareholders or issue new shares. The capital structure is monitored on the basis of net debt to equity and maturity profile of the overall debt portfolio of the Company.

In order to achieve this overall objective, the company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches in meeting the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the financial covenants of any interestbearing borrowings in the current year.

No significant changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2023 and March 31,2022 except as stated in Note 14(v).

38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company''s principal financial liabilities comprise borrowings, security depsoits received, trade and other payables. The main purpose of these financial liabilities is to finance the company''s operations. The company''s principal financial assets include trade and other receivables, cash and cash equivalents and security deposits that are out of regular business operations.

The Company''s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factors. The company''s senior management oversees the management of these risks.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate be-cause of changes in market

prices. Market risk comprises of three types of risk i.e. interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include borrowings, trade payables and trade receivables. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rate relates primarily to the company''s borrowings with floating interest rates.

ii. Foreign currency risk

Foreign 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. There does not seem to be any significant risk as transaction in foreign currency are not material.

As there is no significant foreign currency risk, sensitivity analysis showing impact on profit is not calculated.

iii. Commodity price risk

The Company is exposed to the risk of the price volatility of certain commodities raw materials. Its operating activities inter-alia comprise of manufacture of spirit alcohol/Liquor and malted food products and therefore require a continuous supply of Barley/Nakku/Husk/etc. The Company''s Board of Directors have developed and enacted a risk management strategy regarding commodity price risk and its mitigation. The company''s long standing relationships with most of the suppliers ensure steady availability of raw materials at competitive prices.

(b) Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty defaults on its obligations. The Company''s exposure to credit risk arises majorly from loan, advances, trade and other receivables. Other financial assets like security deposits and bank deposits are mostly with government authorities and nationalised banks and hence, the Company does not expect any credit risk with respect to these financial assets. Trade receivables includes approximately 16 % dues from state government corporations, where probability of default is remote. In respect of trade receivables from other than state government corporations, Company makes a provision for expected credit loss on the basis of simplified approach as prescribed under Ind AS 1 09 i.e.on expiry of three years or at the time of initiation of legal proceeding whichever is earlier. The Company management reviews trade receivables/ advances on periodic basis and take necessary mitigative measures, wherever required.

(c) Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank borrowings/ deposits received in the ordinary course of business.The

table below summarises the maturity profile of the Company''s financial liabilities:

(i) During the year, revenue from operations registered a significant increase resulting in increase in profit before tax despite increase

in the cost of production. As a result, negative net worth of the company is reduced on account of the increase in the income. The Company''s ability to continue as going concern is dependent upon the further increased revenue from operations, gross margin and reduction in finance cost. The management is hopeful of increasing the revenues further and improving gross/ net margins by

adopting the cost saving measures. Therefore, no material uncertainty exists on the company''s ability to continue as a going concern.

(ii) In view of the brought forward losses/ unabsorbed depreciation/ book losses, no provision of Income Tax has been made during the year. In absence of virtual certaininy of future taxable profits, the Company has not recognised deferred tax assets during the year.

(iii) Previous year figures have been reclassified/regrouped to this year''s classification wherever necessary to make them comparable with this year''s classification.

42. RELEVANT ADDITIONAL REGULATORY INFORMATION: (OTHER THAN DISCLOSED IN THE RESPECTIVE NOTES)

(i) The operating cycle of the Company is assumed to be of twelve months in absence of clearly identifiable normal operating cycle and accordingly assets/ liabilities have been claissified as current/ non current.

(ii) No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(iii) The Company has not revalued its PPE (including ROU asset) and hence disclosure regarding basis of revaluation is not applicable.

(iv) The Company has not carried out any transactions with companies struck off under section 248 of the Companies Act 201 3 or under

section 560 of the Companies Act 1956.

(v) There is no charge or satisfaction of any charge which is not registered with ROC beyond the statutory period.

(vi) The Company has not granted any loans or advances in the nature of loans to promoters, directors, Key Managerial Person and the related parties except as stated in the note 6(i) and 8(iii) either severally or jointly with any other person which is either repayable on demand or

without specifying any terms or period of demand.

(vii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies act read with companies (restriction on number of layers) rules 2017.

(viii) The Company has not applied any accounting policy retrospectively or has made a restatement of items in Financial Statements.

(ix) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries), or

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(x) The Company have not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries), or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

fxi) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(xii) The Company does not have any such transaction which are not recorded in the books of account that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,1961).

(xiii) Provisions of Sec 135 of the Companies Act 2013 are not applicable to the company.

(xiv) The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 and invited suggestions from stakeholders which are under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the code becomes effective and the related rules to determine the financial impact are published.

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Mar 31, 2018

Notes on Financial Statements for the year ended March 31, 2018

(A) Reconciliation of Equity as at April 01, 2016 and March 31, 2017

						[Rs in Lacs]
Particulars	As at April 01, 2016			As at March 31, 2017
	IGAAP	Effect of Ind AS	Ind AS	IGAAP	Effect of Ind AS	Ind AS
Non-current assets
Property, plant and equipment [Footnote [i]]	26,802	16,443	43,245	42,327		42,327
Capital work - in - progress	49		49	57		57
Other Intangible Assets	10		10	7		7
Investment Properties	1,840		1,840	1,802		1,802
Financial assets						-
Investment [Footnote [ii]]	1,250	13	1,263	1,250	40	1,290
Loans [Footnote [iii]]	3,530	[112]	3,418	3,532	[78]	3,454
Other Financial Assets	1,109	-	1,109	771	-	771
Other non-current assets [Footnote [iii], [iv]]	1,412	145	1,557	990	226	1,216
Total non-current assets	36,002	16,489	52,491	50,736	188	50,924
Current assets
Inventories	10,354		10,354	7,917		7,917
Financial assets
Investments	15		15	15		15
-Trade receivables	18,811	-	18,811	14,066	-	14,066
- Loans	908	-	908	1,248	-	1,248
- Cash and Cash Equivalents	1,050	-	1,050	786	-	786
- Other Financial Assets	384	-	384	248	-	248
Other current assets [Footnote [iii], [iv]]	3,250	59	3,309	2,510	170	2,680
Assets held for sale [Footnote [v]]	3,764	[1,122]	2,642	45		45
Total current assets	38,536	[1,063]	37,473	26,835	170	27,005
Total assets	74,538	15,426	89,964	77,571	358	77,929
Equity and liabilities
Equity
Equity Share Capital	4,615	-	4,615	4,615	-	4,615
Other Equity [Refer reconciliation given below]	15,355	15,429	30,784	18,724	365	19,089
Total equity	19,970	15,429	35,399	23,339	365	23,704
Non-current liabilities
Financial liabilities
- Borrowings	14,901		14,901	22,010		22,010
- Other Financial Liabilities	298		298	735		735
Other Long Term Liabilities [Footnote [vi]]		46	46		121	121
Provisions	1,983		1,983	2,302		2,302
Deferred Tax Liabilities	633		633	869		869
Total non-current liabilities	17,815	46	17,861	25,916	121	26,037
Current liabilities
Financial liabilities
Borrowings	10,396	-	10,396	3,063	-	3,063
Trade Payables	12,392	-	12,392	12,971	-	12,971
Other financial liabilities [Footnote [vi]]	10,742	[79]	10,663	9,336	[217]	9,119
Other current liabilities [Footnote [vi]]	2,771	30	2,801	2,472	89	2,561
Provisions	452		452	474		474
Total current liabilities	36,753	(49)	36,704	28,316	(128)	28,188
Total equity and liabilities	74,538	15,426	89,964	77,571	358	77,929

(B) Effect of Ind AS adoption on the Statement of Profit and Loss for the year ended March 31, 2017

			[Rs. in Lacs]
Particulars	IGAAP	Effect of Ind AS	IND AS
Revenue from Operations	81,312	-	81,312
Other Income [Footnote [ii], [iii], [vi]]	3,328	118	3,446
Total Income	84,640	118	84,758
Expenses
Cost of Material Consumed	23,189	-	23,189
Purchases of Stock - in - trade	1,613	-	1,613
[Increase]/ Decrease in inventories of finished goods and stock- in -trade	1,095		1,095
Excise Duty	32,825		32,825
Employee benefits expense [Footnote [iii], [vii]]	7,610	[369]	7,241
Finance cost [Footnote [iv], [vi]]	5,080	[176]	4,904
Depreciation and amortisation expense [refer foot note [viii]]	1,229	43	1,272
Other expenses	22,264	-	22,264
Total expenses	94,905	(502)	94,403
Profit/ (Loss) before exceptional items and tax	[10,265]	620	[9,645]
Tax expense:
Current tax	99	-	99
Income Tax adjustment related to earlier years	[447]	-	[447]
Deferred Tax [credit]/ charge	233	139	372
Total tax expenses	(115)	139	24
Profit/ (Loss) for the period from Continuing Operations	[10,150]	481	[9,669]
Profit/ (Loss) for the period from Discontinuing operations	[1,756]	-	[1,756]
Tax Expenses from Discontinuing Operations	3	-	3
Profit/ (Loss) for the period	[11,909]	481	[11,428]
Other Comprehensive Income
- Items that will not be reclassified to profit or loss
Re-measurement [gains]/ losses on defined benefit plans	-	406	406
Tax impact on re-measurement [gain]/ loss on defined benefit plans	-	[139]	[139]
Total Comprehensive Income for the period [Comprising Profit/ (Loss) and Other Comprehensive Income for the period)	(11,909)	214	(11,695)

(C) Reconciliation of total equity

		[Rs. in Lacs]
Particluars	As at April 01, 2016	As at March 31, 2017
As per IGAAP	19,970	23,339
Ind AS Adjustments:
Adjustment on account of Fair valuation of PPE [Land] [Footnote [i]]	16,443
Adjustment with Assets Held for Sale [Footnote [v]]	[1,122]
Adjustment on account of Fair Value of financial instrument [Footnote [ii], [iv],[vi]]	108	365
As per Ind AS	35,399	23,704

(D) Reconciliation of total comprehensive income for the year ended March 31, 2017

[Latest period presented under previous GAAP)

	[Rs. in Lacs]
Particulars	As at March 31, 2017
Net Profit for the year ended previous GAAP	(11,909)
Ind AS: Adjustment increased / decreased
Interest income on account of fair valuation [footnote [iii]]	33
Rental income on account of fair valuation [footnote [vi]]	58
Income on account of fair valuation of investment [footnote [ii]]	27
Actuarial gain on employees defined benefits plan recognised [footnote [vii]]	406
Employee cost on account of fair valuation of employee loan [footnote [iii]]	[37]
Processing fee re-stated [footnote [iv]]	176
Depreciation on revalued assets reinstated in books [footnote [i]]	[43]
Impact on deferred tax of above adjustment [footnote[vii]]	[139]
Net loss for the year under Ind AS	[11,428]
Other Comprehensive Loss [net of taxes] [footnote [vii]]	[267]
Total Comprehensive Income for the year under Ind AS	(11,695)

Note: Under previous GAAP, total comprehensive income was not reported, therefore the above reconciliation starts with loss under the previous GAAP.

Footnote(s):

[i] Under previous GAAP, PPE was shown at historical cost. Ind AS 1 01 permits a first-time adopter to elect to continue with the carrying value of its property, plant and equipment under previous GAAP and use that as its deemed cost or to measure fair value of class assets of its property, plant and equipment as on the date of transition to Ind AS, and use that as its deemed cost as at the date of transition.

The Company has elected to measure item of property, plant and equipment and intangible assets at its carrying value at the transition date except for certain class of assets [Land] which are measured at fair value as deemed cost.

As a result amount of Rs.10,336 Lacs [Land Rs. 4,321 Lacs, Building Rs. 5,697 Lacs and Plant &. Machinery Rs. 31 8 Lacs] towards revaluation reserve created in earlier year was reversed and fair value [increased by Rs. 26,779 Lacs] of land was taken as deemed cost. Net impact on PPE of Rs. 16,443 Lacs credited to retained earnings on April 01, 2016.

Value of leasehold land is amortized over the period of life of lease. As a result depreciation of 2016-1 7 is increased by Rs. 43 lacs.

[ii] Under previous GAAP, non - current investment were carried at cost. Under Ind AS these investment other than investment in subsidiary and associate are to be measured at FVTPL and have accordingly been measured.

The effect of these changes are addition of Rs. 13 Lacs in investment and retained earning as at April 01, 2016. In Financial year 2016-17, investment and other income have been increased by Rs. 40 Lacs [including Rs. 13 Lacs on transition date] and Rs. 27 Lacs, respectively.

[iii] Under previous GAAP, interest free loan to employees were carried at undiscounted amount. Under Ind AS loans are to be measured initially at discounted amounts and differential amount debited to prepayment employee cost as non financial assets, if the effect of time value is material. After initial recognition, loans are measured at amortised cost. Interest has been recognised under the effective rate method as part of interest income. The prepayments are charged to Statement of Profit and Loss on the straight line basis over the duration of loan.

The effect of changes has resulted in reduction in loan balances of Rs. 112 Lacs with corresponding increase in prepayment under non -current and other current assets by Rs. 74 Lacs and Rs. 38 Lacs, respectively as at April 01, 2016.

In Financial year 2016-17, effect is reduction in loan balances of Rs. 78 Lacs and corresponding increase in prepayment under non -current assets Rs. 37 Lacs and other current assets of Rs. 37 Lacs, respectively in Balance Sheet. In respect of Statement of Profit and Loss, there is increase in interest income of Rs. 33 Lacs under other income with corresponding increase in employee benefit cost of Rs. 37 Lacs. The net effect in TCI is Rs. 4 Lacs.

[iv] Under previous GAAP, upfront fee and processing fee/ other charges paid were charged off to the Statement of Profit and Loss. Under the Ind AS such borrowings are to be recorded net of the aforesaid charges. Accordingly, existing borrowings as at reporting dates have been restated by computing the revised interest charge using the effective interest rate method. However, Company has re-stated aforesaid charges as non - financial assets and amortised the same on straight line basis instead of using effective interest rate. Management is of the view that there is no significant effect on this account.

The effect of these changes have resulted in increase in prepayment amount of Rs. 92 lacs [Non -current Rs. 71 Lacs and current Rs. 21 Lacs] and corresponding retained earning by Rs. 92 Lacs as on April 01, 2016.

In Financial year 2016-17 the effect of these changes have resulted in increase in prepayment of ? 321 Lacs [Non - current Rs 188 Lacs and current ? 1 33 Lacs] in Balance Sheet. In respect of Statement of Profit and Loss, there is reduction in finance cost of ? 230 Lacs.

[v] Under previous GAAP, assets held for sale were carried at revalued amount. Under Ind AS this is to be shown at lower of NRV and net book value.

As a result amount of Rs. 1,121 Lacs has been reduced from value of assets held for sale as on April 01, 2016. In Financial year 2016-17, there is Nil impact.

[vi] Under previous GAAP, interest free security received were carried at undiscounted amount. Under Ind AS security received are to be measured initially at discounted amounts and differential amount credited to advance rent received under non financial liabilities, if the effect of time value is material. After initial recognition, security deposits are measured at amortised value. Interest has been calculated under the effective rate method and treated as part of interest expenses. The advance rent is recognised in Statement of Profit and Loss on the straight line basis over the duration of deposits.

The net effect of these changes are reduction of deposits balances by ? 79 Lacs and corresponding increase in advance rental income by ? 76 Lacs [under other non - current liabilities Rs. 46 Lacs and other current liabilities ? 30 Lacs] and ? 3 Lacs in retained earnings as on April 01, 2016.

In Financial year 2016-17 net effect of these changes are reduction in security deposits balances by Rs. 217 Lacs [including ? 3 Lacs transferred to retained earning at transition date] and corresponding increase in advance rental income under other non - current liabilities and current liabilities by Rs. 121 Lacs and Rs. 89 Lacs, respectively in Balance Sheet. In respect of Statement of Profit and Loss, there is increase in rental income by ? 58 Lacs and corresponding increase in interest cost by ? 53 Lacs. The net effect in TCI is Rs. 4 Lacs [income].

[vii] Under previous GAAP, there is no concept of Other Comprehensive Income (OCI). Under Ind AS specified items of income expenses, gain and loss are required to be presented in OCI.

Both under Previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Previous GAAP, the entire cost, including actuarial gains and losses, were charged to profit or loss. Under Ind AS, re-measurement [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised immediately in the Balance Sheet with corresponding debit or credit to retained earnings through Other Comprehensive Income.

As a result, employee benefit cost for the year ended March 31, 201 7 have been reduced by Rs. 406 Lacs and re-measurement losses of Rs. 267 Lacs, [net of deferred tax income of Rs. 139 Lacs] on defined benefit plans has been recognised in the Other Comprehensive Income.

[viii] Value of leasehold land is amortized over the period of life of lease. As a result, depreciation of 2016-17 is increased by Rs. 43 lacs. [ix] The transition from Previous GAAP to Ind AS did not have a material impact on statement of cash flows.

46. ADDITIONAL

[i] The comparative financial information of the Company for the year ended March 31, 2017 prepared in accordance with Ind AS included in this Financial Statements is based on Financial Statements audited under Indian GAAP by the previous auditor Mittal Chaudhary & Co, Chartered accountants vide their report dated August 01, 201 7.

[ii] Previous GAAP figures have been reclassified/ regrouped, wherever necessary, to confirm with Financial Statements prepared under Ind AS.

[iii] Ind AS 115 was notified on March 28, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after April 01, 2018. The Company will adopt the new standard on the required effective date using the modified retrospective method. The Company has established an implementation team to implement

Ind AS 115 related to the recognition of revenue from contracts with customers and it continues to evaluate the changes to accounting system and processes, and additional disclosure requirements that may be necessary. A reliable estimate of the quantitative impact of Ind AS 115 on the financial statements will only be possible once the implementation project has been completed.

[iv] Company has published the standalone and consolidated Financial Results for the Financial year ended March 31, 2018 and auditors have issued the report dated May 30, 2018 in pursuance of regulation 33 of SEBI [Listing Obligation and Disclosure Requirements] Regulations, 201 5. After publishing the results, certain adjusting events have occurred, which has resulted in confirmation of contingent liability of Rs. 320 Lacs, estimated at Rs 9,933 Lacs and disclosed vide note no. 7 of the published results. Therefore, in accordance with Ind AS - 10, Financial Statements to that extent are amended. Impact of the adjusting event is that contingent liabilities of Rs. 9,933 Lacs are reduced. Confirmed liability of Rs. 320 Lacs is provided resulting in increase of loss of the year by Rs. 320 Lacs; decrease in retained earnings by Rs. 320 Lacs and corresponding increase in the current liability of Rs. 320 Lacs. Company has reclassified the amount of Rs. 50 Lacs included in Note 14 [Other Financial Assets] to Note 1 3 [Current Loan] and amount of Rs. 783 Lacs from Note 1 5 [Other Current Assets] to Note 8 [Other Non Current Assets] representing prepaid expenses, Rs. 19 Lacs from Note 24 [Other Financial Liabilities] to Note 19B [Current Borrowings).

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Mar 31, 2016

b) Segment revenue and expenses:

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

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

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

1. TERMS/RIGHTS ATTACHED TO EQUITY SHARES

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

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

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

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

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

Nature of Security Terms of Repayment

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

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

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

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

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

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

its works at Jagatjit Nagar, Distt Kapurthala.

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

Distt Kapurthala.

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

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

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

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

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

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

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

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

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

3. Terms of repayment for Long Term Unsecured Borrowings:

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

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

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

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

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

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

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

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

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

8.. CONTINGENT LIABILITIES:

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

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

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

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

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

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

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

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

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

dispute:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Notes:

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

NOTES:

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

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

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

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

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

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

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

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

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

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

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

Subsidiary Companies

JIL Trading Pvt. Ltd.

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

L.P. Investments Limited.

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

Milk food Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

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

19. Key Management Personnel and their relatives:

Mr. Narender Sapra (Managing Director)

Mr. Ravi Manchanda (Director)

Mrs. Nimmi Manchanda (Relative of Director)

Notes:

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

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

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

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

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

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

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

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

4) Interest Accrued is in respect of the following :

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

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

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

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

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

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

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

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

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

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

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

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

8) Advances Given

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

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

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

9) Lease Rent paid

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

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

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

10) Refund of Advance

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

11) Unsecured Advances Outstanding

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

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

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

12) Investments

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

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

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

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

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

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

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

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Mar 31, 2015

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

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

2. Terms/Rights Attached to Equity Shares

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

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

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

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

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

Nature of Security Terms of Repayment

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

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

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

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

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

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

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

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

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

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

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

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

4. Terms of repayment for Long Term Unsecured Borrowings:

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

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

5. CONTINGENT LIABILITIES:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Notes:

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

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

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

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

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

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

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

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

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

11. Related Party Disclosures

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

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

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

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

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme

Pashupati Properties & Estates Pvt. Ltd.

Qube Corporation Pvt. Ltd.

40.3 Key Management Personnel and their relatives:

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

Mr. Karamjit Jaiswal (Relative of Director)

Mrs. Shakun Jaiswal (Relative of Director)

Mr. Narender Sapra (Managing Director)

Mr. Ravi Manchanda (Director)

Mrs. Nimmi Manchanda (Relative of Director)

Notes:

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

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

3) Interest Accrued is in respect of the following :

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

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

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

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

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

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

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

7) Lease Rent paid

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

8) Advances Given

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

9) Refund of Advance

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

10) Unsecured Advances Outstanding

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

11) Investments

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

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

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

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

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

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

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

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

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

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

---

Mar 31, 2014

1. CONTINGENT LIABILITIES:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Depreciation for the year calculated in accordance with accounting policy mentioned

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

Less: Adjusted against Revaluation Reserve 288 309

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

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

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

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

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

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

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

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

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

10. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

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

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

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

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

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

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

iii) Inter Segment Pricing - At cost plus margin.

NOTES:

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

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

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

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

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

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

11. Related Party Disclosures

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

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

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

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

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme

Pashupati Properties & Estates Pvt. Limited

Qube Corporation Pvt. Ltd.

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

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

Mr. Ravi Manchanda (Director)

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

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

Notes:

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

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

3) Interest Accrued is in respect of the following :

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

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

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

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

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

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

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

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

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

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

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

7) Lease Rent paid

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

8) Advances Given

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

9) Refund of Advance

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

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

11) Unsecured Advances Outstanding

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

12) Investments

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

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

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

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

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

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

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

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

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

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Mar 31, 2013

1. CONTINGENT LIABILITIES:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

12. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

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

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

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

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

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

13. Related Party Disclosures

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

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

Subsidiary Companies

JIL Trading Pvt. Ltd.

S.R.K. Investments Pvt. Ltd

Sea Bird Securities Pvt. Ltd.

L.P. Investments Limited.

Anjani Estates Limited

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

Milkfood Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

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

Qube Corporation Pvt. Ltd.

Jagatjit Spirits & Wine Ltd.

13.3 Key Management Personnel (Directors) and their relatives:

Mr. Narender Sapra

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

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

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

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

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Mar 31, 2012

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

Nature of Security

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

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

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

Terms of Repayment

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Terms of repayment for Long Term Unsecured Borrowings:

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

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

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

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

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

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

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

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

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

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

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

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

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

3. CONTINGENT LIABILITIES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

16. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

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

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

17. Related Party Disclosures

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

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

JIL Trading Pvt. Ltd.

S.R.K. Investments Pvt. Ltd.

Sea Bird Securities Pvt. Ltd.

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

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

Milkfood Ltd.

Hyderabad Distilleries & Wineries Pvt. Ltd. (Associate)

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme

Pashupati Properties & Estates Pvt. Limited

L.P. Investments Limited. (Associate)

Grand Regency Hospitalities Pvt. Ltd.

Qube Corporation Pvt. Ltd.

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

Mr. Arvind Behl Mr. Ravi Manchanda

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

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

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

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Mar 31, 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(B) OTHER NOTES AND ADDITIONAL INFORMATION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

14. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

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

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

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

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

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

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

iii) Inter Segment Pricing - At cost plus margin.

NOTES:

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

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

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

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

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

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

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

15. Movement of purchase and sale of investment.

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

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

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

16. Related Party Disclosures

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

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

Subsidiary Companies

Anjani Estates Ltd.

JIL Trading Pvt. Ltd.

S.R.K. Investments Pvt. Ltd.

Sea Bird Securities Pvt. Ltd.

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

Hyderabad Distilleries & Wineries Pvt. Ltd.

Fast Buck Investments & Trading Pvt. Ltd.

Jagatjit Industries Limited Employees Superannuation Scheme

Pashupati Properties & Estates Pvt. Limited

L.P. Investments Limited.

Grand Regency Hospitalities Pvt. Ltd.

Qube Corporation Pvt. Ltd.

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

Mr. Narender Sapra

Mr. Arvind Behl

Mr. Ravi Manchanda

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

Notes:

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

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

3) Sale of goods includes sales to the following :

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

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

4) Purchase of goods includes purchases from the following :

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

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

5) Interest Accrued is in respect of the following :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

9) Lease Rent paid

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

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

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

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

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

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

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

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

---

Mar 31, 2010

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Notes:

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

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

17. Segment Reporting

i) Primary Segment Reporting (by Business Segments)

Composition of Business Segments

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

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

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

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

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

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

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

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

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

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

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

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

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

18. Movement of purchase and sale of investment.

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

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

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

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

19. Related Party Disclosures

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

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

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

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

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

Notes:

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

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

3) Sale of goods includes sales to the following :

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

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

4) Purchase of goods includes purchases from the following :

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

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

5) Interest Accrued is in respect of the following :

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

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

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

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

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

8) Provision for Doubtful Advances

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

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

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

10) Lease Rent paid

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

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

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

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

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