Notes to Accounts of Orient Beverages Ltd.

Mar 31, 2016

II. Post Employment Benefits -Defined Contribution Plans:

a) Gratuity Plans:

Gratuity is payable to all eligible employees of the Company on death, permanent disablement and resignation in terms of the provisions of the Payment of Gratuity Act, 1972 or as per the Company''s Scheme, whichever is more beneficial. Benefit would be paid at the time of separation based on the last drawn basic salary.

b) Leave Encashment :

Eligible employees can carry forward and encash leave up to death, permanent disablement and resignation subject to maximum accumulation allowed as applicable to the concerned division of the Company or individual employee, highest being up to 88 days.

Leave over and above accumulation allowed is liable to be encased in the next year based on gross salary drawn in the last year.

III. Termination Benefits :

Termination Benefits are charged to the Statement of Profit and Loss in the year in which they are incurred.

(b) Terms/ rights attached to Equity Shares:

The Company has only one class of issued shares i.e. equity shares having a face value of Rs, 10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in the proportion of their shareholdings.

1 Term Loans from Banks includes:

(a) Rs, 6,58,119/- (Previous year Rs, 25,99,702/-) from United Bank of India is secured by assignment of rent receivable from the lender Bank itself and personal guarantee of a Director of the Company up to Rs, 37,50,000/- plus outstanding interest and other charges. The loan is repayable in 24 installments and carries rate of interest of 13.75 % p.a. (Floating) . Last installment is payable on 1st July 2016.

(b) Rs, 66,16,717/- (Previous year Rs, 97,73,251/-) from Union Bank of India is secured by mortgage of immovable property of the Company situated at Sankrail Industrail Park, Sankrail, Howrah and personal guarantee of two Directors/ Promoters of the Company up to Rs, 1,00,00,000/- plus outstanding interest and other charges. The loan is repayable in 120 installments and carries rate of interest of 12.75 % p.a. (Floating). Last installment is payable on 28th February, 2025.

(c) Rs, 4,65,36,415/- (Previous year Rs, 2,71,15,667/-) from Union Bank of India in the nature of Home Loan is secured by mortgage of immovable property under acquisition by the Company at 21, Pramatha Choudhury Sarani, Kolkata. The loan is repayable in 162 installments and carries rate of interest 11% p.a. (Floating). Last installment is payable on December 2029.

Above loans are secured by hypothecation of vehicles and machineries financed by the respective Banks. Different rates of interest are payable against different agreements. The rate given above is the highest rate for the respective

Bank.

2. Loans from entities other than Banks (secured) includes:

(a) Rs, 79,94,625/- (Previous year Rs, 83,85,865/-) from Reliance Capital Ltd. is secured by hypothecation of certain machineries financed by them. Loans are repayable in 48 installments. Different rates of interest are payable against different agreements, highest being 15.50% p.a. for one loan. Last installment is payable on 1st February, 2020.

(b) Rs, 6,76,909/- (Previous year Rs, 1,71,33,893/-) from L&T Finance Ltd. is secured by hypothecation of certain machineries financed by them. Loans are repayable in 48 installments. Rate of interest payable is 13.75 % p.a. Last installment is payable on 5th September, 2016.

(c) Rs, 1,66,34,099/- (Previous year Rs, 2,19,41,051/-) from Magma Fincorp Ltd. is secured by pledge of 8,25,000 Equity Shares of the Company held by Directors/Promoters and personal guarantee of two Directors/Promoters of the Company. The loan is repayable in 48 installments and carries rate of interest of 17.50% p.a. Last installment is payable on 7th July, 2018.

(d) Rs, 2,00,00,000/- (Previous year Rs, Nil) from Reliance Home Finance Ltd. is secured by mortgage of immovable property of the Company situated at NH- 6, Mumbai Highway, Salap More, Howrah and personal guarantee of three Directors/ Promoters of the Company. The loan is repayable in 48 installments and carries rate of interest of 15.50 % p.a. Last installment is payable on 1st April, 2020.

3 Loans from entities other than Banks (unsecured) includes:

(a) Rs, 24,79,473/- (Previous year Rs, 26,06,558/-) from Bajaj Finance Ltd. Loan is repayable in 36 installments (maximum) and carries rate of interest of 18.25 % p.a. (highest). Last installment is payable on 2nd August, 2018.

(b) Rs, 21,59,436/- (Previous year Rs, 33,82,440/-) from Tata Capital Financial Services Ltd. Loan is repayable in 36 installments and carries rate of interest of 18.08 % p.a. Last installment is payable on 3rd August, 2017.

4. Estimated amount of contracts remaining to be executed on capital account is '' 11,26,01,870/- (Previous Year '' 11,46,95,881/-) against which '' 7,70,36,940/- (Previous Year '' 4,52,16,011/-) has been paid as advance.

5. One of the tenants of the Company namely M/s Income Tax Appellate Tribunal is not paying Service Tax on Rent since the same has came in to effect. The Company is liable to collect a sum of '' 62,59,572/- (Previous Year '' 54,26,127/- ) from said M/s Income Tax Appellate Tribunal towards Service Tax on Rent for the period 01.06.2007 to 31.03.2016 and remit the same to the Government account. The Company has duly provided the said Service Tax liability in its books of account. The Company has filed a writ petition before the Hon''ble High Court at Calcutta for recovery of Service Tax on Rent from M/s Income Tax Appellate Tribunal. The matter is subjudiced pending decision by the Hon''ble High Court at Calcutta.

6 Annual Value of one property of the Company situated at 50, Chowringhee Road, Kolkata was revised by the Kolkata Municipal Corporation with retrospective effect from 1st July, 2006 on 15.06.2010. The Company had disputed the said valuation by filing a writ petition before the Hon''ble High Court at Calcutta praying for a fresh valuation which has since been dismissed. Now the Company has made an application to the Kolkata Municipal Corporation for reconsideration of the Annual Value and the Company is hopeful to get good relief on disposal of its request. Pending decision on the said request, the Company is not paying municipal tax but liability on this account including interest and penalty of '' 2,87,28,800/- (Previous Year '' 2,50,97,806/-) up to 31.03.2016 has been duly provided in the books of account.

7. As per the Scheme of amalgamation M/s. Jaypee Estates Pvt. Ltd. and M/s. Avni Estates Pvt. Ltd. have merged with the Company w.e.f. 01.04.2003 with all Assets and Liabilities including charges, liens, mortgages, interest, appeals etc. vide Order (s) dated 26.08.2002 and 14.10.2004 passed by the Hon''ble High Court at Calcutta. The Company is to issue 1133 Equity Shares of '' 10/- each fully paid up to the erstwhile shareholders of amalgamating Companies as purchase consideration.

8. The Company has provided depreciation on Silver Idol with effect from 1st April, 2015 on straight line method based on useful life specified under Schedule II to the Companies Act, 2013 for the furniture & fixture, the silver idol being in the nature of part of furniture & fixture and depreciation for the period up to 31st March, 2015 amounting to '' 5,76,555/- has been charged to the Statement of Profit & Loss as prior period expenses.

Goodwill acquired on amalgamation has been amortized over a period of 5 (five) years with effect from 1st April, 2015 in accordance with provisions of Accounting Standard-14 and accordingly a sum of Rs, 4,39,367/- has been amortized for the year.

9. Purchases of raw materials and finished goods have been shown net of input credit taken against Excise Duty & VAT, as applicable. Similarly Sales have been shown net of output tax adjusted against VAT Credit.

10. In the opinion of the management there being no impairment of fixed assets, no provision is required to be made as per Accounting Standard - 28 under this head.

11. The Company has commenced commercial production of an aerated water "Bisleri Soda" with effect from 19th October, 2015 at its new plant at Sankrail Industrial Park, Dist. Howrah (West Bengal). M/s Bisleri International Pvt. Ltd. has launched some new soft drink products namely (I) SPYCI, (II) FONZO, (III) LIMONATA and (IV) PINACOLADA. The Company as franchisee of M/s Bisleri International Pvt. Ltd. has commenced commercial production of said soft drinks with effect from 24th February, 2016 at its new plant at Sankrail.

12. Some Tenants have deposited rent in Rent Control Account and the Company is withdrawing the amount there from time to time.

13. Land of the Company at Kankulia measuring 5 (five) Bighas and 1 (one) Cottah was acquired by the West Bengal Government under the provisions of West Bengal Land (Requisition and Acquisition) Act, 1948. Compensation so far received, net of cost, has already been taken as Income. In case the Company gets any further compensation the same shall be adjusted in the year of receipt.

14. Leasehold rights of the Company in a property situated at 50, Chowringhee Road, Kolkata has expired on 30th September, 2015 as per terms of lease and the Company has handed over the property to the landlord or their nominee(s). Residual value of the property and loss on account of assets left with the property amounting to Rs, 1,62,827/- and Rs, 17,17,265/- respectively has been charged to the statement of Profit & Loss for the year.

15. Rates and Taxes have been charged to the accounts as net after adjusting Rs,12,15,034/- (Previous year Rs, 17,05,182/-) recoverable from tenants on this account. Since the final assessment of certain taxes such as Excise, VAT, Profession Tax etc. was made during the year, a sum of Rs, 6,03,700/- (previous year Rs, 80,672/-), paid on account of demands relating to earlier years, has been charged to the current year.

16. The Company has been advised that the Service Tax has become applicable w. e. f. 1st July, 2012 on Electricity Charges billed by it on its tenants on the basis of sub meters. However many tenants are disputing the said levy in the absence of specific notification from the concerned authority on this issue. The Company is charging Service Tax at the applicable rate on bills raised by it against Electricity Charges on its tenants with effect from 1st July, 2012 but the Company is remitting to the credit of Government Account only amount of Service Tax actually collected by it from the tenants. The Company is pursuing other tenants to make payment of Service Tax. The Company is to collect from its tenants and remit to the credit of Government Account a sum of Rs, 63,67,833/- (Previous Year Rs, 51,54,074/-) up to 31st March, 2016 on this account.

17. Previous year''s figures have been rearranged / regrouped, wherever found necessary.

18. Income on account of Electricity Charges have been taken in the accounts as net after adjusting Rs, 3,22,74,751/-(Previous year Rs, 4,39,68,981/-) paid on this account.

19. Amount due to Small Scale Industrial undertakings Rs, Nil (Previous Year Rs, Nil)

20. Amount due and outstanding to be credited to the Investor Education and Protection Fund Rs, Nil (Previous Year Rs, Nil).

21. (a) Earnings in Foreign Currency Rs, Nil (Previous Year Rs, Nil).

(b) Expenses incurred in Foreign Currency:

Travelling and other Expenses Rs, 30,53,671/- (Previous Year Rs, 11,74,258/-)

Purchase of machinery Rs, Nil (Previous year Rs, 65,88,681/-)

22. Related Party disclosures:

i) Key Management Personnel:

Sri N. K. Poddar - Chairman Sri Akshat Poddar - Managing Director Sri B. D. Mundhra - Executive Director Sri A. K. Singhania - Chief Financial Officer Sri Jiyut Prasad - Company Secretary

Note: Remuneration paid / payable to the above officials includes salary, allowances, bonus, leave encashment etc., Company''s contribution to provident fund and value of non monetary perquisites as per Income Tax Rules, 1962.

Previous year''s figures have been given in the brackets.

---

Mar 31, 2015

1. The Company has received instructions from M/s BSE Ltd. vide letter dated 18th December, 2014 under Clause 31A of the Listing Agreement in terms of SEBI circular(s) no. CIR/CFD/ DIL/7/2012 dated 13th August, 2012 and CIR/CFD/DIL/9/2013 dated 5th June, 2013 to re- state its Financial Statements for the financial year 2012-13 in respect of certain Auditors' qualifications. As per the said instructions, the Company has submitted to the stock exchange(s) the Proforma Revised Financial Results for the financial year 2012-13 separately. The Company has given effect to the said instructions in the accounts for the financial year 2014-15 by providing disputed taxes and interest and penalty on disputed taxes for the financial 2012-13 and corresponding effect for the succeeding period. Accordingly a sum of Rs. 1,16,86,347/- has been shown as prior period expenses and Rs. 25,82,628/- as expenses for the current year.

2. Estimated amount of contracts remaining to be executed on capital account is Rs.11,46,95,881/- (Previous Year Rs. 11,22,76,870/-) against which Rs. 4,52,16,011/- (Previous YearRs. 49,72,360/-) has been paid as advance.

3. (a) One of the tenants of the Company namely M/s Income Tax Appellate Tribunal is not paying Service Tax on Rent since the same has came in to effect. The Company is liable to collect a sum of Rs. 54,26,127/- (Previous Year Rs. 46,84,664/- ) from said M/s Income Tax Appellate Tribunal towards Service Tax on Rent for the period 01.06.2007 to 31.03.2015 and remit the same to the Government account. The Company has duly provided the said Service Tax liability in its books of account. The Company has filed a writ petition before the Hon'ble High Court at Calcutta for recovery of Service Tax on Rent from M/s Income Tax Appellate Tribunal. The matter is subjudiced pending decision by the Hon'ble High Court at Calcutta.

(b) Annual Value of one property of the Company situated at 50, Chowringhee Road, Kolkata was revised by the Kolkata Municipal Corporation with retrospective effect from 1st July, 2006 on 15.06.2010. The Company has disputed the said valuation by filing a writ petition before the Hon'ble High Court at Calcutta praying for a fresh valuation. The Company is not paying municipal tax and liability on this account of Rs.1,42,04,945/- (Previous Year Rs.1,25,42,889/- ) up to 31.03.2015 has been duly provided in the books of account. The matter is subjudiced, pending decision by the Hon'ble High Court at Calcutta.

4. As per the Scheme of amalgamation M/s. Jaypee Estates Pvt. Ltd. and M/s. Avni Estates Pvt. Ltd. have been merged with the Company w.e.f. 01.04.2003 with all Assets and Liabilities including charges, liens, mortgages, interest, appeals etc. vide Order (s) dated 26.08.2002 and 14.10.2004 passed by the Hon'ble High Court at Calcutta. The Company is to issue 1133 Equity Shares of Rs. 10/- each fully paid up to the erstwhile shareholders of amalgamating Companies as purchase consideration.

5. Following the Companies Act, 2013 effective from 1st April, 2014, depreciation has been provided on straight line method based on useful lives of assets as specified under Schedule-II to the said Act. While implementing the Schedule-II to the Companies Act, 2013, the following has been considered:

(i) Carrying amount less residual value of assets whose remaining useful life has become nil at the beginning of the period amounting to Rs. 3,13,071/- (net of taxes) has been adjusted with the opening balance of retained earnings.

(ii) In case of certain very old assets, written down value as on 1st April, 2005 has been taken as cost for the purpose of calculation of depreciation.

(iii) In case of certain leasehold assets, depreciation has been charged over actual remaining period of lease after retaining residual value.

Due to change in the method of providing depreciation as above, depreciation is lower by Rs. 32,93,482/- for the year in comparison to the method followed in the earlier year.

6. Purchases of Packaged Drinking Water have been shown net of input credit taken against Excise Duty & VAT. Similarly Sales have been shown net of output tax adjusted against VAT.

7. In the opinion of the management there being no impairment of Fixed Assets, no provision is required to be made as per AS - 28 under this head.

8. The Company has put up a new plant at Dankuni, Dist. Hooghly (West Bengal) for the manufacture of packaged drinking water and commenced the production with effect from May' 2014. The Company has also started trading of an energy drink "Bisleri Urzza" with effect from September' 2014. Figures for the current year also include working of said units.

Packaged Drinking Water" segment has been re-named as "Beverage" segment to include all kinds of beverages including working of an energy drink "Bisleri Urzza". The Company is in the process of putting up a new plant at Sankrail Industrial Park, Dist. Howrah (West Bengal) for manufacture of an energy drink "Bisleri Urzza". Amount spent against putting up this plant till 31st March, 2015 has been shown as capital work-in- progress.

9. Some Tenants have deposited rent in Rent Control Account and the Company is withdrawing the amount there from time to time.

10. Land of the Company at Kankulia measuring 5 (five) Bighas and 1 (one) Cottah was acquired by the West Bengal Government under the provisions of West Bengal Land (Requisition and Acquisition) Act, 1948. Compensation so far received, net of cost, has already been taken as Income. In case the Company gets any further compensation the same shall be adjusted in the year of receipt.

11. Rates and Taxes have been charged to the accounts as net after adjusting 17,05,182/- Rs. (Previous year 17,05,182/-) recoverable from tenants on this account.

Since the final Rs. assessment of certain taxes such as VAT, CST, Profession Tax etc. was made during the year, a sum of 80,672/- (previous year 2,30,161/-), paid on account of demands relating to Rs.Rs. earlier years, has been charged to the current year.

12.(a) The Central Government approved the re-appointment of Sri N. K. Poddar as Chairman (being Whole Time Director) of the Company for a period of 5 (five) years w.e.f. 1st October, 2010 but payment of remuneration to him has been approved for a period of 2 (two) years only w.e.f. 1st October, 2010. The Company has made necessary representations to the Central Government to grant their approval for payment of remuneration to Sri N. K. Poddar for his residual term. The further approval is still awaited. The Company has paid/ provided a sum of Rs.14,57,600/- (Previous Year Rs. 14,07,600/-) including value of non monetary benefits of Rs.39,600/- to Sri N. K. Poddar as remuneration for the year ended 31st March, 2015.

(b) The Central Government approved appointment of Sri Akshat Poddar as Managing Director of the Company for a period of 5 (five) years w.e.f. 1st September, 2010 but payment of remuneration to him has been approved for the period 1st September, 2010 to 31st March, 2014. The Company has made necessary representations to the Central Government to grant their approval for payment of remuneration to Sri Akshat Poddar for his residual term. The further approval is still awaited. The Company has paid/ provided a sum of Rs.5,98,900/- (Previous Year Rs.5,81,400/-) including value of non monetary benefits of Rs.1,02,600/- to Sri Akshat Poddar as remuneration for the year ended 31st March, 2015.

(c) Sri B. D. Mundhra was appointed as an Executive Director ( being Whole Time Director) of the Company for a period of 5 (five) years w.e.f. 1st June, 2012.The shareholders have duly approved the appointment and remuneration of Sri B. D. Mundhra at the Annual General Meeting held on 27th September, 2012. Application for the approval of appointment and remuneration of Sri B. D. Mundhra has been rejected by the Central Government in the absence of certain clarification/ information asked by them from the Company. The letters asking the said clarification/ information were never received by the Company, so the Company has prayed the Central Government to grant an opportunity of being heard. The said application is still pending with the Central Government. The Company has paid/ provided a sum of Rs.5,70,548/- (Previous Year Rs.4,78,801/-) as remuneration to Sri B. D. Mundhra for the year ended 31st March, 2015.

13. The Company has been advised that the Service Tax has become applicable w. e. f. 1st July, 2012 on Electricity Charges billed by it on its tenants on the basis of sub meters. However many tenants are disputing the said levy in the absence of specific notification from the concerned authority on this issue. The Company is charging Service Tax at the applicable rate on bills raised by it against Electricity Charges on its tenants with effect from 1st July, 2012 but the Company is remitting to the credit of Government Account only amount of Service Tax actually collected by it from the tenants. The Company is pursuing other tenants to make payment of Service Tax. The Company is to collect from its tenants and remit to the credit of Government Account a sum of Rs. 51,54,074/- (Previous Year Rs. 37,65,620/-) up to 31st March, 2015 on this account.

14. Previous year's figures have been rearranged / regrouped, wherever found necessary.

15. Income on account of Electricity Charges have been taken in the accounts as net after Adjusting Rs. 4,39,68,981/- (Previous year Rs. 3,97,92,980/-) paid on this account.

16 Amount due to Small Scale Industrial undertakings Rs. Nil (Previous Year Rs.Nil)

17. Amount due and outstanding to be credited to the Investor Education and Protection Fund Rs.Nil (Previous Year Rs.Nil).

18.(a) Earnings in Foreign Currency- Rs.Nil (Previous Year- Rs.Nil).

(b) Expenses incurred in Foreign Currency:

Travelling and other Expenses- Rs.11,74,258/- (Previous Year- Rs.9,17,032-) Purchase of machinery Rs.65,88,681/- (Previous year Rs.Nil)

Notes:

(i) Remuneration paid / payable to the Directors includes salary, allowances, bonus, leave encashment etc. and company's contribution to provident fund. Value of non monetary perquisites has not been considered here.

(ii) Sri A. K. Singhania was promoted to Chief Financial Officer of the Company w.e.f. 2nd May, 2014. Earlier he was working as Company Secretary. Sri Jiyut Prasad was appointed as Company Secretary of the Company w.e.f. 2nd May, 2014.

Previous year's figures have been given in the brackets.

---

Mar 31, 2014

1.1 As per the Scheme of amalgamation M/s. Jaypee Estates Pvt. Ltd. and M/s. Avni Estates Pvt. Ltd. have been merged with the Company w.e.f. 01.04.2003 with all Assets and Liabilities including charges, liens, mortgages, interest, appeals etc. vide Order (s) dated 26.08.2002 and 14.10.2004 passed by the Hon''ble High Court at Calcutta. The Company is to issue 1133 Equity Shares of " 10/- each fully paid up to the erstwhile shareholders of amalgamating Companies as purchase consideration.

Pending completion of certain legal formalities with the appropriate authorities, some of the assets and liabilities taken in the books are still in the name of amalgamating companies.

1.2 Capital Reserve amounting to " 4,00,00,000/- (Rupees Four Crores only) carried forward since financial year 1998-99 has been transferred to General Reserve during the year as the required period of restriction of non competing the business has completed long back and specific purpose of creation of Capital Reserve has since fulfilled.

1.3 Purchases of Packaged Drinking Water have been shown net of input credit taken against Excise Duty & VAT. Similarly Sales have been shown net of output tax adjusted against VAT.

1.4 In the opinion of the management there is no requirement making any provision on account of impairment of Fixed Assets held by the Company, accordingly no provision has been made as required by AS - 28.

1.5 Since the demand of Central Excise and Interest/ Penalty on municipal taxes is contingent in nature and has been disputed by the Company before the Appropriate Authorities, the provision required as per AS - 29 has not been considered necessary.

1.6 Some Tenants have deposited rent in Rent Control Account and the Company is withdrawing the amount there from time to time.

1.7 Land of the Company at Kankulia measuring 5 (five) Bighas and 1 (one) Cottah was acquired by the West Bengal Government under the provisions of West Bengal Land (Requisition and Acquisition) Act, 1948. Compensation so far received, net of cost, has already been taken as Income. In case the Company gets any further compensation the same shall be adjusted in the year of receipt.

1.8 Rates and Taxes have been charged to the accounts as net after adjusting " 17,05,182/- (Previous year " 17,05,182/-) recoverable from tenants on this account. Since the final assessment of certain taxes such as Excise Duty, VAT, CST, Profession Tax etc. was made during the year, a sum of " 2,30,161/- (previous year " 2,96,648/-), paid on account of demands relating to earlier years, has been charged to the current year.

1.9 (a) Sri N. K. Poddar was re-appointed as Chairman (being Whole Time Director) of the Company for a period of 5 (five) years w.e.f. 1st October, 2010. The Central Government approved the appointment and remuneration of Sri N. K. Poddar with effect from 01.10.2010 till next AGM i.e. 26.09.2011 and asked the Company to submit the shareholders resolution to consider the approval for the remaining period. The Company has submitted to the Central Government the Shareholders resolution approving the appointement and remuneration of Sri N. K. Poddar on 21.11.2011. The further approval is still awaited. The Company has paid a sum of " 14,07,600/- (Previous Year " 14,07,600/-) including value of non monetary benefits of " 39,600/- to Sri N. K. Poddar as remuneration for the year ended 31st March, 2014.

(b) The Central Government had approved appointment of Sri Akshat Poddar as Managing Director of the Company for a period of 5 (five) years w.e.f. 1st September, 2010 but approved payment of remuneration for a period of 3 (three) years only w.e.f. said date. The Company has made an application to the Central Government on 28.11.2013 for approval of remuneration for his residual term i.e. from 1st September, 2013 to 31st August, 2015 on the terms approved by the shareholders. The further approval is still awaited. The Company has paid a sum of " 3,39,150/- including value of non monetary benefits of " 59,850/- to Sri Akshat Poddar as remuneration for the period from 1st September, 2013 to 31st March, 2014.

(c) Sri B. D. Mundhra was appointed as an Executive Director (being Whole Time Director) of the Company for a period of 5 (five) years w.e.f. 1st June, 2012.The shareholders have duly approved the appointment and remuneration of Sri B. D. Mundhra at the Annual General Meeting held on 27th September, 2012. Application for the approval of appointment and remuneration of Sri B. D. Mundhra has been rejected by the Central Government vide letter dated 28.01.2013 in the absence of certain clarification/ information asked by them from the Company. The letters asking the said clarification/ information were never received by the Company, so the Company has prayed the Central Government on 01.03.2013 to grant an opportunity of being heard. The said application is still pending with the Central Government. The Company has paid/ provided a sum of " 4,78,801/- (Previous Year " 3,41,334/-) as remuneration to Sri B. D. Mundhra for the year ended 31st March, 2014.

1.10 The Company has been advised that the Service Tax has become applicable w. e. f. 1st July, 2012 on Electricity Charges billed by it on its tenants on the basis of sub meters. However many tenants are disputing the said levy in the absence of specific notification from the concerned authority on this issue. The Company is charging Service Tax at the applicable rate on bills raised by it against Electricity Charges on its tenants with effect from 1st July, 2012 but the Company is remitting to the credit of Government Account only amount of Service Tax actually collected by it from the tenants. The Company is pursuing other tenants to make payment of Service Tax. The Company is to collect from its tenants and remit to the credit of Government Account a sum of " 37,65,620/- (Previous Year " 24,15,671/-) up to 31st March, 2014 on this account.

1.11 Previous year''s figures have been rearranged / regrouped, wherever found necessary.

1.12 Income on account of Electricity Charges have been taken in the accounts as net after Adjusting " 3,97,92,980/- (Previous year " 4,07,99,139/-) paid on this account.

1.13 Amount due to Small Scale Industrial undertakings " Nil (Previous Year " Nil)

1.14 Amount due and outstanding to be credited to the Investor Education and Protection Fund " Nil (Previous Year " Nil).

1.15 (a) Earnings in Foreign Currency- " Nil (Previous Year- " Nil). (b) Expenses incurred in Foreign Currency:

Travelling and other Expenses- " 9,17,032/- (Previous Year- " 25,05,842/-)

1.16 Consumption of Raw materials:

1.17 Related Party disclosures under AS - 18 :

i) Key Management Personnel :

Sri N. K. Poddar - Chairman

Sri Akshat Poddar - Managing Director

Sri B. D. Mundhra - Executive Director

ii) Associated Companies :

M/s. Vrishti Beveragess Pvt. Ltd.

Previous year''s figures have been given in the brackets.

---

Mar 31, 2013

1.1 Estimated amount of contracts remaining to be executed on capital account is Rs. 26,52,688/- (Previous Year Rs. 35,73,986/-) against which Rs. 4,63,149/- (Previous Year Rs. 4,75,000/-) has been paid as advance.

1.2 Contingent Liabilities not provided for:

(a) Additional Excise Duty amounting to Rs. 26,98,597/- demanded by the Excise Authorities has not been provided in the Books of Account although an amount of Rs. 20,46,303/- has been deposited with the Central Excise Authorities as per High Court Order. The matter is subjudiced pending decision by the Central Excise Tribunal, neither adjustment for the amount deposited nor provision for additional Excise Duty has been made.

(b) Interest and penalty of Rs. 58,53,873/- of Kolkata Municipal Corporation taxes of premises No. 50, Chowringhee Road, Kolkata, the valuation of which has been disputed by the Company and the matter is pending before Hon''ble High Court at Calcutta.

(c) Interest and penalty of Rs. 3,07,698/- of Kolkata Municipal Corporation taxes of premises No. 225C, A. J. C. Bose Road, Kolkata, which has been disputed by the Company as the Company has paid certain amount in waiver scheme and decision of the same is pending.

1.3 (a) Orre of the tenants of the Company namely M/s. Income Tax Appellate Tribunal is not paying Service Tax on Rent since the same has came in to effect. The Company is liable to collect a sum of f 39,43,202/- from said M/s Income Tax Appellate Tribunal towards Service Tax on Rent for the period 01.06.2007 to 31.03.2013 and remit the same to the Government account. The Company has duly provided the said Service Tax liability in its books of account. The Company has filed a writ petition before the Hon''ble High Court at Calcutta for recovery of Service Tax on Rent from M/s Income Tax Appellate Tribunal. The matter is subjudiced pending decision by the Hon''ble High Court at Calcutta.

(b) Annual Value of one property of the Company situated at 50, Chowringhee Road, Kolkata was revised by the Kolkata Municipal Corporation with retrospective effect from 1st July, 2006 on 15.06.2010. The Company has disputed the said valuation by filing a writ petition before the Hon''ble High Court at Calcutta praying for a fresh valuation. The Company is not paying municipal tax and liability on this account of f 1,06,00,390/- up to 31.03.2013 has been duly provided in the books of account. The matter is subjudiced, pending decision by the Hon''ble High Court at Calcutta.

1.4 As per the Scheme of amalgamation M/s. Jaypee Estates Pvt. Ltd. and M/s. Avni Estates Pvt. Ltd. have been merged with the Company w.e.f. 01.04.2003 with all Assets and Liabilities including charges, liens, mortgages, interest, appeals etc. vide Order (s) dated 26.08.2002 and 14.10.2004 passed by the Hon''ble High Court at Calcutta. The Company is to issue 1133 Equity Shares of Rs. 10/- each fully paid up to the erstwhile shareholders of amalgamating Companies as purchase consideration.

Pending completion of certain legal formalities with the appropriate authorities, some of the assets and liabilities taken in the books are still in the name of amalgamating companies.

1.5 Depreciation on Fixed Assets of Bhubaneswar unit has not been provided as the same were not in use during the current year.

1.6 Purchases of Packaged Drinking Water have been shown net of input credit taken against Excise Duty & VAT Similarly Sales have been shown net of output tax adjusted against VAT.

1.7 Fixed Assets of the unit closed represents discarded assets awaiting disposal of the same. Since there will be no need for replacement of these assets, the provision required as per AS-28 has not been considered necessary and in case of other Fixed Assets the management does not foresee any impairment of the same.

1.8 Since the demand of Central Excise and Interest / Penalty on municipal taxes is contingent in nature and has been disputed by the Company before the Appropriate Authorities, the provision required as per AS-29 has not been considered necessary.

1.9 Some Tenants have deposited rent in Rent Control Account and the Company is withdrawing the amount there from time to time.

1.10 Land of the Company at Kankulia measuring 5 (five) Bighas and 1 (one) Cottah was acquired by the West Bengal Government under the provisions of West Bengal Land (Requisition and Acquisition) Act, 1948. Compensation so far received, net of cost, has already been taken as Income. In case the Company gets any further compensation the same shall be adjusted in the year of receipt.

1.11 Rates and Taxes have been charged to the accounts as net after adjusting Rs. 17,05,182/- (Previous year Rs. 44,84,976/-) recoverable from tenants on this account. Since the final assessment of certain taxes such as Excise Duty, VAT, CST, Profession Tax etc. was made during the year, a sum of Rs. 2,96,648/-, paid on account of demands relating to earlier years, has been charged to the current year. Similarly previous year''s figures includes a sum of Rs. 2,67,187/- on account of municipal taxes relating to earlier years of a property of the Company, the valuation of which was made by the Municipal Corporation during the previous year with retrospective effect.

1.12 Sri N. K. Poddar was re-appointed as Chairman (being Whole Time Director) of the Company for a period of 5 (five) years w.e.f. 1st October, 2010. The Central Government approved the appointment and remuneration of Sri N. K. Poddar with effect from 01.10.2010 till next AGM i.e. 26.09.2011 and asked the Company to submit the shareholders resolution to consider the approval for the remaining period. The Company has submitted to the Central Government the shareholders resolution approving the appointment and remuneration of Sri N. K. Poddar on 21.11.2011. The further approval is still awaited. The Company has paid a sum of Rs. 14,07,600/- (including value of non monetary benefits Rs. 39,600/-) to Sri N. K. Poddar as remuneration for the year ended 31st March, 2013.

1.13 Sri B. D. Mundhra was appointed as an Executive Director ( being Whole Time Director) of the Company for a period of 5 (five) years w.e.f. 1st June, 2012. The shareholders have duly approved the appointment and remuneration of Sri B. D. Mundhra at the Annual General Meeting held on 27th September, 2012. Application for the approval of appointment and remuneration of Sri B. D. Mundhra has been rejected by the Central Government vide letter dated 28.01.2013 in the absence of certain clarification/ information asked by them from the Company. The letters asking the said clarification/ information were never received by the Company, so the Company has prayed the Central Government on 01.03.2013 to grant an opportunity of being heard. The said application is still pending with the Central Government. The Company has paid a sum of Rs. 3,41,334/- (including provision for bonus Rs. 33,334/-) to Sri B. D. Mundhra as remuneration for the year ended 31st March, 2013.

1.14 The Company has been advised that the Service Tax has become applicable w. e. f. 1st July, 2012 on Electricity Charges billed by it on its tenants on the basis of sub meters. However many tenants are disputing the said levy in the absence of specific notification from the concerned authority on this issue. The Company is charging Service Tax at the applicable rate on bills raised by it against Electricity Charges on its tenants with effect from 1st July, 2012 but the Company is remitting to the credit of Government Account only amount of Service Tax actually collected, by from the tenants. The Company is pursuing other tenants to make payment of Service Tax for The Company is to collect from its tenants and remit to the credit of Government Account a sum of Rs. 24,15,671/-up to 31st March, 2013 on this account.

1.15 Previous year''s figures have been rearranged / regrouped, wherever found necessary.

1.16 Income on account of Electricity Charges have been taken in the accounts as net after adjusting Rs. 4,07,99,139/- (Previous year Rs. 3,39,02,728/-) paid on this account.

1.17 Amount due to Small Scale Industrial undertakings Rs. Nil (Previous year Rs. Nil)

1.18 Amount due and outstanding to be credited to the Investor Education and Protection Fund Rs. Nil (Previous year Rs. Nil).

1.19 (a) Eafnings in Foreign Currency- Rs. Nil (Previous year- Rs. Nil).

(b) Expenses incurred in Foreign Currency :

Travelling and other Expenses- Rs. 25,05,842/-(Previous year- Rs. 41,54,029/-)

---

Mar 31, 2012

(a) Terms/ rights attached to equity shares:

The Company has only one class of issued shares i.e.Equity shares having a Face Value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. In the event of liquidation' the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts' in the proportion of their shareholdings.

1.1.1 Loan of Rs. NIL (Previous year Rs. 1'50'37'238/-) from United Bank of India is Secured by equitable mortgage of portion of Building at 50' Chowringhee Road' Kolkata' assignment of rent receivable and personal guarantee of two Directors of the Company up to Rs. 2'48'68'000/-.

1.1.2 Loans from entities other than banks includes :

(a) Rs. NIL (Previous year Rs. 21'96'644/-) from Reliance Commercial Finance Pvt. Ltd. is secured by hypothecation of certain machineries financed by them.

(b) Rs. NIL (Previous year Rs. 2'93'55'418/-) from Magma Fincorp Ltd. is secured by equitable mortgage of land and building of the factory at NH-6' Salap More' Howrah' deposit of title deeds of Premises no. 225C' A. J. C. Bose Road' Kolkata' assignment of rent receivable and personal guarantee of three Directors of the Company up to Rs. 3'00'00'000/-

(c) Rs. 5'64'10'145/- (Previous year Rs. 82'66'412/-) from L&T Finance Ltd. is Secured by mortgage of immovable properties of the Company situated at NH-6' Salap More' Howrah' portion of premises Nos. 50' Chowringhee Road' Kolkata and 225C' A. J. C. Bose Road' Kolkata' hypothecation of raw materials' work-in-progress' finished goods' movable properties such as plant and machinery' equipments etc.' book debts and personal guarantee of two Directors of the Company up to Rs. 6'00'00'000/-. Last installment is payable on 15th January 2016.

NOTES

(a) The Deferred Tax Assets arising from timing difference are recongnised to the extent there is reasonable certainty that these assets can be realised in future.

(b) The deferred tax for timing difference between the book and tax profit for the year is accounted for' using the tax rates and tax laws that have been enacted or subsequently enacted as at the Balance Sheet date.

1.2 Estimated amount of contracts remaining to be executed on capital account is Rs. 35'73'986/- (Previous Year Rs. 2'45'000/-) against which Rs. 4'75'000/- (Previous Year f 1'81'025/-) has been paid as advance.

1.3 Contingent Liabilities not provided for:

Additional Excise Duty amounting to Rs. 26'98'597/- demanded by the Excise Authorities has not been provided in the Books of Account although an amount of Rs. 20'46'303/- has been deposited with the Central Excise Authorities as per High Court Order. The matter is subjudiced pending decision by the Central Excise Tribunal' neither adjustment for the amount deposited nor provision for additional Excise Duty has been made.

1.4 (a) One of the tenants of the Company namely M/s. Income Tax Appellate Tribunal is not

paying Service Tax on Rent since the same has came in to effect. The Company is liable to collect a sum of Rs. 32'01'740/- from said M/s Income Tax Appellate Tribunal towards Service Tax on Rent for the period 01.06.2007 to 31.03.2012 and remit the same to the Government account. The Company has duly provided the said Service Tax liability in its books of account. The Company has filed a writ petition before the Hon'ble High Court at Calcutta for recovery of Service Tax on Rent from M/s Income Tax Appellate Tribunal. The matter is subjudiced pending decision by the Hon'ble High Court at Calcutta.

(b) Annual Value of one property of the Company situated at 50' Chowringhee Road' Kolkata was revised by the Kolkata Municipal Corporation with retrospective effect from 1st July' 2006 on 15.06.2010. The Company has disputed the said valuation by filing a writ petition before the Hon'ble High Court at Calcutta praying for a fresh valuation. The Company is not paying municipal tax and liability on this account of Rs. 89'38'334/- up to 31.03.2012 has been duly provided in the books of account. The matter is subjudiced' pending decision by the Hon'ble High Court at Calcutta.

1.5 As per the Scheme of amalgamation M/s. Jaypee Estates Pvt. Ltd. and M/s. Avni Estates Pvt. Ltd. have been merged with the Company w.e.f. 01.04.2003 with all Assets and Liabilities including charges' liens' mortgages' interest' appeals etc. vide Order (s) dated 26.08.2002 and 14.10.2004 passed by the Hon'ble High Court at Calcutta. The Company is to issue 1133 Equity Shares of Rs. 10/- each fully paid up to the erstwhile shareholders of amalgamating Companies as purchase consideration.

Pending completion of certain legal formalities with the appropriate authorities' some of the assets and liabilities taken in the books are still in the name of amalgamating companies.

1.6 Depreciation on Fixed Assets of Bhubaneswar and Raipur units has not been provided as the same were not in use during the current year.

1.7 Purchases of Packaged Drinking Water have been shown net of input credit taken against Excise Duty & VAT. Similarly Sales have been shown net of output credit adjusted against VAT.

1.8 Fixed Assets of the units closed represents discarded assets awaiting disposal of the same. Since there will be no need for replacement of these assets' the provision required as per AS-28 has not been considered necessary and in case of othe; Fixed Assets the management does not foresee any impairment of the same.

1.9 Since the demand of Central Excise is contingent in nature and has been disputed by the Company before the Appropriate Authority' the provision required as per AS-29 has not been considered necessary.

1.10 Some Tenants have deposited rent in Rent Control Account and the Company is withdrawing the amount there from time to time.

1.11 Land of the Company at Kankulia measuring 5 (five) Bighas and 1 (one) Cottah was acquired by the West Bengal Government under the provisions of West Bengal Land (Requisition and Acquisition) Act' 1948. Compensation so far received' net of cost' has already been taken as

Income. In case the Company gets any further compensation the same shall be adjusted in the year of receipt.

1.12 Annual Value of one property of the Company situated at 225C' A. J. C. Bose Road' Kolkata was revised by the Kolkata Municipal Corporation with retrospective effect from 1st October' 2006 on 26.08.2011 and accordingly a sum of Rs. 2'67'187/- has been debited to the books net of Rs. 26'63'267/- recoverable from tenants towards tax liability for earlier years.

Further a sum of Rs. 20'37'197/- has been debited to the books as Rates and Taxes for the year as net after adjusting Rs.18'21'709/- recoverable from tentants on this account.

1.13 Previous year's figures have been rearranged / regrouped' wherever found necessary.

1.14 Income on account of Electricity Charges have been taken in the accounts as net after adjusting Rs. 3'39'02'728/- (Previous year Rs. 3'16'22'769/-) paid on this account.

1.15 Amount due to Small Scale Industrial undertakings Rs. Nil (Previous year Rs. Nil)

1.16 Amount due and outstanding to be credited to the Investor Education and Protection Fund Rs. Nil (Previous year Rs. Nil).

1.17 (a) Earnings in Foreign Currency- Rs. Nil (Previous year- Rs. Nil).

(b) Expenses incurred in Foreign Currency :

Travelling and other Expenses- Rs. 12'82'705/-(Previous year- Rs. 8'30'623/-) Sponsorship Expenses - Rs. 28'71'324/- (Previous year- Rs. Nil)

---

Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account is Rs. 126.07 (Previous Year Rs. 80.01 lacs) against which Rs. 47.64 lacs (Previous Year Rs. 78.21 lacs) has been paid as advance.

2. Contigent Liabilities not provided for :

Additional Excise Duty amounting to Rs.25.99 lacs demanded by the Exise Authorities has not been provided in the Books of Accounts an amount of Rs. 20.46 lacs has been deposited with the Central Excise Authorities as per High Court Order. The matter is subjudiced pending declsion by the Central Excise Tribunal, neither adjustment for the amount deposited nor provision for additional Exise Duty has been made.

3. As per the Schemed of amalgamation M/s.Jaypee Estates Pvt. Ltd and M/s. Avni Estates Pvt, Ltd. have been merged with the Company w.e.f. 01.04.2003 with all Assests and Liabilities including charges liens, mortgages, interest, appeals etc. vide Oder (s) dated 26.08.2002 passed by the Honble High Court at Calcutta. The Company is to issue 1133 Equity Shares of Rs. 10/- each fully paid up to the erstwhile shareholders of Amalgamating Companies as Purchase consideration.

Pending completion of certain legal formalities with the appropriate authotities, some of the Asseis and Liablities taken in the Books are still in the name of Amalgamating Companies.

4. Depreciaton of Fixed Assets Bhubaneswar and Raipur units has not been provided as the same were not in use during the current year.

5. Purchases and Sales of Packaged During Water have shown net of Excise Duty. VAT, Return etc.

6.Fixed Assets of the units closed represents discarded Assets awaiting disposal of the same. Since there will be no need for replace ment of these assets, the provision required as per AS-28 has not been considered necessary and in case of other Fixed Assets the management does not foresee any impairment of the same.

7. Since the demand of Central Excise is contigent in nature and has been disputed by the Company before the Appropriate Aulthority, the provision required as per AS-29 has not been considered necessary.

8. Some Tenants have deposited rent Countrol Account and the Company is withdrawing the amount there from time to time.

9. Land of the Company at Kankulia measuring 5 (five) Bighas and 1 (one) Cotton was acquired by the West Bengal Governmant under the provisions of West Bengal Land (Requisition and Acqusition) Act, 1948 Compansations so far recieved, net of cost, has already been taken as income. In case the Company gets any futher compensation the same shall be adjusted in the year of receipt.

10. Due to closure of Bhubaneswar unit in the previous year, for the current year may not comparable with those of previous year. which have rearranged/regroped, wherever found necessary.

11. Income on account of Electricity Change have been taken in the accounts as net after adjusting Rs.251.86 lacs (Previous year Rs.243.89 lacs) paid on account.

12. Amount due to Small Scale Industrial undertaking are a under:

(i) M/s S.S. Industrial - Rs.3.29 lacs (Previous year Rs.3.29 lacs

(ii) M/s Arihant Gujrat Plastic - Rs..Nil (Previous year Rs.1.17 Industries lacs)

13. Related Party disclosures under AS-18 issued by the Institute of Chartered Accountants of India:-

i) Key Management Personnel:

Sri N.K. Poddar - Chairman

Smt. Ruchira Poddar - Executive Director

Sri G.L. Agarwalla - Director

Sri A.K. Poddar - Director

ii) Associated Companies:

M/s Jenny Christensen (Service Apartments) Pvt. Ltd.

M/s Avni Enterprises Ltd.

M/s United Credit Ltd.

The Buxa Dooars Tea Company (India) Ltd.

V. Expenses Incurred in Foreign Cureency:

Travelling and other expenses Rs. 12,78,272/- (Previous Year Rs. 13,30,8 51/-

II. Capital raised during the year (Amount in Rs. Thousands)

Public Issue Nil

Bonus Issue Nil

Right Issue Nil

Private Placement Nil

V. Generic Names of Three Principal Products/Services of Company (as per monetary terms)

Item Code No.

(ITC Code) 2201 Product Description : Water including natural or artificial minoral water and aerated water, not containing added sugar or other sweetening matter not flavoured, ice and snow.

Item Code No. N.A. Product Description : Real Estate Activities.

N.K. Poddar - Chairman

Ruchira Poddar - Executive Director

G.L. Agarwalla - Director

A. K. Poddar - Director

Akshat Poddar - Director

A.K. Singhania - Company Secretary