Notes to Accounts of Associated Alcohols & Breweries Ltd.

Mar 31, 2025

(c) Terms and rights attached to equity shares

The Company has only one class of equity shares having par value of INR 10 (31-Mar-2024: INR 10) per share. Each equity share carries one vote and is entitled to the dividend that may be declared by the Board of Directors, which may be subject to the shareholders'' approval in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) Shares held by holding/ ultimate holding company and/ or their subsidiaries/ associates

The company do not have the holding or the ultimate holding company, hence there are no such shareholders.

(g) The company has neither issued any bonus shares nor bought back any shares during the period of five years immediately preceding the reporting date.

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

The Board of Directors of the Company has recommended a dividend at the rate of INR 2 per equity share per fully paid up equity share of INR 10 each (i.e., 20% of the face value of the equity share) aggregating to INR 361.58 lakhs for the financial year ended 31 March 2025. The payment of dividend is subject to approval of the shareholders at the ensuing Annual General Meeting of the company, hence the same has not been recognised as lialbity as at 31 March 2025.

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

* The Company has allotted 9,00,000 share warrants, each convertible into one equity share, on a preferential basis at an issue price of INR 485.00 each, upon receipt of 25% of the issue price (i.e. INR 121.25 per warrant) as warrant subscription money. Balance 75% of the issue price (i.e. INR 363.75 per warrant) shall be payable within 18 months from the allotment date, at the time of exercising the option to apply for fully paid-up equity share of INR 10 each of the Company, against each warrant held by the warrant holder. The funds raised from these warrants are designated for providing loans or making investments in the wholly-owned subsidiary, "Associated Alcohols and Breweries (Awadh) Limited,” to establish a bottling cum distillery unit in Uttar Pradesh. As on 31 March 2025, the funds have been kept in liquid fund earmarked for the aforementioned purpose with a scheduled commercial bank.

** The Company has allotted 11,00,000 share warrants, each convertible into one equity share, on a preferential basis at an issue price of INR 679.00 each, upon receipt of 25% of the issue price (i.e. INR 169.75 per warrant) as warrant subscription money. Balance 75% of the issue price (i.e. INR 509.25 per warrant) shall be payable within 18 months from the allotment date, at the time of exercising the option to apply for fully paid-up equity share of INR 10 each of the Company, against each share warrant. As of 31 March 2025, the received fund INR 1,867.25 lakhs (i.e. INR 169.75 per warrant ) have been utilized for their intended purpose, i.e., the establishment of the Malt Plant.

22.1 These loans are secured by pari passu first charge on entire fixed assets of the company through hypothecation of movable and mortagage of immovable fixed assets (both present and future) and also personal guarantee of certain KMP''s of the Company.

22.2 These loans are car loans, hence secured by hypothecation of respective car.

22.3 These loans are cash credit facility, repayable on demand, secured by first charge by way of hypothecation of inventory and book debts and second charge by way of hypothecation of movable and mortgage of immovable fixed assets (both present and future). These loans are further secured by the personal guarantee of the Managing Director along with one of his relative.

22.4 The quarterly returns or statements of current assets and current liabilites filed by the Company with bank or financial institutions are in agreement with the books of accounts except are as under:

The aforementioned discrepancy in figures arise from the use of preliminary data provided to banks before the finalization of quarterly financial records, as the submission deadline is quite stringent. These differences do not have any material impact on the financial positions of the company.

The quarterly returns or statements of current assets and current liabilities for the March 25 quarter have not been filed as of the date of the financial statement, as the same was not due.

22.5 There has been no default in repayment of loan during the year based on the repayment schedule.

Lease liability represents present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

C] Details of contribution to political party via electoral bond:

During the year, the Company has not paid any contribution to a political party (31-Mar-2024: 200.00 Lakhs, was contributed to the Bhartiya Janata Party via electoral bond, which is included in Miscellaneous expenses).

Note 39: Earnings per share (‘EPS’)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Note 40: Employee benefits

(a) Defined contribution plans

The Company makes contributions to the provident fund and employee estate insurance fund as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees State Insurance Act, 1948, respectively (Collectively "funds”), to define the contribution plan for eligible employees. Under the funds, the Company is required to contribute a specified percentage of the payroll costs. The Company has no obligation other than the contribution payable to these funds. The Company recognises the contribution payable to these funds as an expense when an employee renders the related service.

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously. The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

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

V Details of asset-liability matching strategy

Life Insurance Company and Kotak Life Insurance Limited manage the Company''s investments; at the year-end, interest is credited to the fund value. The company has not changed the process used to manage its risk from previous years. The Company''s investments are fully secured and would be sufficient to cover its obligations.

The average duration of the defined benefit plan obligation at the end of the reporting period is 7.63 years (31-Mar-2024: 7.80 years)

Note 41: Leases

i) Company as a lessee

The Company has lease contracts for land and building with lease terms ranging between 2 to 99 years, and certain lease contracts include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company''s business needs, management judges whether these extension and termination options are reasonably certain to be exercised.

The Company also has certain leases with lease terms of 12 months or less and those of low value. The Company applies the ''short-term lease'' and ''lease of low-value assets'' recognition exemptions as available in Ind AS 116 ''Leases'' for these leases.

Note 42: Commitments and contingencies
I. Capital commitments	As at 31-Mar-2025	As at 31-Mar-2024
	INR lakhs	INR lakhs
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances amounting to INR 1,174.54 lakhs (31-Mar-2024: INR 1,437.84lakhs ).	3,071.84	2,588.11
II. Contingent liabilities (to the extent not provided for)	As at 31-Mar-2025	As at 31-Mar-2024
	INR lakhs	INR lakhs
Claims against the Company not acknowledged as debts
Central Sales Tax	292.03	64.83
MP Value Added Tax	1,737.78	1,585.07
MP Entry Tax	113.37	113.37
MP Excise	66.63	-
Income Tax (Refer note 2 below)	1,739.42	186.19
	3,949.23	1,949.46

Note:

1. The future cash flows for the aforesaid contingent liabilites are determinable on receipt of judgements pending at various forums/authorities which in the opinion of the Company is not tenable and there is no possibility of any future cash outflow in case of above.

2. The Company has received an order dated 25 March 2025, from the Deputy Commissioner of Income Tax under Section 153C read with Section 144 of the Income Tax Act, 1961, raising a demand of INR 1,553.23 lakh for FY 2017-18 (AY 2018-19) based on a substantive addition of INR 858.00 lakh, and a demand of INR 1,370.37 lakh for FY 2018-19 (AY 2019-20) based on a protective addition of INR 887.50 lakh, both under Section 69A read with Section 115BBE. The Company has challenged the proceedings before the Hon''ble Madhya Pradesh High Court, which has directed the authorities not to implement the AY 2018-19 order without the Court''s permission, while the matter for AY 2019-20 remains pending. As per the principles of Ind AS 37, the substantive addition involves a possible but not probable outflow of resources and is therefore disclosed as a contingent liability. The protective addition does not result in any enforceable demand unless the substantive addition fails, and no present obligation exists against the Company; hence, it is not considered a contingent liability.

3. The office of the Director General (DG) of the Competition Commission of India (CCI) conducted a search on 27 October 2021 at the Company''s registered office to examine the process of supply and sale of the Company''s Indian Made Indian Liquor ("IMIL”) products. On receipt of order from the CCI based on the investigation report of the DG alleging cartelisation in the supply of IMIL products, the company had earlier challenged the jurisdiction of the CCI on the aforesaid order before the Hon''ble Delhi High Court and based on the direction of the court, took the matter subsequently with CCI. During the earlier year, the company received an order dated 20 March 2024 in which CCI has referred back the investigation report to DG for further investigation. The CCI has also instructed the DG to facilitate the Company with a copy of the statement recorded and cross-

examine the persons who had alleged the cartelisation as mentioned in the investigation report. Thereafter, the company has filed a writ before the Hon''ble Madhya Pradesh High Court on the grounds of CCI''s jurisdiction and challenging the incidental action in the matter. The matter is seized with the Hon''ble High Court, and the court has directed CCI not to take any coercive action until the matter is pending before the Hon''ble High Court.

Since the company has not received a penalty order specifying the amount of penalty, the amount can not be ascertained. Further, based on the risk assessment process, the company is confident in the merits of its case.

Enterprise / Company in which Close member of KMP have control

Prasann Kumar Kedia HUF

Bhagwati Prasad Kedia HUF

Ram Dulari Anand Kumar Kedia HUF

Smilington Holdings Private Limited (with effect from 01-May-2023)

Springbok Properties Private Limited (with effect from 01-May-2023)

(c) Enterprise where control over the composition of governing body exists

Babu Bhagwati Prasad Kedia Foundation (Section. 8 Company)

*During the year, the Company has set up a wholly-owned subsidiary, "Associated Alcohols and Breweries (Awadh) Limited” ("AABL Awadh”), to establish a bottling cum distillery unit in the state Uttar Pradesh. The initial investment in the AABL Awadh has been made after 31-Mar-2024. Hence, the requirement for the consolidation of accounts is not applicable for the year ended 31-Mar-2024.

Note 44: Segment reporting

(a) Segment Information:

For management purposes, the Company is organised into business units based on its products and services and has two reportable segments, as follows:

- The Potable Alcohols segment is involved in the production and sale of Indian Made Foreign Liquor (IMFL), Indian Made Indian Liquor (IMIL), and Extra Neutral Alcohol (ENA). Further, this segment also provides manufacturing services related to these products. This segment caters to various consumer preferences and ensuring a comprehensive presence in the alcoholic beverage market.

- The Ethanol segment is involved in the production and distribution of grain-based ethanol, primarily supplying it to Oil Marketing Companies in India for blending with petrol.

No operating segments have been aggregated to form the above reportable operating segments.

The Executive Management Committee is the Chief Operating Decision Maker (CODM) and monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently

The fair value measurement hierarchy of all financial assets and liabilities is provided in Note 46.

The management assessed that fair value of investment, trade receivables, other current financial assets, current loans, cash and bank balances, trade payables, current borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. Security deposits, loans and other financial assets are evaluated by the Company based on parameters such as interest rates, individual credit worthiness of the counterparties and expected duration of realisability as at the balance sheet date.

2. The fair value of long-term bank borrowings is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. Management regularly assesses a range of ''possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.

The Company determines the fair value of its financial instruments on the basis of the following hierarchy:

Level 1: The fair value of financial instruments that are quoted in active markets are determined on the basis of quoted price for identical assets or liabilities.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques based on observable market data.

Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations using inputs that are not based on observable market data (unobservable inputs).

There are no transfers between different fair value hierarchy levels in 31-Mar-2025 and 31-March-2024.

Credit Risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk arising on its trade receivables. Based on the historical experience and credit profile of counterparties (schedule banks, government and employees), the Company does not expect any significant risk of defaults arising on financial assets except trade receivables i.e. loans, cash and cash equivalents and other financial assets.

The fair value of investment in Mount Everest Breweries Limited (''MEBL'') has been considered based on the valuation report by the registered valuer considering the projections provided by the management of the MEBL.

Note 47: Financial risk management objectives and policies

The Company''s principal financial liabilities comprise borrowings, lease liabilities, 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 investment, loans, cash and cash equivalents, trade receivables, and other receivables derived directly from its operations.

The Company is exposed to market risks, credit risks and liquidity risks. The Company''s senior management oversees the management of these risks. The Company''s senior management provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors review and agree policies for managing each of these risks.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks namely interest rate risk, currency risk and price risk, such as equity price risk. The Company is not significantly exposed to currency risk and price risk whereas the exposure to interest risk is given below.

Interest Rate Risk

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

Interest rate sensitivity

The sensitivity analysis below have been determined based on exposure to interest rates for term loans that have floating rate at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period.

If the interest rates had been 100 basis points higher or lower and all the other variables were held constant, the effect on Interest expense for the respective financial years and consequent effect on Company''s profit in that financial year would have been as below:

a. Trade receivables

Customer credit is managed by the Company''s through established policies and procedures related to customer credit risk management. Each outstanding customer receivables are regularly monitored and if outstanding is above due date, the further shipments are controlled and can only be released if there is a proper justification.

The Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. Based on the industry practices and the business environment in which the Company operate, management considers the trade receivables are in default (credit impaired) if the payments are more than 365 days past due.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets and are monitored at periodical intervals. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Liquidity Risk

(i) Liquidity risk management

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s principal sources of liquidity are investment, cash and bank balances, fixed deposits, and the cash flow generated from operations. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, liquidity risk is considered as low. The Company closely monitors its liquidity position and maintains adequate funding sources.

(ii) Maturities of financial liabilities

The following tables detail the Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

1. The improvement in profitability and operating margins during the year has contributed to a favourable movement in the return on equity ratio

2. The increase in the net capital turnover ratio is attributable to higher revenue and more efficient management of working capital during the year.

3. The improvement in return on capital employed is driven by enhanced profitability during the year.

4. The return on investment declined due to lower and partial-year deployment of funds, resulting in reduced income during the year.

Note 49: Capital management

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

The Company has submitted the necessary applications and is in compliance with the eligibility conditions prescribed under the scheme. Accordingly, the Company expects to receive the incentive against its total eligible investment of INR 17,882.23 lakhs in plant and machinery of the ethanol manufacturing facility. The incentive is being accounted for in accordance with the applicable provisions of Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance and Ind AS 109 - Financial Instruments.

During the year, INR 606.92 lakhs (31-Mar-2024: INR Nil) has been accounted as income (Refer Note 30). Further out of the total grant accounted during the year, INR 606.92 lakhs (31-Mar-24: INR Nil) is pending to be received from the government (Refer Note 18).

Note 51: Merger with Mount Everest Brewaries Limited

The Board of Directors of the Company, in their meeting held on 9-Aug-2022, had approved the Scheme of Arrangement ("SOA”) pursuant to sections 230 to 232 and other relevant provisions of the Companies Act, 2013, for the amalgamation of the company with M/s Mount Everest Breweries Limited (MEBL), the appointed date for the proposed scheme is 1-Apr-2022.

During the previous year, the Board of Directors in there meeting held on 10-Aug-2023, post extensive discussions, deliberations, and considering the present business scenario, has decided to withdraw the Scheme of Arrangement ("SOA”) for the amalgamation of the company with Mount Everest Breweries Limited (MEBL).

Note 52: Government Grant

1. The Government of India vide its notification No. - F. No.1(10)/2018-SP-I dated 22-Apr-2022, notified the modified scheme for extending financial assistance to the project proponents to set up distilleries for producing 1^st Generation (1G) ethanol from feedstock such as cereals (rice, wheat, barley, corn and sorghum), sugarcane, sugar beet etc. Under the said scheme, the Government of India has approved the interest subvention @6% per annum or 50% of the rate of interest charged by the bank, whichever is lower. The company is eligible for the above grant on its term loan of INR 8,000.00 lakhs sourced by the company from HDFC Bank Limited for the new ethanol plant.

Pursuant to the requirements of Ind AS 20 - "Accounting for Government Grants and Disclosure of Government Assistance” and Ind AS 109 - "Financial Instruments”, INR Nil (31-Mar-2024 : INR 342.85 lakhs ) has been credited to the property plant and equipment related to ethanol plant (Refer Note 5), INR 231.32 lakhs (31-Mar-2024 : INR 64.00 lakhs) has been adjusted with interest cost (Refer Note 35). Further out of the total grant accounted, INR 459.87 lakhs (31-Mar-24: INR 360.54 lakhs) is pending to be received from the government (Refer Note 18).

2. The Government of Madhya Pradesh, vide Notification No. 16-36/2021/A-11 dated September 17, 2022, notified a scheme for special financial assistance for ethanol and bio-fuel production from all food grains (excluding sugarcane/molasses and Mahua), under the National Policy on Biofuels, 2018, as approved by the National Biofuel Coordination Committee.

Under the said scheme, the State Government shall provide production-linked fiscal assistance of INR 1.50 per litre of ethanol supplied, subject to a maximum cap of 100% of the eligible investment in plant and machinery. The benefit is available for a period of seven years from the date of commencement of commercial production.

Note 54: Other disclosures

The Company has used accounting software for maintaining its books of account, which includes the feature of recording audit trails (edit logs) facility, and the same has operated throughout the year for all relevant transactions. The audit trail functionality at the application server level was active during the year; however, the audit trail at the database level for direct access was not enabled during the financial year, and the Company is in the process of enabling the same. Further, there are no instance of audit trail feature being tampered with and the audit trail has been preserved as per the statutory requirements for record retention, wherever the feature was enabled.

Note 55: Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during the current financial year and previous financial year

(iii) 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

(iv) The Company have not received any fund 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

(v) The Company do not have any such transactions which has not been recorded in the books of accounts but has 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

(vi) The company has not been declared as wilful defaulter by any bank of financial institution or other lender

(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

Note 56: Approval of Standalone Financial Statement

The Board of Directors have approved the standalone financial statements for the year ended 31-Mar-25 and authorised them for issue on 26-Apr-25 and these will be placed for the approval of shareholders at the ensuing annual general meeting.

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Mar 31, 2024

Note 3.10: Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive)as a result of a past event, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. The expense relating to a provision is presented in the statement of profit and loss.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Note 3.11: Employee benefits

I. Short term employee benefits

Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period.

II. Post-employment obligations

The company operates the following post-employment schemes:

a. Defined contribution plan

Retirement benefits in the form of provident fund is a defined contribution scheme. The Company recognises contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. The Company has no obligation, other than the contribution payable to the provident fund.

b. Defined benefit plan

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised in OCI. Remeasurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognised in the statement of profit and loss on the earlier of:

¦ The date of the plan amendment or curtailment, and

¦ The date that the Group recognises related restructuring costs”

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

¦ Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non routine settlements; and

¦ Net interest expense or income.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

The liability for the defined benefit gratuity plan is determined based on actuarial valuations carried out by an independent actuary as at year end. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the government bonds yield rates for the life of the obligation. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

III. Other long term employee benefit

The Company has leave encashment policy for all the employees. Liabilities for such benefits are provided on the basis of valuation, as at the balance sheet date, carried out by an independent actuary. The actuarial valuation method used by an independent actuary for measuring the liability is the projected unit credit method. Actuarial gain and loss are recognised in the statement of profit and loss during the year in which they occur.

The Company presents the leave as the current liability in the standalone balance sheet to the extent it does not have the unconditional / legal and contractual right to defer its settlement for twelve months after the reporting date. Where the Company has the unconditional / legal and contractual right to defer its settlement beyond twelve months after the reporting date, it is presented as the non current liability in standalone balance sheet.

Note 3.12: Taxation

Income tax expense comprises of current tax and deferred tax. Income tax expense is recognised in the statement of profit and loss, except when it relates to items recognised in the other comprehensive income or items recognised

directly in the equity. In such cases, the income tax expense is also recognised in the other comprehensive income or directly in the equity as applicable.

Current taxes

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation or under dispute with authorities and establishes provisions where appropriate.

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liabilities on a net basis or simultaneously.

Deferred taxes

Deferred tax is recognised in respect of temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax is recognised for all taxable temporary differences, except for:

¦ Temporary difference arising on the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting nor taxable profit or loss

¦ Taxable temporary differences associated with investments in subsidiaries when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

"Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to offset current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Note 3.13: Foreign currencies

"Foreign currency (other than the functional currency) transactions are translated into the functional currency using the spot rates of exchanges at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchanges at the reporting date.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities are generally recognized in profit or loss in the year in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those qualifying assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings, the balance is presented in the Statement of Profit and Loss within finance costs.

Non-monetary items are not retranslated at period end and are measured at historical cost (translated using the exchange rate at the transaction date).

Note 3.14: Fair value measurement

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

¦ In the principal market for the asset or liability; or

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

The principal or the most advantageous market must be accessible by the Company.

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

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

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

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

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

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

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. Other fair value related disclosures are given in the relevant notes.”

Note 3.15: Financial instruments

I) Recognition and initial measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Trade receivables are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instruments.

A financial assets (unless it is a trade receivable without a significant financing component) or financial liabilities is initially measured at fair value plus or minus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

II) Classification and subsequent measurement Financial assets

On initial recognition, a financial asset is classified as measured at: amortised cost, Fair value through other comprehensive income (''FVOCI'') or Fair value through profit and loss (''FVTPL'').

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

¦ it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

¦ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in the statement of profit or loss. Any gain or loss on derecognition is recognised in the statement of profit or loss.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

¦ it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

¦ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in the statement of profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to the statement of profit or loss.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment''s fair value in OCI. This election is made on an investment-by-investment basis.

These assets are subsequently measured at fair value. Dividends are recognised as income in the statement of profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to the statement of profit or loss.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in the statement of profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in the statement of profit or loss. Any gain or loss on derecognition is also recognised in the statement of profit or loss.

III) De-recognition Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

Financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

IV) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention either to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

V) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance

b) Financial assets that are measured at FVTOCI

c) Lease receivables under Ind AS 116

d) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

¦ Trade receivables

¦ All lease receivables resulting from transactions within the scope of Ind AS 116

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:

¦ All contractual terms of the financial instrument (including prepayment, extension, call and similar options) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument

¦ Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as (income) / expense in the statement of profit and loss (P&L). Financial assets measured as at amortised cost, contractual revenue receivables and lease receivables: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely basis.

The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial assets which are credit impaired on purchase/ origination.

Note 3.16: Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short term deposits with an original maturity of three months or less, which are subject to an insignificant risk of change in value.

For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand, term deposits and other short-term highly liquid investment. Bank overdrafts are shown within short term borrowings in the balance sheet.

Note 3.17: Borrowing cost

Borrowing Costs consists of interest and other costs that an entity incurs in connection with the borrowings of funds. Borrowing costs also includes foreign exchange difference to the extent regarded as an adjustment to the borrowing costs.

Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalized as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use or sale.

Transaction costs in respect of long term borrowing are amortized over the tenure of respective loans using Effective Interest Rate (EIR) method. All other borrowing costs are recognized in the statement of profit and loss in the period in which they are incurred.

Note 3.18: Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

Note 3.19: Contingent liability and contingent assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

A contingent asset is not recognised unless it becomes virtually certain that an inflow of economic benefits will arise. When an inflow of economic benefits is probable, contingent assets are disclosed in the financial statements.

Contingent liabilities and contingent assets are reviewed at each balance sheet date.

Note 3.20: Interest Income

For all debt instruments measured at amortised cost, interest income is recorded using the Effective Interest Rate (''EIR''). EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the EIR, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

Note 4.1: Changes in accounting policies and disclosures

New and amended standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The Company applied for the first-time these amendments.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company''s financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The amendments had no impact on the Company''s financial statements.

Note 4.2: Recent Accounting Pronouncements

No new amendments to Ind AS has been notified by the Ministry of Corporate Affairs ("MCA”) during the current financial year.

Note 41: Leases i) Company as a lessee

The Company has lease contracts for building and land with lease terms ranging between 5 to 99 years, and certain lease contracts include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company''s business needs, management judges whether these extension and termination options are reasonably certain to be exercised.

The Company also has certain leases with lease terms of 12 months or less and those of low value. The Company applies the ''short-term lease'' and ''lease of low-value assets'' recognition exemptions as available in Ind AS 116 ''Leases'' for these leases.

III. As reported in the previous year, the office of the Director General (DG) of the Competition Commission of India (CCI) conducted a search on 27 October 2021 at the Company''s registered office to examine the process of supply and sale of the Company''s Indian Made Indian Liquor ("IMIL”) products. On receipt of order from the CCI based on the investigation report of the DG alleging cartelisation in the supply of IMIL products, the company had earlier challenged the jurisdiction of the CCI on the aforesaid order before the Hon''ble Delhi High Court and based on the direction of the court, took the matter subsequently with CCI . During the year, the company has received order dated 20 March 2024 in which CCI has referred back the investigation report to DG for further investigation. The CCI has also instructed the DG to facilitate Company with a copy of the statement recorded and cross-examining the persons who had alleged the cartelisation as mentioned in the investigation report. Thereafter, the company has filed a writ before Hon''ble Madhya Pradesh High Court on the grounds of CCI''s jurisdiction and challenging incidental action in the matter . The matter is seized with Hon''ble High Court and the court has directed CCI not to take any coercive action until the matter is pending before the Hon''ble High Court.

Note 43: Related party transactions

Names of related parties and related party relationship

(a) Related parties where control exists:

Wholly-Owned Subsidiary

Associated Alcohols and Breweries (Awadh) Limited*

(b) Other related parties with whom transactions have taken place during the current year or previous years:

Key management personnel (“KMP”)

Mr. Prasann Kumar Kedia, Managing Director (with effect from 8-May-2023)

Mr. Anshuman Kedia, Whole Time Director (with effect from 8-May-2023)

Mr. Tushar Bhandari, Whole Time Director

Mr. Sanjay Kumar Tibrewal, Whole Time Director (till 8-May-2023) & CFO (with effect from 24-May-2022 till 12-Nov-2022) Mr. Nitin Tibrewal, Independent Director (till 31-03-2024)

Ms. Apurva P. Joshi, Independent Director

Ms. Homai A. Daruwalla, Independent Director (till 15-May-2023)

Mr. Debashish Das, Independent Director

Dr. Swaraj Kumar Puri, Independent Director (with effect from 26-Feb-2024)

Mr. Ankit Agrawal, CFO (with effect from 12-Nov-2022)

Mr. Sumit Jaitely, Company Secretary

Mr. Anand Kumar Kedia (KMP as per IND As definition) (till 31-May-2023)

Relatives of key management personnel

Mr. Anand Kumar Kedia (Brother of Mr Prasann Kumar Kedia)

Mrs. Sangita Kedia (Mother of Mr. Anshuman Kedia)

Mrs. Shweta Kedia (Spouse of Mr Prasann Kumar Kedia)

Mrs. Ravisha Sanghi (Sister of Mr. Anshuman Kedia)

Mrs. Garima Kedia (Wife of Mr. Anshuman Kedia)

Mr. Vedant Kedia (Son of Mr Prasann Kumar Kedia)

Mr. H.K. Bhandari (Father of Mr Tushar Bhandari)

Enterprise / Company in which relatives of KMP have control

Prasann Kumar Kedia HUF

Bhagwati Prasad Kedia HUF

Ram Dulari Anand Kumar Kedia HUF

Smilington Holdings Private Limited (with effect from 01-May-2023)

Springbok Properties Private Limited (with effect from 01-May-2023)

Note 44: Segment reporting (a) Segment Information:

For management purposes, the Company is organised into business units based on its products and services and has two reportable segments, as follows:

- The Potable Alcohols segment is involved in the production and sale of Indian Made Foreign Liquor (IMFL), Indian Made Indian Liquor (IMIL), and Extra Neutral Alcohol (ENA). Further, this segment also provides manufacturing services related to these products. This segment caters to various consumer preferences and ensuring a comprehensive presence in the alcoholic beverage market.

- The Ethanol segment is involved in the production and distribution of grain-based ethanol, primarily supplying it to Oil Marketing Companies in India for blending with petrol.

No operating segments have been aggregated to form the above reportable operating segments.

The Executive Management Committee is the Chief Operating Decision Maker (CODM) and monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Also, the Company''s financing (including finance costs and finance income) and income taxes are managed on a Company basis and are not allocated to operating segments.

Note 47: Financial risk management objectives and policies

The Company''s principal financial liabilities comprise borrowings, lease liabilities, 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 investment, loans, cash and cash equivalents, trade receivables, and other receivables derived directly from its operations.

The Company is exposed to market risks, credit risks and liquidity risks. The Company''s senior management oversees the management of these risks. The Company''s senior management provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors review and agree policies for managing each of these risks.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks namely interest rate risk, currency risk and price risk, such as equity price risk. The Company is not significantly exposed to currency risk and price risk whereas the exposure to interest risk is given below.

Interest Rate Risk

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

a. Trade receivables

Customer credit is managed by the Company''s through established policies and procedures related to customer credit risk management. Each outstanding customer receivables are regularly monitored and if outstanding is above due date, the further shipments are controlled and can only be released if there is a proper justification.

The Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. Based on the industry practices and the business environment in which the Company operate, management considers the trade receivables are in default (credit impaired) if the payments are more than 365 days past due.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets and are monitored at periodical intervals. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Liquidity Risk

(i) Liquidity risk management

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s principal sources of liquidity are investment, cash and bank balances, fixed deposits, and the cash flow generated from operations. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, liquidity risk is considered as low. The Company closely monitors its liquidity position and maintains adequate funding sources.

(ii) Maturities of financial liabilities

The following tables details the Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

Note 49: Capital management

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

Note 51: Merger with Mount Everest Breweries Limited

The Board of Directors of the Company, in their meeting held on 9-Aug-2022, had approved the Scheme of Arrangement ("SOA”) pursuant to sections 230 to 232 and other relevant provisions of the Companies Act, 2013, for the amalgamation of the company with M/s Mount Everest Breweries Limited (MEBL), the appointed date for the proposed scheme was 1-Apr-2022.

During the year the Board of Directors in their meeting held on 10-Aug-2023, post extensive discussions, deliberations, and considering the present business scenario, had decided to withdraw the Scheme of Arrangement ("”SOA””) for the amalgamation of the company with Mount Everest Breweries Limited (MEBL).

Note 52: Government Grant

The Government of India vide its notification No. - F. No.1(10)/2018-SP-I dated 22-Apr-2022, notified the modified scheme for extending financial assistance to the project proponents to set up distilleries for producing 1^st Generation (1G) ethanol from feed stock such as cereals (rice, wheat, barley, corn and sorghum), sugarcane, sugar beet etc. Under the said scheme, the Government of India has approved the interest subvention @6% per annum or 50% of rate of interest charged by the bank, whichever is lower. The company is eligible for the above grant on its term loan of INR 8,000.00 lakhs sourced by the company from the HDFC Bank Limited for the new ethanol plant.

Pursuant to the requirements of Ind AS 20 - "Accounting for Government Grants and Disclosure of Government Assistance” and Ind AS 109 - "Financial Instruments”, INR 342.85 lakhs (31-Mar-2023 : Nil) has been credited to the property plant and equipment related to ethanol plant (Refer Note 5), INR 64.00 lakhs (31-Mar-2023 : Nil) has been adjusted with interest cost (Refer Note 35). Further out of the total grant INR 360.54 lakhs (31-Mar-23: Nil) is pending to be received from the government (Refer Note 17).

Note 53: Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during the current financial year and previous financial year

(iii) 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

(iv) The Company have not received any fund 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

Note 54: Other disclosures

i. Previous year figures have been regrouped/ rearranged whenever necessary to conform to the current year''s classification.

ii. The Board of Directors have approved the financial statements for the year ended 31-Mar-24 and authorised them for issue on 02-May-24 and the these will be placed for the approval of shareholders at the ensuing annual general meeting.

As per our report of even date

For Singhi & Co. For and on behalf of the

Chartered Accountants Board of Directors of Associated Alcohols & Breweries Limited

(Firm Registration No.302049E)

Gopal Jain Prasann Kumar Kedia Anshuman Kedia

Partner Managing Director Whole Time Director

Membership no.: 059147 DIN - 00738754 DIN - 07702629

Ankit Agrawal Sumit Jaitely

Chief Financial Officer Company Secretary

Place: Indore Date: 02 May 2024

---

Mar 31, 2023

3.13. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

3.13.1. Provisions

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

3.13.2. Contingent Liabilities

Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events but is not recognized because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of contingent liabilities in Other Notes to Financial Statements.

3.13.3. Contingent Assets

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of economic benefits is probable.

3.14. INTANGIBLE ASSETS

3.14.1. Recognition and Measurement

Intangible asset are stated at cost on initial recognition and subsequently measured at cost less accumulated amortization and accumulated impairment loss, if any.

3.14.2. Amortization

> Software''s are amortized over a period of three years.

> The amortization period and the amortization method are reviewed at least at the end of each financial year. If the expected useful life of the assets is significantly different from previous estimates, the amortization period is changed accordingly.

3.15. OPERATING SEGMENT

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly is identified as the chief operating decision maker.

The Company has identified the "Ethanol" business as an additional segment along with its existing business segment "Potable Alcohol" based on the information reviewed by the CODM.

4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Information about Significant judgments and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

> Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized. In addition, significant judgment is required in assessing the impact of any legal or economic limits.

> Classification of Leases: The Company has exercised judgement in determining the lease term as the noncancellable term of the lease, together with the impact of options to extend or terminate the lease if it is reasonably certain to be exercised.

Where the rate implicit in the lease is not readily available, an incremental borrowing rate is applied. This incremental borrowing rate reflects the rate of interest that the lessee would have to pay to borrow over a similar term, with a similar security, the funds necessary to obtain an asset of a similar nature and value to the right of-use asset in a similar economic environment. Determination of the incremental borrowing rate requires estimation.

> Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

> Provisions and Contingencies: The assessments undertaken in recognising provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best judgment by management regarding the probability of exposure to potential loss.

> Impairment of Financial Assets:The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.

> Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

> Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgments'' is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility.

65 ADDITIONAL REGULATORY REQUIREMENTS SCHEDULE III:

65.1 The Company do not have any Benami property, and does not have any proceeding initiated or pending for holding any Benami property under Benami Transactions (Prohibition) Act 1988, (45 of 1988).

65.2 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

65.3 The Company have not traded or invested in crypto currency or virtual currency during the financial year.

65.4 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.

65.5 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group 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.

65.6 The Company have not any such transaction which is not recorded in the books of accounts that has 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.

65.7 The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve bank of India.

66 Pervious year figures have been regrouped/ rearranged whenever necessary, to conform to current year classification in order to comply with the requirements of amended Schedule III to the Companies Act, 2013 effective from 01st April, 2021.

67 The Board of Directors have approved the financial statements for the year ended 31st March, 2023 and authorised for issue on 8th May, 2023 and the same shall be placed for the approval of the shareholders at the ensuing annual general meeting.

As per our report of even date

For Singhi & Co. For and on behalf of the Board of Directors

Chartered Accountants (Firm Registration No.302049E)

(Jogesh Kumar Madhogaria) Tushar Bhandari Nitin Tibrewal

Partner Whole Time Director Indenpendent Director

(Membership No.301959) DIN:03583114 DIN: 01892892

Place: Indore Ankit Agrawal Sumit Jaitely

8th May, 2023 Chief Financial Officer Company Secretary

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Mar 31, 2018

1. CORPORATE AND GENERAL INFORMATION

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

1. BASIS OF PREPARATION & PRESENTATION OF FINANCIAL STATEMENT

1.1. Statement of Compliance

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

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

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

2.2. Basis of Measurement

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

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

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

2.3. Functional and Presentation Currency

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

2.4. Use of Estimates and Judgements

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

2.5. Presentation of Financial Statements

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

2.6. Operating Cycle for current and non-current classification

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

An asset is classified as current when it is:

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

- Held primarily for the purpose of trading;

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

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

All the other assets are classified as non-current.

A liability is current when:

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

- It is held primarily for the purpose of trading;

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

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

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

2.7. Measurement of Fair Values

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

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

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

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

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

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

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

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

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

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

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

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

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

- Ind AS 115-Revenue from Contracts with Customers

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

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

- Amendment to Existing issued Ind AS

Ind AS 12 - Income Taxes

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

Ind AS 28 - Investment in Associates and Joint Ventures

Ind AS 112 - Disclosure of Interests in Other Entities

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

Notes:

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

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

Notes:

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

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

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

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

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

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

18.5 Terms/ Rights attached to Equity Shares :

The Company has only one class of issued shares i.e. Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

18.6 Shareholding Pattern with respect of Holding or Ultimate Holding Company

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

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

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

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

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

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

Nature/ Purpose of each reserve

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

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

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

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

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

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

2.9 Details of Security:

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

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

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

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

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

2.12 Details of Security

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

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

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

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

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

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

6 Leases

6.1 Operating Lease as lessee

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

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

7.1 Defined Contribution Plan:

7.2 Provident Fund & Employee''s State Insurance Contribution

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

7.3 Defined Benefit Plan:

The following are the types of defined benefit plans

7.4 Gratuity Plan

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

7.5 Risk Exposure

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

ASSET VOLATILITY

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

CHANGES IN BOND YIELDS

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

SALARY GROWTH RISK

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

LIFE EXPECTANCY

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

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

7.6 Asset-Liability Matching Strategy

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

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

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

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

8. Sensitivity Analysis

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

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

8.1 Major terms and conditions of transactions with related parties

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

9. Segment Reporting

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

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

10. Transition to Ind AS

10.1 Basis for Preparation

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

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

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

10.2 Exceptions and Exemptions Applied

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

10.2.1 Optional Exemptions Availed

a Property Plant and Equipment and Intangible Assets

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

b Determining whether an arrangement contains a Lease

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

c Designation of previously recognised financial instruments

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

10.2.2 Mandatory Exceptions a Estimates

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

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

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

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

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

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

b De-recognition of Financial Assets and Liabilities

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

c Classification and measurement of Financial Assets

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

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

10.3 Impact of Transition to Ind AS

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

10.3.1 Notes to First Time Adoption

a Measurement of Financial Assets and Financial Liabilities

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

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

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

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

b Expected Credit Loss Model

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

c Derecognition of Goodwill

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

d Proposed Dividend

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

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

e Deferred Tax

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

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

f Remeasurements of post-employment benefit obligations

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

g Spare Part considered as Property, Plant and Equipment

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

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

Are expected to be used during more than one period.

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

h Leasehold land considered as Operating Lease

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

i Reclassification between Previous GAAP and Ind AS

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

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

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

j Retained Earnings

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

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

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

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

14. Fair Value Hierarchy

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

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

14.2 Explanation to the Fair Value hierarchy

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

15. Financial Risk Management

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

15.1Credit Risk

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

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

15.2 Liquidity Risk

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

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

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

15.3 Market Risk

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

15.3.1 Foreign Exchange Risk

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

15.3.2 Interest Rate Risk

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

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

16. Capital Management

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

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

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

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Mar 31, 2017

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

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

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

Note 3

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

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

Note 4

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

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

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

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

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

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

B) Defined Benefit Plan

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

ii) The Company has taken Group Gratuity Policy of Insurance Companies. The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Note 5 [RELATED PARTY DISCLOSURE

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

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

Mr Tushar Bhandari Key Managerial Personnel

Mr Sumit Jaitely Key Managerial Personnel

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

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

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

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

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

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

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

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

Mr H.K. Bhandari Relative of Key Managerial Person

Mrs Udita Bhandari Relative of Key Managerial Person

Note 6 [SEGMENT REPORTING

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

---

Mar 31, 2016

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

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

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

2.

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

3.

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

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

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

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

5. RELATED PARTY DISCLOSURE

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

Name of Related Party Relationship

Mr.Ashish Kumar Gadia Key Managerial Personnel

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

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

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

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

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

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

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

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

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

significant influence.

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

significant influence.

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Mar 31, 2015

1. Defined Benefit Plan

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

ii) The Company has taken Group Gratuity Policy of LIC of India. The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

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

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

4. CONTINGENT LIABILITIES AND COMMITMENTS

(Rs. In Lacs)

PARTICULARS 31.03.2015 31.03.2014

I Contingent Liabilities

(A) Guarantees

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

(ii) Bank Guarantees to other parties 223.97 251.97

(B) Dues

(iii) Entry Tax payable 133.62 53.00

(iv) State Excise Duty payable 536.18 208.15

(v) MPGATSAVA Tax 13.65 7.16

(vi) Income Tax demand 13.92 12.35

(vii) Central Sales Tax Payable 2089.21 0.00

(viii) M.P. VAT Payable 93.38 0.00

II Commitments

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

5. RELATED PARTY DISCLOSURE

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

Name of Related Party Relationship

Mr.Ashish Kumar Gadia Key Managerial Personnel

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

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

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

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

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

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

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

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

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

Vedant Energy Pvt. Ltd. Subsidiary Company

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Mar 31, 2014

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

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

3. Proceeds from borrowings are shown net of repayments.

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

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

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

Note 1.2

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

Note 1.3

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

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

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

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

Note 6.2

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

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

Note 8.2

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

NOTE 9

SHORT TERM PROVISIONS

NOTE 12

LONG TERM LOANS & ADVANCES (Unsecured and Considered Good)

Note 12.1

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

OTHER NON-CURRENT ASSETS

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

NOTE 15

TRADE RECEIVABLES (Unsecured and Considered Good)

Note 16.1

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

Note 16.2

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

NOTE 17

SHORT TERM LOAN & ADVANCES (Unsecured and Considered Good)

Note 17.1

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

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

B) Defined Benefit Plan

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

ii) The Company has taken Group Gratuity Policy of LIC of India. The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

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

NOTE 27

CONTINGENT LIABILITIES AND COMMITMENTS

(RsIn Lacs) PARTICULARS 31.03.2014 31.03.2013

Contingent Liabilties

(A) Guarantees

(i) Guarantees to Banks and Financial Institutions

against credit facilities extended to third parties 3200.00 3200.00

(ii) Bank Guarantees to other parties 251.97 227.66

(B) Dues

(iii) Entry Tax payable 53.00 49.93

(iv) State Excise Duty payable 208.15 348.53

(v) MPGATSAVA Tax 7.16 2.65

(vi) Income Tax demand 12.35 75.54

(vii) Fringe Benefit Tax demand 0.00 0.42

Commitments

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

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

Name of Related Party Relationship

Mr.Ashish Kumar Gadia Key Managerial Personnel

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

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

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

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

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

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

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

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

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

Vedant Energy Pvt. Ltd. Subsidiary Company

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Mar 31, 2013

Note 1.1

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

Accounting Standard are given below :

A) Defined Contribution Plan

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

B) Defined Benefit Plan

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

ii) The Company has taken Group Gratuity Policy of LIC of India. The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Note 1.2

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

NOTE 2

CONTINGENT LIABILITIES AND COMMITMENTS

(Rs. In Lacs) PARTICULARS 31.03.2013 31.03.2012

Contingent Liabilties

(A) Guarantees

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

(ii) Bank Guarantees to other parties 227.66 341.79

(B) Dues

(Hi) VAT payable 0.00 40.18

(iv) Entry Tax payable 49.93 34.13

(v) State Excise Duty payable 348.53 0.00

(vi)MPGATSAVATax 2.65 0.00

(v) Income Tax demand 75.54 5.50

(vi) Fringe Benefit Tax demand 0.42 0.42

Commitments

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

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Mar 31, 2012

Note 1.1

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

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

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

Note 2.1

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

Note 3.1

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

Note 4.1

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

Note 5.1

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

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

Note 6.1

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

Note 7.1

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

Note 8.1

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

B) Defined Benefit Plan

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

ii) The Company has taken Group Gratuity Policy of LIC of India. The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the

Note 9.1

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

NOTE 10

CONTINGENT LIABILITIES AND COMMITMENTS

Rs. in Lacs

PARTICULARS 31.03.2012 31.03.2011

II Contingent Liabilities

(A) Guarantees

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

(ii) Bank Guarantees to other parties 341.79 255.52

(B) Dues

(iii) VAT payable 40.18 40.18

(iv) Entry Tax payable 34.13 0.00

(v) Income Tax demand 5.50 5.50

(vi) Fringe Benefit Tax demand 0.42 0.42 Commitments

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

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Mar 31, 2011

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

S. Name of the Related Party Relationship No

01.Mr. Santosh Kumar Kedia Key Managerial Personnel

02.Mr. Harshan Kumar Bhandari Key Managerial Personnel

03.Mr. Ashish Kumar Gadia Key Managerial Personnel

04.Mrs. Chandadevi Kedia Relative of Key Managerial Personnel

05.Mrs. Udita Bhandari Relative of Key Managerial Personnel

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

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

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

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

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

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

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

1. SEGMENT REPORTING:

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

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

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

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Mar 31, 2010

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DEFINED CONTRIBUTION PLAN

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

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

DEFINED BENEFIT PLAN

The Company has taken Group Gratuity Policy of LIC of India. The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

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

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

S.No. Name of the Related Party Relationship

01. Mr. Santosh Kumar Kedia Key Managerial Personnel

02. Mr.Harshan Kumar Bhandari Key Managerial Personnel

03. Mr.Ashish Kumar Gadia Key Managerial Personnel

04. Mrs.Chandadevi Kedia Relative of Key Managerial Personnel

05. Mrs. Udita Bhandari Relative of Key Managerial Personnel

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

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

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

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

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

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

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

18. SEGMENT REPORTING:

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

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

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

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