Notes to Accounts of Globus Spirits Ltd.

Mar 31, 2025

ii) It represents the proposed manufacturing plant at one of the state in India, which is under construction and is temporarily suspended as at reporting date. As per the terms of the allotment letter, the Company had to commence civil construction within six months of possession date and start commercial production within two years from possession date. However, due to delays in obtaining clearances from respective authorities, the construction work could not commence resulting in delay in project. During the current year, the Company filed an application with respective State Industrial Development Corporation for extension of the moratorium period by one year which was approved in the month of August 2024 and further, filed an application for changing the plant configuration which will result in the increased fund outlays from initial budgeted plan. The said application was also approved in the month of January, 2025 by respective State Industrial Development Corporation. Accordingly, the management will resume development of the said project and therefore, the project has been disclosed as ‘temporarily suspended'' as at reporting date.

1 During the prior year, the Company made an initial investment of T 377.03 lacs in Bored Beverages Private Limited by subscribing to 524,999 compulsorily convertible preference shares and 1 equity share. During the current year, the Company infused additional amount of T 222.96 lacs by subscribing to 384,429 compulsorily convertible preference shares. The Company currently holds 51.13% (38.08% as at March 31, 2024) ownership interest on a fully diluted basis.

2 Impairment assessment of Bored Beverages Private Limited

The management of the Company has performed an impairment assessment as at March 31,2025 as per the requirements of Ind AS 36. The recoverable amount was determined using the value in use (‘VIU'') approach and no impairment was identified as the recoverable amount exceeded its carrying amount. The impairment assessment was undertaken with reference to the latest business plan that was in effect as at March 31, 2025 which includes a five-year cash flow forecast and contains growth rates that are primarily a function of the management''s assumptions, historic performance and management''s expectation of future market developments.

Nature and purpose of reserves:

(ii) Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of T 10 per share. Each holder of equity share is entitled to one vote per share and carry a right to dividend. In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

a) Capital reserve

It comprise of the difference between the purchase consideration paid by the Company and the fair value of the identifiable net assets of the acquired company in a business combination transaction.

b) Securities premium

Represents the premium on issue of shares and can be utilised in accordance with the provisions of the Companies Act, 2013.

c) General reserve

Created through an annual transfer of net income at specified percentage in accordance with erstwhile Companies Act, 1956. There is no such mandatory requirement under Companies Act, 2013.

d) Retained earnings

Represents the profits that Company has earned till date less transfers to general reserve dividends or other distributions paid to shareholders. It includes re-measurement loss / (gain) on defined benefit plans (net of taxes) that will not be reclassified to the standalone statement of profit and loss.

(a) For part financing capital expenditure towards setting up a new distillery at West Bengal for enhancement of their ethanol distillation capacity or to set up distillers for producing first generation ethanol from feed stocks such as cereals, sugarcane, sugar beet etc. The loan had a moratorium of 1 year and repayment started from July 2022 onwards and is repayable in 48 equal instalments.

(b) For part financing capital expenditure towards setting up a new distillery at Jharkhand and is also approved under NABARD''s Interest Subvention Scheme for extending financial assistance to project and reimbursement of cost of enhancement of their ethanol distillation capacity or to set up distillers for producing first generation ethanol from feed stocks such as cereals, sugarcane, sugar beet etc. The loan had a moratorium of 1 year and repayment started from March 2023 onwards and is repayable in 48 equal instalments.

(c) For part financing of the capital expenditure to be incurred by the Company towards the setting up the grains/molasses/cane juice based Ethanol distillery of 150 KLPD located to be established at Lakhimpur Kheri, Uttar Pradesh and towards the reimbursement of the capital expenditure incurred by the Company in relation to the Project, not more than 12 months prior to April 19, 2023. The loan had a moratorium of 1 year and is repayable in 48 equal instalments.

(d) For part financing of the capital expenditure to be incurred by the Company towards the setting up the ENA distillation plant of 60 KLPD located to be established at Lakhimpur Kheri, Uttar Pradesh, towards the reimbursement of the capital expenditure incurred by the Company in relation to the Project, not more than 12 months prior to May 20, 2024 and any transaction related expenditure incurred in relation to the facility. The loan had a moratorium of 1 year and is repayable in 48 equal instalments.

(e) The loan was obtained for various capital expenditure to be incurred for the purpose of process improvements by the Company across various plants. The said loan is a general purpose corporate loan and may be used for both capital expenditure as well as day to day operations requirement. The loan had a moratorium of 6 months and repayment started from September, 2024 onwards and is repayable in 60 equal monthly instalments.

(f) The above mentioned secured rupee term loans are secured by:

- First pari passu charge on property, plant and equipment and equitable mortgage of Freehold land and Factory building of the plants at Behror, Samalkha, West Bengal, Jharkhand and Bihar.

- Second pari passu charge by way of extension of charge on all the current assets of the Company.

- Letter of comfort from Chandbagh Investments Limited."

6 Interest rate on cash credit facilities ranges from 8.15% - 9.25% p.a. and are secured by:

First pari passu charge by way of hypothecation of entire present and future current assets including stocks and book debts and;

Second pari passu charge by way of extension of charge on all the immovable assets of the Company including equitable mortgage of Freehold land and Factory building at Behror, Samalkha, West Bengal and Bihar.

35	Commitments and contingencies
(a)	Contingent liabilities (to the extent not provided for)
		As at March 31, 2025			As at March 31, 2024
	Particulars	Amount disputed	Deposited under protest	Provision for expected liability	Amount disputed	Deposited under protest	Provision for expected liability
	(I) Disputed tax liabilities:
	- Income-tax matters
	Assessment years 2021-2022, 2022-2023 and 2023-2024 (refer note 46)	4,093.82	3,043.76		4,093.00	532.49
	Assessment year 2017-18 (refer note 1)	196.61	-	-	196.61	-	-
	- Goods and Services Tax matters (refer note 2)
	Financial years 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22	1,992.42	1,992.42	-	1,989.97	1,989.97	-
	Financial years 2017-18, 2018-19, 2019-20 and 2020-21	702.22	702.22	-	702.22	702.22	-
	Financial year 2020-21	189.46	189.46	-	189.46	189.46	-
	Financial year 2021-22	561.61	561.61	-	561.61	561.61	-
	Financial year 2023-24 (refer note 3)	6.24	6.24	-	6.24	6.24	-
	- Haryana Value Added Tax matter (refer note 4)
	Financial years 2010-11, 201112, 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17	1,084.01			1,084.01
	- Excise duty matter (refer note 5)
	Financial years 2004-05, 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10	142.05			142.05
	Financial year 1995-96	27.64	-	-	27.64	-	-
	Financial year 1996-97	11.12	-	-	11.12	-	-
	Financial year 2022-23	-	4.59	-	-	4.59	-
	- Service Tax matter (refer note 6)
	Financial years 2013-14, 2014-15, 2015-16 and 2016-17	12.59	-	-	12.59	-	-
	(II) Consumer claims/suits (refer note 7)
	Financial years 2004-05, 2005-06, 2007-08, 2008-09 and 2009-10	324.68	-	-	324.68	-	-

Notes:

1 The Company has ongoing proceedings under Income-tax Act, 1961 in respect of income-tax liability arising on account of unexplained cash deposited during demonetization period under Section 115BBE of Income-tax Act, 1961. The Company has filed an appeal in the aforesaid matter before Commissioner of Income-tax (Appeals). Basis legal opinion obtained, the management is confident that ultimately no liability will devolve on the Company and accordingly no provision for any liability has been made in the standalone financial statements.

2 On June 26, 2020, Directorate General of Goods and Services Tax Intelligence (‘DGGI'') carried out search and seizure proceedings at various premises of the Company. Pursuant to this and during the investigation proceedings, the Company deposited T 3,445.71 lacs comprising of tax demand of T 2,741.04 lacs, T 450.61 lacs towards interest and T 254.06 lacs towards penalty under protest towards tax demand which may arise on account of issue regarding classification of one of the item sold by the Company (Animal Feed Supplement). Subsequently, The Ministry of Finance, Department of Revenue vide its Circular No. 163/19/2021-GST dated October 6, 2021 provided clarification on the classification of the said item and the Company has started collecting and depositing GST under protest on the said item from its customers w.e.f October 11,2021. The Company has filed writ petitions on the above classification matter and seeking refund of the amount deposited and challenging the constitutional validity of imposing GST on the said item before Hon''ble High Court of Delhi. Proceedings in respect of above matters are in progress before Hon''ble High Court of Delhi and on the basis of legal opinion obtained, the management is confident that ultimately no liability will devolve on the Company and it will be able to get the refund of GST amount from the GST Department and accordingly no provision for any liability has been made in the standalone financial statements.

3	The vehicle was detained on October 25, 2023 and a penalty was levied for non-generation of E-way Bill towards sale of ENA (‘Non-GST Supply’). The Company was of the opinion that since GST is not applicable on ENA so no E-way bill was required to be generated on such supply.
4	The Company has ongoing proceedings under Haryana Value Added Tax Act, 2003 in respect of tax liability arising on account of issue regarding classification of one of the item sold by the Company for the year 2010-11 to 2016-17 in Samalkha involving amount of T 758.44 lacs and for the year 2010-11 to 2012-13 in Hisar involving amount of T 325.57 lacs. The Company has filed appeals against the demand orders received in respect of these proceedings, which are pending for disposal at various judicial forums. The Company has already filed an appeal before appropriate authority dated November 14, 2019. Further, there is no update during the current year in the aforesaid matters.
5	Out of T 180.81 lacs above, T 142.05 lacs pertains to financial year 2004-05 to 2009-10 in which Company filed a writ against the demand raised by the Rajasthan Excise Department under Section 22 and Section 12 of the Rajasthan Excise Act, 1950 and Rules, 1956 of transport permit fee under Section 69 of the Rules for transportation / captive consumption of goods (Rectified Spirits used in the manufacture of liquor) within the factory premises. These matters are still pending for next hearing. Further, T 27.64 lacs and T 11.12 lacs pertains to financial year 1995-96 and financial year 1996-97 respectively wherein excise department provided a ratio of use of old and new glass bottles and provided with a penalty for excess of use of old bottles. The case is pending sine die
6	The Company received a tax demand of T 68.60 lacs from the Office of Commissioner of Central Tax (CE and GST) on March 31, 2021. An appeal was filed with the Commissioner (Appeals), Panchkula, on February 9, 2023, remanded the case for re-determination of tax liability. However, the adjudicating authority’s revised order on August 31, 2023 and maintained the original demand. A further appeal led to a reduction of the demand to T 12.59 lacs by the Commissioner (Appeals) on December 27, 2023. Basis legal opinion obtained, the management is confident that ultimately no liability will devolve on the Company and accordingly no provision for any liability has been made in the standalone financial statements.
7	Consumer claims/suits filed against the Company not acknowledged as debts of T 324.68 lacs (March 31, 2024: T 324.68 lacs) in respect of sales made by the Company on behalf of brand franchisees. The Company has disclaimed the liability and defending the action. The Company has been advised by its legal counsel that its position is likely to be upheld in the litigation process and accordingly no provision for any liability has been made in the standalone financial statements.

(b) Capital commitments

Salary escalation risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

These assumptions were developed by management with the assistance of independent actuaries. Discount factors are determined close to each year-end by reference to market yields of government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related defined benefit obligation. Other assumptions are based on current actuarial benchmarks and management’s historical experience.

(Estimated amount of contracts remaining to be executed, to the extent not provided for)

_Particulars ^{As at As at particulars} _Marc_h 3!, 2025 March 31, 2024

Property, plant and equipment (net of capital advances) 6,567.35 1,856.42

36 Employee benefit obligations

a) Gratuity -defined benefit plan

I n accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while-in-employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months (subject to maximum of T 20.00 lacs) on completion of vested year of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial year.

A. Policy for recognizing actuarial gains and losses:

Actuarial gains and losses of defined benefit plan arising from experience adjustments and effects of changes in actuarial assumptions are immediately recognized in other comprehensive income. The defined benefit plan typically exposes the Company to actuarial risks such as interest rate risk, longevity risk and salary increase risk.

Interest rate risk

A fall in the discount rate which is linked to the Government security rate will increase the present value of the liability requiring higher provision.

Longevity risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

I. Changes in significant actuarial assumption - Sensitivity Analysis:

The significant actuarial assumptions for the determination of the defined benefit obligation are the discount rate and the salary escalation rate. The calculation of the net defined benefit liability is sensitive to these assumptions. The impact of employee attrition and mortality rate do not significantly impact the determination

b) Defined contribution plans

i) Provident Fund Plan and Employee Pension Scheme

The Company makes monthly contributions at prescribed rates towards Employee Provident Fund/ Employee Pension Scheme, a fund administered and managed by the Government of India.

ii) Employee State Insurance

The Company makes prescribed monthly contributions towards Employees State Insurance Scheme.

39 Disclosures required pursuant to Ind AS 102 - Share based payments

The shareholders of the Company at its Annual General Meeting held on September 24, 2021 approved ‘Employee Stock Option Scheme'', hereinafter referred to as ‘ESOP 2021''. ESOP 2021 is assessed, managed and administered by the Company.

As per the ESOP 2021, 287,992 equity-settled options were granted to eligible employees of the Company determined by Nomination and Remuneration Committee, which are convertible into equivalent number of equity shares of T 10 each as per terms of ESOP 2021 with a vesting period of 1 year from the date of the grant. The employees have the options to exercise their right within a period of 1 year from the date of vesting. The compensation cost of stock options granted to employees is accounted by the Company using the fair value method. The fair value of stock options was determined using the ‘Black Scholes Method''.

I n respect of Options granted under the ESOP 2021, in accordance with the guidelines issued by SEBI, the accounting value of the options is accounted as deferred employee compensation, which is amortized on a straight line basis over the period between the date of grant of options and eligible dates for conversion into equity shares.

Further, during the current year, the Company has granted 112,610 stock options to the eligible employees of the Company as per ESOP Scheme 2021. Each option granted during the year shall entitle the holder to one equity share having face value of T 10 each at an equivalent exercise price.

40 Segmental reporting A Segmental information

The operating segment is the level at which discrete financial information is available. Business segments are identified considering:

a) the nature of products and services

b) the differing risks and returns

c) the internal organisation and management structure, and

d) the internal financial reporting systems.

In view of the above, the management of the Company has identified following operating segments as below:

(i) Manufacturing - Comprises of production of bioethanol, other industrial spirits and by-products etc.

(ii) Consumer - Comprise of diverse portfolio of branded alcoholic beverages, including Prestige and Value Spirits, catering to both premium and mass-market consumer.

B Segment revenue and results

Revenue and expenses directly attributable to segments are reported under each reportable segment. Income and expenses which are not attributable or allocable to segments are disclosed separately. Pricing between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.

C Segment assets and liabilities:

Segment assets include Property, plant and equipment, Inventories, Trade receivables and Other current assets to the extent specifically identifiable to each segment. Other assets and liabilities used in the Company’s business are not identified to any of the reportable segments, as these are used interchangeably between segments.”

F Additional information by geographies

a) Although the Company’s operations are managed basis type of product (or) services, additional information about external revenues based on geographies of the customers has been provided in Note 32F.

b) There are no non-current assets located outside India.

41 Fair value measurement

a. Fair value measurement of financial instruments- by category and fair values hierarchy

The following table shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels in the fair value hierarchy.

E Information about major customers

Two customers are having more than 10% of the total revenue during the financial year ended March 31, 2025 and March 31, 2024 pertaining to Manufacturing segment.

Other notes:

There has been no transfer between Level 1, Level 2 and Level 3 for the year ended March 31, 2025 and March 31, 2024 respectively.

b. Financial risk management

Risk management objectives and policies

The Company’s financial assets majorly comprise of investments, trade receivables, financial assets, and cash and cash equivalents. The Company’s financial liabilities majorly comprises of borrowings, acceptances, lease liabilities, trade payables and other financial liabilities.

The Company is primarily exposed to market risk, credit risk and liquidity risk arising out of operations and the use of financial instruments. The Company’s financial assets and liabilities by category are summarised in Note 6 and 7, Note 11 to 14, Note 4, Note 17 and Note 21 to 23 .

The Company does not engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below:

Market risk analysis

The Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk;

• Market risk

- Interest rate risk

- Foreign currency risk

- Commodity price risk

The Company’s risk management policies are established to identify and analyse the risks faced by the Company to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in the market conditions and the business activities. The Board of Directors oversees how management monitors compliance risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risk faced by the business.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the business activities.

The credit risk in respect of cash balances held with banks and deposits with banks are managed via diversification of bank deposits, and are only with major reputable banks.

The Company continuously monitors the credit quality of customers. The Company’s policy is to deal only with credit worthy counterparties. The credit terms range between 0 and 90 days. The credit terms for customers as negotiated with customers are subject to an internal approval process . The ongoing credit risk is managed through regular review of ageing analysis, together with credit limits per customer.

The Company has determined that climate-related risks have no significant impact on credit risk exposure and credit risk management practices because (a) of the short-term nature of credit exposure and (b) given the absence of recent major climate-related events in the main areas where debtors operate.

Trade receivables consist of a large number of customers in various industries and geographical areas. The Company does not hold any security on any trade receivables balance at each annual reporting date. In addition, the Company does not hold any collateral relating to other financial assets at each annual reporting date.

Financial assets are written off (i.e., derecognised) when there is no reasonable expectation of recovery. On failure to make payments and failure to engage with the Company on alternative payment arrangement amongst other is considered indicators of no reasonable expectation of recovery.

Expected credit loss with respect to trade receivables

The Company applies the Ind AS 109 simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component. In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due and also according to the geographical location of customers:

The expected loss rates are based on the historical payment profile for sales as well as the corresponding historical credit losses during that period. The historical rates are adjusted to reflect current and forwarding looking macroeconomic factors affecting the customer’s ability to settle the amount outstanding. However, given the short period exposed to credit risk, the impact of these macroeconomic factors has not been considered significant within each annual reporting period:

(ii) Liquidity risk

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short-term operational needs as well as for long-term capital expenditure growth projects. The Company generates sufficient cash flow for operations, which together with the available cash and cash equivalents. The Company has acceptances in line with supplier’s financing arrangements which might invoke liquidity risk as a result of liabilities being concentrated with few financial institutions instead of a diverse group of suppliers. The Company has established an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements.

The Company’s liquidity management process as monitored by management, includes the following:

- Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met.

- Maintaining rolling forecasts of the Company’s liquidity position on the basis of expected cash flows.

- Maintaining appropriate credit lines.

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amounts are gross and undiscounted, and include contractual interest payments. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(iii) Market risk

Market risk is the risk that changes in market prices - e.g. interest rate risk, foreign currency risk and commodity price risk - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including cash and cash equivalents, foreign currency payables. The Company is exposed to market risk primarily related to foreign currency risk . Thus, the Company’s exposure to market risk is a function of investing activities and revenue generating and operating activities in foreign currencies.

b. Foreign currency risk exposure

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Most of the Company’s transactions are carried out in T. Exposures to currency exchange rates arise from the Company’s overseas operations, which are primarily denominated in US dollars (‘USD’) . The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other currencies.

c. Commodity price risk

Commodity price risk for the Company is mainly related to fluctuations in raw materials prices linked to various external factors, which can affect the production cost of the Company. The Company is subject to fluctuations in prices for the purchase of grains, maize, coal, rice-husk and other raw material inputs. The Company purchased primarily all of its grain and maize requirements at prevailing market rates during the year ended March 31, 2025. Since the raw material costs is one of the primary costs drivers, any fluctuation in its prices can lead to a drop in operating margin. To manage this risk, the Company take following steps:

a) Optimising the raw material mix, where considered necessary.

b) Consistent efforts to reduce the cost of material costs by entering into short-term interest bearing supplier financing arrangements for early payment to supplier of materials.

Additionally, processes and policies related to such risks are reviewed and controlled by senior management and material requirements are monitored by the central procurement team.

42 Capital management

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure is based on management’s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain stakeholders’ confidence. The Company monitors capital using a ratio of ‘Net Debt’ to ‘Total Equity’. For this purpose, Net Debt is defined as total borrowings less cash and cash equivalents and other bank balances. Total equity comprises of equity share capital and other equity. The Company is not subject to any externally imposed capital requirements. During the year, no significant changes were made in the objectives, policies or processes relating to the management of the Company’s capital structure.

44 Government grants receivables

Department of Food and Public Distribution (‘DFPD’), Ministry of Consumer Affairs notified the Scheme for extending financial assistance to project proponents for enhancement of their ethanol distillation capacity (‘the Scheme’) vide notification dated January 14, 2021, for setting up/ expansion of new/existing grain based distilleries. As per the covenants of the said Scheme, interest subvention @6% per annum or 50% of the rate of interest charged by banks for the loans extended, whichever is lower will be borne by Government of India (‘GoI’) for five years including one-year moratorium against the loan availed by project proponents.

The Company opted for the aforesaid Scheme and availed terms loans from scheduled banks for setting up of Ethanol Distillation Plants at Panagarh, West Bengal and Baharagora, Jharkhand for T 7,000.00 lacs and T 6,500.00 lacs respectively. The Company has accrued interest receivable on account of subvention of interest as per the aforesaid Scheme. The balance as at year is outstanding as below:

46 During the year ended March 31, 2023, the Income Tax Department had carried out search and seizure operation at the various premises of the Company from January 30, 2023 to February 3, 2023 under section 132 of the Income-tax Act, 1961 (‘IT Act’). The Company has received assessment orders (‘Orders’) for the last 10 assessment years (‘AYs’) in the first week of April 2024 disallowing certain expenses resulting in an aggregate tax impact of T 5,649.00 lacs (including interest). The Company has no tax demand for the AY 2014-15 to AY 2020-21 and for the remaining 3 years, the amount of tax demand is T 4,093.00 lacs, out of which T 532.49 lacs was paid as self-assessment tax during the quarter ended December 31, 2023.

The Company has filed an appeal u/s 246A of the IT Act for all the assessment years covered by the Orders and has paid T 2,511.00 lacs under protest. While the uncertainty exists regarding the outcomes of the legal proceedings, the management of the Company has evaluated the demand orders after considering all available records and facts known to it and based on an independent legal review and opinion from external legal counsel, and believes that the Company can succeed in the appeals filed against the aforesaid demand orders and accordingly, the management has not identified any adjustments to the current or prior period standalone financial statements.

48 Additional regulatory information required by Schedule III to the Companies Act, 2013

i) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

ii) The Company has not traded or invested in Crypto currency or virtual currency during the year.

iii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income-tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

iv) The Company has not advanced or loaned or invested funds to any other persons or entities, 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.

v) The Company has not received any fund from any persons or entities, 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 to or on behalf of the Ultimate Beneficiaries.

vi) The Company has not been declared wilful defaulter during any of the reporting periods.

vii) Basis the management''s assessment, it has been concluded that the Company has made no transactions with struck-off companies under Section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956. Further, there are no outstanding balances at balance sheet date with struck-off companies.

49 The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software which is operated by third-party software service provider for maintaining its books of account which has a feature of audit trail (edit log) facility and the same was enabled at the application level.

However, in the absence of an ‘Independent Service Auditor''s Assurance Report on the Description of Controls, their Design and Operating Effectiveness'' (‘Type 2 report'' issued in accordance with SAE 3402, Assurance Reports on Controls at a Service Organization), the management of the Company did not conclude whether the feature of recording audit trail (edit log) is enabled at the database level for the said accounting software to log any direct data changes or not. Furthermore, the audit trail has been preserved as per the statutory requirements for record retention where such feature is enabled.

50 Events occurring after the balance sheet date

Subsequent to the current year, the Company entered into a strategic joint venture with ANSA MCAL Limited, leading to the incorporation of a new entity, Globus ANSA Private Limited to foray into the beer segment, in line with its strategic objective of portfolio diversification and tapping into high growth consumer categories. The aforesaid event did not require any adjustments in the standalone financial statements of the Company for the current year.

51 Previous year figures have been re-grouped/re-classified wherever necessary. The impact of the same is not material to the users of the standalone financial statements.

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Mar 31, 2024

Rights, preferences and restrictions on equity shares:

The Company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held and carry a right to dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

Bonus shares and shares bought back:

Over the period of five years immediately preceding March 31, 2024 and March 31, 2023, neither any bonus shares were issued nor any shares were allotted for consideration other than cash. Further, no shares were bought back during the said period.

c. Short term borrowings interest rate is N/A as on March 31,2024 ( March 31,2023 8.90 % p.a).

d. Cash credit is secured by first pari passu charge by way of hypothecation of entire present and future current assets including stocks and book debts and second pari passu charge by way of extension of charge on all the PPE of the Company including equitable mortgage of factory land & building at Behror, Samalkha, West Bengal and Bihar. Rate of interest of cash credit has range of 8.15% - 9.25% p.a (March 31, 2023 8.10% - 9.00%)

Description of nature and purpose of each reserve

Security premium: Security premium is used to record the premium on issue of shares, which will be utilized as per provisions of relevant act/rules.

Share based payment reserves: This is created to recognise the grant date fair valuation of options issued to employees under employee stock option schemes and is adjusted on exercise of options

General reserve: General reserve is created from time to time by way of transfer of profits from retained earnings for appropriate purposes. It is created by a transfer from one component of equity to another.

Retained earnings: It is created from the statement of profit and loss of the Company, as adjusted for distributions to owners, transfer to other reserves, etc. Capital reserves: This is generally recognised during the amalgamation/merger by acquirer company where purchase price is less that fair value of net assets of acquiree company.

Other comprehensive income: The profits and losses which are routed out of statement of profit and loss are classified in other comprehensive income.

a. The Company has availed above mentioned term loans (i) and (ii) under interest subvention scheme notified by Government of India (Department of Food and Public Distribution) vide notification dated January 14, 2021, for setting up/ expansion of new/existing grain based distilleries.

b. The above mentioned term loans (i) and (ii) are secured by

-First pari passu charge on movable fixed assets and equitable mortgage of factory land & building of the plants at Behror, Samalkha, West Bengal and Bihar. -Second pari passu charge by way of extension of charge on all the current assets of the Company.

-Letter of comfort from Chandbagh Investments Limited.

Note 1 - The difference in inventory is due to the excise duty (for Jun-23, Sep-23, Dec-23 and Mar-24) and capital goods (Jun-23 and Dec-23) which are included in Inventory appearing in books of accounts. However, the same is not considered in the drawing power (DP) statement submitted to the banks.

Note 2 - The difference in trade receivable is majorly on account of advances from customers which has been adjusted with trade receivables provided in quarterly statements submitted to bank which is not included in books of accounts. Further, only oil marketing companies and corporations having dues upto 120 days and other debtors having dues upto 90 days are considered in DP statement submitted which creates a difference between books of accounts and quarterly statement.

Note 3 - The difference in trade payable is on account of accrued expenses and service related payables which are clubbed in trade payables in books of accounts and are excluded in quarterly statements submitted to bank . Further advance given to Food Corporation of India has been adjusted with trade payables provided in quarterly statements submitted to bank which is not included in books of accounts.

* Consumer cases - The above disclosure excludes an amount of Rs. 324.68 Lacs, wherein the demand is in respect of sales made by the Company on behalf of its brand franchisees, and contractually, these brand franchises are required to reimburse the Company for the liability, if any.

** On June 26, 2020, Directorate General of Goods and Services Tax (GST) Intelligence (DGGI) carried out search and seizure proceedings at various premises of the Company; at factories and at head office. Pursuant to this, during the FY 2020-2021 the Company had deposited Rs. 1,989.97 lacs under protest towards GST which may arise on account of issue regarding classification of one of the items sold by the Company (Animal Feed Supplement) for the period July 01,2017 to December 31,2020. The Company had also fled a writ petition on February 17, 2021 before Hon''ble High Court of Delhi challenging the actions of DGGI and seeking refund of the amount deposited by the Company.

Subsequently, DGGI issued summons dated October 01, 2021 to the authorized representatives of the Company and The Ministry of Finance, Department of Revenue vide its Circular No. 163/19/2021-GST dated October 06, 2021 provided clarification on the classification of the said item. Pursuant to the summons and the aforesaid circular, during the FY 2021-2022 the Company deposited Rs. 751.07 lacs under protest towards GST for the period January 01,2021 to October 10, 2021 and started collecting and depositing GST under protest on the said item from its customers w.e.f October 11, 2021. During the current year, the Company has also deposited Rs. 448.17 lacs towards interest and Rs. 254.06 lacs towards penalty on the above GST paid under protest for the period July 01,2017 to October 10, 2021.

The amount of Goods and Services Tax deposited under protest (net of amount collected and deposited under protest) with the department aggregating to Rs. 3,443.27 lacs (previous year aggregating to Rs. 3443.27 lacs) have been disclosed as recoverable in note 9 to the financial statements. Basis the legal advice obtained by the management, that the circular issued by the Government is ultra vires the provisions of the GST laws, the Company has fled a writ petition on January 18, 2022 challenging the constitutional validity of imposing GST on the said item before Hon''ble High Court of Delhi. Proceedings in respect of above matters are in progress before Hon''ble High Court of Delhi and on the basis of legal opinion obtained, the Management is confident that ultimately no liability will devolve on the Company and it will be able to get the refund of GST amount including interest and penalty thereon from the GST Department which has been paid under protest.

*** The Company has ongoing proceedings under Haryana Value Added Tax Act, 2003 in respect of Value Added Tax liability arising on account of issue regarding classification of one of the item sold by the Company for the year 2010-11 to 2016-17 in Samalkha involving amount of Rs. 735 lacs and for the year 2010-11 to 2012-13 in Hisar involving amount of Rs. 326 lacs. The Company has fled appeals against the demand orders received in respect of these proceedings, which are pending for disposal at various judicial forums. The Company has already fled an appeal before appropriate authority dated November 14, 2019. Further, there is no update during the current year in the aforesaid matters.

# The Company has ongoing proceedings under Income tax act, 1961 in respect of income tax liability arising on account of unexplained cash credit (cash deposited during demonitization period) under section 115BBE of Income tax act. The Company has fled an appeal in the matter before CIT(A).

### Guarantees by bank on behalf of company as on March 31,2024 are excluding performance guarantees of Rs. 5,115 lacs.

There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

#### Out of 180.81 lakhs above, 142.05 lakhs pertains to FY 2004-05 to 2009-10 in which Company fled a writ against the demand raised by the Rajasthan Excise Department u/s 22 & 12 of the Rajasthan Excise Act, 1950 and Rules, 1956 of transport permit fee u/s 69 of the Rules for transportation / captive consumption of goods (Rectified Spirits used in the manufacture of liquor) within the factory premises. These matters are still pending for next hearing.

- 38.76 lakhs pertains to FY 1995-96 and FY 1996-97 where excise department provided a ratio of use of old and new glass bottles and provided with a penalty for excess of use of old bottles. The case is pending sine die.

Note 37 : Leases Asset taken on lease:

The Company leases land and buildings.Generally, the Company is restricted from assigning and subleasing the leased assets. With the exception of short team lease, every lease is recognised in balance sheet as right to use and lease liability. Rental contracts are typically made for fixed periods of 3 to 8 years, but may have extension options. Land has a lease term of 99 years.

The total cash outflow for leases for the year ended March 31,2024 was Rs. 495.91 Lacs (March 31,2023 Rs. 483.07 Lacs)

Rent expense recorded for short-term leases was Rs. 194.81 Lacs for the year ended March 31,2024 (March 31,2023 Rs. 190.74 Lacs) The details of contractual maturities of lease liabilities as at March 31,2024 on an undiscounted basis are as follows:

There have been no transfer between level 1, level 2 and level 3 during the year

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

C - Valuation techniques and processes used to determine fair value

Fair Value of unquoted investment is determined based on present value, calculated using generally accepted valuation principals.

The fair value of security deposit has been estimated using DCF model which consider certain assumptions viz. forecast cash flows, discount rate, credit risk and volatility.

The fair values of the Company''s interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non-performance risk as at 31 March 2024 was assessed to be insignificant.

Note 39 - Capital management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.

For the purpose of the Company''s capital management, capital includes equity capital, securities premium and all other equity reserves attributable to the equity shareholders.

The Company''s risk management committee reviews the capital structure periodicallly. The committee considers the cost of capital and risks associated with the capital.

Trade receivables :

Trade receivables are unsecured in nature and are derived from revenue earned from customers. To mitigate the credit risk related to trade receivables, the Company closely monitors the credit worthiness of the trade receivables through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become 90 days past due for non governmental customers and 180 days past due for governmental customers and consider the default after assessement on case to case basis. Top five customers for the year ended March 31,2024 constitutes 72% of net trade receivables (March 31,2023: 69%). The Company evaluates the credit risk associated with trade receivables on a case-by-case basis. Historically, the Company has not experienced defaults or written off bad debts.

However, credit risk for governmental customer is considered minimal, even if receivables are due for more than 180 days, due to the Company''s historical experience of timely fund realization from these customers.

The Company considers a financial asset in default when contractual payments are 90 days past due for non govermental customers. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

Loan and other financial assets measured at amortised cost:

Other financial assets measured at amortised cost includes loans and advances to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously.

In order to achieve the overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets capital financial covenants attached to interest bearing loans and borrowings that defined capital structure requirements. There have been no breaches in the financial covenants of any interest bearing loans and borrowings in the current financial year and wherever their has been any, the company has teaken the waiver from the concerned bank.

Note 40 - Financial risk management

The Company is exposed to various financial risks arising from underlying operations and finance activities. The Company is primarily exposed to credit risk, liquidity risk and market risk.

Financial risk management within the Company is governed by policies and guidelines approved by the senior management and board of directors. These policies and guidelines cover credit risk, liquidity risk and market risk.

(a) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company if the counterparty defaults on its obligations.

The Company is exposed to credit risk from cash and cash equivalents, deposits with banks, trade receivables, loans and other financial assets measured at amortized cost

(b) Liquidity risk management

Liquidity risk is the risk that the Company will encounter in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The approach of the Company to manage liquidity is to ensure, as far as possible, that these will have sufficient liquidity to meet their respective liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risk damage to their reputation. The working capital credit facilities are continuing facilities which are reviewed every year to ensure the availability of credit lines and borrowings facility on time.

i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk on financial reporting date B: Moderate credit risk C: High credit risk

The Company provides for expected credit loss based on the following:

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. There have been no cases of write off with the Company.

Cash and cash equivalents and bank balances :

Credit risk relating to cash and cash equivalents is considered negligible as counterparties are banks. The management considers the credit quality of deposits with such banks to be good and reviews the banking relationships on an on-going basis.

Foreign Currency risk management

Foreign currency risk also known as Exchange Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Foreign currency risk in the Company is attributable to Company''s operating activities.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period demoninated in Rupees are as follows :

Foreign currency senstivity analysis The Company is mainly exposed to USD.

The following table details the Company''s sensitivity to a 1% increase and decrease in the Rupee against the foreign currency. The sensitivity analysis includes only outstanding foreign currency denominated monetary item as tabulated above and adjusts their translation at the period end for 1% change in foreign currency rates. A positive number indicates an increase in profit before tax or vise-versa.

(c) 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 risk: interest rate risk, currency risk and credit risk. Financial instruments affected by market risk include deposits. The functional currency of the Company is Indian Rupee. i) 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 long-term debt obligations (including current maturities of long-term borrowings) with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and floating interest rates on borrowings.

Forward foreign exchange contracts

The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business. The Company manages its foreign currency risk by hedging transactions that are expected to occur within of 2 to 3 months for hedges of forecasted sales. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable that is denominated in the foreign currency.

The Company does not have any foreign currency derivatives contracts outstanding as at March 31,2024 and March 31,2023.

Note 41 - Employee benefits plans Defined benefits plans

The Company''s gratuity scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months (subject to maximum of Rs. 20.00 lacs). Vesting occurs upon completion of 5 years of service. The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method with actuarial valuations being carried out at each balance sheet date.

The Company is engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Ethanol, Bulk Alcohol and Franchise Bottling. This is the only activity performed and is thus also the main source of risks and returns. The Company''s segments as reviewed by the Chief Operating Decision Maker (CODM) does not result into identification of different ways / sources in to which they see the performance of the Company. Accordingly, the Company has a single reportable segment. Hence, the disclosure requirments in terms of Ind AS 108 “Operating Segments” are not applicable.

Note 1: All transactions to/from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. For the year ended March 31,2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2023: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Note 2: Certain KMPs also participate in post employment benefits plans provided by the Company. The amount in respect of these towards the KMPs can not be segregated as these are based on actuarial valuation for all employees of the Company.

Note 45 - Employee Stock Option Plan

The shareholders at Annual General Meeting held on September 24, 2021 approved an employee stock option scheme (“ESOP 2021”) which provides the grant upto 2,87,992 options to eligible employees of the Company determined by Nomination and Remunaration Committee, which are convertible into equivalent number of equity shares of Rs. 10 each as per terms of scheme.

Under the employee share based payment plans, certain employees were granted stock options of Globus Spirits Limited (‘GSL''). The plan was assessed, managed and administered by the GSL. Plan granted to employees are equity-settled.

The Company applied Ind AS 102 - Share based payments to share based payment transactions. Pursuant to this standard, stock options granted to the employee by GSL were measured at fair value and recognised in the Statement of Profit and Loss over the vesting period of the options and crediting other equity. The fair value of stock options was determined by the GSL using the Black Scholes option pricing model.

During the year ended March 31,2023, the Income Tax Department had carried out search and seizure operation at the head office and other premises of the Company from January 30, 2023 to February 03, 2023 under section 132 of the Income-tax Act, 1961 (‘IT Act''). Subsequent to year end, the Company has received assessment orders for the last 10 assessment years in the first week of April''24 disallowing certain expenses resulting in an aggregate tax impact of Rs. 5,649 lacs (including interest). The Company has no tax demand for the AY 2014-15 to AY 2020-21 and for the remaining 3 years, the amount of tax demand is Rs. 4,093 lacs, out of which Rs. 532 lacs was paid as self-assessment tax during the quarter ended December 31,2023. The Company has filed an appeal u/s 246A of the IT Act for all the assessment years covered by the order and has paid Rs 2,511 lacs under protest. The management has appointed an independent firm to review these disallowances and report to Audit committee and the Company has been legally advised that the tax demand may not be sustainable at the appellate forums. While the outcome is awaited, based on legal advice and company''s preliminary assessment, management has determined that no material adjustments are needed with respect to the aforementioned matter in standalone financial statements.While the uncertainty exists regarding the outcome of the search and seizure carried out by the Department, the Company after considering all available information and facts as of date, has not identified the need for any adjustments in the financial statements.

Note 48 - Dividend paid & proposed dividend

The Company has paid final dividend amounting to Rs. 1728.16 Lacs (Rs. 6 per equity share (par value of Rs. 10 each)), basis the dividend declared by the board of directors in their meeting held on May 25, 2023. The payment was made post approval by the shareholders in the Annual General Meeting (AGM) of the Company. The dividend was paid on the 5th working day from the date of declaration of the final dividend by the shareholders in the AGM. For the financial year 2023-24, the Board of Directors recommended a final dividend of Rs. 3.50 per equity share (par value of Rs. 10 each). This payment is subject to the approval of shareholders in the AGM of the Company.The dividend will be paid on the 5th working day from the date of declaration of the final dividend to the shareholders. The book closure date for the purpose of the payment of final dividend and AGM date will be announced in due course.

Contract assets is the right to consideration in exchnage for goods or services transferred to customer and Contract liabilities are contractual obligation to transfer the goods or services to customer against which the consideration has already been received

The amount receivables from customers become due after the expiry of credit period which ranges between 30-180 days on an average basis.

As a practical expedient provided in Ind AS 115.121, an entity has decided not to disclose the amount of the remaining performance obligations for contracts with original expected duration of less than one year or those that meet the requirements of the right to invoice practical expedient in Ind AS 115.B16.

The Company has all the revenue from short term contracts and there are no long term contracts available with the Company Note 51 - Subsequent Events

All events or transactions that have taken place between March 31,2024 and date of signing of the standalone financial statements and for which the Indian Accounting Standard 10 - ‘Events after the Reporting Period'' (“Ind AS 10”) requires disclosure/adjustment are disclosed and/or adjusted in the standalone financial statements.

Note 52 - Approval of standalone financial statements

These standalone financial statements were approved for issue by the Board of Directors on May 30, 2024.

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses an accounting software for maintenance of books of account. Once the financial entries are posted in accounting software, no changes are allowed to already posted transactions. Also, in case of cancellation/reversal of already posted entries, separate entries are created in the application.

Further, the database of the accounting software is operated by a third-party software service provider and information on the availability of audit trail (edit log) feature is not covered in the ‘Independent Service Auditor''s Assurance Report on the Description of Controls, their Design and Operating Effectiveness'' (‘Type 2 report'' issued in accordance with SAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information) at the database level. The Company has migrated to a new accounting software with effect from 1 April 2024 which will include the database of audit trail functionality in the next year''s Type 2 report.

Note 54 - Reconciliation of liabilities from financing activities

Effective April 1, 2017, the Comapny adopted the amendment to Ind AS-7, which require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the consolidated balance sheet for liabilities arising from financing activities, to meet the disclosure requirements. The required disclosure is presented below:

In accordance with the principles of Indian Accounting Standard 8 - ‘Accounting Policies, Changes in Accounting Estimates and Errors'' (“Ind AS 8”), the comparative financial information for the year ended 31 March 2023 included in these financial statements, have been restated on account of correction of following reclassification/ regrouping errors:

Reclassification of financial information of previous year ended March 31,2023:

Note 1: Pertains to reclassification of deposits made with bank having original maturity more than 3 months from cash and cash equivalent to bank balance other than cash and cash equivalent.

Note 2: Pertains to regrouping of carrying value of Motor vehicles purchased by the Company from right of use assets to property, plant and equipment and the carrying value of loan obtained from the bank to purchase such motor vehicles from lease liability to borrowings.

Note 3: Pertains to reclassification of contractual obligations towards employee dues from trade payable to other financial liabilities

Note 4: Pertains to regrouping of freight inward charges from other expenses to cost of material consumed

Note 5: Pertains to regrouping of changes in inventories of work in progress from cost of material consumed to changes in inventories of finished goods and work in progress.

Note 6: Pertains to reclassification of deposits made with bank having maturity of more than 12 months from security deposit to bank deposit with maturity of more than 12 months within non-current other financial assets.

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Mar 31, 2023

a. The Company has availed above mentioned term loans (i) and (ii) under interest subvention scheme notified by Government of India (Department of Food and Public Distribution) vide notification dated January 14, 2021, for setting up/ expansion of new/existing grain based distilleries.

b. The above mentioned term loans (i) and (ii) are secured by

-First pari passu charge on movable fixed assets and equitable mortgage of factory land & building of the plants at Behror, Samalkha, West Bengal and Bihar.

-Second pari passu charge by way of extension of charge on all the current assets of the Company.

-Letter of comfort from Chandbagh Investments Limited.

c. Short term borrowings has interest rate of 8.90% p.a.

d. Cash credit is secured by first pari passu charge by way of hypothecation of entire present and future current assets including stocks and book debts and second pari passu charge by way of extension of charge on all the fixed assets of the Company including equitable mortgage of factory land & building at Behror, Samalkha, West Bengal and Bihar and letter of comfort from Chandbagh Investments Limited.

e. Overdraft is hypothecated against fixed deposits from Axis Bank carrying interest rate of 6.80% p.a (March 31,2022 interest rate in the range of 5.00% to 8.00% p.a).

* The above disclosure excludes an amount of '' 324.68 Lacs, wherein the demand is in respect of sales made by the Company on behalf of its brand franchisees, and contractually, these brand franchises are required to reimburse the Company for the liability, if any.

** On June 26, 2020, Directorate General of Goods and Services Tax (GST) Intelligence (DGGI) carried out search and seizure proceedings at various premises of the Company; at factories and at head office. Pursuant to this, during the FY 2020-2021 the Company had deposited ''1,989.97 lacs under protest towards GST which may arise on account of issue regarding classification of one of the item sold by the Company (Animal Feed Supplement) for the period July 01,2017 to December 31,2020. The Company had also filed writ petition on February 17, 2021 before Hon''ble High Court of Delhi challenging the actions of DGGI and seeking refund of amount deposited by the Company.

Subsequently, DGGI issued summons dated October 01, 2021 to the authorized representatives of the Company and The Ministry of Finance, Department of Revenue vide its Circular No. 163/19/2021-GST dated October 06, 2021 provided clarification on the classification of the said item. Pursuant to the summons and the aforesaid circular, during the FY 2021-2022 the Company deposited '' 751.07 lacs under protest towards GST for the period January 01,2021 to October 10, 2021 and started collecting and depositing GST under protest on the said item from its customers w.e.f October 11,2021. During the current year, the Company has also deposited '' 448.17 lacs towards interest and '' 254.06 lacs towards penalty on the above GST paid under protest for the period July 01,2017 to October 10, 2021.

# On September 20, 2019, vide the Taxation Laws (Amendment) Ordinance 2019, the Government of India inserted Section 115BAA in the Income Tax Act,1961 which provides domestic companies a non-reversible option to pay corporate tax at reduced rates effective April 01,2019 subject to certain conditions. However, the Company has not availed the option to pay corporate tax at lower rate under section 115BAA and continues to pay corporate tax at existing tax rate of 34.94% (previous year 34.94%).

The amount of Goods and Services Tax deposited under protest (net of amount collected and deposited under protest) with the department aggregating to '' 3,443.27 lacs (previous year aggregating to '' 2,741.04 lacs) have been disclosed as recoverable in note 9 to the financial statements. Basis the legal advice obtained by the management, that the circular issued by the Government is ultra vires the provisions of the GST laws, the Company has filed writ petition on January 18, 2022 challenging the constitutional validity of imposing GST on the said item before Hon''ble High Court of Delhi.

Proceedings in respect of above matters are in progress before Hon''ble High Court of Delhi and on the basis of legal opinion obtained, the Management is confident that ultimately no liability will devolve on the Company and it will be able to get the refund of GST amount including interest and penalty thereon from the GST Department which has been paid under protest.

*** The Company has ongoing proceedings under Haryana Value Added Tax Act, 2003 in respect of Value Added Tax liability arising on account of issue regarding classification of one of the item sold by the Company for the year 2010-11 to 2016-17 in Samalkha involving amount of '' 735.20 lacs and for the year 2010-11 to 2012-13 in Hisar involving amount of '' 325.57 lacs. The Company has filed appeals against the demand orders received in respect of these proceedings, which are pending for disposal at various judicial forums.

**** Guarantees by bank on behalf of company as on March 31,2023 are excluding performance guarantees of '' 2,654.57 lacs.

There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Note 39 - Capital management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.

For the purpose of the Company''s capital management, capital includes equity capital, securities premium and all other equity reserves attributable to the equity shareholders.

The Company''s risk management committee reviews the capital structure on a quarterly basis. The committee considers the cost of capital and risks associated with the capital.

The Company is exposed to various financial risks arising from underlying operations and finance activities. The Company is primarily exposed to credit risk, liquidity risk and market risk.

Financial risk management within the Company is governed by policies and guidelines approved by the senior management and board of directors. These policies and guidelines cover credit risk, liquidity risk and market risk.

(a) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company if the counterparty defaults on its obligations.

The Company is exposed to credit risk from its operating activities, primarily trade receivables.

To manage trade receivables, the Company periodically assessess the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and ageing of such receivables.

The Company accounts for loss allowance based on its experience of write-off in the previous years.

(c) 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 risk: interest rate risk, currency risk and credit risk. Financial instruments affected by market risk include deposits. The functional currency of the Company is Indian Rupee. i) 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 long-term debt obligations (including current maturities of long-term borrowings) with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and floating interest rates on borrowings.

Note 41 - Employee benefits plans Defined benefits plans

The Company''s gratuity scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months (subject to maximum of '' 20.00 lacs). Vesting occurs upon completion of 5 years of service. The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method with actuarial valuations being carried out at each balance sheet date.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

Foreign Currency risk management

Foreign currency risk also known as Exchange Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Foreign currency risk in the Company is attributable to Company''s operating activities.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period demoninated in Rupees are as follows :

Foreign currency senstivity analysis The Company is mainly exposed to USD.

The following table details the Company''s sensitivity to a 1% increase and decrease in the Rupee against the foreign currency. The sensitivity analysis includes only outstanding foreign currency denominated monetary item as tabulated above and adjusts their translation at the period end for 1% change in foreign currency rates. A positive number indicates an increase in profit before tax or vise-versa.

Forward foreign exchange contracts

The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business. The Company manages its foreign currency risk by hedging transactions that are expected to occur within of 2 to 3 months for hedges of forecasted sales. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable that is denominated in the foreign currency.

The Company does not have any foreign currency derivatives contracts outstanding as at March 31,2023 and March 31,2022.

Defined contribution plans

The Company makes contribution towards employees'' provident fund and employees'' deposit linked insurance scheme for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes.

Note 42 - Segment reporting

The Company is engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Ethanol, Bulk Alcohol and Franchise Bottling. This is the only activity performed and is thus also the main source of risks and returns. The Company''s segments as reviewed by the Chief Operating Decision Maker (CODM) does not result into identification of different ways / sources in to which they see the performance of the Company. Accordingly, the Company has a single reportable segment. Hence, the disclosure requirments in terms of Ind AS 108 “Operating Segments” are not applicable.

Under the employee share based payment plans, certain employees were granted stock options of Globus Spirits Limited (‘GSL''). The plan was assessed, managed and administered by the GSL. Plan granted to employees are equity-settled.

The Company applied Ind AS 102 - Share based payments to share based payment transactions. Pursuant to this standard, stock options granted to the employee by GSL were measured at fair value and recognised in the Statement of Profit and Loss over the vesting period of the options and crediting other equity. The fair value of stock options was determined by the GSL using the Black Scholes option pricing model.

Note 47 - Income Tax matter

During the current year, the Income Tax Department (“the Department”) has conducted a search and seizure operation at the head office, along with other premises of the Company from January 30, 2023 to February 03, 2023 under Section 132 of the Income Tax Act, 1961. The Company has provided necessary support, co-operation and documents as requested by the Department during the search and seizure operation. As on date the Company has not received any communication from the department in this regard.

While the uncertainty exists regarding the outcome of the search and seizure carried out by the Department, the Company after considering all available information and facts as of date, has not identified the need for any adjustments in the financial statements.

Note 48 - Fair value hierarchy

None of the Company''s financial assets are measured at fair value at the end of each reporting period.

Note 49 - Dividend paid

The Company has paid final dividend amounting to '' 864.08 Lacs (? 3 per equity share (par value of ''10 each)), basis the dividend declared by the board of directors in their meeting held on May 24, 2022. The payment was made post approval by the shareholders in the Annual General Meeting (AGM) of the Company. The dividend was paid on the 5th working day from the date of declaration of the final dividend by the shareholders in the AGM.

For the financial year 2022-23, the Board of Directors recommended a final dividend of '' 6 per equity share (par value of ''10 each). This payment is subject to the approval of shareholders in the AGM of the Company.The dividend will be paid on the 5th working day from the date of declaration of the final dividend to the shareholders. The book closure date for the purpose of the payment of final dividend and AGM date will be announced in due course.

All events or transactions that have taken place between March 31,2023 and date of signing of the financial statements and for which the Indian Accounting Standard 10 - ‘Events after the Reporting Period'' (“Ind AS 10”) requires disclosure/adjustment are disclosed and/or adjusted in the financial Statements.

Note 52 - Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 25, 2023.

Note 53 - Previous year’s figures

Previous year''s figures are given in brackets and italics.

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Mar 31, 2018

Note 1 - General information and Significant Accounting Policies

Note 1.1 - General information

Globus Spirits Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act. The registered office of the Company is located at F-0, Ground Floor, The Mira Corporate Suites, Plot No. 1 & 2, Ishwar Nagar, Mathura Road, New Delhi - 110065. The Company is primarily engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Bulk Alcohol and Franchise Bottling.

Note 1.2 - Statement of compliance

These standalone Ind AS financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under the Companies (Indian Accounting Standards) Rules, 2015. The financial statements up to the year ended March 31, 2017 were prepared in accordance with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the Act (‘Previous GAAP’). These are Company’s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer note 46 for an explanation of the transition from previous GAAP to Ind AS and the effect on the Company’s financial position, financial performance and cash flows.

(c) Market risk

“Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes in market prices. Market risk com prise of three types of risk i.e interest rate risk, foreign currency risk and other price risk.Financial instruments affected by market risk include trade receivables and advances.The Company enters into derivative contracts to manage its exposure to foreign currency risk.”

Foreign Currency risk management

Foreign currency risk also known as Exchange Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Foreign currency risk in the Company is attributable to Company’s operating activities.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period demoninated in Rupees are as follows:

Forward foreign exchange contracts

The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business. The Company manages its foreign currency risk by hedging transactions that are expected to occur within of 2 to 3 months for hedges of forecasted sales. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions, the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable that is denominated in the foreign currency. All identiled exposures are managed as per the policy duly approved by the Board of Directors.

Note 2 - Employee benefits plans

Sensitivity analysis of the defined benefit obligation

The significant actuarial assumption for the determination of defined benefit obligations are discount rate and expected salary increase.

(b) Defined contribution Plans

“The Company makes contribution towards employees’ provident fund for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes.

Note 3 - Segment reporting

The Company is engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Bulk Alcohol and Franchise Bottling. This is the only activity performed and is thus also the main source of risks and returns. The Company’s segments as reviewed by the Chief Operating Decision Maker (CODM) does not result in to identification of different ways/ sources into which they seethe performance of the Company. Accordingly, the Company has a single reportable segment.

Note 4 - Information about majorcustomer

Included in revenue are revenues of approximately Rs. 37,651.63 lacs (2016-17 K 27,811.54 lacs) which arose from sales to the company’s largest customer (refer note 12). No other single customer contributed 10% or more to the company’s revenue for both 2017-18 and 2016-17.

Note 5 - Related party disclosures under Ind-AS-24 “Related Party Disclosures”

a) Subsidiaries:

Unibev Limited (Formerly known as Uber Blenders & Distillers Limited)

b) Key managerial personnel and their relatives:

Key management personnel

Mr. Ajay Kumar Swarup Mr. Shekhar Swarup Dr. Bhaskar Roy Mr. Manik Lai Dutta Mr. AjayGoyal

c) Enterprises over which key managerial personnel and / or their relatives exercise significant influence: Biotech India Limited Chandbagh Investments Limited GRAS education and training Services Private Limited Himalayan Spirits Limited Globus Spirits (Jharkhand) Limited Globus Trois Freres India Limited Globus Feeds Private Limited VC technologies Private Limited Northern India Alcohol Sales Private Limited Rajasthan Distilleries Private Limited ADL Agrotech Limited (Formerly known as Assocaited Distilleries Limited)

Note 6- Fair value hierarchy

Some of the company’s financial assets are measured at fair value at the end of each reporting period.

The following table presents fair vale hierachy of financial assets measured at fair value on a recurring basis:

During the year ended March 31, 2018, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfes in to and out of Level 3 fair value measurements.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs other than quoted prices included within level 1 that are observable for the assets or liability, either directly or indirectly.

Level 3 inputs are unobservable in puts for the assets or liability.

Note 7 (a) - Transition to Ind AS - principle and reconciliations

Overall principleThese are the Company’s first financial statement prepared in accordance with Ind AS, accordingly the Company has prepared the opening balance sheet as per Ind AS at of April 1, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the exception and certain optional exemptions availed by the Company as detailed below:

A. Mandatory exceptions Estimates

The estimates as at April 1,2016 and as at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of Indian GAAP did not require estimation:

(i) Fair value through profit or loss (FVTPL) - unquoted equity shares

(ii) Impairment of financial assets based on expected credit loss modelThe estimates used by the Company to present these amounts are in accordance with the Ind AS which reflects conditions as at April 1,2016, the date of transition to Ind AS and as at March 31,2017.

Derecognition of financial assets and financial liabilities

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after transition date.

Classification and measurement of financial instruments (I) Financial Instruments: (Security deposits)

Financial assets / liabilities like security deposits has been classified and measured at amortised cost on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

{II) Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

B. Optional exemptions

Deemed cost for property, plant and equipment and intangible assets

The Company has opted to measure all of its property, plant and equipment and intangible assets at the fair value and use that fair value as its deemed cost.

I nvestment i n eq u ity shares of su bsidiaries at deemed cost

The Company has opted to measure its investment in subsidiary at their previous GAAP carrying value in separate financial statement and use that carrying value as deemed cost.

Determining whether an arrangement contains a lease

Append ixC to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements based on conditions in place as at the date of transition.

Designate of previously recognised financial instrument

The Company has elected this exemption and opted to designate financial asset at FVTPL as per Ind AS 109 based on facts and circumstances that exist as on transition date.

Note: -

(a) Leasehold land

Under previous GAAP, the leasehold land was considered as part of property, plant and equipment as being long lease, accordingly in the financial year 2016-17 no amortisation was charged. As per Ind AS-17 leasehold land of Rs.1,056.48 lacs has now been classified as operating lease and the premium paid on leasehold land is amortized over the period of the lease which amounts to Rs.10.72 lacs in financial year 2016-17. The proportionate unamortized amount of Rs. 17.83 lacs upto the date of transition is adjusted against retained earnings in the opening balance sheet.

(b) Property, plant and equipment

The Company has elected to recognise its Property, plant and equipment (PPE) at fair value as on April 1, 2016 and use that as its deemed cost as of transition date. As on the transition date such fair value adjustment resulted in net increase of PPE by Rs. 40.65 lacs with corresponding increase in retained earnings. Depreciation amounting toRs. 400.66 lacs in financial year 2016-17 has been adjusted in the statement of prof it and loss. The fair value adjustment resulted in increase of freehold land by Rs.1,543.63 lacs and decrease of other PPE By Rs.1,502.98 lacs which resulted in deferred tax income of Rs. 160.55 lacs.

(c) Intangible Assets

Under previous GAAP, knowhow and new brand development was being amortised. Under the Ind AS 38, such intangible assets fair valued as at the transition date and accordingly, the intangible assets have been written down to Rs. Nil. Consequently, Rs.1 ,443.30 lacs has been charged off from Retained earnings as on the transition date and Rs. 721.64 has been adjustment has been passed for reversal of amortisation booked under Indian GAAP for the year ended March 31,2017.

(d) Investments

Under the previous GAAP, long term investments were measured at cost less diminuition which is other than temporary. Under Ind AS 40, these financial assets have been classified as FVTPL. On the transition date these financial assets have been measured at their fair value which is greater than the cost as per previous GAAP, resulting in increase in carrying amount byRs. 2.69 lacs as at transition date with resulting gain adjusted in retained earnings.

(e) Capital subsidy

Under the previous GAAP, Capital subsidy was treated as part of retained earnings treating the same in the nature of Pro motor contribution, now under Ind AS 20 the same has been deferred as subsidy received and to be amortised over the period of related property, plant and equipment. The resulting amount for the period ended March 31,2017 amounting to Rs. 181.84 lacs is treated as deferred liability

(f) Borrowings

Under previous GAAP, transaction costs incurred in connection with long term borrowings were charged off in the year of borrowing. Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the statement of profit and loss over the tenure of the borrowings as part of interest expense using effective interest rate method. The resulting net impact of Rs. 11.76 lacs is charged in the statement of profit and loss for the year ended March 31,2017.

(g) Security deposits

Under the previous GAAP, interest free security deposits given were recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Difference between the fair value and transaction value of the security deposits has been recognised as prepaid expenses and is amortised over the period of security deposit on straight line basis. Notional interest income on such deposits is recognised over the security period using effective interest method. The resulting net impact of Rs. 4.33 lacs is charged in the statement of profit and loss for the year ended March 31,2017.

(h) Actuarial gains/losses on defined benefit obligation

Under previous GAAP in respect of defined benefit plan, actuarial gains and losses were recognised in the statement of profit or loss. Under Ind AS, the actuarial gains and losses forming part of re-measurement of the net defined benefit liability / asset is recognised in other comprehensive income. The tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of the statement of profit and loss. There is no impact on the total equity

(i) Excise duty

Under previous GAAP, revenue from sale of goods was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of goods includes excise duty. The corresponding excise duty expense of Rs.33,396.24 lacs is presented separately on the face of the statement of profit and loss. The change does not affect total equity as on April 1,2016 and March 31,2017 and the profit for the year ended March 31,2017.

(j) Other comprehensive income

Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains, or losses are required to be presented in other comprehensive income.

(k) Deferred tax assets / liabilities

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has accounted for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings ora separate component of equity. Such adjustments amounting to Rs. 270.33 lacs as at March 31,2017 andRs. 652.24 lacs as at April 01,2016.

(I) Rebate and discount

Under previous GAAP, rebate and discount was shown under other expenses. However, under Ind AS, sale of goods is presented net of discount of Rs. 1,487.91 lacs. Thus sale of goods under Ind AS has decreased for the year ended March 31,2017 with a corresponding decrease in other expenses. The change does not affect total equity as on April 1,2016 and March 31,2017 and profit for the year ended March 31,2017.

(m) Recognition of Mark to Market (MTM) gain/loss of foreign forward exchange contracts through profit or loss. (As at April 01, 2016 : Rs. 5.25 lacs andRs. 5.65 lacs for the year ended March 31,2017)

(n) The transition from Indian GAAPtolnd-AS had no significant impact on cash flows generated by the Company

Note 8 - Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 21,2018.

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Mar 31, 2016

(ii) Terms/ rights attached to equity shares

The Company has only one class of equity shares entitled to one vote per share.

(iii) Conversion of cumulative compulsorily convertible preference shares (CCCPS) into equity shares 5,038,168, 4.75% CCCPS of Rs. 140 each allotted to Templeton Strategic Emerging Markets Fund IV, has been converted into equity shares of the face value of Rs.10 each at a premium of Rs. 130 each on 18 September, 2014 and accordingly 5,038,168 equity shares of Rs. 10/- each has been allotted to Templeton Strategic Emerging Markets Fund IV.

(iv) Details of shares held by each shareholder holding more than 5% shares:

Note 1 Previous year''s figures

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

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Mar 31, 2015

1 Corporate information

Globus Spirits Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act. The Company is primarily engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and Franchise Bottling.

2.1 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises De velopment Act, 2006

There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no interest has been paid under the terms of MSMED Act, 2006. Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

2.2 Details on derivative instruments and unhedged foreign currency exposures:

Forward exchange contracts, which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency available at the settlement date of certain receivables.

3.1 Defined contribution plans

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 32.43 lac (Year ended 31 March, 2014 Rs. 29.53 lac) for Provident Fund contributions, and Rs. 2.33 lac (Year ended 31 March, 2014 Rs. 2.89 lac) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.2 Defined benefit plans

The Company's defined benefit scheme represents gratuity scheme for its employees:

The following table sets out the funded status of the defined benefit scheme and the amount recognised in the financial statements:

Note 4 Previous year's figures

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

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Mar 31, 2014

1 Corporate information

Globus Spirits Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act,1956. The Company is primarily engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and Franchise Bottling.

Note 2 Additional information to the financial statements

2.1 Money received against share warrants

The Board of Directors of the Company at their meeting held on 7January, 2013 and as approved at its Extra ordinary General Meeting held on 6 February, 2013 have resolved to create, offer, issue and allot up to 1,428,572 warrants, convertible into e quivalent number of equity shares of Rs.10 each on a preferential allotment basis, pursuant to Section 81(1A) of the Comp anies Act, 1956, at a conversionp rice of Rs.140 per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently 763,359 warrants were allotted on 19 March, 2013 to the Promoters and 25% application money amounting to Rs.267.17 lacs was received from them. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before 18 September, 2014. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

2.2 Contingent liabilities and commitments (to the extent not provided for)

(Rs. in lacs)

As at As at 31 March, 2014 31 March, 2013

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debt Excise duty matters 180.81 38.75

Income tax matters 215.44 -

Other matters 75.86 -

(b) Guarantees

Guarantees by bank on behalf of company 367.33 13.79

(ii) Commitments

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

Tangible assets 233.09 -

2.3 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no interest has been paid under the terms of MSMED Act, 2006. Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

2.4 Details on derivative instruments and unhedged foreign currency exposures:

Forward exchange contracts, which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency available at the settlement date of certain receivables.

3.1 Defined contribution plans

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 29.53 lacs (Year ended 31 March, 2013 Rs.34.10 lacs) for Provident Fund contributions, and Rs.2.89 lacs (Year ended 31March, 2013 Rs.3.20lacs) forEmployee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.2 Defined benefit plans

The Company''s defined benefit scheme represents gratuity scheme for its employees:

The following table sets out the funded status of the defined benefit scheme and the amount recognised in the financial

The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.

The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

* Information pertaining to experience adjustment have been furnished to the extent available with the Company.

Segment information

Based on the guiding principles given in Accounting Standard on ''Segment Reporting'' (AS-17), the Company''s primary business segment is Industrial and Potable Alcohol. The alcohol business incorporates product groups viz. IMIL, IMFL, Bulk Alcohol and Franchise operations, which mainly have similar risks and returns. As the Company''s business activity falls within a single primary business segment the disclosure requirements of AS -17 in this regard are not applicable.

Note 4 Related party transactions

4.1 Details of related parties:

Description of relationship Names of related parties

(i) Associates Chandbagh Investments Limited

(ii) Key Management Personnel (KMP) Mr. Ajay Kumar Swarup

Mr. Shekhar Swarup

Dr. Bhaskar Roy

Mr. Manik Lal Dutta

Mr. R.D Aggarwal- Up to November 11, 2013

(iii) Relatives of Key Management Personnel (KMP) Mrs. Madhavi Swarup- Wife of Mr. Ajay Kumar Swarup

Mrs. Saroj Rani Swarup- Mother of Mr. Ajay Kumar Swarup Mrs. Pratima Roy- Wife of Dr. Bhaskar Roy Mrs. Anju Aggarwal- Wife of Mr. R.D Aggarwal

(iv) Entities in which KMP can exercise Biotech India Limited

significant influent Chandbagh Investments Limited

GRAS education and training Services Private Limited

Himalayan Spirits Limited

Globus Spirits (Jharkhand) Limited

Globus Trois Freres India Limited

Globus Feeds Private Limited

V C technologies Private Limited

Northen India Alcohol Sales Private Limited

Rajasthan Distilleries Private Limited

Associated Distilleries Limited

4.2 Based on projections for future taxable income, which has been approved by the Board of Directors, Minimum Alternate Tax (MAT) Credit of Rs.1,287.98 lacs (including Rs.1,195.95 lacs pertaining to earlier years) has been recognised during the year.

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

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Mar 31, 2013

Corporate Information

Globus Spirits Limited (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act,1956. The Company is primarily engaged in the business of alcohol industry including Indian Made Indian Liquor( IMIL), Indian Made Foreign Liquor( IMFL), IMFL Francise Bottling and Bulk Alcohol.

1. Taxes on Income

(i) Current tax is the provision made for the MAT payable during the year in accordance with the provisions u/s 115JB of the Income Tax Act, 1961

(ii) Current Tax is determined as per the provisions of the Income Tax Act, 1961 in respect of Taxable Income for the year. Deferred tax is recognized, on timing differences, being the difference resulting from the recognition of items in the fnancial statements & in estimating its current income tax provision. Deferred Tax Assets and Deferred Tax Liabilities are computed by applying tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet Date.

2. Related party disclosures as required in terms of “Accounting Standard - 18” are given below :

(i) Key Management Personnel Sh. Ajay K. Swarup

(ii) Associate Companies M/s Biotech India Limited

M/s Rajasthan Distilleries Pvt. Ltd.

M/s Associated Distilleries Ltd.

M/s Chandbagh Investments Ltd. (No transaction done during the year)

3. Contingent Liabilities not provided for:-

a Contingent Liabilities not provided in the book of account of Rs.38,75,173/- Security executed in favour of Excise authorities for bottling case pending before the high court for Punjab & Haryana which is related to Demerged undertaking of M/s Associated Distilleries Ltd.

b Bank Guarantees issued by the Company in favour of various parties amounting to Rs.1,378,820/-

4. Deferred Revenue Expenditure

“Deferred revenue- Brand Promotion Expenses” appearing in Asset side in the Balance Sheet are the expenditure incurred on promoting company''s new IMFL brands already launched during the year 2007 and which have perpetual beneft to the company and thus it was shown under the head Deferred revenue- Brand Promotion Expenses, which is being written off in fve years & the current year being the ffth year, thus it is fully written off.

5. SSI Liabilities

As explained, there is no amount due to small-scale industries over Rs. 1 lac shown under the head “sundry Creditors”

6. Balances of Debtors, Creditors and Advances to and from parties are subject to Reconciliation and confrmation.

7. In the opinion of the Board, the value of Current Assets, Loans & Advances in the ordinary course of business will not be less than the value at which they have been stated in the Balance Sheet.

8. The proft & loss account and Balance sheet comply with Accounting Standard referred to in section 211 (3C) of the Companies Act, 1956

9. Insurance claim which are of not signifcant value are accounted for on receipt basis.

10. An Inter unit transaction of Rs.6075.51lacs for the FY2012-13 (Rs.5045.25lacs for the FY2011-12) towards generation & consumption of steam & energy has been deducted from total turnover & also deducted from manufacturing expenses under the sub-heading consumption of power & fuel. However till the period ending 31st December 2012, we used to include the fgure for “generation & consumption of steam & energy” in the turnover side & consumption of power & fuel side. Hence the new practice has been adopted & given effect in the abovementioned quarter ending & year ending results for their proper comparision.

11. Previous year fgures have neen regrouped where necessary to conform to revised schedule VI requirement

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Mar 31, 2012

(a) Contingent Liabilities and Contingent Assets (AS-29)

Contingent Liabilities not provided in the book of account of Rs.SSJSJTS/- Security executed In favour of Excise authorities for bottling case pending before the high court for Punjab & Haryana which Is related to Demerged undertaking of IWs Associated Distilleries Limited.

(b) SSI Liabilities

As explained' there Is no amount due to small-scale industries over Rs.1 Sac shown under the head "sundry Creditors*

(c) Cash Flow Statement

Cash flows are reported using the indirect method' whereby profit before tax is adjusted for the effects of transactions Of a non-cash nature' any deferrals Or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating' investing and financing activities of the Company are segregated.

(b) Foreign Currency Transaction

(I) Transaction denominated in foreign currants a re recorded at the exchan gerate prevai tin g on the date of the transaction or that approximates the actual rate at the date of the transaction.

(II) Monetary Items denominated in foreign currencies at the year end are restated at year end rates' in case of items which are covered by forward exchange contracts' the difference between the year end rate and rate on the date of the contract is recognized as exchange difference end the premium paid on forward contracts is recognized over the life of the contract.

(e) Capital commitment related to capacity expansion is Rs. S1 S.94 lac as on 31st March 2012.

(f) Related party disclosures as required in terms of "Accounting Standard -18th are given below:

(i) Key Ma pavement Personnel Sh. Ajay K. Swarup

(ii) Associate Companies M/s Biotech India Limited

M/s Rajasthan Distilleries Pvt. Ltd.

M/s Rambagh Estates Pvt. Ltd.

M/s Chandbagh Investments Ltd. (No transaction done during the year)

(g) Previous year figures have been regrouped where necessary to conform to revised schedule VI requirement

(h) Balances of Debtors' Creditors and Advances to and from parties are subject to Recndliation and confirmation'

(i) In the opinion of the Board' the value of Current Assets' Loans & Advances in the ordinary course of business will not be less than the value at which they have been stated in the Balance Sheet.

(j} The profit & loss account and Blaine sheet com ply with Accountings Standard nefierre d to in section 211 (3C) of the Companies Act 1956 insurance claim which are of not significant value are accounted for on receipt basis.

k. attached to equity sharw*

The company has only one class of equity shares having a par value of Rs. 10 per Shane. Each holder of equity scares Is entitled to one vote per share. The company declares and pays dividend In Indian Rupees. The dividend proposed by the board of directors is subject to approval of the shareholder* in the ensuing Annual General Meeting.

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Mar 31, 2011

1. Demerger of Demerged undertaking of Associated Distilleries Limited(Demerged Company) into Globus Spirits Limited (Resulting Company)

During the current year Pursuant to the scheme of Arrangement provided for demerger of Demerged Undertaking of Associated Distilleries Limited ("Transferor Company") into Globus Spirits Limited ("Transferee Company") which has been applied u/s 391 to 394 and other relevant provisions of the Companies Act, 1956 vide CA (M) No. 37 of 2011 dated 17th February 2011 and sanctioned by Hon'ble High court of Delhi vide order dated 24th August 2011, the demerger has been taken place w.e.f. 01st April 2010 ("The Appointed Date"). The salient particulars of the scheme and the related accounting treatment are as under: · Pursuant to the scheme, the entire undertaking of Associated Distilleries Limited consisting of assets situated at

Hisar - Haryana (except Freehold Land, Road, Building and Mandir) and liability stood transferred and become vested with the Globus Spirits Limited. The following assets & liabilities of Demerged undertaking of Associated

On and from the appointed dated, all the assets (except Freehold Land, Road, Building and Mandir) and liabilities pertaining to the Demerged Company have been recorded in the book of the company At Book Value.

Pursuant to Demerger, Upon Scheme becoming effective and without any further application, act or deed, the Transferee Company, in consideration of the transfer and vesting of the Demerged Undertaking in the Transferee Company, the Transferee Company shall issue and allot to the members of the Transferor Company ("Members"), 6 (Six) equity shares of Rs. 10/- each for every 1 (one) fully paid equity share of Rs.10/- each held by the Member whose names appear in the Register of Members of the Transferor Company, as on the Record Date, fixed in respect of the Transferor Company or to such of their respective heirs, executors, administrators or other legal representatives or other successors in title as may be recognized by the Board of Transferor Company. Hence Rs.3,24,00,000/- has been shown in the share capital suspense account, as 32,40,000 equity shares of Rs.10/- each to be allotted on 03/10/2011 to the shareholders of transferor company holding 5,40,000 equity shares of Rs.10/- each in Associated Distilleries Limited.

The excess of aggregate value of asset over aggregate value liabilities of the Demerged Undertaking, over the the aggregate value of the equity share issued and allotted is Rs.667,46,687 which is transferred to Revenue Reserve as specified in para 16(d) of the Scheme approved by Hon'ble High court of Delhi.

On and from the appointed dated, all the assets (except Freehold Land, Road, Building and Mandir) and liabilities pertaining to the Demerged Company have been recorded in the book of the company At Book Value. · Pursuant to Demerger, Upon Scheme becoming effective and without any further application, act or deed, the Transferee Company, in consideration of the transfer and vesting of the Demerged Undertaking in the Transferee Company, the Transferee Company shall issue and allot to the members of the Transferor Company ("Members"), 6 (Six) equity shares of Rs. 10/- each for every 1 (one) fully paid equity share of Rs.10/- each held by the Member whose names appear in the Register of Members of the Transferor Company, as on the Record Date, fixed in respect of the Transferor Company or to such of their respective heirs, executors, administrators or other legal representatives or other successors in title as may be recognized by the Board of Transferor Company. Hence Rs.3,24,00,000/- has been shown in the share capital suspense account, as 32,40,000 equity shares of Rs.10/- each to be allotted on 03/10/2011 to the shareholders of transferor company holding 5,40,000 equity shares of Rs.10/- each in Associated Distilleries Limited. · The excess of aggregate value of asset over aggregate value liabilities of the Demerged Undertaking, over the the aggregate value of the equity share issued and allotted is Rs.667,46,687 which is transferred to Revenue Reserve as specified in para 16(d) of the Scheme approved by Hon'ble High court of Delhi.

With effect from the Appointed Date and upto the Effective Date:- The Transferor Company shall be deemed to have been carrying on all business and activities relating to the Demerged Undertaking and stand possessed of the properties to be transferred to Transferee Company for and on account of and in trust for Transferee Company .account of and in trust for Transferee Company .

All income, receipts, profits of whatsoever nature accruing to the Transferor Company or losses,expenses and payments of whatsoever nature arising or incurred by it relating to the Demerged Undertaking shall for all purposes, be treated as profits, income, receipts, or losses, expenses, payments, as the case may be, of the Transferee Company .

Tax Deducted at Source (TDS), if any, by the Transferee Company under the Income Tax Act, in respect of the payments made by the Transferee Company to the Transferor Company, on or after the Appointed Date, which pertain to the Demerged Undertaking, shall be treated as advance tax paid by the Transferee Company and accordingly, the Transferee Company shall be entitled to claim the the credit for such TDS as advance tax paid , notwithstanding the fact that the challans or deposit receipts are towards TDS. The TDS certificate(s), if any, issued by the Transferee Company to the Transferor Company for such payments shall stand cancelled without any further act or deed and no credit on such TDS certificates shall be made available to the Transferor Company on the Scheme becoming effective.

It is specifically declared that the tax deducted at source (TDS) from the income of the Demerged Undertaking of the Transferor Company, in terms of the provisions of Chapter XVII of the Income Tax Act or any advance tax paid by the Transferor Company in respect of the Demerged Undertaking, for the period beginning from the Appointed Date and ending as on the Effective Date, shall be deemed to be tax paid by the Transferee Company and the Transferee Company shall be entitled to claim credit for such taxes deducted or paid, whether by way of TDS or advance tax, notwithstanding that certificates / challans or other documents for payment of such taxes are in the name of the Transferor Company and not in the name of the Transferee Company.

2. Segment Reporting

In the opinion of the management, company is involved in only one type of product Industrial & Potable Alcohol as envisaged by AS 17 'Segment Reporting', prescribed by the Companies (Accounting Standards) Rules, 2006. Accordingly, no separate disclosure for segment reporting is required to be made in the financial statements of the Company.

Secondary segmentation based on geography has not been presented as the Company operates primarily in India and the Company perceives that there is no significant difference in its risk and returns in operating from different geographic areas within India.

3. Deferred Revenue Expenditure:

"Deferred revenue- Brand Promotion Expenses" appearing in Schedule G in the Balance Sheet are the expenditure incurred on promoting company's new IMFL brands already launched during the year 2007 and which will give perpetual benefit to the company and thus it is shown under the head Deferred revenue- Brand Promotion Expenses, which is being written off in five years.

4. Related party relationships and transactions

In accordance with the Accounting Standards (AS-18) on Related Party Disclosures, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, along-with description of relationship as identified, are given below:-

A. Relationships

I. Subsidiary Company NIL

II. Joint Venture/Joint Control Associates NIL

III. Key Management Personnel

Name Designation

Sh. Ajay K. Swarup Managing Director

IV. Associates

M/s Chandbagh Investments Limited (Holding Company) (no transaction has been entered into during the period) M/s Rambagh Estates Private Limited.

5. Taxation

A) Current tax is the provision made for the MAT payable during the year in accordance with the provisions under section 115JB of the Income Tax Act, 1956.

B) Deferred tax is recognized, on timing differences, being the difference resulting from the recognition of items in the financial statements & in estimating its current income tax provision.

C) Deferred tax assets are recognized on unabsorbed depreciation to the extent there is virtual certainty supported by convincing evidence & on others to extent that there Is reasonable certainty of their realization

D) Deferred tax assets & liabilities are measured using the tax rates & the laws that have been enacted or substantially enacted at the balance sheet date.

6. Impairment of Assets

The indicators listed in paragraph 8 of Accounting Standard (AS)-28 " impairment of assets " issued by Institute of Chartered Accountants of India have been examined & on such examination , it has been found that none of the indicators are present in the case of company . There is no indication of a potential impairment loss, so estimation of recoverable amount has not been made.

7. Contingent Liability:

Contingent Liabilities not provided in the book of account of Rs.38,75,173/- Security executed in favour of Excise authorities for bottling case pending before the high court for Punjab & Haryana which is related to Demerged undertaking of M/s Associated Distilleries Limited.

8. Guarantees:

The FDR's amounting to Rs.28,03,188/- are under the lien of bank. NSC of Rs.50,000/- is with directorate of Industries which is also related to Demerged undertaking of M/s Associated Distilleries Limited.

9. In the opinion of the Board, the value of Current Assets, Loans & Advances in the ordinary course of business will not be less then the value at which they have been stated in the Balance sheet.

10. Balances of Debtor & creditors and Advances to and from parties are subject to Reconciliation & Confirmation which pertains to both Demerged company & Resulting company.

11. The amount falling due with in one year in respect of secured loans is Rs. 5,08,65,262/- which pertains to both Demerged company & Resulting company.

12. There is no amount due to small-scale industries over Rs.1 lac shown under the head "Sundry Creditors"

13. The profit & loss account and Balance sheet comply with accounting standards referred to in section 211(3C) of the companies Act 1956.

14. Insurance claims which are of not significant value are accounted for on receipt basis.

15. Figures for the financial year 2010-2011 are post-demerger of demerged undertaking of Associated Distilleries Limited into Globus Spirits Limited & hence not comparable with those of the previous year figures.

16. Figures has been rounded off to the nearest rupee.

17. Other information pursuant to para 3 to 4D of part–II of schedule VI of the Companies Act 1956 has not been furnished as the same is not applicable.

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Mar 31, 2010

1. In the opinion of the Board, the value of Current Assets, Loans & Advances in the ordinary course of business will not be less then the value at which they have been stated in the Balance sheet

2. Balances of Debtor & creditors and Advances to and from parties are subject to Reconciliation & Confirmation

3. The amount falling due with in one year in respect of secured loans is Rs.4,86,00,000/-.

4. The profit & loss account and Balance sheet comply with accounting standards referred to in section 211 (3C) of the companies Act 1956.

5. Accounting Standard (AS) -17 "Segment Reporting " is not applicable in case of company because company is involved in only one type of product Industrials Potable Alcohol.

6. There is no amount due to small-scale industries over Rs.1 lac shown under the head "sundry Creditors"

7. "Deferred revenue- Brand Promotion Expenses" appearing in Schedule G in the Balance Sheet are the expenditure incurred on promoting companys new IMFL brands already launched during the year 2007 and which will give perpetual benefit to the company and thus it is shown under the head Deferred revenue- Brand Promotion Expenses, which is being written off in five years.

8. During the year the company has raised Rs.75crores through the initial public issue of 75,00,000 equity shares of Rs.10/- each at a premium of Rs.90/- per equity share for the purpose of expansion of capacity & modernization of existing distilleries. The expenditure incurred towards IPO to the tune of Rs. 12,57,83,784/- is being shown under the head Capital work-in-progress & it will be capitalized as & when the upcoming project will be completed.

9. In accordance with the Accounting Standards (AS-18) on Related Party Disclosures, where control exists and where key management personnel are able to exercise significant influence and, where transactions have taken place during the year, along-with description of relationships identified, are given below :-

A. Relationships

I. Subsidiary Company NIL

II. Joint Venture/Joint Control Associates NIL

III. Key Management Personnel

Name Designation

Sh.AjayK. Swarup Managing Director

IV. Associates

M/s Chandbagh Investments Limited (Holding Company) (no transaction has been entered into during the period)

M/s Associated Distilleries Ltd. (ADL)

M/s Rambagh Estates Private Limited.

10. Taxation

A) Current tax is the provision made as per the normal income tax rate.

B) Deferred tax is recognized, on timing differences, being the difference resulting from the recognition of items in the financial statements & in estimating its current income tax provision.

C) Deferred tax assets are recognized on unabsorbed depreciation to the extent there is virtual certainty supported by convincing evidence & on others to extent that there Is reasonable certainty of their realization

D) Deferred tax assets & liabilities are measured using the tax rates & the laws that have been enacted or substantially enacted at the balance sheet date.

11. The indicators listed in paragraph 8 of Accounting Standard (AS)-28" impairment of assets" issued by Institute of Chartered Accountants of India have been examined & on such examination , it has been found that none of the indicators are present in the case of company. There is no indication of a potential impairment loss, so estimation of recoverable amount has not been made.

12. Insurance claims which are of not significant value are accounted for on receipt basis.

13. Previous years figures has been regrouped, rearranged & reworked wherever necessary to make them comparable with the current year figures.

14. Figures has been rounded off to the nearest rupee.

15. Other information pursuant to para 3 to4D of part-II of schedule VI of the Companies Act 1956 has not been furnished as the same is not applicable.