a) Accounts are prepared on accrual basis, as required by the Companies
Act, 1956, except where otherwise stated.
b) Fixed assets and Depreciation:
Fixed assets are stated at historical cost less depreciation.
Depreciation is provided on the straight-line method, at rates and in
the manner specified in Schedule XIV of the Companies Act, 1956, except
in the case of immovable assets on leasehold premises, which are
amortised over the lease period.
Long term investments are stated at cost. Provision for diminution is
made to recognise decline (other than temporary) in the value of the
investments, if any.
i) Raw materials and packing materials are valued at lower of cost or
net realisable value. Cost is based on monthly weighted average rates.
ii) Semi finished goods are valued at lower of cost or net realisable
value. Cost is based on weighted average rates and includes
proportionate manufacturing overheads.
iii) Finished goods are valued at lower of cost and estimated net
realisable value. Cost is based on weighted average rates and includes
proportionate manufacturing overheads and excise duties wherever
iv) Stores and loose tools are valued at cost.
e) Foreign Currency Transactions:
Foreign currency transactions are generally accounted at exchange rates
prevailing on the date the transaction takes place, and differences, if
any arising on settlement are adjusted in the Profit & Loss
account/other accounts as appropriate.
Outstanding foreign currency transactions at the year-end are restated
at year end rates and differences if any are adjusted to the Profit &
Loss account/other accounts as appropriate.
f) Revenue Recognition:
Turnover comprises sale of beer and is net of quantity related trade
discounts wherever applicable. Revenue on sale of goods is recognised
on despatch of goods to the customer. In the case of sale of services,
revenue is recognised upon completion of service.
g) Income Tax:
(i) The Company accounts for tax liability, if any, postponed to future
period on account of timing differences which occur as a result of
items being allowed for income tax purposes during a period different
from that when they are recognised in the financial statements. Such
liability is quantified using the tax rates expected to prevail at the
time the difference reverses.
(ii) The Company also considers in its accounts the amount of tax
reduction, if any, on account of deductible timing differences and
carry forward of all unused tax losses subject to the management's
perception of certainty of sufficient taxable profit to allow all or
part of the deferred tax to be utilised.
(iii) Income tax comprises current taxes computed in accordance with
the provisions of the relevant tax statutes as adjusted for deferred
taxes described in (i) and (ii) above
Rentals paid under operating leases are recognised as expense in the
income statement on a straight line basis over the period of the lease.
Rentals on assets taken on financial leases, which commenced prior to
1st April, 2001 are also recognised as expenditure in the revenue
account on a straight line basis over the term of the lease. Assets
taken on financial leases after 1st April, 2001 are capitalised at
their fair value at the inception of each lease and depreciated in
accordance with the Company's policy in para 15 (b) above. The
corresponding principal amount payable to the lessor is shown as a
liability. Lease payments are apportioned between finance charges and
reduction of lease liability so as to achieve a constant rate of
interest. The interest element of the rental obligations pertaining to
each financial year is charged to the income statement over the period
of the lease.
i) Retirement benefits:
The Company has various schemes of retirement benefits such as
Provident Fund, Superannuation Fund and Gratuity Fund duly recognised
by Income Tax Authorities. The Company's contribution towards such
funds are charged against revenue every year.
The Gratuity and Superannuation Fund benefits are administered by the
Trusts formed for their purpose through the Group Scheme of Life
Insurance Corporation of India.
j) Segment information:
The Company's internal organisation and management is structured based
on individual products and services which are similar in nature and
process and where the role and return are similar. The primary segment
represent the internal business structure as indicated above.
The secondary segments are determined based on the Company's
geographical spread of operations. The analysis of turnover and profits
are based on location of customers and assets respectively.
k) Earning per share
Basic Earnings per Share is calculated by dividing the net loss as
adjusted for prior period items for the year attributable to ordinary
shareholders of the Company by the weighted average number of ordinary
shares in issue during the year.
The weighted average number of ordinary shares in issue during the year
and the previous year are adjusted for events that have changed the
number of ordinary shares in issue without a corresponding change in