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.
 
 c) Investments:
 
 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.
 
 d) Inventories:
 
 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
 applicable.
 
 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 
 
 h) Leases:
 
 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
 recoveries.