To the Members
The Directors are pleased lo present the Nineteenth Annual Report and
Audited Accounts for the year ended 31stMarch'' 2012.
Lacs) (Rs. In
Gross Seles 71.375-16 52''157.77
Profit/(ioss) before Depreciation 7.014.50 6.234.03
Less: Depredation 1.229.65 694.32
ProfitZ(Loss) after Depredation 5.784.85 5''539.71
Proft /(Loss) before tax after
Extraord inary items 5''775.14 5''539.71
Less: Provision for taxation 1''200.00 1''104.01
Deferred tax 465.90 442.54
Profit/ (Loss) after tax 4''009.24 3''993.10
Balance brought forward 9''794.00 6''169.10
Profit available fdrappropriation 13''003.31 10''162.25
-Transfer to General Reserve 105.00 100.00
-Proposed Dividend 275.97 229.98
- Provision for Tax on Dividend 44.79 38.20
Balance Came forward to
Balance Sheet 13''457.55 9''794.08
During the year under review your Company reported an increase in Gross
turnover by 36.84% from Rs.521.58 Crone (Previous year)to Rs.713.75
Crore (Current year) and an increase in PBT by Rs.2.45 Crore over the
previous year and an increase in PAT by Rs.0.96 Crore over the previous
year. The EPS of the company is Rs.17.78/- as compared to Rs.17.36/- in
the previous year.
THE YEAR IN PERSPECTIVE
During the year'' your Company strengthened its presence in both the
bulk and the branded businesses In line with Its vision of being a 360p
player. The I MIL segment experienced robust growth at more than 40%''
crossing million cases for the first time and concluding the years
with 12.4 million cases. Your Company launched a new brand ''Nimboo1
in the in the Haryana market'' which within a short span of
seven months increased your Company''s market share from 20% to 27% in
the state. In Rajasthan also'' your Company improved its market share to
25%'' while retaining its leadership position in the stale of Delhi'' The
segment showed high volume growth at more than 25%'' with your
Company widening its distribution network in the states where it
Your Company stabilized the new capacities which had been commissioned
in the previous year and by end of fourth quarter was operating at 90%
capacity utilization rate. The capacities across all three units at
Behror (Rajasthan)'' Samalkha (Haryana) and Hisar (Haryana) now stand at
84.4 million litres. This will provide strong support to growth in
the branded and franchise business Incoming years and keep these
businesses insulated from any price Increases in Extra Neutral Alcohol.
MATERIAL CHANGES AFTER MARCH 31ST 2012
During the current year'' commending April 1. 2012. your Company entered
into a new franchisee contract with United Spirits Ltd'' a leading
player in the IMFL segment. The initial contract will contribute
volumes of ~0.75 million cases per year and is expected to ramp up
significantly going forward. Your Company also revived the bottling
operations for Jagatjit Industries Limited In its Samalkha unit at
Haryana following a change in the exdse policy. These arrangements
strengthen GSL''s alliances in the franchisee bottling segment and
contribute to sustaining high utilization of bulk alcohol chapattis
coupled with higher margins compared to sale of bulk alcohol
Your Company has launched a new brand French Castle in the brandy
segment (IMFLdlvision) catering to the semi-premium market This has
been Introduced in the states of Andhra Pradesh and Kerala. This Is In
line with your Company''s long-term strategy of Introducing brands in
the higher value added segments. In addition'' your Company has launched
its flagship brand County Club’ whisky In the Delhi market.
Your Directors are pleased to recombinant dividend of Re. 1.20/- i.e. 12
% per equity share of Rs. 10/- each of the Company for the year 2011-
The Company has not accepted or Invited deposits covered under the
provisions of Section 58A of the Companies Act'' 1956 read with the
Companies (Acceptance of Deposit) Rules 1975 from any person.
During the year'' Mr. Ajay K. Swarup whose period of office as Managing
Director expired on December 1''
2011 was re-appointed by the Board with effect from such date for
another term of five years. His reappointment as Managing Director of
the Company is proposed for the consent of members in the forthcoming
Annual General Meeting.
During the year Mr Shekhar Swarup was inducted In the Board as an
additional director of the Company and has been designated as Executive
Director. Per section 269 of the Companies Act'' 1956 read with schedule
XIII of the Companies Act'' 1956'' the aforesaid appointment is proposed
for the consent of members in the forthcoming Annual General Meeting.
During the year Mr. S.L.Slngh'' Mr. Vlvek Gupta and Mr. Kunal Agarwal
were also inducted In the Board as additional directors and were
designated as Non-Executive & Independent Directors of the Company.
They are also proposed to be regularized En the forthcoming Annual
General Meeting. Mr Joginder Singh DhamIJa and Mr. Santosh Kumar
Bishwal. Non-Executive & Independent Directors of the Company retire by
rotation and being eligible offer themselves for re-appointment. The
Board recommends their re-appointments.
During the year there wereno the rchangesin the of Di rectors.
As per requirement of Clause 49 of the Listing Agreement with the Stock
Exchanges'' a Compliance Report on Corporate Governance has been annexed
as part of the Annuel Report.
M/s. B. M. Chatrath & Co.'' Chartered Accountant- Statutory Auditors of
the Company had been appointed as Auditors at the last Annual General
Meeting and retire at the conclusion of the forthcoming Annual General
Meeting and being eligible'' offer themselves for re-appointment. They
have furnished a certificate to the effect'' that the ra-appoinlment'' if
made'' will be in accordance with section 224 (1B) of the Companies Act''
The notes on accounts appearing in the schedule and referred to in the
Auditors Report are self-explanatory and therefore do not call for any
further comments or explanations. There are no adverse remarks,
qualifications in the auditor''s report
PARTICULARS OF EMPLOYEES
Statement pursuant to u/s 217 (2A) of the Companies Act'' 1956 read with
the Companies (Particular of Employees) Rules'' 1975'' the name & other
particulars of the employees are as follows :-
SI. Name Age Dodgnaton Gross Qualition
1 Mr. Ajay 53 Managing 75.00000/- PGDBiH
KSwarup Dircetor P a -other (IIM Kolkata)
Further Mr. Ajay K. Swarup is holding 16''29''829 equ ty share in the
company as on 11/08/2012.
CONSERVATION OF ENERGY/TECHNOLOGY ABSORPTION/RESEARCH & DEVELOPMENT
Particulars as required under the Companies (Disclosure of particulars
in the Report of the Board of Directors) Rules 1988 aegrvenin
An nexu re I an d form part of s report.
During the year the company employed some senior and experienced
employees in its management and the Company also maintained good
relations with employees at all levels. The Directors place on record
their appreciation of the contribution made by the employees towards
the g rowth of t he Company.
Management''s discussion and analysis of financial condition and results
Management''s Discussion and Analysis Report has been annexed & forms
part of the Annual Report.
Dl rectors Responsibility Statement (Pursuant to Section 217(ZAA)
1. In preparation of the Annuel Accounts'' the applicable Accounting
Standards have been followed by the company.
2. Appropriate accounting policies have been selected and applied
constantly and have made Judgments and estimates Ihatare reasonable and
prudent so as to give a true and fair view of the State of Affairs of
the Company as at 31st March'' 2012 and of the Profrt of the Company
for the year ended 31st March'' 2012.
3. Proper and sufficient care has been taken for the maintenance of
adequate accounting records !n accordance with the provisions of the
Companies Act'' 1956'' for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities''
The Board wishes to place on record Its appreciation for the
wholehearted support and valuable co-operation extended to the company
by the Central A the State Governments'' Bankers'' Suppliers'' Associates.
Contractors'' employees and shareholders.
For and on behalf of the Board of Directors
Place: New Delhi (Dr.Bhaskar Roy) (AjayK.Swarjp)
Date: 11/08/2012 Director Finance & CFO Managing Director