1.1 The Company announced a Voluntary Retirement Scheme (VRS) for the
employees of one of the units during the year. A sum of Rs. 285.95 Lakh
(Previous year Rs. Nil) has been paid under VRS during the year and is
included in Salaries, Wages & Bonus
1. The Company''s operations are diversified into two main business
segments, namely :
a) Spirit, Liquor and Spirituous Beverages comprising of Rectified
Spirit, Country Liquor and Indian Made Foreign Liquor.
b) Marine division comprising of Marine products processing & exports,
domestic selling and Marine Feed trading.
2. Segments have been identified and reported in accordance with
Accounting Standard 17 Segment Reporting.
3. Segment Revenue in each of the above domestic Business Segments
primarily includes sales, processing charges and export incentives in
the respective segments.
4. Segment Revenue, Results, Assets and Liabilities include the
respective amounts identifiable to each of the segment and amounts
allocated on a reasonable basis.
2. The Company has entered into arrangements with certain bottling
units (tie -up units) in Assam, Orissa & Bihar for production and
marketing of its own IMFL brands. The production in the premises of
tie-up units under the said arrangements, wherein each party''s
obligations are stipulated, is carried out under the Company''s close
supervision. The marketing is entirely the responsibility of the
Company. The Company is also required to ensure adequate finance to the
tie-up units, whenever required. Though under the agreements, the
production and sale are accounted for by and in the books of the tie-up
units, the Company promotes its brands through these arrangements.
Accordingly, it is considered appropriate to disclose the following
quantitative and value information for the year, as furnished by the
iii) The balance due from tie-up units, of Rs. 572.52 Lacs (31.03.2011:
Rs. 402.36 Lacs) is included under Advances (Note 18). This is on
account of the financing by the company of inventories, debtors and
other current assets net of current liabilities on behalf of the units.
3. Contingent Liabilities and Commitments (to the extent not provided
(Rs. in Lacs)
A) Claims against the company not
acknowledged as debts
i) Show Cause Notice issued by Customs
Department against the Marine Division 210.53 210.53
of the Company. The Company had filed
suitable reply and also faced personal
hearing. The adjudication order is
still awaited. The Company is of
the considered view that the demand
is not sustainable.
ii) Demand raised by Excise Department
for payment of duty not acknowledged by 10.95 10.95
the company, being not sustainable in the
Company''s considered view. Matter
pending with Commissioner of Excise,
Government of West Bengal.
iii) Demand raised by Sales Tax
Department under West Bengal Sales
Tax Act 1994 2564.88 906.47
for the years 2004-05, 2005-06,
2006-07, 2007-08 and 2008-09,
Central Sales Tax Act 1956 for 2005-06
and 2007-08 and under West Bengal
VAT Act, 2003 for the years 2005-06,
2006-07, 2007-08 and 2008-09 for
payment of duty including interest and
penalty, not acknowledged by the
company being not sustainable in the
Company''s considered view. Matters
pending under appeal with
West Bengal Commercial Taxes Appellate
and Revisional Board/Additional
Commissioner of Commercial Taxes,
Total 2,786.36 1,127.95
B) Other moneys for which the company is
i) Letters of Credit issued by Bankers 1.60 114.91
ii) ESI liability for the period April
1997 - March 2011, pending renewal - 15.97
of exemption at Noorpur Factory
Total 1.60 130.88
C) Disputed income tax demand outstanding for the Assessment year
2009-10 is Rs. 914.46 Lacs (31.03.2011: Rs. Nil) which is not
acknowledged as debt by the Company and the appeal is pending for
adjudication before CIT (Appeals). Based on certain decisions of the
appellate authorities and the interpretation of the relevant
provisions, the company has been legally advised that the demand is
likely to be either deleted or substantially reduced and accordingly no
provision has been made.
Estimated amount of Capital Contracts remaining to be executed and not
provided for (net of advances) Rs. 14.99 Lacs (previous year Rs 770.55
4. Trade Receivables, Advances, Deposits and Trade Payables are
subject to confirmation.
5. In terms of Article 76 of the Article of Association of the
Company, Mr. Bijon Nag is a permanent Director of the Company. As he
does not seeks re-appointment by rotation, the Company is of the
opinion that the provisions of Section 274(1)(g) of the Companies Act,
1956 are not applicable to him.
6. As notified by the Ministry of Corporate Affairs of the Government
of India, revised Schedule VI under the Companies Act, 1956 is
applicable to all financial statements for the financial year
commencing on or after 1st April, 2011. Accordingly, the financial
statements for the year ended 31st March, 2012 are prepared in
accordance with the aforesaid revised Schedule VI.
7. Previous year''s figures have been regrouped/reclassified to
conform to the current year''s classification, wherever considered