1.1.  Contingent liabilities not provided for:
 
                                                     (Amount in Rs.)
 
 Particulars                               2009-2010       2008-2009
 
 a) Disputed Sales Tax demand                    Nil       49,98,258
 
 b) Disputed Income Tax demand             27,91,895       56,37,705
 
 c) Claims against the Company not 
 acknowledged as debts                   2,71,82,189             Nil
 
 d) Guarantees given by the Banks on 
 behalf of the Company                      3,90,000     2,28,15,000
 
 e) Corporate Guarantees given by the 
 Company to                            143,19,60,000   132,33,00,000 
 Banks / Financial Institutions on 
 behalf of others for loans taken 
 by them.
 
 The Company is of the opinion that based on the decisions of the
 Appellate authorities and the interpretations of the other relevant
 provisions, and as per the legal opinion obtained by it, the above
 Sales Tax and Income Tax, demands are likely to be either dropped or
 substantially reduced and hence the provision created in past would be
 adequate enough to meet any liabilities, in respect of disputed matters
 which are pending in appeals.
 
 2.0.  In terms of the Accounting Standard 17 (AS-17) Segment
 Reporting issued by the Institute of Chartered Accountants of India
 the Company has only one Segment i.e. Production and distribution of
 Wines. There is only one geographical segment. Accordingly no separate
 disclosure is made.
 
 2.1.  SECURED LOANS:
 
 (A) LOANS FROM BANKS, FINANCIAL INSTITUTIONS AND OTHERS:
 
 The loans from Banks, Financial Institutions and Others stand secured
 as under: Out of Term Loans of Rs. 119.89.45.090 :
 
 a) Loans amounting to Rs. 6,31,87,455 are secured by hypothecation of
 all current assets both present and future as well as first charge to
 lead bankers and second charge to pther consortium bankers on the fixed
 assets of the Company.
 
 b) Loan of Rs. 34,92,70,485 is secured by first pari passu charge over
 all immovable assets of the Company.
 
 c) Loan of Rs. 48,66,31,078 is secured by subservient charge over
 Companys current assets and key identified brands of the Company.
 
 d) Loan of Rs. 7,61,76,523 is Secured by subservient charge on Winery
 Land & Building of Unit 1,2 & 3 situated at Narayangaon.
 
 e) Security for the Term Loan Rs. 22,36,79,549/- is being created.
 (Refer Note No. 2.17)
 
 (B) Cash Credit of Rs. 146.41.27.574:
 
 Cash credit and other working capital facilities amounting to Rs.
 146,41,27,574 are secured by hypothecation of all the Companys current
 assets both present and future as well as first charge to lead bankers
 and second charge to other consortium bankers on the fixed assets of
 the Company.
 
 2.2.  Disclosure requirements as per Accounting Standard 18 (AS-18)
 Related Party Disclosure issued by the Institute of Chartered
 Accountants of India.
 
 - Subsidiary Company
 
 Seabuckthorn Indage Ltd.  
 
 Indage Holdings Ltd.  
 
 Thachi Wines Pty Ltd.
 
 Indage UK Ltd.
 
 - Associate Concerns with which transactions have taken place during
 the year
 
 Indage Restaurants & Leisures Ltd.  
 
 Indage Development Construction Pvt. Ltd.  
 
 Marlborough Finance Pvt. Ltd.  
 
 Indage Wines - (Partnership Firm) 
 
 Industrial Agencies Corporation - (Partnership Firm)
 
 Indage Engineering Pvt. Ltd 
 
 Indage Investments Pvt. Ltd 
 
 Vintner Wine Connection Pvt. Ltd.  
 
 Indage Richter Nurseries Pvt.Ltd.  
 
 Indage Vineyards Pvt. Ltd.  
 
 Indrinks Retail Pvt. Ltd.  
 
 Indian Institute of Vine & Wine.
 
 - Key Management Personnel
 
 Mr. S. G. Chougule - Chairman
 
 Mr. A. B. Shah - Vice Chairman
 
 Mr. R. S. Chougule - Managing Director
 
 - Related parties of Key Management personnel where transactions have
 taken place during the year
 
 Arsh Advisors & Owners Ltd.  
 
 Asian Electronics Limited.  
 
 Pranamghar (India) Pvt. Ltd.
 
 - Related parties of Key Management personnel where no transactions
 have taken place-during the year
 
 Mrs. P. S. Chougule 
 
 Mrs. A. S. Chougule 
 
 Mrs. Rina R. Chougule 
 
 Mrs. Ramila A. Shah
 
 Note: Related Party relationship is as identified by the Company and
 relied upon by the Auditors.
 
 2.3.  Deferred Tax:
 
 In terms of the Provisions of the Accounting Standard-22 Accounting
 for Taxes on Income issued by the Institute of Chartered Accountants
 of India , there is a net deferred tax asset on account of accumulated
 business losses and unabsorbed depreciation.
 
 In Compliance with Provisions of Accounting Standard and based on
 General Prudence, the Company has not recognised the Deferred Tax
 Asset.
 
 2.4. The Company has carried all its Fixed Assets at its carrying
 amount. As per its economic performance and internal projections, the
 management contends that there is no potential impairment loss on the
 existing fixed assets of the Company. No impairment loss is provided as
 stated under AS-28 Impairment of Assets issued by the Institute of
 Chartered Accountants of India.
 
 2.5 In the previous year, the Company has written off share issue
 expenses, which are in the nature of stamp duty for fresh issue of
 shares against Securities Premium account amounting to Rs. 8,59,275.
 
 2.6 Since F. Y. 2005-06, the Company had undertaken various
 initiatives / activities for creation of a retail network for selling
 wines and other alcoholic beverages. Various expenses were incurred and
 certain inventories of the Company were earmarked specifically for the
 said retail network that had been created by the Company. The expenses
 incurred in connection thereto and the inventories earmarked therefore
 were shown separately in the books of the Company as Non - Current
 Assets under the head Retail Initiative. However, due to the various
 financial and operational problems faced by the Company, a decision was
 taken during the year to discontinue the said Retail Initiative.
 Pursuant to this decision the expenses to the tune of Rs.
 44,96,35,369/- that were incurred by the Company for the said Retail
 Initiative have been transferred to Profit & Loss account for the year
 under the head Exceptional Items. As per the accounting practice
 followed by the Company, the inventories earmarked for the Retail
 Initiative were earlier carried at Net Realisable Value. However, on
 account of discontinuation of Retail Initiative, the earmarked
 inventories have been transferred to Inventories of the Company under
 Current Assets. However, as per the accounting practice followed by the
 Company the inventories (Current Assets) (Ref.  Note No. 1.8) of the
 Company are valued at cost or net realizable value whichever is lower
 and accordingly the difference of Rs. 92,02,97,518 has been transferred
 to Profit & Loss account for the year under the head Exceptional
 Items.
 
 2.7 Some of the balances in Sundry Creditors, Sundry Debtors and Other
 Liabilities are subject to reconciliation, confirmation and
 consequential adjustments/provisions, the amounts whereof have not been
 determined.
 
 2.8 Inventories :
 
 During the year, the operations of the Company were sub-optimal, hence,
 the financial cost attributable to process time, as defined in
 Significant Accounting Policy (Note No. 1.8) has not been considered
 for the purpose of valuation of Inventories.
 
 2.9 Corporate Debt Restructuring - Empowered Group ( CDR - EG)
 approved the Scheme for restructuring Companys Debt on 30th March
 2010. As the Scheme is effective from October 1, 2009 the Company has
 given effect to the same during the year. The outstanding liabilities
 of the Company are being restructured under the aegis of CDR Scheme. As
 required under the Scheme the Master Restructuring Agreement (MRA) has
 been executed and effective. Other necessary documents including
 security documents are in the process of being executed.
 
 2.10 Preference Share Capital - Suspense Account
 
 Pursuant to the Scheme approved by Corporate Debt Restructuring -
 Empowered Group (CDR-EG), certain portion of Interest Payable from cut
 off date (30th September 2009) is to be paid by way of Preference
 Shares redeemable in F.Y. 2018-19 & 2019-20. However as on the Balance
 Sheet date the Company does not have Preference Shares as class of
 Shares. Hence, the amount for which Preference Shares have to be issued
 has been shown under Preference Share Capital - Suspense Account.
 
 2.11 Increase/Decrease in Stock :
 
 During the year the Company decided to discontinue the Retail
 Initiative (Ref. Note No.  2.14) Due to this the stock earmarked for
 Retail Initiative has been added to opening stock for the purpose of
 calculation of Increase/Decrease in Stock of Finished goods and Wine in
 Process. As a result of this the amount of opening stock of Finished
 goods & Wine- in-Process for the current year (Rs. 235,28,45,906) is
 not comparable with the closing stock of Finished goods & Wine in
 Process for the year ended 31st March 2009 (Rs.  123,45,43,464).
 
 2.12 Pursuant to winding up petitions filed by certain creditors of the
 Company, the Honble High Court of Bombay has passed the winding up
 order against the Company on March 19, 2010.  However, the Honble High
 Court was kind enough to stay the said order. Being aggrieved by the
 said order, the Company has filed an appeal against the said order
 before the Divisional Bench of the Honble High Court of Bombay.
 
 The Company has also filed a Composite Scheme of Arrangement and
 Compromise under Sections 391-394 of the Companies Act, 1956 providing
 for settlement of all the creditors of the Company.
 
 2.13 Previous Year figures have been regrouped and recast wherever
 necessary.