1 Contingent Liabilities:
Outstanding bank guarantees, Letters of Credit and bills discounting -
Rs.25,100,000 (Previous year Rs.17,990,000).
2 Excise Duty:
Liability towards excise duty on the company''s products (beer) is the
primary responsibility of the purchaser in whose favour the goods are
released and is applicable to the state in which the goods are intended
for sale/consumption. Provision has, therefore, not been made in
respect of excise duty liability and uncleared/ undespatched finished
goods lying as at the year-end in factory/in bond. Such duty is also
not determinable as it varies according to the states to which goods
are despatched for sale. Even otherwise, the non-provision of such
liability has no effect on the net profits for the year or on the Net
Current Assets as at the year-end.
3 As per Accounting Standard 15 ''Employee Benefits'', the disclosures of
Employee benefits as defined in the Accounting Standard are given
Disclosure Pursuant to Accounting Standard 15 (Revised) Employee
The Company has adopted Accounting Standard 15 (Revised) ''Employee
Benefits'', issued by ''The Institute of Chartered Accountants of India''.
As per Accounting Standard 15 (Revised) ''Employee Benefits'', the
disclosure of Employee Benefits as defined in the Accounting Standard
are given below:
a) Defined Contribution Plan:
The Company makes Provident Fund contribution to Regional Provident
Fund Commissioner for eligible employees and Superannuation Fund
contributions to scheme managed by Life Insurance Corporation of India
for qualifying employees. Under the Provident Fund Scheme, the Company
is required to contribute a specified percentage of the payroll costs
to fund the benefits. The Company recognised Rs.3,215,523 (Previous
Year Rs.2,591,389) and Rs.949,500 (Previous Year Rs. 679,500) for
Provident Fund and Superannuation Fund contributions respectively in
the Statement of Profit and Loss. The contribution payable to
Superannuation Fund plan by the Company are at rates specified in the
rules of the scheme.
b) Defined Benefit Plan:
The Company offers Gratuity as employee benefit scheme to its
The Following table sets out the funded status with Life Insurance
Corporation of India Gratuity Fund Scheme of the Gratuity defined
benefit scheme and the amount recognised in the financial statements.
4 Fixed Assets :
4.1 Following fixed assets of the restaurant ‘Reds'' at Jaipur has
been transferred to restaurants at Amber Palace (Jaipur) and Hanuwant
Mahal (Jodhpur) : and Brewery at Behror on its closure on 30.04.2011.
4.2 Buildings (renovation) and Electric Installation valued as
Rs.2,144,304 and Rs.653,366 respec- tively of Reds restaurant Jaipur
has been amortised on its closure on 30.04.2011.
5. Includes Rs.340,000 (Face value) towards Terms Deposits with
Oriental Bank of Commerce shown under the head ‘Cash & Cash
Equivalent'' which have matured in 2002, 2006,2007 and 2010 and not
renewed till date. Terms deposits receipts are deposited with Excise
Department as Security against duty payable against excisable goods.
6. Actuarial valuation of gratuity has been carried out by LIC for
twelve months based on employees data for the financial year 2011-12.
Gratuity has been provided for 15 months extended amount of liability
calculated by LIC for 12 months.
7.1 Provision for Wealth -tax has been made in accordance with the
provisions of the Wealth Tax Act , 1957.
7.2 The Net Deferred Tax adjustments for the period amounting to
Rs.46,820,087 has been recognised in the Statement of Profit and Loss
in accordance with the Accounting Standard (AS-22) ‘Accounting for
Taxes on Income'' issued by ‘The Institute of Chartered Accountants of
8. Additional information pursuant to requirements of Part-II of the
Schedule-VI to the Companies Act, 1956
(As certified by the management.)
9 There are no amounts payable to Micro, Small and Medium Enterprises
as defined under the Micro, Small and Medium Enterprises Development
Act, 2006 based on information available with the Company. Further,
the Company has not paid any interest to any Micro, Small and Medium
Enterprises during the current year. This information has been
determined to the extent such parties have been identified on the basis
of information available with the Company and relied upon by the
10 Segment Reporting:
10.1 Business Segments
Based on the guiding principles given in Accounting Standard (AS)-17
''Segment Reporting'' notified by the ''Companies (Accounting Standard)
Rules, 2006'' the company''s business segment include: manufacture of and
dealing in Beer and Hospitality (running and maintenance of
10.2 Geographical Segment
Since the Company''s activities / operations are primarily within the
country and considering the nature of products / services it deals in,
the risk and return are same and as such there is only one geographical
10.3 Segment Accounting Policies
i) The generally accepted accounting principles used in the preparation
of the financial statements are applied to record revenue and
expenditure in individual segments.
ii) Expenses that are directly identifiable to segments are considered
for determining the segment results. Expenses which relates to the
company as a whole are not allocated to segments and are included under
unallocated corporate expenses.
iii) Segment assets and liabilities include those directly identifiable
with the respective segments. Most of the assets / liabilities can be
directly attributable to individual segments. Unallocated corporate
assets and liabilities represents the assets and liabilities that
relate to the company as a whole and not allocable to any segment.
Segment assets and liabilities do not include deferred income taxes.
11 In terms of Accounting Policy No.4, a diminution in the value, other
than temporary, in the long term investment has been recognised in the
Accounts to the extent of Rs.786,100 (previous year Rs.600,000) as
estimated by the management.
12 Disclosure of Related Parties/Related Party transactions:
I) Related Parties where Control Exists:
i) Entities Controlled through Directors;
a) Mount Shivalik Breweries Ltd.
b) Mount Shivalik Investments Ltd.
c) Mount Shivalik Hotels & Resorts Pvt. Ltd.
d) Ranika Investments Pvt. Ltd.
e) Mount Shivalik Packaging Pvt. Ltd.
ii) Key Management Personnel and their relatives;
a) Shri B.D.Bali Chairman & Managing Director Mrs. Nita Rani Bali
Shri Monish Bali (Son)
b) Shri Sanjiv Bali Managing Director Mrs. Kavita Bali (Wife)
c) Shri Rajiv Bali Director
d) Shri K. C. Garg Director Finance Mrs. Shashi Garg (Wife)
Note : Previous year figures are indicated in brackets.
13 The Financial Statements have been drawn for the period of 15 months
ended June 30, 2012 and the figures of the previous year of 12 months
are not strictly comparable.
14. The Revised Schedule VI has become effective from 1st April, 2011
for the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year''s figure have been regrouped/reclassified
wherever necessary to correspond with the current year''s
15 Notes 1 to 30 are annexed to and form an integral part of the
Balance Sheet as at June 30, 2012 and the Statement of Profit and Loss
for the period ended on that date.