1 Contingent liabilities not provided for:
 
                                                         (Rs. In lacs)
                                               As at            As at
                                    31st March, 2008 31st March, 2007
 
 i. a) Guarantees given by 
 banks / Counter guarantees 
 given to banks in respect of Govt            167.91          6203.28
 Authorities and others.
 
 b) Guarantee given of US$ 6189,15 
 Lacs on behalf of subsidiary of
 holding Company                           247380.33              Nil
 in respect of amount borrowed by that 
 Company from Banks and outstanding as on
 31st March 2008. ( Refer Note 3)
 
 ii.  Disputed sales tax demands.             479.35           542.78
 
 iii. Disputed excise duty demands.           556.25           108.01
 
 iv.  Other claims not acknowledged as debts:
 
 Claims relating to erstwhile Shipping 
 and Chemical Divisions of the Company.       355.49          1227.60
 
 Claims by unsecured 
 parties relating to ICDs                        Nil           300.98
 
 Claims related to property and  rent         497.38           161.73
 
 Claims related to Labour matters              90.39             5.28
 
 Possible obligations relating 
 to various other matters.                    580.78           609.40
 
 Claim against Property                          Nil              Not
                                                        Ascertainable
 
 2.  The holding company United Spirits Ltd (USL), acquired through its
 wholly-owned subsidiary, United Spirits (Great Britain) Ltd, the entire
 share capital of Whyte and Mackay Group Limited, which in turn holds
 the entire share capital of Whyte and Mackay Limited, a Glasgow based
 spirits manufacturing company In relation to the above acquisition, the
 company alongwith USL and certain other group Companies has provided
 financial commitment in the form of guarantee/security amounting to Rs
 247380.33 lacs (US$ 6,189.15 lacs) for and on behalf of a subsidiary of
 the holding company in United Kingdom and created charge against brands
 (trade marks) and investments held by them.
 
 3.  Estimated amount of contracts remaining to be executed on capital
 account and not provided for Rs 4.66 lacs.
 
 4.  At the Court convened meeting held on April 25, 2008, the equity
 shareholders of the Company have approved the Scheme of arrangement for
 amalgamation of the Company with United Spirits Limited (USL) with
 effect from 1st April 2007. The Honble High Court of Karnataka at
 Bangalore vide Order dated 29th May 2008 had sanctioned the Scheme of
 Amalgamation of the Company and Primo Distributors Private Limited
 (Primo) with USL. The Honble High Court of Judicature at Bombay vide
 Order dated 18th July 2008 has sanctioned the Scheme of Amalgamation of
 Primo with USL. The hearing, on the petition filed before the Honble
 High Court at Calcutta for sanction of the Scheme of Amalgamation of
 the Company with USL, has concluded and the necessary sanction in this
 respect is awaited.
 
 5.  Consequent to disposal of Income Tax matters in favour of the
 company by the relevant authorities, including those relating to
 financial years 2003-2004 to 2005-2006, which were pending before
 settlement commission, provision for income tax made in earlier years
 have been reviewed and Rs. 1691.23 Lacs being no longer required has
 been written back in the accounts. Further, appeals have been filed by
 the company against the levy of interest by the settlement commission
 and consequently the demand of Rs. 1 544.02 Lacs in respect of the
 above matter has not been paid. However, as a matter of abundant
 caution, provision in respect of the above has been kept in the
 accounts.
 
 6.  Contingency provision of Rs.2847.88 lacs, made in earlier years
 have also been reviewed during the year and Rs. 1035.30 Lacs for
 various claims and disputes especially certain demands concerning the
 erstwhile shipping business of the Company and the Intercorporate
 deposits taken in earlier years is retained and the balance Rs.1812.58
 lacs, being no longer required has been written back in the accounts
 
 7.  Pending amalgamation of the Company with United Spirits Limited
 (USL ) as given in Note 5 above, Rs. 12343.95 Lacs outstanding from USL
 as on 31st March 2008, has been disclosed as Advances under Schedule 11
 of the Accounts.
 
 8.  Interest on intercorporate deposit (Schedule 4) where negotiation /
 settlement has not been finalised, has been provided in terms of the
 decree and / or otherwise considered adequate by the management. In the
 opinion of the management, interest so far provided is adequate and no
 further provision is necessary in this respect. Adjustments, if any,
 are carried out as and when the amounts are determined on final
 disposal / settlement of the matter
 
 9.  Certain old debit/credit balances being no longer recoverable or
 payable in view of the management have been written off / written back
 during the year
 
 10.  With a view to be in line with the holding Companys depreciation
 policy the Company has changed its depreciation policy, from Written
 Down Value to Straight Line Method in respect of assets existing on
 30th June 1987, for which Written Down Value method was followed. This
 has resulted in an additional depreciation charge of Rs 17.31 lakhs
 during the year ended 31st March 2008 and thereby profit for the year
 and net Fixed Assets as on 31st March 2008 are lower to that extent.
 
 11.  Bank balances with schedule bank includes Rs 2059.60 lacs (PY Rs.
 6197.75 lacs) out of the proceeds of the beer business sold in an
 earlier year The said sum was kept under escrow pending resolution of
 various taxation matters and subsequent to the year end the same has
 been released on resolution of the related matters.
 
 12.  Certain debit / credit balances included under Current Assets,
 Loans & Advances and Current Liabilities are pending confirmation from
 the respective parties.
 
 13.  The Company is in the process of compiling information with regard
 to suppliers covered under Micro, Small and Medium Enterprise
 Development Act, 2006. and to the extent of information available with
 the Company, there are no suppliers as defined under the Micro, Small
 and Medium Enterprise Development Act 2006.
 
 14.  Employee Benefits
 
 The Institute of Chartered Accountants of India issued Accounting
 Standard 15 (Revised 2005) (AS 15R) on Employee Benefits, which
 supercedes the earlier Accounting Standard on retirement benefits. The
 Company adopted the provision of AS 15R effective April 1, 2007.
 Consequent to adoption of AS 15R, following disclosure has been made as
 required by the Standard:
 
 a) The Company has reviewed and revised its accounting policy in
 respect of accumulating leave to the credit of its employees
 Accordingly, an amount of Rs.5.63 lacs (net of deferred tax credit Rs
 2.90 lacs) being resultant increase in net liability as on April 1,
 2007 has been recognized with corresponding adjustment to opening
 balance of General Reserve and an additional liability for the current
 year amounting to Rs.2.45 lacs has been recognized in the Profit and
 Loss Account having consequential effect on the net profit for the year
 Similarly in respect of pension fund of its employees an amount of
 Rs.20.54 lacs (net of deferred tax charge Rs 10.58 lacs) being
 resultant decrease in net liability as on April 1, 2007 has been
 recognized with corresponding adjustment to opening balance of General
 Reserve and an additional liability for the current year amounting to
 Rs 102.70 lacs has been recognized in the Profit and Loss Account
 having consequential effect on the net profit for the year Similarly
 the transitional Liability on Account of Provident Fund amounting to
 Rs.92.42 Lacs ( Net of deferred tax of Rs.47.59 Lacs) and reversal of
 Gratuity Liability of Rs. 63.20 Lacs (Net of deferred tax of Rs.32.54
 Lacs have been adjusted with General Reserve.
 
 b) Defined Benefit Plans :
 
 The employees Gratuity and Provident Fund ( other than those covered
 and contributed under Employees Provident Fund organization ) scheme
 are defined benefit plans. The present value of obligations are
 determined based on actuarial valuation using Projected Unit Credit
 method, which recognises each period of services as giving rise to
 additional unit of employee benefit entitlement and measures each unit
 separately to build up the final obligation.
 
 Notes :
 
 i) Assumptions relating to future salary increases, attrition, interest
 trade for discount & overall expected rate of return on assets have
 been considered based on relevant economic factors such as inflation,
 market growth and other factors applicable to the period over which the
 obligation is expected to be settled.
 
 ii) The expected return on Plan Assets is based on market expectations
 at the beginning of the year. The rate of return on long term
 government bonds is taken as reference for this purpose.
 
 iii) The contributions expected to be made by the Company for the year
 2008-09 is yet to be determined.
 
 iv) This being the first year of implementation of AS-15 (Revised
 2005), previous years figures have not been furnished.
 
 15.  a) The figures (with previous years figures given in bracket) are
 given in Rs. Lacs and have been rounded off to the nearest thousand b)
 Previous years figures have been regrouped and rearranged wherever
 necessary.