1.  Basis of Presentation of Financial Statements:
 
 The Financial Statements of the Company have been prepared under
 historical cost convention, to comply in all material aspects with the
 applicable accounting principles in India, the applicable accounting
 standards notifed under Section 211(3C) of the Companies Act, 1956 and
 with the relevant provisions of the Companies Act, 1956.
 
 2.  Use of Estimates:
 
 The preparation of the Financial Statements in conformity with
 Generally Accepted Accounting Principles in India that requires the
 management to make estimates and assumptions that affect the reported
 amounts of assets and liabilities, disclosure of contingent liabilities
 as at the date of the Financial Statements, and the reported amounts of
 revenue and expenses during the reported period. Actual result could
 differ from those estimates.
 
 3.  Revenue Recognition:
 
 Revenue from sale of goods is recognised in accordance with the terms
 of sale, on dispatch from the Breweries/warehouses of the Company and
 is net of trade discount & Value Added Tax (VAT) where applicable but
 includes Excise Duty. Income from brand franchise is recognised at
 contracted rates on sale/production of the branded products by the
 franchisees. Dividend Income is recognised when the Company''s right to
 receive the payment is established. Royalty from foreign entities (net
 of tax), technical advisory and management fees are recognised as per
 the terms of agreement. Interest income is recognised on accrual basis.
 
 4.  Borrowing Costs:
 
 Borrowing costs incurred for the acquisition of qualifying assets are
 recognised as part of cost of such assets when it is considered
 probable that they will result in future economic benefits to the
 Company while other borrowing costs are expensed in the period in which
 they are incurred.
 
 5.  Fixed Assets:
 
 Fixed assets are stated at their original cost of acquisition and
 subsequent improvements thereto including taxes, duties, freight and
 other incidental expenses relating to acquisition and installation of
 such assets.
 
 The cost of fixed assets acquired on amalgamation under purchase method
 have been determined at fair values as on the respective dates of
 amalgamation and as per the related Schemes of Arrangement and include
 taxes / duties thereof.
 
 6.  Investments:
 
 Long term investments are carried at cost less provision made to
 recognise any decline, other than temporary in the values of such
 investments. Current investments are carried at cost or fair value,
 whichever is lower.
 
 7.  Inventories:
 
 Inventories are valued at lower of cost and net realisable value. Costs
 include freight, taxes, duties and appropriate production overheads and
 are generally ascertained on the First in First Out (FIFO) basis.
 Excise/Customs duty on stocks in bond is added to the cost. Due
 allowance is made for obsolete and slow moving items.
 
 8.  Foreign Currency Transactions:
 
 a) Foreign currency transactions are recorded at the rates of exchange
 prevailing on the dates of such transactions.
 
 All monetary items of foreign currency liabilities/ assets are restated
 at the rates ruling at the year end and all exchange gains/ losses
 arising from such restatement and receipts/payments during the year are
 adjusted to the Profit and Loss Account.
 
 Exchange difference on forward contracts are recognised in the Profit
 and Loss Account in the reporting period in which the exchange rates
 change. Any Profit or loss arising on cancellation or renewal of such
 forward contracts is recognised as income or expense for the year.
 
 b) With retrospective effect from April 1, 2007 exchange differences on
 long term foreign currency monetary items (except for exchange
 differences on items forming part of the company''s net investment in a
 non-integral foreign operation) are i) adjusted to the cost of the
 asset in so far as they relate to the acquisition of a depreciable
 asset;
 
 ii) accumulated in a Foreign Currency Monetary Item Translation
 Difference Account and in other cases amortised over the period of the
 related long term foreign currency monetary item but not beyond March
 31, 2011.
 
 9.  Depreciation and Amortisation:
 
 Depreciation on fixed assets is provided on Straight Line Method based
 on the rates prescribed under Schedule XIV to the Companies Act, 1956
 except as indicated below:
 
 a) Plant and Machinery are depreciated at the rate of 10.34%. Further,
 depreciation is provided at higher rates in respect of certain specifc
 items of plant and machinery having lower useful life based on
 technical evaluation carried out by the management.
 
 b) Assets acquired on amalgamation (where original dates of acquisition
 are not readily available), are depreciated over the remaining useful
 life of the assets as certified by an expert.
 
 c) Cost of Goodwill arising on amalgamation is amortised over a period
 of 5 years.
 
 d) Other intangible assets are amortised on straight line basis over a
 period of 10 years.
 
 e) Cost of Leasehold Land is amortised over the period of lease.
 
 f) Assets purchased/sold during the year are depreciated from the month
 of purchase / until the month of sale of asset on a proportionate
 basis.
 
 g) Assets individually costing less than Rs.5 are depreciated fully in
 the year of purchase.
 
 10.  Employee Retirement benefits:
 
 i) Defned-contribution plans:
 
 Contributions to the Employees'' Provident Fund, Superannuation Fund,
 Employees'' State Insurance and Employees'' Pension Scheme are as per
 statute and are recognised as expenses during the period in which the
 employees perform the services.  
 
 ii) Defned-benefit plans:
 
 Liability towards gratuity is determined on actuarial valuation using
 the Projected Unit Credit Method at the balance sheet date. Actuarial
 Gains and Losses are recognised immediately in the Profit and Loss
 Account.
 
 iii) Other long term employee benefits:
 
 Liability towards leave encashment and compensated absences is
 recognised at the present value based on actuarial valuation at each
 balance sheet date.
 
 iv) Short term employee benefits:
 
 Undiscounted amount of liability towards earned leave, compensated
 absences, performance incentives etc. is recognised during the period
 when the employee renders the services.
 
 11.  Taxation:
 
 Current tax is determined as per the provisions of the Income Tax Act,
 1961
 
 (i) Provision for current tax is made, based on the tax payable under
 the Income Tax Act 1961. Minimum Alternative Tax (MAT) credit, which is
 equal to the excess of MAT (calculated in accordance with the
 provisions of section 115JB of the Income Tax Act,1961) over normal
 income-tax is recognized as an asset by crediting the Profit and Loss
 account only when and to the extent there is convincing evidence that
 the Company will be able to avail the said credit against normal tax
 payable during the period of ten succeeding assessment years.
 
 (ii) Deferred tax is recognised, on timing differences, being the
 difference between taxable income and accounting income that originates
 in one period and is capable of reversal in one or more subsequent
 periods. Deferred tax assets are not recognised unless there is virtual
 / reasonable certainty that suffcient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 12.  Earnings per share:
 
 Annualised earnings/(Loss) per equity share (basic and diluted) is
 arrived at based on ratio of Profit/ (loss) attributable to equity
 shareholders to the weighted average number of equity shares.
 
 13.  Impairment of Assets:
 
 At each Balance Sheet date, the Company assesses whether there is any
 indication that assets may be impaired. If any such indication exists,
 the Company estimates the recoverable amount. If the carrying amount of
 the asset exceeds its recoverable amount, an impairment loss is
 recognised in the accounts to the extent the carrying amount exceeds
 the recoverable amount.
 
 14.  Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions are recognised when the company has a present obligation as
 a result of past events, for which it is probable that an outfow of
 resources embodying economic benefits will be required to settle the
 obligation and a reliable estimate of the amount can be made.
 Provisions are reviewed regularly and are adjusted where necessary to
 refect the current best estimates of the obligation. When the company
 expects a provision to be reimbursed, the reimbursement is recognised
 as a separate asset, only when such reimbursement is virtually certain.
 
 A disclosure for contingent liability is made where there is a possible
 obligation or present obligation that may probably not require an
 outfow of resources.