Blossom Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2014

1. Additional information to the financial statements

1.1 Contingent liabilities and commitments (To the extent not provided for):

(i) Contingent liabilities : -

a) Claims against the Company not acknowlegded as debts Rs. 7,442,367/- (Previous year Rs. 5,247,601/-). Further Rs. 5,247,601/-

(Previous Year Rs. 5,247,601/-) is deposited with the High Court receiver and Rs. 2,l94,766/-(Previous Year Nil) is deposited with the Sales tax authority. -

b) Guarantees given by bank on behalf of the Company Rs. 480,647/- (Previous Year Rs. 664,901).

c) The Finance Act, 2009 amended the definition of Business Auxiliary Services w.e.f. 23rd September, 2009. By virtue of the amendment, the production of goods (not covered under Central Excise Act, 1944) for or on behalf of others is liable to Service Tax. The Company has challenged the levy of the said Service tax and has filed a writ petition with the Hon''ble High Court of Bombay. The petition has been admitted by the Hon''ble High Court and is pending hearing. The amount of Service tax under dispute for the period from 23rd September, 2009 to 30th June, 2012, is estimated at Rs.286,030,6 i 6/- (excluding interest and penalty), based on the show cause notices received. During the previous year, the Company had paid Rs.209,402,036/- (including interest Rs.32,750,955/-) under protest and continues to litigate the matter before all appropriate forums. The amount Rs. 209,402,036 /- paid has been disclosed under Note 11 as service tax paid under protest under the heading "Long term loans and advances". The Company is confident of a positive outcome in the matter and consequently no provision has been made in the books of account. In the event of an unfavorable outcome, in the opinion of the Company, service tax being an indirect tax, the incidence thereof, if any, would be on the Service Receiver (Brand Owner) and it will charge the same to the service receiver and will take steps for recovery of the same.

Future Cash outflows in respect of above matters are determinable only on receipt of judgments / decisions pending at various forums authorities.

1.2 Disclosures relating to amounts payable as at the year-end together with interest paid / payable to Micro, Small and Medium Enterprises have been made in the accounts, as required under the Micro, Small and Medium Enterprises Development Act, 2006 to the extent of information available with the Company determined on the basis of intimation received from suppliers regarding their status and the required disclosure are given below:

c. Details of derivative instruments:

The following derivative positions are open as at 31 st March, 2014. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and may/may not qualify or be designated as hedging instruments.

1.3 The principal business of the Company is of "Manufacture and Sale of Beer" within India. Accordingly, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting" (AS 17) as notified by the Companies (Accounting Standards) Rules, 2006.

The Company caters mainly to the need of the domestic market, the export turnover of 738,155,092/- (Previous year 756,767,695/-) is not significant in the context of total revenue of 71,839,438,052/- (Previous year 71,832,827,965/-).

Further, segment assets and capital expenditure incurred outside India are not significant in relation to total assets and total capital expenditure incurred during the year, as such there are no reportable geographical segments.

1.4 (a) Current Tax:

The provision for Current Tax for the year is made in accordance with the provisions of the Income Tax Act, 1961.

(b) Deferred Tax:

The breakup of the Deferred tax Asset/Liability is as under:

25.5 The disclosures under the Accounting Standard 15 notified by the Companies (Accounting Standards) Rules 2006 are given below. Defined Contribution Plan:

Contribution to Defined Contribution Plan recognized as an expense for the year is as under:

Defined Benefit Plan:

The employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using Projected Credit Method, which recognized each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Gratuity:

Gratuity included as part of Gratuity expnse in Note 21 Employee benefits expense, a) Reconciliation of Opening and Closing balances of Defined Benefit Obligation:

The estimates in the rates of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is extracted from the report obtained from the actuary.

Other Long Term Employees Benefit

The Compensated Absences charge for the year ended 31st March 2014 Rs.255,950/- (Previous year Rs. 963,961 /-), based on actuarial valuation carried out using the projected accrued benefit method is disclosed under Note no. 21 Employee benefits expense grouped under Staff walfare expenses.

Note: Comparative figures for the previous year have been given in brackets.

1.5 Excise duty recovered from sales aggregating to Rs. 378,450,993/- (Previous Year Rs. 234,981,593/-) has been deducted from sales and excise duty ofRs. 16,450,488 (Previous Year Rs.2,239,141/-) relating to the difference between closing stock and the opening stock and borne by the Company is disclosed separately in the Statement of Profit and Loss. .

2 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

1) Company information:

Blossom Industries Limited (BIL) was incorporated on lbm August 1989 under the Indian Companies Act, 1956. The registered office of the Company is located at Village Jani Vankad, Nani Daman - 396 210 (U.T.). BIL is into the business of manufacture of Beer. The Manufacturing plant is located at Daman.

2. Additional information to the financial statements

2.1 Contingent liabilities and commitments (To the extent not providedfor):

(i) Contingent liabilities:

a) Claims against the Company not acknowledged as Debts Rs. 5,247,601/- (Previous year Rs. 5,247,601/-). Further Rs. 5,247,601/- (Previous Year Rs. 5,247,601/-) is deposited with the High Court receiver.

b) Guarantees given by bank on behalf of the Company Rs. 664,901/- (Previous Year Rs. 643,764/-).

c) The Finance Act, 2009 amended the definition of Business Auxiliary Services w.e.f. 23rd September, 2009. By virtue of the amendment, the production of goods (not covered under Central Excise Act, 1944) for or on behalf of others is liable to Service tax. The Company has challenged the levy of the said Service tax and had filed a writ petition with the Hon''ble High Court of Bombay in an earlier year. The petition was admitted by the Hon''ble High Court and is pending hearing. The amount of Service tax under dispute for the period from 23rd September, 2009 to 30th June, 2012, is estimated at Rs. 286,030,616/- (excluding interest and penalty), based on the show cause notices received for the period from 23rd September, 2009 to 31st May, 2012. During the year, in respect of payment of the aforesaid service tax, against which, the Company has paid Rs. 209,402,036/-(including interest Rs. 32,750,955/-) under protest and continues to litigate the matter before all appropriate forums. The amount Rs. 209,402,036 /- paid has been disclosed under Note 11 as Service tax paid under protest under the heading "Long term loans and advances".The Company is confident of a positive outcome in the matter and consequently no provision has been made in the books of account. In the event of an unfavorable outcome, in the opinion of the Company, Service tax being an indirect tax, the incidence thereof, if any, would be on the Service Receiver (Brand Owner) and it will charge the same to the service receiver and will take steps for recovery of the same.

Future Cash outflows in respect of above matters are determinable only on receipt of judgments / decisions pending at various forums authorities.

3 Disclosures under accounting standards

3.1 The foreign currency exposures that have not being hedged by any derivative instrument or otherwise as on 31s" March, 2013 which are as follows:

3.2 The principal business of the Company is of "Manufacture and Sale of Beer" within India. Accordingly, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting" (AS 17) as notified by the Companies (Accounting Standards) Rules, 2006.

The Company caters mainly to the need of the domestic market, the export turnover of Rs. 56,767,695/- (Previous year Rs. 42,745,715/-) is not significant in the context of total revenue of Rs. 1,832,827,965/- (Previous year Rs. 2,182,776,759/-). Further, segment assets and capital expenditure incurred outside India are not significant in relation to total assets and total capital expenditure incurred during the year, as such there are no reportable geographical segments.

3.3 a) Current Tax :

The provision for Current Tax for the year is made in accordance with the provisions of the Income Tax Act,1961. b) Deferred Tax:

The breakup of the Deferred Tax Asset/Liability is as under:

3.4 The disclosures under the Accounting Standard 15 notified by the Companies (Accounting Standards) Rules, 2006 are given below.

Defined Contribution Plan:

Contribution to Defined Contribution Plan recognized as an expense for the year is as under:

Defined Benefit Plan:

The employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using Projected Unit Credit Method, which recognized each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation for compensated absences (non-funded) is recognized on the basis of actuarial valuation using Project Unit Credit Method.

3.5 Excise duty recovered from sales aggregating to Rs. 234,981,593/- (Previous Year Rs. 602,937,673/-) has been deducted from sales and excise duty of Rs.2,239,141/- (Previous Year Rs. 17,319,732/-) relating to the difference between closing stock and the opening stock and borne by the Company is disclosed separately in the Statement of Profit and Loss.

4 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

1) Company information:

Blossom Industries Limited (BIL) was incorporated on 10th August 1989 under the Indian Companies Act, 1956. The registered office of the Company is located at Village Jani Vankad, Nani Daman - 396 210 (U.T.). BIL is into the business of manufacture of Beer. The Manufacturing plant is located at Daman.

(i) Terms/Rights attached to Equity Shares:

The Company has only one class of equity shares having a par value of Rs. 3/- per share. Each equity shareholder is entitled to one vote per share.

In the event of the liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after the distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(ii) Details of shares held by each shareholder holding more than 5% shares:

Notes

(i) Loan is secured by way of first charge on plant and machinery, office equipments, furniture and fixtures of the company and equitable mortgage of factory land and building situated at Jani Vankad. The loan is further secured by a collateral charge by first charge over the existing unencumbered fixed assets including plant and machinery, office equipments, furniture and fixtures, etc., and hypothecation of unencumbered stocks of raw materials, stock in process, finished goods, stores and spares, receivables and other current assets.

(ii) Terms of Repayment

The total amount of term loan is Rs.600,000,000. The repayment is in 12 equal half yearly instalments of Rs. 50,000,000 each commencing from 1st September 2009 to 1st March 2015. The rate of interest ranges from 1.1.75% to 13.50% (previous year 8.00% to 11.75%). The Term loan can be prepaid without any penalty after 2 years of disbursement of term loan. In the current year, the Company has prepaid Rs.75,003,597/- (Previous year Rs.65,000,000/-).

(iii) Inter Corporate Loan from related party shall not be repaid during the subsistance of the liability of the Term Loan from Bank without the written consent of the Bank. The rate of interest is 12% p.a.

Note:

(i) Balance with banks include deposits amounting to Rs.500,984/ - (As at 31st March 2011 Rs.Nil) and margin monies amounting to Rs. 100.000/ - (As at 31s; March 2011 Rs.Nil) having maturity period of less than 3 months.

(ii) Balance with banks include margin monies amounting to Rs.230,000/ - (As at 31st March 2011 Rs.100,000/-) having maturity period between 3 to 12 months.

(iii) Balance with banks include fixed deposits lodged as security deposits aggregating Rs.2,403,764/ - (As at 31st March 2011 Rs.2,390,000/-) having maturity period more than 12 months.

1) Additional information to the financial statements:

1.1 Contingent liabilities and commitments (To the extent not provided for):

(i) Contingent liabilities:

a) Claims against the Company not acknowlegded as Debts Rs, 5,247,601/ - (Previous year Rs. 5,247,601/-). Further Rs. 5,247,601/ - (Previous Year Rs. 5,247,601/-) is deposited with the High Court receiver.

b) Claims against the Company as Defendant No. 3 in a case related to Infringement of Trademarks Rs. NIL (Previous Year Rs.2,000,000/-)

c) Guarantees given by Bank on behalf of the Company Rs. 643,764/ - (Previous Year Rs. 300,000/-).

d) The Finance Act, 2009 amended the definition of Business Auxiliary Services w.e.f. 23.9.2009. By virtue of the amendment, the production of goods(not covered under Central Excise Act, 1944) for or on behalf of others is liable to service tax. The Company has challenged the levy of the said service tax and has filed a writ petition with the Hon'ble High Court of Bombay. The petition has been admitted by the Hon'ble High Court and is pending hearing. The Company is confident of a positive outcome in the matter and consequently no provision has been made in the books of account. The amount of service tax under dispute for the period from 23rd September 2009 to 31st March 2012, is estimated at Rs 238,711,126/ - (excluding interest and penalty), based on the show cause notices received for the period from 23.09.2009 to 31.08.2011. In the event of an unfavorable outcome, in the opinion of the Company, service tax being an indirect tax, the incidence thereof, if any, would be on the service receiver (Brand Owner) and it will charge the same to the service receiver and will take steps for recovery of the same.

Future Cash outflows in respect of above matters are determinable only on receipt of judgments / decisions pending at various forums authorities.

1.2 The principal business of the Company is of "Manufacture and Sale of Beer" within India. Accordingly, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting" (AS 17) as notified by the Companies (Accounting Standards) Rules, 2006.

1.3 a) Current Tax :

The provision for Current Tax for the year is on the basis of Minimum Alternate Tax in accordance with Section 115 JB of Income Tax Act, 1961.

b) Deferred Tax:

The breakup of the Deferred tax Asset/Liability is as under:

* Considered to the extent that there are compensating timing differences, reversal of which will result in sufficient income against which this can be realized. .

1.4 The disclosures under the Accounting Standard 15 notified by the Companies (Accounting Standards) Rules 2006 are given below:

Defined Contribution Plan:

Defined Benefit Plan:

The employees Gratuity Fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using Projected Credit Method, which recognized each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation for compensated absences (non-funded) is recognized on the basis of actuarial valuation using Project Unit Credit Method.

The estimates in the rates of escalation in salary considered in actuarial valuation, takes into account inflation.senioriry, promotion and other relevant factors including supply and demand in the employment market. The above information is extracted from the report obtained from the actuary.

Other Long Term Employees Benefit

The Compensated Absences charge for the Year ended 31st March 2012, based on actuarial valuation carried out using the projected accrued benefit method amounting to Rs.149,360/ - (Previous year Rs.180,273/-).

Note: Comparative figures for the previous year have been given in brackets.

1.5 Excise duty recovered from sales aggregating to Rs. 602,937,673/- (Previous Year Rs. 388,336,747/-) has been deducted from sales and excise duty of Rs.(17,319,732/-) [Previous Year Rs.[1,038,441/-]] relating to the difference between closing stock and the opening stock and borne by the Company is disclosed separately in the Statement of Profit and Loss.

2) The Revised Schedule VI has become effective from 1s! April 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2011

A) Contingent Liabilities not provided for :

Rs. In Lakhs

PARTICULARS As at As at 31.03.2011 31.03.2010

- Un expired Letters of Credit 357.13 295.91

- Counter Guarantees for Bank Guarantees issued 394.12 235.10

- Claims against the Company not acknowledged as Debt.

(i) Income Tax 15.04 43.58

(ii) Sales Tax (*) 31.84 31.84

(iii) Entry Tax (#) 25.21 4.49

(iv) Excise 1.06 1.06

(v) ESI 0.21 0.21

Total 824.61 612.19

(*) Advance against the demands amounting to Rs.21.14 lakhs has been paid under protest which is shown under "Loans and Advances".

(#) Advance against the demands amounting to Rs.3.68 lakhs has been paid under protest which is shown under "Loans and Advances".

B) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 1,42,052/- (net of advances) [ Previous year- Rs 8,12,036/-)

C) Capital Work in Progress of Rs. 1,20,76,046/- (Previous Year- Rs. 59,60,195/- )disclosed under Schedule-5 includes Rs.1,78,183/- (Previous Year- Rs.1,11,059/-)being the borrowing cost/ Up-front Charges on Bank Borrowings for the Qualifying Assets in line with Accounting Standard 16 issued by The Institute of Chartered Accountants of India.

D) The Company had revalued its Land-Leasehold and freehold Buildings, Plant & Machinery, Testing Equipments, Material handling equipments, Electrical Installations, Computers, Office equipment, Vehicle, Furniture & Fixtures as on 31.10.1999. The increase on revaluation has been transferred to Fixed Assets Revaluation Reserve. The decrease in revaluation has been charged off to profit and loss account.

E) The Company has transferred Rs. 3,68,43,045/- to Revaluation Reserve (Shown under Reserves & Surplus) on revaluation of Fixed Assets as on 31.10.1999 and transferred the additional charge of depreciation on revalued assets for the year amounting to Rs.10,94,786/- (Previous Year- Rs. 11,98,048/-) from Revaluation Reserve to Profit and Loss Account [Read with Accounting Policy 1 (c) (vi)].

(*) Includes provision for Gratuity based on fifteen days salary for each completed year of service in line with terms of appointment.

b) Manner of Computation of Net Profit :

H) Sundry Debtors, deposits and advance to parties include some old balances pending reconciliation/ adjustment/ confirmation. Efforts are being made for recovery/ reconciliation of such balances and resultant effect will be accounted for in the year of such adjustments.

I) Under the Micro,Small and Medium Enterprises Development Act, 2006, which came into force on October 2, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Company is in the process of compiling relevant information from its supplies about their coverage under the Act which have been relied upon by the Auditors.

K) The Company has been recognizing in the financial statements the deferred tax assets/ liabilities, in accordance with Accounting Standard 22 " Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. During the year , the Company has charged to the Profit and Loss Account with Deferred Tax Asset(Net) of Rs.19.10 lakhs (Previous Year Deferred Tax Liability (Net) - Rs. 26.81 lakhs ) Major Components of Deferred Ta x Assets and Liabilities:

M) In terms of Accounting Policy No.1 L above, the Company assessed the Cash Generating Unit for Impairment Test using a discount rate of 7% and did not find any asset that requires a provision for impairment.

N) Related Party Disclosures :

The Company had transactions with the following related parties during the year :

(2) Disclosure relating to Gratuity, as certified by Life Insurance Corporation of India, (Pension and Group Scheme Department) for the year ended 31st March, 2011 have been made as below :

i) In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity Plan) covering certain categories of employees.

ii) The Company provides the gratuity benefit through annual contributions to a fund managed by the Life Insurance Corporation of India (LIC). Under the plan, the settlement obligation remains with the Company,although the Life Insurance Corporation of India administers the plan and determines the contribution premium required to be paid by the Company.

iii) Disclosures as required by AS-15 (Revised) are made as per the details submitted by LIC.

Annual premium payable to LIC amounting to Rs. 3,02,130/- (Previous Year- Rs. 3,36,432/-) have been shown under "Employees Cost" in Schedule-11.

i) Previous Year's Figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2010

1) Subsequent to the year end certain bank accounts of a bank (balances on the date of the Order Rs.89,538,983/-) operated by the Company were frozen consequent to an Order dated 3rd May, 2010 issued by the Economic Offences Unit of the Central Bureau of Investigations (CBI) to the said banker, in connection with State excise duty matters pertaining to Distillers of the Union territory of Daman and Diu, which in the opinion of the Company did not pertain to its operations, being a brewer. The Company filed a petition on 1st June, 2010 in the Court of Special Judge at Daman requesting that the said Order be declared illegal and be set aside, mainly on the grounds that neither the Company nor the bank accounts freezed were in any manner connected with the State excise duty matter and the Company also did not owe any amount to the State excise department. The matter is pending decision with the Court. The Company based on legal opinion is confident of a positive result in this matter.

2) The Company has taken godown premises under operating leases on cancellable basis. The rent paid Rs.1,184,651/- (previous year Rs.1,118,762/-) is recognised under Rent, Rates and Taxes in the Profit and Loss Account.

3) The principal business of the Company is of "Manufacture and Sale of Beer" within India. All other activities of the Company revolve around its main business. Hence, there is only one primary reportable business segment as defined by Accounting Standard 17 - "Segment Reporting" (AS 17) as notified by the Companies (Accounting Standards) Rules, 2006.

4) a) Current tax

In view of brought forward tax losses/ unabsorbed tax depreciation, book loss and loss under income tax for the current year, no provision for current tax has been made during the year.

5) The Company has made provision of Rs.1,295,080/- (net) (previous year Rs.2,558,854/-) on estimate basis for machineries awaiting disposal.

6) Excise duty recovered from sales aggregating to Rs 131,627,414 (Previous year Rs 102,425,188) has been deducted from sales and excise duty of Rs. 18,766,335 (Previous year Rs 5,264,482), relating to the difference between closing stock and the opening stock and borne by the Company is disclosed separately in Profit and Loss account.

7) Figures of previous year as regrouped wherever necessary to correspond with the figures of current year.