• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Beer Brands list of India
 

Beer Brands list of India

on

  • 27,396 views

http://www.sabmiller.in/brands_haywards_5000.html ...

http://www.sabmiller.in/brands_haywards_5000.html
Beer brewing in india by second largest beer companly of world is popularly for its well known lager beer, malt beer, stout beer, mild beer and pale ale beer. Peroni, Fosters, knockout and Haywards are beer brands of sabmiller india.

Statistics

Views

Total Views
27,396
Views on SlideShare
27,383
Embed Views
13

Actions

Likes
0
Downloads
203
Comments
1

3 Embeds 13

http://www.e-presentations.us 11
http://www.lmodules.com 1
http://itisdrinkable.blogspot.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

11 of 1 previous next

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • more details available on http://www.sabmiller.in
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Beer Brands list of India Beer Brands list of India Document Transcript

    • SKOL Breweries Limited Board of Directors Audit Committee Mr. Ari Mervis - Chairman Mr. Jonathan Andrew Kirby Mr. Jonathan Andrew Kirby Mr. Ari Mervis Ms. Sue Clark Mr. Richard (Pete) L Lloyd–Upto 23.02.2009 Mr. T.S.R. Subramanian Mr. Jean-Marc Delpon de Vaux Mr. Richard (Pete) L Lloyd – Upto 23.02.2009 Mr. Jean-Marc Delpon de Vaux – Managing Director Registered Office Statutory Auditors No.1, Mahal Industrial Estate BSR & Co., Mahakali Road Chartered Accountants Andheri (East) Maruthi Info-Tech Centre Mumbai – 400 093 11-12/1, Inner Ring Road Koramangala, Bangalore – 560 071 Corporate Office Jalahalli Camp Road Bankers Yeshwanthpur Standard Chartered Bank Bangalore-560 022 ABN Amro Bank Citi Bank Societe Generale ICICI Bank Limited Registrar & Share Transfer Agent Share Transfer Sharepro Services (India) Pvt Ltd Samhita Warehousing Complex Gala No-52 to 56, Bldg No.13 A-B Near Sakinaka Telephone Exchange Andheri – Kurla Road, Sakinaka Mumbai – 400 072 Units Charminar Breweries, Medak, AP Haryana Breweries, Sonepat, Haryana Mysore Breweries, Bangalore, Karnataka Pals Distilleries, Aurangabad, Maharashtra Rochees Breweries, Neemrana, Rajasthan Central Distilleries & Breweries, Meerut, UP East Coast Breweries & Distilleries, Cuttack, Orissa Malabar Breweries, Chalakudy, Kerala SICA Breweries, Pondicherry SKOL Breweries Limited
    • Notice 6-7 NOTICE is hereby given that the 20th Special Business: the consent of the Company be and Annual General Meeting of the members is hereby accorded to offer, issue 04. To consider increase in Borrowing of the Company will be held at M.C. Ghia and/or allot on preferential basis to Powers. Hall, Bhogilal Hargovindas Building, 2nd SABMiller Asia B.V. upto 50000000 floor, 18/20, K. Dubash Marg, Behind To consider and if thought fit, to Equity Shares of the Company of Prince of Wales Museum, Kala Ghoda, pass, with or without modifications, the face value of Rs. 10/- each at a Mumbai – 400 001 on Tuesday, the 15th the following Resolution as a Special premium of Rs.46/- per share. September, 2009 at 3.00 p.m. to Resolution: RESOLVED FURTHER THAT such RESOLVED FURTHER THAT transact the following business: RESOLVED THAT pursuant to RESOLVED THAT new equity shares shall rank pari Ordinary Business: Section 293 (1)(d) of the Companies passu with the existing equity shares Act, 1956 and other enabling of the Company, except that they 01. To receive, consider and adopt the provisions, if any, of the said Act, shall not rank for dividend, if any, Audited Balance Sheet as at 31st consent be and is hereby accorded declared or paid in respect of any March, 2009 and the Profit & Loss to the Board of Directors of the financial year of the Company prior Account for the year ended on that Company for borrowing any sum or to the financial year in which they are date and the Report of the Directors sums of money from time to time alloted and shall rank for dividend and Auditors thereon. from one or more body corporate, pari passu from the date of their 02. To appoint a Director in place of Ms. banks or financial institutions or the allotment in respect of the financial Sue Clark, who retires by rotation at public by way of cash, credit year in which they are alloted. this meeting and being eligible, advances, deposits or other loans RESOLVED FURTHER THAT RESOLVED FURTHER THAT offers herself for re-appointment. whether secured or unsecured by Mr. Kevin Heydenrych, Mr. Gobind mortgage, charge, hypothecation or 03. RESOLVED THAT M/s. BSR & Co, RESOLVED THAT Chandiramani, Mr. Deepak pledge of the Company’s assets and Chartered Accountants, who retire Kewalramani and Mr. S.M. Pramod properties whether movables and/or at the conclusion of this Annual be and are hereby jointly and/or immovables or stock-in-trade General Meeting be and are hereby severally authorized to negotiate, (including book debts, bills, raw appointed as Statutory Auditors of execute and deliver any agreement, materials, stores and spare parts the Company till the next Annual letter, deed or document or any and components in stock or in General Meeting at remuneration to amendments or modifications transit) work-in-progress and debts be fixed by the Board of Directors thereto in connection with the and advances notwithstanding that and billed progressively. aforesaid preferential issue of shares the sum or sums so borrowed in favour of SABMiller Asia B.V. and together with the money’s, if any, to sign, execute, deliver and/or file all already borrowed by the Company relevant forms, filings, reports, (apart from the temporary loans documents, etc., required by any obtained from the Company’s applicable regulations including with bankers in the ordinary course of any regulatory authorities or an business) may exceed in the authorized dealer in terms of the aggregate the paid-up capital of the Indian exchange control regulations. Company and its free reserves which have not been set part for any BY ORDER OF THE BOARD specific purpose but so that the Pramod S M total amount upto which the moneys Company Secretary may be so borrowed shall not at any time exceed Rs.2000 Crores. Date : 8th July, 2009 Place : Bangalore 05. To consider a preferential issue of shares. To consider and if thought fit, to pass, with or without modification/s the following Resolution as a Special Resolution. RESOLVED THAT pursuant to the RESOLVED THAT provisions of Section 81(1A) and other applicable provisions (if any) of the Companies Act, 1956, the Unlisted Public Companies (Preferential Allotment) Rules, 2003 and the relevant provisions of the Memorandum and Articles of Association of the Company,
    • NOTES: 01. A member entitled to attend and 05. Pursuant to Section 205C of the 04. At the Annual General Meeting of the vote at the meeting is entitled to Companies Act, 1956 all unclaimed Company held on 10th September, appoint a proxy to attend and vote dividends upto the Financial Year 2008, the Members empowered the on a poll in his/her stead. A proxy 2000-2001 have been transferred to Board of Directors under Section need not be a member of the the Investor Education and 293(1)(d) of the Companies Act, Company. Proxies in order to be Protection Fund. Members of the 1956 to borrow monies for the effective must be deposited at the erstwhile Mysore Breweries Limited business purposes of the Company registered office of the Company not who have not yet claimed their up to a limit of Rs.1500 Crores. less than forty-eight hours before the Dividend for the financial year 2001- Keeping in view the Company’s meeting. A blank proxy form is 2002 and thereafter, may claim from business requirements and its enclosed. the Company before the same is investment and growth plans, it is transferred to the Fund. It may be considered desirable to increase the 02. The Register of Members and the noted that no claims shall lie against said borrowing limits to Rs.2000 Share Transfer Books of the the Company or the Fund in respect Crores as outlined in the resolution. Company will remain closed from of individual amounts which were 1st September 2009 to 15th In terms of the provisions of Section unclaimed and unpaid for a period of September 2009 (both days 293 (1) (d) of the Companies Act, 7 years and transferred to the Fund inclusive). 1956, approval of the members is and no payment shall be made in being accordingly sought through 03. For convenience of members an respect of any such claim. resolution under item no.04 for such attendance slip is also annexed. Explanatory Statement pursuant to increase in limits. Members are requested to affix their Section 173(2) of the Companies Act, signature at the space provided 05. The Company proposes to issue and 1956. therefore and hand over the same at allot, on a preferential basis upto the place of Meeting. The proxy of a Item Nos. 2, 4 and 5 50000000 equity shares of face member should mark on the value of Rs.10/- each to SABMiller A brief resume of the Directors offering attendance slip as Proxy. Asia B.V. at a premium of Rs. 46/- themselves for re-election is given below: Members are also requested to per share (based on the valuation bring their copies of the Annual 02. Ms. Sue Clark is a Bachelor of report) which requires shareholders’ report to the venue of the Meeting. Science (Hons) & MBA. She joined approval under Section 81 (1A) of SABMiller plc in 2003 as Corporate the Companies Act, 1956. 04. All queries relating to non-receipt of Affairs Director. Prior to this, she held share certificates after transfer/ Information as required under a number of senior roles in UK transmission/dematerialization/ Unlisted Public Companies Companies, including Director of rematerialisation, mandates, change (Preferential Allotment) Rules, 2003 Corporate Affairs for Railtrack Group of address, nomination etc. may be is given below. and Director of Corporate Affairs for sent to the Registrar & Share Scottish Power plc. a. The price of price band at which Transfer Agents, M/s Sharepro allotment is proposed: The Equity Services (India) Pvt. Ltd, Samhita Except for Ms. Sue Clark, no other Shares of Rs.10/- each will be Warehousing Complex, Gala No-52 Director is interested in the aforesaid allotted at a premium of Rs.46/- per to 56, Bldg No.13 A-B, Near Resolution. Share. Sakinaka Telephone Exchange, Andheri –Kurla Road, Sakinaka, b. The relevant date on the basis of Mumbai-400 072, Telephone: 022- which price has been arrived at: 67720300/67720400, Valuation as at 31st March, 2009 and Fax No: 022-28591568/28508927, the rate of the eariler preferential E-Mail: sharepro@shareproservices.com accounts. c. The objects of the issue through preferential offer: To issue Equity “Children of a culture born in a water-rich Shares of the Company to SABMiller Asia B.V. for cash and to utilize the environment, we have never really learned how money received hereunder for the important water is to us. We understand it, purpose of paying down some of its debts and for other corporate but we do not respect it.” purposes. SKOL Breweries Limited
    • Notice 8-9 d. The class or classes of persons to g. Proposed time within which the The Board recommends the adoption of whom the allotment is proposed to allotment shall be completed: Within the resolution. be made: The allotment will be made one year from the date of the AGM BY ORDER OF THE BOARD to SABMiller Asia B.V. h. Whether a change in control is Pramod S M e. Intention of promoters/directors/key intended or expected: There will be Company Secretary management persons to subscribe no change in control of the Company Registered office: to the offer: SABMiller Asia B.V. has after the preferential issue. 1, Mahal Industrial Estate, Mahakali signified its intention of subscribing None of the Directors of the Company Road, Andheri (East), Mumbai-400 093 to the issue. are deemed to be interested in the said Place: Bangalore f. Share holding pattern of promoters resolution. Date : 8th July, 2009 and others classes of shares before and after the offer: The shareholding pattern of the Company before and after the issue is set out below Category Pre Issue Post Issue No of Shares % No of Shares % A Promoter’s holding Promoter’ omoter’s 229384473 99.22 279384473 99.36 Sub total 229384473 99.22 279384473 99.36 B Non-Promoters Holding Institutional Investors a Mutual Funds and UTI 2240 0.00 2240 0.00 b Banks, Insurance Co, FI 4008 0.00 4008 0.00 c FII - - - - Sub total 6248 0.00 6248 0.00 Others a Private Corporate Bodies 73192 0.03 73192 0.03 b Indian public 1616507 0.70 1616507 0.57 c NRI 103325 0.04 103325 0.04 d Any other - - - - Sub total 1793024 0.78 1793024 0.64 Total 231183745 100.00 281183745 100.00 “There are a number of ways to save water, and they all start with you.”
    • “Water has become a highly precious resource. There are some places where a barrel of water costs more than a barrel of oil.” SKOL Breweries Limited
    • Directors’ Report 10-11 Dear Members, Your Directors have pleasure in submitting their report and the Statement of accounts for the year ended 31st March 2009. FINANCIAL RESULTS (Rupees in Crores) Financial Year Financial Year 2008-2009 2007-2008 Gross Revenue 2171.91 1766.45 Profit/(Loss) before taxation (72.57) 40.85 Less: Provision for taxation (7.70) 6.37 Profit/(Loss) after taxation (64.88) 34.48 Surplus/(deficit) brought forward from previous year (95.22) 129.69 Balance carried to Balance Sheet 160.09 95.21 OPERATIONS OPERATIONS 4. Cost pressures on account of rising WATER MANAGEMENT IN INDIA commodity prices and glass bottles. The turnover and volumes of your Your Company’s commitment to Company during the year 2008-09 has 5. Inability to price in many markets sustainable development is ongoing. considerably increased. The turnover where selling prices are constrained It is a core part of the organisation’s increased by 23% over the previous year by regulations. business. It underpins our ability to to Rs.2172 Crores from Rs.1766 grow and our license to operate. 6. Stand off in AP leading to stoppage Crores. The turnover has increased by Water is one of our top sustainable of production and supply for 38 days 6% as a result of entering into a lease development priorities. during peak in the beginning of the arrangement with a brewery which earlier financial year. Given the fact that this key raw material was a contract bottling arrangement. for our Industry is a stressed resource its The Company however reports a loss for A sum of Rs.411.26 Crores has been scarcity and quality are becoming the year on account of the following: invested in upgrading existing plant and increasingly critical issues of immediate machinery and in developing capacity. 1. A one time charge of Rs. 34 Crores relevance to the Company. There has also been continuous due to change in accounting policy of Conservation of water is one critical upgrading and implementation of best containers. (See Significant element of our commitment to deliver practices at all units to increase accounting policies Note 1.5) best in class performance within our productivity and bring down the cost of sustainable development framework. 2. The new brewery in Haryana was production. The organisation is committed to sound commissioned at the end of last year Your Board enjoys the unqualified water management practices throughout as a result of which the depreciation support of all its financiers whose its global operations in a manner that charged to the Profit and Loss confidence in the future of your Company takes account of local geographical, account has increased. is evidenced by the fact that all environmental and social factors. This is 3. The Interest cost has gone up 182% borrowings have been made without the reflected in the “5 R” water management due to increase in borrowings and the bankers taking any charges over any of strategy adopted by the group. interest rates as compared to your Company’s assets. As such the In India the implementation of 5R previous year. majority of the borrowings are short term strategy has seen internal measures to and renewed from year to year. reduce, recycle and reuse water at all Observations of the auditors are self our breweries. explanatory. DIVIDEND As the Company has incurred loss during the year, the Directors do not recommend any dividend on the equity capital. “Water is life's mater and matrix, mother and medium. There is no life without water.”
    • availability in the region for agriculture which is the main source of livelihood for the farming community. Similarly, initiatives are on in the water stressed area of Medak District in Andhra Pradesh to build capacity of the community to develop sustainable water management practices and enhance groundwater availability through improved water use efficiency. The interventions being conducted under the leadership of ICRISAT ( International Crop Research Institute for Semi Arid Tropics) include enhancing rainwater Our operations have been engaged in Northern India. The ground water conservation, improving water use consistently reducing water consumption recharge initiative, launched in October efficiency and manage the water demand, in the brewing process, year by year the 2008, is currently the largest in this while improving the livelihoods and trends indicate a reduction in overall region. It is expected to recharge 300 promoting a shift towards less water water consumption from 26.2 million HL million liters of water a year- the same intensive cropping patterns. in F’08 to 23.6 million HL in F’09. amount as extracted by the brewery’s This is despite growing volumes. borewell pumps. Spread over a catchment expanse of about 120 Your Company committed to reduce hectares the design involves the Water harvesting at Neemrana, Rajasthan water waste in our breweries and has construction of three check dams in a set itself the target of reducing our water wasteland area to facilitate natural usage to 3.5 litres used to make litre of recharge. The key strength of the beer before the year 2015. project lies in demonstrating a low We recognise that water issues are by cost technology enabling natural nature cross-community and cross recharge (as against artificial through boundary, which therefore cannot be recharge shafts, etc). managed simply within the fence lines of The project is being conducted in our own operations. Therefore we have collaboration with the apex industry started external interventions in organisation – CII (Confederation of partnerships with NGOs, communities Indian Industry) and a partner and local governments striving to build organisation of CII, ACWADAM long term sustainable partnerships to (Advanced Center for Water Resources address local water issues. Development and Management) Moving towards a country wide specialising in ground water structured watershed mapping process management. to understand the water availability and This recharge will augment the local quality across all our operations for groundwater resources in the region. future business planning, we have The structures will trap the water that completed watershed mapping for three would otherwise have simply run off. sites in India. The data will also be used The recharge initiative assumes a greater to assess the opportunity to manage significance in view of the fact that the these watersheds for the long term overall incidence of irrigation through sustainability of the community. groundwater has increased in the region Conservation through rain water further stressing the resource. harvesting is practiced inside our We are conducting further studies to breweries. We have also commenced identify more natural recharge sites within water replenishing initiatives within the the region to further augment the aquifer. communities. We have embarked upon a natural recharge initiative near our Your Company has also built 3 water Rochees Brewery in the water stressed harvesting structures in the Cuttack region of Alwar district, Rajasthan in District of Orissa, improving the water Beneficiaries of water harvesting at Neemrana, Rajasthan SKOL Breweries Limited
    • Directors’ Report 12-13 REGULATOR TORY REGULATORY CHALLENGE AND DIRECTORS DIRECTORS’ RESPONSIBILITY CONSTRAINT STATEMENT U/S 217 (2AA) OF THE STA In accordance with the Articles of COMPANIES ACT, COMPANIES ACT, 1956 Despite repeated request and Association, Ms. Sue Clark, Director of representations to the State procured the Company retires by rotation at this Your Directors state that: monopoly in the State of Andhra meeting and being eligible, offer herself 1. The financial statements have been Pradesh no price increase has been for re-appointment. prepared in conformity with the forthcoming. Your Company along with Mr. Richard (Pete) L Lloyd has resigned generally accepted accounting United Breweries Ltd has therefore filed a as a Director of the Company w.e.f. 23rd principles and applicable accounting Writ Petition in the Hon’ble High Court of February, 2009. The Board places on standards in India. Andhra Pradesh against the repeated record the meritorious services rendered refusal of the Corporation to grant a price 2. The Directors have selected such by Mr. Richard (Pete) L Lloyd during his increase to meet rising input costs. accounting policies as are applicable tenure as Director on the Board. and have applied them consistently As a consequence of the litigation the AUDIT COMMITTEE and made reasonable and prudent Corporation stopped procurement of judgment and estimates so as to give beer from 1st April to mid June 2009. The Pursuant to the provisions of Section a true and fair view of the state of case is still pending with the Andhra 292A of the Companies Act, 1956 an affairs of the Company at the end of Pradesh High Court. Audit Committee has been constituted. the financial year and of the profit or On account of resignation of Mr. Richard Similarly in the State of UP the Company loss for the year. (Pete) L Lloyd, the present members of was unable to effect supplies during April the Committee are Mr. Jonathan Andrew 3. The Directors have taken proper and to early June 2009. Kirby, Mr. Jean-Marc Delpon de Vaux and sufficient care for the maintenance of The Government of Rajasthan has also Mr. Ari Mervis. Mr. Jean-Marc Delpon de adequate accounting records in reduced the number of retail outlets and Vaux Chairman of the Audit Committee accordance with the provisions of the has imposed an ad valorem tax. This has was present at the last Annual General Companies Act for safeguarding the given a spurt to economy brands. As Meeting. assets of the Company and for your Company does not participate in preventing and detecting fraud and AUDITORS this segment, this has adversely affected other irregularities. the market share of the Company. M/s BSR & Co., Chartered Accountants, 4. The financial statements have been retiring Auditors, have signified their The above stands being taken by the prepared on the basis of “Going willingness to be reappointed as Company would have adverse short term Concern” considering the ability of Statutory Auditors of the Company. They impact on the profitability of the business the Company to carry on its business have confirmed that their reappointment of the Company but we believe that they in the foreseeable future. if made will be within the limits prescribed will inure long term benefits which are under Section 224(1B) of the Companies ACKNOWLEDGEMENT immeasurable. Act, 1956. Your Directors recommend Your Directors wish to place on record their appointment at the ensuing Annual their appreciation to employees at all General Meeting. levels for their co-operation. The PUBLIC DEPOSIT Directors would also like to acknowledge the continued support of the Company’s During the year, the Company has not Bankers, Distributors, Shareholders, accepted any public deposits as defined Customers and Suppliers. in the Companies (Acceptance of Deposits) Rules, 1975. FOR AND ON BEHALF OF THE BOARD PARTICULARS OF EMPLOYEES ARTICULARS Jonathan Andrew Kirby Director The details of employees covered under the provisions of Section 217 (2A) of the Jean-Marc Delpon de Vaux Companies Act, 1956 and the rules Managing Director framed there under, as amended to date (Bangalore) are attached herewith. Place: Hong Kong CONSERVATION OF ENERGY AND CONSERV Dated: 8 July, 2009 TECHNOLOGY ABSORPTION The statement pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 to the extent applicable are set in the annexure hereto.
    • “It is a curious situation that water, from which life first arose, should now be threatened by the activities of one form of that life.” SKOL Breweries Limited
    • Directors’ Report 14-15 COMPANIES PAR ARTICULARS DISCLOSURE AS PER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF DIRECTORS) RULES, 1988. A. CONSERVATION OF ENERGY CONSERV Energy efficiency in breweries is achieved through a process of continuous improvement. The Company is in the process of standardizing energy efficiency measures across its breweries to further reduce the specific energy requirement in brewing. MANUFACTURED STEAM ENERGY PER HL OF BEER MANUFACTURED MANUFACTURED ELECTRICITY PER HL OF BEER MANUFACTURED 250 20 200 15 150 10 100 50 5 0.0 0.0 F’05 F’06 F’07 F’08 F’09 F’05 F’06 F’07 F’08 F’09 Steam Energy Requirement (MJ/HL) Steam Energy Requirement (MJ/HL) The Company has commissioned a 1. Aggressive target setting in B. FOREIGN EXCHANGE EARNINGS state-of-the-art brewery in Haryana in breweries based on extensive AND OUTGO F’09. This brewery marks a significant benchmarking. During the year, the Company has earned reduction in the specific energy 2. Use of methane generated from Rs.16.10 Crores in foreign exchange requirement and would become the waste water treatment as boiler fuel. earnings. An amount of Rs.60.38 Crores benchmark for future energy efficient was incurred in foreign exchange. breweries. 3. Fuel switch from fossil fuel to biomass in selected breweries to While the positive trend in energy reduce the carbon footprint. reduction thus far has been made FOR AND ON BEHALF OF THE BOARD possible by operational excellence in 4. Adopting a 5 R strategy in breweries breweries, there is a need to adopt Jonathan Andrew Kirby aimed at Replenishment, Reduce, newer energy efficient technologies to Director Reuse, Recycle and Redistribute. sustain this momentum going forward. A rain water harvesting structure has Jean-Marc Delpon de Vaux been put up in one of the breweries in Managing Director The Company is actively evaluating the North. This would help replenish (Bangalore) greener technologies for introduction in the water table in the region. its breweries. Some of these Place: Hong Kong technologies are not prevalent in Indian 5. Use of treated effluent for gardening Dated: 8 July, 2009 breweries because of various barriers, of the factory campus by drain one of them being high capital cost. system. Use of UF & RO technology to recycle treated effluent water at The possibility of availing Carbon Credits strategic sites. would certainly help the Company in pursuing greener technologies otherwise unsustainable due to high costs. A summary of the major measures taken by the Company at its various units are as under- “The crisis of our diminishing water resources is just as severe as any wartime crisis we have ever faced. Our survival is just as much at stake as it was at the time of any major wars or revolutions.”
    • SKOL Breweries Limited
    • Auditors’ Report 16-17 To the Members of SKOL Breweries Breweries (iv) in our opinion, the balance sheet, the Limited profit and loss account and the cash flow statement dealt with by this We have audited the attached balance report comply with the accounting sheet of SKOL Breweries Limited standards referred to in sub-section (“the Company”) as at 31 March 2009, (3C) of Section 211 of the Companies the profit and loss account and the cash Act, 1956; flow statement for the year ended on that date annexed thereto. These financial (v) on the basis of written statements are the responsibility of the representations received from the Company’s management. directors of the Company as on Our responsibility is to express an 31 March 2009, and taken on record opinion on these financial statements by the Board of Directors, we report based on our audit. that none of the directors is disqualified as on 31 March 2009 We conducted our audit in accordance from being appointed as a director in with auditing standards generally terms of clause (g) of sub-section (1) accepted in India. Those standards of Section 274 of the Companies Act, require that we plan and perform the 1956; and audit to obtain reasonable assurance about whether the financial statements (vi) in our opinion and to the best of our are free of material misstatement. information and according to the An audit includes examining, on a test explanations given to us, the said basis, evidence supporting the amounts accounts give the information and disclosures in the financial required by the Companies Act, statements. An audit also includes 1956, in the manner so required and assessing the accounting principles used give a true and fair view in conformity and significant estimates made by with the accounting principles management, as well as evaluating the generally accepted in India: overall financial statement presentation. a. in the case of the balance sheet, We believe that our audit provides a of the state of affairs of the reasonable basis for our opinion. Company as at 31 March 2009; As required by the Companies (Auditor’s b. in the case of the profit and loss Report) Order, 2003, as amended, account, of the loss of the (“the Order”) issued by the Central Company for the year ended on Government of India in terms of that date; and sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in c. in the case of the cash flow the Annexure a statement on the statement, of the cash flows of the matters specified in paragraphs 4 and 5 Company for the year ended on of the Order. that date. Further to our comments in the Annexure referred to above, we report that: for B S R & Co. (i) we have obtained all the information Chartered accountants and explanations, which to the best of our knowledge and belief were Zubin Shekary necessary for the purpose of our Partner audit; Membership No. 48814 Bangalore (ii) in our opinion, proper books of 08 July 2009 account as required by law have been kept by the Company so far as appears from our examination of those books; (iii) the balance sheet, the profit and loss account and the cash flow statement dealt with by this report are in agreement with the books of account;
    • Annexure to the Auditors’ report 19 Annexure referred to in the Auditors’ iii. (a) The Company has not granted any b) In our opinion, and according to the Report to the Members of SKOL loans, secured or unsecured, to information and explanations given Breweries Limited (“the Company”) for the companies, firms or other parties to us, the transactions made in year ended 31 March 2009. We report covered in the register maintained pursuance of contracts and that: under Section 301 of the arrangements referred to above Companies Act, 1956. and exceeding the value of Rs. 5 i. (a) The Company has maintained Accordingly, paragraph 4(iii)(a), lakhs with any party during the year proper records showing full 4(iii)(b), 4(iii)(c) and 4(iii)(d) of the have been made at prices which particulars, including quantitative Order is not applicable. are reasonable having details and situation of fixed regard to the prevailing market assets. (b) The Company has taken a loan prices at the relevant time. from Company covered in the (b) The Company has a regular register maintained under Section vi. In our opinion and according to the programme of physical verification 301 of the Companies Act, 1956. information and explanations given of its fixed assets by which all fixed The maximum amount outstanding to us, the Company has complied assets are verified over a period of during the year and the year-end with the provisions of Section 58A, three years. In our opinion, this balance of such loan was Rs Section 58AA and other relevant periodicity of physical verification is 513,170,374 and Rs 211,624,493 provisions of the Companies Act, reasonable having regard to the respectively. 1956 and the rules framed there size of the Company and the under/ the directives issued by the nature of its assets. No material (c) In our opinion, the rate of interest Reserve Bank of India (as discrepancies were noticed on for the above loan taken from the applicable) with regard to deposits such verification. Company, listed in the register accepted from the public. maintained under Section 301 of (c) Fixed assets disposed off during Accordingly, there have been no the Companies Act, 1956 are not, the year were not substantial, and proceedings before the Company prima facie, prejudicial to the therefore, do not affect the going Law Board or National Company interest of the Company. Tenure concern assumption. Law Tribunal (as applicable) or and repayment terms have not Reserve Bank of India or any Court ii. (a) The inventory, except for goods-in- been specified for such loans. or any other Tribunal in this matter transit and stock lying with third and no order has been passed by (d) According to the information and parties, has been physically verified any of the aforesaid authorities. explanations given to us, the tenure by the management during the and repayment terms have not year. In our opinion, the frequency vii. In our opinion, the Company has an been specified for the above of such verification is reasonable. internal audit system commensurate mentioned loan. Consequently, For stocks lying with third parties with its size and nature of its business. we are unable to comment on at the year-end, written paragraph 4(iii)(g) of the Order. viii. The Central Government has not confirmations have been obtained. prescribed the maintenance of cost iv. In our opinion and according to the (b) The procedures for the physical records under Section 209(1)(d) of information and explanations given verification of inventories followed the Companies Act, 1956 for any to us, there is an adequate internal by the management are reasonable of the products manufactured by control system commensurate with and adequate in relation to the size the Company. the size of the Company and the of the Company and the nature of nature of its business with regard its business. to purchase of inventories and fixed (c) The Company is maintaining assets and with regard to the sale proper records of inventory. of goods. We have not observed The discrepancies noticed on any major weakness in the internal verification between the physical control system during the course stocks and the book records were of the audit. not material. v. a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that Section. SKOL Breweries Limited
    • Annexure to the Auditors’ report 18-19 ix. (a) According to the information Further, since the Central Government authorities at the time of the assessment. and explanations given to us and has till date not prescribed the amount Hence payment of differential sales tax on the basis of our examination of of cess payable under Section 441A has not been made on the statutory the records of the Company, of the Companies Act, 1956, we are forms which are pending to be collected amounts deducted/ accrued in the not in a position to comment upon the for the periods for which assessments books of account in respect of regularity or otherwise of the have not been completed. undisputed statutory dues Company in depositing the same. (b) According to the information and including Provident Fund, According to the information and explanations given to us, there are Employees’ State Insurance, explanations given to us, there are no no dues of Wealth Tax and Cess Income-tax, Sales Tax/ Value undisputed amounts payable in respect of which have not been deposited Added Tax, Wealth Tax, Service Provident Fund, Employees’ State with the appropriate authorities on Tax, Customs Duty, Excise Duty, Insurance, Income-tax, Wealth Tax, account of any dispute. The Cess, and other material statutory Service Tax, Customs Duty, Excise Duty, following dues of Income-tax, dues have generally been regularly Investor Education and Protection Fund Sales Tax, Service Tax, Customs deposited during the year by the and other material statutory dues which Duty and Excise Duty have not Company with the appropriate were in arrears as at 31 March 2009 for a been deposited by the Company authorities though there has been a period of more than six months from the on account of disputes. slight delay in a few cases. Amount date they became payable. due in respect of Investor Education and Protection Fund has In respect of Sales Tax, the Company is in not been regularly deposited during process of collecting statutory forms. the year by the Company with the Management has represented that the appropriate authorities. same would be submitted to the Name of the Statute Nature of the Dues Amount (Rs.) Period to which Forum where the amount relates dispute is pending Punjab Excise Act, 1914 Duty on beer loss 13,745,236 1974-75 Financial to 1990-91 Commissioner, Haryana Orissa and Bihar Interest on excise 3,222,705 1989 Orissa High Court Excise Act, 1965 loan draw back scheme Adhesive label fees 10,877,028 2001-02 to 2004-05 Orissa High Court Overtime wages 2,152,000 2005-06 Orissa High Court of excise staff Bombay Prohibition Supervision charges 550,930 1983-84 to 1988-89 Bombay High Court Act, 1949 of excise staff Duty on expired beer 1,037,085 2000-01 Commissioner of State Excise, Maharashtra Karnataka Excise Duty on breakages 329,131 1997-98 to 1999-00 Karnataka High Act, 1965 Court Overtime wages of 6,679,691 1998-99 to 2004-05 Karnataka High excise staff Court Central Excise Act, 1944 Central excise duty 70,235,608 1996-97 to 1999-00 Customs Excise Service Tax Appellate Tribunal, Mumbai Orissa Sales Sales Tax 92,728,022 1994-95 to 2000-01 Sales Tax Tribunal, Tax Act, 1947 Orissa Orissa Entry Sales Tax 242,508 2000-01 Sales Tax Tribunal, Tax Act, 1999 Orissa Delhi Sales Sales Tax 1,260,000 2002-03 to 2003-04 Assistant Tax Act, 1975 Commissioner of Commercial Taxes (Appeals), New Delhi
    • Annexure to the Auditors’ report Name of the Statute Nature of the Dues Amount (Rs.) Period to which Forum where the amount relates dispute is pending Bombay Sales Sales Tax 1,514,943 1992-93 Appellate Tribunal, Tax Act, 1959 Maharashtra Sales Tax 4,139,154 1995-96 Sales Tax Tribunal, Maharashtra Sales Tax 1,445,537 1996-97 Sales Tax Tribunal, Maharashtra Bombay Sales Tax Act, Sales Tax 13,617,495 2001-02 Sales Tax Tribunal, 1959 & Central Sales Maharashtra Tax Act, 1956 Sales Tax 8,050,922 2002-03 Deputy Commissioner, Mumbai Sales Tax 4,984,290 2002-03 Joint Commissioner (Appeals), Mumbai Uttar Pradesh Penalty 185,000 2003-04 Sales Tax Tribunal, Trade Tax Act, 1948 Uttar Pradesh Uttar Pradesh Trade Sales Tax 4,026,568 2003-04 Commissioner of Tax Act, 1948 & Central Appeals, Uttar Sales Tax Act, 1956 Pradesh Andhra Pradesh General Sales Tax 3,675,677 1991-92 to 1992-93 Andhra Pradesh Sales Tax Act, 1957 High Court Pondicherry General Sales Tax 11,982,000 1981-82 to 1984-85, Assessing Authority, Sales Act, 1967 1997-98 to 1998-99 Pondicherry Haryana Sales Sales Tax 5,965,472 1989-90 to 1996-97, Sales Tax Tribunal, Tax Act, 1973 1998-99 to 2003-04 Haryana Central Sales Tax Sales Tax 5,428,400 2002-03 Sales Tax Tribunal, Act, 1956 Uttar Pradesh Sales Tax 51,114 2006-07 Joint Commissioner, Meerut Delhi Sales Tax Act, 1975 Sales Tax 137,749 2004-05 Additional Commissioner Sales Tax, New Delhi Uttar Pradesh Tax on Penalty 379,728 2003-04 Deputy Entry of Goods Act, 2000 Commissioner, Meerut Entry Tax 7,465,500 2003-04 to 2005-06 Supreme Court Haryana Local Area Local Area 6,175,447 2000-01 to 2003-04 Chandigarh High Development Tax Act, 2000 Development Tax Court Finance Act, 1994 Service Tax and penalty 32,129,640 2006-07 to 2007-08 Customs Excise and Service Tax Appellate Tribunal, Mumbai Customs Act, 1962 Customs Duty 261,555 2007-08 Customs Excise and Service Tax Appellate Tribunal, Mumbai Note: The amounts paid under protest have been reduced from the amounts demanded in arriving at the aforesaid disclosure. SKOL Breweries Limited
    • Annexure to the Auditors’ report 20-21 x. The Company has accumulated xviii. The Company has not made any losses of Rs. 1,600,944,149 at the preferential allotment of shares to end of the financial year which is less companies/ firms/ parties covered in than fifty per cent of its net worth. the register maintained under Section The Company has not incurred cash 301 of the Companies Act, 1956. losses in the financial year and in the xix. The Company did not have any immediately preceding financial year. outstanding debentures during xi. In our opinion and according to the the year. information and explanations given to xx. The Company has not raised any us, the Company has not defaulted in money by public issues during repayment of dues to its bankers. the year. The Company did not have any outstanding dues to any financial xxi. According to the information and institutions or debenture holders explanations given to us, there was during the year. one fraud on the Company during the year where there was an allegation xii. In our opinion the Company has against an employee of the Company maintained adequate records in for colluding with a vendor involving cases where it has granted loans and an amount of Rs. 67,000. Services advances on the basis of security by of the employee have since been way of pledge of shares. terminated. According to the The Company has not granted any information and explanations given loans and advances on the basis of to us, no other fraud on or by security by way of pledge of the Company has been noticed debentures and other securities. or reported during the course of xiii. In our opinion and according to the our audit. information and explanations given to us, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. for B S R & Co. Chartered accountants xiv. According to the information and explanations given to us, the Zubin Shekary Company is not dealing or trading in Partner shares, securities, debentures and Membership No. 48814 other investments. Bangalore 08 July 2009 xv. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. xvi. In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised. xvii. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we are of the opinion that funds raised on short-term basis amounting to Rs. 4,451,820,029 have been used for long-term investment in fixed assets.
    • “Don’t throw away the old bucket until you know whether the new one holds water.” SKOL Breweries Limited
    • Balance sheet 22-23 (Rs.) As at As at Schedule 31 March 2009 31 March 2008 SOURCES OF FUNDS Shareholders’ funds Share capital 2 2,311,837,450 2,311,837,450 Reserves and surplus 3 6,140,637,748 6,406,852,856 8,452,475,198 8,718,690,306 Loan funds Unsecured loans 4 6,170,031,896 3,774,422,006 Deferred tax liability, net 18 (15) - 63,744,036 14,622,507,094 12,556,856,348 APPLICATION OF FUNDS APPLICATION Fixed assets 5 Gross block 13,556,110,406 10,973,596,079 Less: Accumulated depreciation (2,397,970,441) (2,074,943,657) Less: Provision for impairment of fixed assets (143,814,725) (156,563,671) Net block 11,014,325,240 8,742,088,751 Capital work-in-progress 506,703,130 1,491,630,978 11,521,028,370 10,233,719,729 Investments 6 11,359,225 11,359,225 Current assets, loans and advances Inventories 7 1,650,081,511 1,183,482,865 Sundry debtors 8 3,390,344,214 2,536,219,383 Cash and bank balances 9 317,395,443 311,251,107 Loans and advances 10 1,176,231,356 1,283,275,219 6,534,052,524 5,314,228,574 Current liabilities and provisions Current liabilities 11 4,861,783,690 4,046,106,947 Provisions 12 421,930,244 413,580,309 5,283,713,934 4,459,687,256 Net current assets 1,250,338,590 854,541,318 Amalgamation adjustment reserve account 1,457,236,076 1,457,236,076 Debit balance in profit and loss account 1,600,944,149 952,184,208 Less: Balance in general reserve account 3 (1,218,399,316) (952,184,208) 382,544,833 - 14,622,507,094 12,556,856,348 S ignificant accounting policies 1 Notes to the accounts 18 The schedules referred to above form an integral part of the balance sheet. As per our report attached for B S R & Co. for SKOL Breweries Limited Chartered Accountants Zubin Shekary Jean-Marc Delpon De Vaux Jonathan Andrew Kirby Partner Managing Director Director Membership No. 48814 (Bangalore) Kevin Heydenrych Pramod S M Chief Finance Officer Company Secretary (Bangalore) (Bangalore) Bangalore Hong Kong 08 July 2009 08 July 2009
    • Profit and loss account (Rs.) Schedule For the year ended For the year ended 31 March 2009 31 March 2008 Income Sale of manufactured goods, gross 21,622,215,155 17,367,693,602 Sale of traded goods, gross 96,894,530 296,758,472 21,719,109,685 17,664,452,074 Less: Excise duty (7,518,279,022) (6,307,912,578) Less: Discounts (1,040,654,424) (730,233,870) Sales, net 13,160,176,239 10,626,305,626 Income from contract bottling 143,573,120 219,335,661 Other income 13 185,950,917 281,767,214 13,489,700,276 11,127,408,501 Expenditure Cost of materials 14 6,839,899,584 3,027,155,449 Personnel costs 15 974,679,780 804,928,296 Other expenses 16 4,982,476,471 5,757,867,250 Depreciation 5 651,299,955 858,090,043 Provision for impairment of fixed assets 18 (17) (7,066,845) 117,306,243 Opening adjustment for returnable containers 18 (2) 340,493,099 - Borrowing cost 17 433,651,970 153,515,535 14,215,434,014 10,718,862,816 (Loss)/ profit before tax (725,733,738) 408,545,685 Provision for tax - current tax - - - pertaining to earlier years (reversal) (48,582,678) (37,573,724) - fringe benefit tax 35,160,648 30,320,522 - deferred tax (credit)/ charge 18 (15) (63,744,036) 70,783,158 - wealth tax 192,269 238,542 (Loss)/ profit after tax (648,759,941) 344,777,187 Debit balance in profit and loss account brought forward (952,184,208) (1,296,961,395) Debit balance in profit and loss account carried (1,600,944,149) (952,184,208) over to the balance sheet Earnings per share (par value; Rs. 10 each) 18 (6) - Basic earnings per share (2.81) 1.52 - Diluted earnings per share (2.81) 1.49 Significant accounting policies 1 Notes to the accounts 18 The schedules referred to above form an integral part of the profit and loss account. As per our report attached for B S R & Co. for SKOL Breweries Limited Chartered Accountants Zubin Shekary Jean-Marc Delpon De Vaux Jonathan Andrew Kirby Partner Managing Director Director Membership No. 48814 (Bangalore) Kevin Heydenrych Pramod S M Chief Finance Officer Company Secretary (Bangalore) (Bangalore) Bangalore Hong Kong 08 July 2009 08 July 2009 SKOL Breweries Limited
    • Schedules to the financial statements 24-25 1. Significant accounting policies reported amounts of assets and loan, is settled at a discounted value liabilities and disclosure of as mentioned in the deferral scheme. Background contingent liabilities on the date of 1.5 Fixed assets SKOL Breweries Limited (“the Company” the financial statements and the or “SKOL”) was incorporated as a public results of operations during the Fixed assets are carried at cost of limited company under the Companies reporting period end. Actual results acquisition or construction less Act, 1956 on 18 November 1988. could differ from those estimates. accumulated depreciation and The Company is primarily engaged in the Any revision to accounting provision for impairment of assets. business of brewing, packaging, estimates is recognised The cost of fixed assets includes distribution, marketing and sale of beer. prospectively in current and future freight, duties, taxes and other periods. incidental expenses related to the 1.1 Basis of preparation acquisition or construction of the 1.4 Revenue recognition The financial statements have been respective assets. Borrowing costs prepared and presented under the Revenue is recognised to the extent directly attributable to acquisition or historical cost convention on the that it is probable that the economic construction of those fixed assets accrual basis of accounting. benefits will flow to the Company which necessarily take a substantial The financial statements have been and the revenue can be measured period of time to get ready for their prepared to comply in all material reliably. intended use are capitalised to the respects with the mandatory extent they relate to the period till (i) Sale of goods Accounting Standards (‘AS’) such assets are ready to be put to Revenue from sale of prescribed by Companies use. Intangible assets are recorded manufactured and traded goods (Accounting Standards) Rules, at their acquisition cost. is recognised on transfer of all 2006 and the relevant provisions of the significant risks and rewards Advances paid towards the the Companies Act, 1956, to the of ownership to the buyer which acquisition or construction of fixed extent applicable. These financial normally takes place on assets outstanding at the balance statements are prepared and despatch of goods. The amount sheet date and the cost of the fixed presented in Indian Rupees. recognised as sale is net of assets not ready for their intended 1.2 Going concern sales tax, sales returns and use on such date, are disclosed as discount. Sales are presented capital work-in-progress. These financial statements have both gross and net of excise been prepared on a going concern Upto 31 March 2008, containers duty. basis, notwithstanding accumulated (empty bottles) were recorded as losses and reliance on short term (ii) Income from contract fixed assets and depreciated over a borrowings due to the following bottling period of two years. The Company considerations: Income from contract bottling is is a dominant/ key player in the recognised when the right to Indian market and the policy of - Expected steady future growth receive bottling fee is recording containers as fixed assets reflected in financial projections established which normally is more prevalent in International prepared by the management; takes place on dispatch of markets. Other Companies in India - Expected continual technical and goods by contract bottlers to (i.e. competitors) record containers financial support by the SABMiller its customers. as inventories and not as fixed group. assets. This resulted in an issue on (iii) Interest comparability of results and - Subsequent renewal of short term Interest is recognised using the performance. In order to ensure borrowings from banks. time proportion basis taking into comparability of financial account the amount outstanding These financial statements, performance with other Companies and the interest rate applicable. therefore, do not include any in India, Management, with effect adjustments relating to (iv) Sale of scrap and spent malt from 1 April 2008, have changed recoverability and classification of Revenue from sale of scrap and the policy of recording containers as asset amounts or to classification spent malt is recognised on inventories which were hitherto and amount of liabilities that may be transfer of all the significant risks recorded as fixed assets. necessary if the Company was and rewards of ownership to the Management believes that this unable to continue as a going buyer which normally takes change will result in a more concern. place on dispatch of goods. appropriate presentation of the The amount recognised as sale financial statements (refer note 2 of 1.3 Use of estimates is net of sales tax and sales Schedule 18). The preparation of financial returns. statements in conformity with (v) Gain on prepayment of generally accepted accounting deferred sales tax loan principles in India requires Gain on prepayment of deferred management to make estimates sales tax loan is recognised and assumptions that affect the when the deferred sales tax
    • 26-27 1.6 Depreciation asset at the time of acquisition of After recognition of impairment loss, the asset or of the remaining useful depreciation is provided on the Depreciation on fixed assets is life on a subsequent review is revised carrying amount of the provided on the straight-line method shorter than that envisaged in the asset, less its residual value (if any), as per the rates and in the manner aforesaid schedule, depreciation is over its remaining useful life. prescribed in Schedule XIV to the provided at a higher rate based on Companies Act, 1956. The rates of If at the balance sheet date there is the management’s estimate of depreciation prescribed in Schedule an indication that if a previously useful life/ remaining useful life. XIV to the Companies Act, 1956 are assessed impairment loss no longer considered as minimum rates. exists, the recoverable amount is However, where the management’s reassessed and the asset is estimate of the useful life of a fixed reflected at the recoverable amount subject to a maximum of Pursuant to this policy the following fixed assets are depreciated to their residual depreciable historical cost. value over their estimated useful life: An impairment loss is reversed only to the extent that the carrying Class of Assets Years amount of asset does not exceed Computer equipment 4 the net book value that would have been determined; if no impairment Furniture, fittings and office equipment 6 loss had been recognised. Brands 20 1.8 Borrowing costs Buildings 28 Borrowing costs directly Computer software 4 attributable to acquisition or construction of those fixed assets, Vehicles Motor Vehicles 10 which necessarily take a substantial Plant and Machinery period of time to get ready for their intended use, are capitalised. Other - Chillers 5 borrowing costs are accounted as - Crates 2 an expense. - Wooden pallets 3 1.9 Investments - Others 14-18 Long-term investments are carried at cost less any other-than- temporary diminution in the value, as Freehold land is not depreciated. 1.7 Impairment determined by management on Leasehold land is amortised over The Company periodically assesses commercial consideration the lease term. Leasehold whether there is any indication that determined separately for each improvements are amortised over an asset or a group of assets individual investment. the lease term or its estimated comprising a cash generating unit useful life of 5 years, whichever is 1.10 Inventories may be impaired. If any such lower. indication exists, the Company Inventories are valued at lower of Pro-rated depreciation is provided estimates the recoverable amount cost and net realisable value. on all assets purchased or sold of the asset. For an asset or group Cost of inventories comprises during the year. Assets, costing of assets that does not generate purchase price, costs of conversion individually Rs 5,000 or less, are largely independent cash inflows, and other costs incurred in bringing depreciated in full in the year of the recoverable amount is the inventories to their present purchase. determined for the cash-generating location and condition. unit to which the asset belongs. If The useful lives of brands, which such recoverable amount of the primarily represent brands asset or the recoverable amount of purchased, have been determined the cash generating unit to which based on management’s the asset belongs is less than its assessment of market conditions in carrying amount, the carrying India, intent to use and ability to amount is reduced to its maintain these assets, previous recoverable amount. The reduction history of these brands and internationally accepted practices. is treated as an impairment loss and is recognised in the profit and loss “The wars of the account. The recoverable amount is higher of the assets’ net selling price twenty-first century and value in use. will be fought over water.” SKOL Breweries Limited
    • Schedules to the financial statements 26-27 The methods of determination of cost of various categories of inventories are as follows: Raw materials, packing materials, stores – First-in-first-out (FIFO) method and spares and traded goods Work-in-progress and finished goods – FIFO method. Production (including goods in transit) overheads are allocated on the basis of normal capacity of production facilities. Maintenance spares, which are in contract. Any profit or loss arising commitment or a highly probable regular use and are not an integral on the cancellation or renewal of forecast transaction and that do not part of any fixed asset, are treated forward contracts is recognised as qualify for hedge accounting have as inventory and valued at cost. income or as expense for the been recorded at fair value at the period. reporting date and the resultant The comparison of cost and net exchange loss/ (gain) has been realisable value is made on an item- The exchange difference on the debited/ credited to profit and loss by-item basis. The net realisable forward exchange contract entered account for the year. value of work-in-progress is into to hedge the foreign currency determined with reference to the risk of the underlying outstanding at 1.12 Employee benefits selling prices of related finished the balance sheet date, is calculated (i) Contributions to provident funds, goods in the ordinary course of as the difference between the which is a defined contribution business, less estimated cost of foreign currency amount of the scheme, are charged to the profit completion and estimated costs contract translated at the exchange and loss account on an accrual necessary to make the sale. rate at the reporting date, or the basis. Raw materials, packing materials settlement date where the and other supplies held for use in transaction is settled during the (ii) The Company has an production of inventories are not reporting period, and the arrangement with Life Insurance written below cost except in cases corresponding foreign currency Corporation of India to administer where material prices have declined, amount translated at the later of the its superannuation scheme, which and it is estimated that the cost of date of inception of the forward is a defined contribution scheme. the finished products will exceed exchange contract and the last The contributions to the said their net realisable value. reporting date. Such exchange scheme are charged to the profit differences are recognised in the and loss account on an accrual 1.11 Foreign exchange profit and loss account in the basis. Foreign exchange transactions are reporting period in which the (iii) Gratuity, which is a defined recorded at the rates of exchange exchange rates change. benefit scheme is provided for prevailing on the dates of the For forward exchange contracts based on an actuarial valuation respective transactions. Exchange and other derivatives that are not carried out by an independent differences arising on foreign covered by AS 11 and that relate actuary as at the balance sheet exchange transactions settled to a firm commitment or highly date. Actuarial gains/ losses are during the year are recognised in the probable forecast transactions, recognised immediately in the profit and loss account for the year. the Company has adopted the profit and loss account and are Monetary assets and liabilities principles of Accounting Standard not deferred. denominated in foreign currencies (‘AS’) 30, ‘Financial Instruments: (iv) Compensated absences are as at the balance sheet date are Recognition and Measurement’ with provided for based on an actuarial translated at the closing exchange effect from April 1, 2008. Derivative valuation carried out by an rate on that date; the resultant financial instruments, which qualify independent actuary as at the exchange differences are for cash flow hedge accounting and balance sheet date. recognised in the profit and loss where Company has met all the account. conditions of cash flow hedge In the previous year due to accounting, are fair valued at adoption of the AS 15 - Employee Forward contracts and other balance sheet date and the resultant benefits (Revised 2005), the derivatives are entered into to exchange loss/(gain) is debited/ Company has provided for long hedge the foreign currency risk of credited to the hedge reserve. term compensated absences the underlying outstanding at the This loss/ (gain) would be recorded based on actuarial valuation. balance sheet date. The premium in profit and loss account when the Further in accordance with the or discount on all such contracts underlying transactions affect transitional provision in AS 15 - arising at the inception of each earnings. Other derivative Emplyoee benefits (Revised 2005), contract is amortised as income instruments that relate to a firm Rs. 13,670,268 (net of deferred tax or expense over the life of the
    • 28-29 asset of Rs. 7,039,122) has been reasonable certainty that the assets 1.17 Employee stock compensation adjusted to the general reserve. This can be realised in future; however, cost change did not result in a material where there is unabsorbed The Company applies intrinsic value impact on the profit for the previous depreciation or carried forward method of accounting for stock year. business loss under taxation laws, options granted by the ultimate deferred tax assets are recognised 1.13 Leases holding Company to the employees only if there is a virtual certainty of of the Company after 1 April 2005. Leases where the lessor effectively realisation of such assets. The intrinsic value of the employee retains substantially all the risks and Deferred tax assets are reviewed as services received in exchange for the rewards of ownership of the leased at each balance sheet date and written grant of such options is recognised as asset are classified as operating down or written up to reflect the an expense. The amount recognised leases. Operating lease payments are amount that is reasonably/virtually is spread over the vesting period recognised as an expense in the profit certain (as the case may be) to be which is also the period over which and loss account on a straight-line realised. some of the scheme performance basis over the lease term. criteria relate. At each balance sheet The Company offsets, the current 1.14 Provisions and contingent date, the estimates of the number of (on a year on year basis) and deferred liabilities options that are expected to become tax assets and liabilities, where it has a exercisable are revised. The Company recognises a provision legally enforceable right and where it It recognises the impact of the when there is a present obligation as a intends to settle such assets and revision of the original estimates, result of an obligating event that liabilities on a net basis. if any, in the profit and loss account probably requires outflow of over the remaining vesting period. The Company provides for and resources and a reliable estimate can The effect of uncertainty as to whether discloses the Fringe Benefit Tax be made of the amount of the any performance criteria of share (“FBT”) in accordance with the obligation. A disclosure of a options will be met is dealt with by provisions of Section 115 WC of the contingent liability is made when there estimating the probability of shares Income-tax Act, 1961 and the is a possible obligation or a present vesting and therefore the cost is guidance note on FBT issued by ICAI. obligation that may, but probably will adjusted and readjusted for the not, require an outflow of resources. 1.16 Earnings per share probability of vesting in the vesting When there is a possible obligation or period. The basic earnings per share is a present obligation that the likelihood computed by dividing the net profit 1.18 Cash flow statement of outflow of resources is remote, or loss attributable to equity no provision or disclosure is made. shareholders for the year by the Cash flows are reported using the Provisions for onerous contracts, i.e. weighted average number of equity indirect method, whereby the net contracts where the expected shares outstanding during the year. profit before tax is adjusted for the unavoidable costs of meeting the The number of equity shares used in effects of transactions of a non-cash obligations under the contract exceed computing diluted earnings per share nature and any deferrals or accruals of the economic benefits expected to be comprises the weighted average past or future cash receipts or received under it, are recognised shares considered for deriving basic payments. The cash flows from when it is probable that an outflow earnings per share, and also the regular revenue generating, investing of resources embodying economic weighted average number of equity and financing activities of the benefits will be required to settle a shares, which would have been issued Company are segregated. present obligation as a result of on conversion of all potentially dilutive 1.19 Amalgamation adjustment reserve an obligating event, based on a equity shares. Potential dilutive equity account reliable estimate of such obligation. shares are deemed converted as of the beginning of the year, unless they With effect from 21 May, 2003, the 1.15 Taxation have been issued at a later date. direct and step down subsidiaries of Income tax expense comprises The potentially dilutive equity shares the Company were amalgamated in current tax (i.e. amount of tax for the have been adjusted for the proceeds to the Company. The Company has year determined in accordance with receivable had the shares been accounted for amalgamation the Income-tax law) and deferred tax actually issued at a fair value adjustment reserve as per the charge or credit (reflecting the tax (i.e. the average market value of the scheme approved by the Honourable effects of timing differences between outstanding shares). In computing the High Courts. Amalgamation accounting income and taxable dilutive earnings per share, only adjustment reserve account income for the year). The deferred tax potential equity shares that are dilutive represents excess of the carrying charge or credit and the and that either reduces the earnings value of investments, over the share corresponding deferred tax liabilities per share or increases loss per share capital of the Transferor Companies. or assets are recognised using the tax are included. rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is SKOL Breweries Limited
    • Schedules to the financial statements 28-29 (Rs.) 2. Share capital As at As at 31 March 2009 31 March 2008 Authorised 300,000,000 (previous year: 250,000,000) equity shares of Rs. 10 each 3,000,000,000 2,500,000,000 3,000,000,000 2,500,000,000 Issued, subscribed and paid up 231,183,745 (previous year: 231,183,745) equity shares of Rs. 10 each fully paid up 2,311,837,450 2,311,837,450 2,311,837,450 2,311,837,450 Of the above : 1) 142,041,561 (previous year: 142,041,561) equity shares of Rs. 10 each are held by SABMiller Breweries Private Limited, the immediate holding company. 87,341,038 (previous year: 87,341,038) equity shares of Rs. 10 each are held by SABMiller Asia B.V., another group Company. SABMiller Plc is the ultimate holding Company. 2) Pursuant to a scheme of arrangement 34,636,335 (previous year: 34,636,335) equity shares of Rs. 10 each were allotted, in earlier years, for consideration other than in cash. (Rs.) 3. Reserves and surplus As at As at 31 March 2009 31 March 2008 Capital reserve 2,000,000 2,000,000 Securities premium At the beginning of the year 6,138,637,748 4,608,316,326 Addition during the year - 1,530,321,422 6,138,637,748 6,138,637,748 General reserve At the beginning of the year 1,218,399,316 1,232,069,584 Less: Transitional adjustment for employee benefits (net of tax of Rs. 7,039,122) - (13,670,268) (refer to note 1.12) Less: Debit balance in profit and loss account (1,218,399,316) (952,184,208) - 266,215,108 6,140,637,748 6,406,852,856 (Rs.) 4. Unsecured loans As at As at 31 March 2009 31 March 2008 Bank overdraft 415,394,900 263,732,853 Short term bank loans 4,834,617,711 2,650,010,288 Other loans External commercial borrowings from banks [Refer note (a) below] 662,275,628 442,092,599 From others: - loan from holding Company [Refer note (b) below] 211,624,493 385,269,911 - loan from fellow subsidiary [Refer note (b) below] 46,119,164 - - deferred sales tax loan - 33,316,355 6,170,031,896 3,774,422,006 Notes: a) Amount repayable within a period of 12 months Rs.178,325,000 (previous year: Rs. 207,625,175). b) Tenure and terms for repayment have not been specified for loans obtained from holding company and fellow subsidiaries.
    • 5. Fixed assets Provision Gross Block Accumulated Depreciation for Net block impairment Description As at As at 31 As at As at As at As at As at 1 April 2008 Additions Deletions Charge Deletions/ March 2009 31 March 2009 1 April 2008 31 March 2009 31 March 2009 31 March 2008 adjustments (refer note 1 below) Tangible assets Freehold land 182,896,936 222,449,871 - 405,346,807 - - - - 16,600,000 388,746,807 166,296,936 Leasehold land 15,831,621 - - 15,831,621 4,551,264 1,014,956 - 5,566,220 - 10,265,401 11,280,357 Leasehold improvements 9,698,369 - - 9,698,369 488,904 1,939,674 - 2,428,578 - 7,269,791 9,209,465 Buildings 1,190,787,234 721,851,226 526,912 1,912,111,548 146,976,042 53,761,057 129,687 200,607,412 11,674,312 1,699,829,824 1,035,344,627 Plant and machinery - Returnable containers (refer note 2 of schedule 18) 1,510,709,393 - 1,510,709,393 - 317,041,425 - 317,041,425 - - - 1,193,667,968 - Others 4,407,793,634 3,118,119,346 12,048,584 7,513,864,396 1,084,449,702 380,306,975 7,847,275 1,456,909,402 113,398,625 5,943,556,369 3,193,751,447 Computer equipment 78,991,059 22,131,403 1,271,440 99,851,022 59,739,757 10,971,626 1,215,312 69,496,071 930,146 29,424,805 18,409,595 Furniture, fittings and office equipment 62,350,116 8,544,712 360,745 70,534,083 34,641,133 8,032,720 352,085 42,321,768 953,086 27,259,229 26,904,625 Motor vehicles 32,300,867 42,155 4,201,925 28,141,097 11,315,362 2,724,807 821,759 13,218,410 258,556 14,664,131 20,726,949 Intangible assets Brands 3,410,920,245 - - 3,410,920,245 376,637,450 173,241,899 - 549,879,349 - 2,861,040,896 3,034,282,795 Computer software 71,316,605 19,411,813 917,200 89,811,218 39,102,618 19,306,241 865,628 57,543,231 - 32,267,987 32,213,987 Total Total 10,973,596,079 4,112,550,526 1,530,036,199 13,556,110,406 2,074,943,657 651,299,955 328,273,171 2,397,970,441 143,814,725 11,014,325,240 8,742,088,751 Previous year 8,795,466,503 2,813,346,689 635,217,113 10,973,596,079 1,525,150,636 858,090,043 308,297,022 2,074,943,657 156,563,671 8,742,088,751 Note 1: Provision for impairment (Also refer note 17 of Schedule 18): (Rs.) Provision for impairment Description As at 1 April 2008 Charge Charge / (reversal) Deletion As at 31 March 2009 Freehold land 16,600,000 - - 16,600,000 Buildings 8,466,565 3,207,747 - 11,674,312 Plant and machinery - others 129,592,485 (10,511,759) 5,682,101 113,398,625 Computer equipment 841,707 88,439 - 930,146 Furniture, fittings and office equipment 804,358 148,728 - 953,086 Motor vehicles 258,556 - - 258,556 Total otal 156,563,671 (7,066,845) 5,682,101 143,814,725 Previous year 52,523,898 117,306,243 13,266,470 156,563,671 SKOL Breweries Limited
    • Schedules to the financial statements 30-31 (Rs.) 6. Investments As at As at 31 March 2009 31 March 2008 Long term investments 1. Non trade - unquoted (i) Government and trust securities National Savings Certificates 2,019,500 2,019,500 Indira Vikas Patra 26,550 26,550 2,046,050 2,046,050 (ii) Fully paid up equity shares 1 (previous year:1) fully paid up equity shares of Rs. 10 each of MBL (AP) Breweries Limited 1 1 12,000 (previous year: 12,000) fully paid up equity shares of Rs. 10 each of Shushruta 12,000 12,000 Medical Aid and Research Hospitals Limited 5,000 (previous year: 5,000) fully paid up equity shares of Rs. 10 each of Maini Granites Limited 5,000 5,000 300 (previous year: 300) fully paid up equity shares of Rs. 10 each 300 300 in AP Heavy Machinery & Engineering Limited 10,000 (previous year:10,000) fully paid up equity shares of Rs. 10 each in 10,000 10,000 Ramanashree Comforts Limited 10,000 (previous year: 10,000) fully paid up equity shares of Rs. 10 each in 10,000 10,000 Anusha International Limited 1,700 (previous year: 1,700) fully paid up equity shares of Rs. 100 each 1,700 1,700 in Maa Communication Bozel Limited 7,000 (previous year: 7,000) fully paid up equity shares of Rs. 10 each 7,000 7,000 in Sachdev International Limited 12,500 (previous year: 12,500) fully paid up equity shares of Rs. 10 each 12,500 12,500 in Scarlet Flowers and Agritech Limited 100 (previous year: 100) fully paid up equity shares of Rs. 10 each 100 100 in Indana Spices and Food India Limited 80,000 (previous year: 80,000) fully paid up equity shares of Rs. 10 each 80,000 80,000 in Vulcan Leasing and Investments Limited 5,005 (previous year: 5,005) fully paid up equity shares of Rs. 100 each 500,500 500,500 in Janata Sahakari Bank Limited 295 (previous year: 295) fully paid up equity shares of Rs. 100 each 29,500 29,500 in Haryana State Cooperative Bank Limited 50,000 (previous year: 50,000) fully paid up equity shares of Rs. 10 each in 50,000 50,000 SDF Industires Limited (Formerly Super Star Distilleries Limited) 718,601 718,601 2. Non trade - quoted Fully paid up equity shares 15,000 (previous year: 15,000) fully paid up equity shares of Rs. 1 each in ITC Limited 2,619,750 2,619,750 400 (previous year: 400) fully paid up equity shares of Rs. 10 each in Ultratech Cement Limited 400,060 400,060 80 (previous year: 80) fully paid up equity shares of Rs. 10 each in Tata Motors Limited 56,944 56,944 15,000 (previous year: 15,000) fully paid up equity shares of Rs. 2 each 2,115,000 2,115,000 in Gujarat Ambuja Cement Limited 2,000 (previous year: 1,000) fully paid up equity shares of Rs. 2 each in Larsen & Toubro Limited * 2,598,850 2,598,850 1,400 (previous year: 1,400) fully paid up equity shares of Rs. 2 each in Satyam Computers Limited 633,500 633,500 8,600 (previous year: 8,600) fully paid up equity shares of Rs. 10 each in Syndicate Bank Limited 700,470 700,470 9,124,574 9,124,574 Total long term investment 11,889,225 11,889,225 Less: Provision for, other than temporary, diminution in the value of investments (530,000) (530,000) 11,359,225 11,359,225 The aggregate book value and market value of quoted investments and book value of unquoted investments are as follows: Quoted investment Aggregate book value 9,124,574 9,124,574 Aggregate market value 5,876,574 7,775,281 Aggregate book value of unquoted investments 2,234,651 2,234,651 * On 3 October 2008 the Company has received bonus shares in Larsen & Tourbo Limited in the ratio of 1:1.
    • (Rs.) 7. Inventories As at As at 31 March 2009 31 March 2008 Raw materials and packing materials 558,534,061 424,926,983 Stores and spares 92,353,625 61,739,226 Work-in-progress 182,761,543 124,986,877 Finished goods 798,896,716 560,769,112 Goods in transit - finished goods 15,313,095 3,372,180 Traded goods 2,222,471 7,688,487 1,650,081,511 1,183,482,865 (Rs.) 8. Sundry debtors As at As at 31 March 2009 31 March 2008 Unsecured Debts outstanding for a period exceeding six months - considered good 16,366,113 30,028,871 - considered doubtful 232,378,340 210,674,357 248,744,453 240,703,228 Other debts - considered good 3,373,978,101 2,506,190,512 - considered doubtful 4,823,658 88,980,586 3,627,546,212 2,835,874,326 Less: Provision for doubtful debts (237,201,998) (299,654,943) 3,390,344,214 2,536,219,383 (Rs.) 9. Cash and bank balances As at As at 31 March 2009 31 March 2008 Cash on hand 35,068 666,437 Cheques in hand 60,860,594 41,338,772 Balances with scheduled banks - in current accounts 241,718,047 246,729,811 - in margin money deposit accounts 13,734,611 11,864,657 - in exchange earnings foreign currency (EEFC) account 928,808 9,504,220 - in unclaimed public deposit account 30,000 30,000 - in unclaimed dividend accounts 88,315 1,117,210 317,395,443 311,251,107 “When we save a river, we save a major part of an ecosystem, and we save ourselves as well because of our dependence—physical, economic, spiritual,—on the water and its community of life.” SKOL Breweries Limited
    • Schedules to the financial statements 32-33 (Rs.) 10. Loans and advances As at As at 31 March 2009 31 March 2008 Unsecured Considered good Advances recoverable in cash or in kind or for value to be received 397,023,049 444,740,092 Prepaid expenses 177,816,042 133,432,402 Inter-company deposit 22,667,915 - Rental deposits 40,989,686 39,174,886 Other deposits 130,744,750 133,438,135 Advance fringe benefit tax (net of provision for fringe benefit tax ) 477,793 1,264,449 Advance tax and tax deducted at source (net of provision for income-tax) 115,372,693 135,499,862 Balances with excise authorities 288,712,959 393,797,080 Interest accrued but not due 2,426,469 1,928,313 1,176,231,356 1,283,275,219 Considered doubtful Advances recoverable in cash or in kind or for value to be received 236,999,042 170,218,956 Less: Provision for doubtful advances (236,999,042) (170,218,956) 1,176,231,356 1,283,275,219 Notes: Dues from Companies under the same management outstanding as at the balance sheet date is Rs. Nil (previous year: Rs. Nil). Maximum amount outstanding during the year: MBL Investments Limited - 128,785,130 SABMiller India Limited - 9,560,863 (Rs.) 11. Current liabilities As at As at 31 March 2009 31 March 2008 Acceptances 70,092,260 19,956,173 Sundry creditors - micro and small enterpises (refer note 19 of Schedule 18) 15,156,599 34,630,832 - others 1,747,881,276 750,368,959 Payable to group Companies 1,448,206,620 1,008,195,088 Deposits from customers and del credre agents 90,881,516 81,907,134 Book overdraft 514,838 - Interest accrued but not due 20,315,815 11,167,966 Liability for returnable containers (refer note 2 of schedule 18) - 601,678,875 Accrual for sales schemes and discounts 252,691,379 302,293,444 Excise duty payable 354,692,729 290,387,687 Other current liabilities 861,232,343 944,373,579 Investor education and protection fund shall be credited by the following amounts when due: - Unclaimed dividend 88,315 1,117,210 - Unclaimed matured public deposit 30,000 30,000 4,861,783,690 4,046,106,947 (Rs.) 12. Provisions As at As at 31 March 2009 31 March 2008 Provision for compensated absences 47,112,420 47,708,072 Provision for gratuity 52,697,985 44,489,785 Provision for income-tax (net of advance tax and tax deducted at source) 18,011,044 96,752,121 Provision for fringe benefit tax (net of advance tax) 4,489,085 - Provision for claims (refer to note 13 of Schedule 18) 299,619,710 224,630,331 421,930,244 413,580,309
    • (Rs.) 13. Other income For the year ended For the year ended 31 March 2009 31 March 2008 Sale of spent malt and scrap 132,542,796 107,032,547 Interest - inter-corporate deposit [tax deducted at source Rs. Nil (previous year: Rs. 836,719 )] - 3,692,493 - fixed deposit [tax deducted at source Rs. 240,071(previous year: Rs. 10,294,726 )] 2,008,395 48,743,316 Profit on sale of fixed assets, net 15,004,247 111,962,935 Gain on prepayment of sales tax deferral loan 14,322,809 - Duty draw back on export of beer 8,113,532 - Royalty income 6,611,772 3,547,972 Dividend income 177,101 - Miscellaneous income 7,170,265 6,787,951 185,950,917 281,767,214 (Rs.) 14. Cost of materials For the year ended For the year ended 31 March 2009 31 March 2008 Cost of traded goods sold 77,339,029 129,050,240 Raw materials and packing materials consumed [includes cost of containers consumed Rs. 2,979,601,969 (previous year: Rs. Nil] of which stock of empty bottles on hand as at 1 April 2008 was Rs. 123,178,449 (previous year: Rs. Nil). (refer note 2 of schedule 18) 6,736,736,577 2,869,821,961 Malt processing charges 110,599,032 172,798,620 Opening stock Work-in-progress 124,986,877 99,559,379 Finished goods (including goods in transit) 564,141,292 281,936,166 Cost of bottles included in finished goods as at 1 April 2008 128,317,545 - (refer note 2 of schedule 18) 817,445,714 381,495,545 Less: Excise duty on opening stock 304,023,888 140,906,636 (A) 513,421,826 240,588,909 Closing stock Work-in-progress 182,761,543 124,986,877 Finished goods (including goods in transit) and cost of containers 814,209,811 564,141,292 996,971,354 689,128,169 Less: Excise duty on closing stock 398,774,474 304,023,888 (B) 598,196,880 385,104,281 (Increase) in work-in-progress and finished goods (A-B) (84,775,054) (144,515,372) 6,839,899,584 3,027,155,449 (Rs.) 15. Personnel costs For the year ended For the year ended 31 March 2009 31 March 2008 Salaries, wages and bonus 868,118,126 729,129,579 Contributions to provident and other funds 30,886,292 27,672,075 Gratuity expense 14,483,680 10,839,791 Compensated absences 5,839,464 1,625,400 Workmen and staff welfare expenses 55,352,218 35,661,451 974,679,780 804,928,296 SKOL Breweries Limited
    • Schedules to the financial statements 34-35 (Rs.) 16. Other expenses For the year ended For the year ended 31 March 2009 31 March 2008 Cost of returnable containers (refer note 2 of schedule 18) - 1,652,361,344 Sales scheme expenses 731,286,351 599,201,681 Commission on sales 195,608,001 179,930,597 Freight outward 774,819,322 641,104,558 Power and fuel 698,588,332 594,402,878 Advertisement and publicity 668,107,856 579,909,782 Management fees 515,999,971 409,179,310 Rates and taxes 271,523,243 220,206,608 Legal and professional fees 152,976,820 132,552,686 Clearing and forwarding 75,720,004 68,554,855 Travel and conveyance 121,812,185 106,170,115 Consumption of stores and spares 128,418,139 102,150,451 Rent 170,384,812 75,261,801 Repairs and maintenance - buildings 9,143,153 12,283,695 - plant and machinery 17,813,825 24,739,869 - others 43,331,462 25,023,663 Telephone and other communication 35,740,410 31,940,020 Training and development 30,603,680 21,112,274 Insurance 25,275,349 24,455,559 Provision for doubtful debts (62,452,945) 16,833,319 Bad debts written off 20,895,115 14,296,898 Printing and stationery 11,215,839 11,613,540 Provision for doubtful loans and advances 66,780,086 91,521,158 Doubtful advances written off - 8,322,007 Provision for claims, net 74,989,379 (55,864,649) Foreign exchange loss, net 15,094,179 49,754,609 Miscellaneous expenses 188,801,903 120,848,622 4,982,476,471 5,757,867,250 (Rs.) 17. Borrowing cost For the year ended For the year ended 31 March 2009 31 March 2008 Interest - On external commercial borrowings 35,740,247 29,531,653 - On term loans 474,026,661 119,327,275 - Others 45,754,180 17,297,303 Bank charges 26,457,914 5,348,994 581,979,002 171,505,225 Less: Borrowing cost capitalised (148,327,032) (17,989,690) 433,651,970 153,515,535 “Time your shower to keep it under 5 minutes. You’ll save up to 1000 gallons a month.”
    • 36-37 18. Notes to the accounts 1. Contingent liabilities and other commitments (Rs.) Particulars As at As at 31 March 2009 31 March 2008 Claims against the Company not acknowledged as debts in respect of: a) Sales tax matters 57,788,606 98,512,478 b) Excise matters 91,641,840 91,641,840 c) Service tax matters 32,129,640 - d) Custom matters 261,555 - e) Other matters 32,379,016 32,379,016 Other commitments f) Bank guarantees 31,037,612 16,414,057 g) Estimated amount of contracts remaining to be executed on 604,587,467 1,243,881,396 capital account (net of advances) and not provided for 2. In the current year, pursuant to the change in accounting policy for returnable containers, the Company has carried out the following accounting adjustments in the books of account as at 1 April 2008. Particulars Amount (Rs) Reversal of opening balance for returnable containers appearing in the financial statements as at 1 April 2008: Gross block of returnable containers 1,510,709,393 Accumulated depreciation of returnable containers (317,041,425) Containers liability (601,678,875) 591,989,093 Opening stock of containers as at 1 April 2008, accounted as inventories as per the revised accounting policy Finished goods 128,317,545 Packing materials 123,178,449 (251,495,994) Total 340,493,099 Due to the change in accounting policy for returnable containers in the current year, the loss for the year is higher by Rs. 524,241,616 as compared to the previous year, of which Rs. 340,493,099 is debited seperatly in the profit and loss account as “opening adjustment for returnable containers”. 3. Early adoption of AS 30 During the current year, the Company has early adopted the principles of AS 30 for forward exchange contracts and other derivatives that are not covered by AS 11 and that relate to a firm commitment or a highly probable forecast transaction effective 1 April 2008. In the previous year, the Company had accounted for such contracts in accordance with the guidance provided in the ICAI Announcement dated 29 March 2008. Due to the change in accounting policy in the current year, the loss for the year is lower by Rs. 2,297,633 as compared to the previous year. 4. Income from contract bottling operations pertains to the revenue share the Company has earned on sales made by the tie up units. These revenues is recorded on a net basis in order to comply with relevant statutory regulations where by tie up units raise invoices on its customers, accounts for collections in its books of accounts, discharge statutory dues and taxes and records sales on a gross basis in the financial statements. The contract bottling agreement further specifies that the dealing between the Company and the contract bottlers is on a principal to principal basis. The above practice is consistent with prevalent industry practice. 5. Auditors’ remuneration, net of service tax (included under legal and professional fees) (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 As auditor - Statutory audit 9,200,000 8,300,000 - Tax audit 1,000,000 1,000,000 - Agreed upon procedures - 1,750,000 Reimbursement of expenses 528,339 466,327 6. Earnings per share (Figures in Rs. except number of shares) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 (Loss)/ profit for the year attributable to equity shareholders (648,759,941) 344,777,187 Weighted average number of equity shares of Rs. 10 each used 231,183,745 227,184,330 for calculation of basic earnings per share Adjustments for dilutive effect of share application money - 3,999,415 Weighted average number of equity shares of Rs. 10 each used 231,183,745 231,183,745 for calculation of diluted earnings per share Basic earnings per share (2.81) 1.52 Diluted earnings per share (2.81) 1.49 SKOL Breweries Limited
    • Schedules to the financial statements 36-37 18. Notes to the accounts 7. Additional information pursuant to the provisions of paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 (quantitative information has been compiled from records and technical data in respect of each class of goods manufactured/ purchased by the Company): (a) Details of finished goods (including goods in transit) and turnover (gross) For the year ended For the year ended 31 March 2009 31 March 2008 Beer Quantity Amount Quantity Amount (in cases) (Rs.) (in cases) (Rs.) Opening stock 2,337,847 564,141,292 1,330,528 281,936,166 Sales (gross of excise duty and discounts)* 52,221,556 21,622,215,155 47,428,745 17,367,693,602 Closing stock 2,509,859 814,209,811 2,337,847 564,141,292 * Includes 189,854 (previous year: 62,321) cases charged to consumption on account of breakages, damages and wastage. (b) Details of traded goods For the year ended For the year ended 31 March 2009 31 March 2008 Beer Quantity Amount Quantity Amount (in cases) (Rs.) (in cases) (Rs.) Opening stock 17,479 7,688,487 11,154 2,858,364 Purchases 167,825 71,873,013 837,335 133,880,363 Sales (gross of excise duty and discounts)** 180,230 96,894,530 831,010 296,758,472 Closing stock 5,074 2,222,471 17,479 7,688,487 ** Includes 534 (previous year: 65) cases charged to consumption on account of breakages, damages and wastage. (c) Details of capacity and production (in cases) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Licensed capacity # 77,559,542 50,126,379 Installed capacity* 73,522,209 50,007,210 Actual production 52,393,568 48,436,064 * Installed capacity is as certified by management and relied upon by the auditors being a technical matter. # Licensed capacity is 6,049,644 HLs (previous year: 3,909,858 HLs) which is converted in cases considering 7.8 litres per case. (d) Consumption of raw materials and packing materials Particulars Units For the year ended For the year ended 31 March 2009 31 March 2008 Quantity Amount (Rs.) Quantity Amount (Rs.) Malt (Note 1) MT 56,555 1,490,307,345 55,597 1,522,565,105 Cartons Nos 54,346,529 371,018,654 43,940,130 263,950,089 Cans Nos 109,874,866 664,968,771 53,451,141 274,220,123 Bottles Nos 660,535,313 2,979,601,969 Note 3 - Others (Note 2) 1,341,438,870 981,885,265 Total 6,847,335,609 3,042,620,582 Note 1: Includes processing charges. Note 2: It is not practicable to furnish quantitative information in view of the large number of items which differ in size and nature, each being less than 10% in value of the total consumption. Note 3: Previous year details are not provided as bottles were recorded as fixed assets up to 31 March 2008.
    • 38-39 18. Notes to the accounts (e) Consumption of imported and indigenous raw materials and packing materials Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Amount % age Amount % age (Rs.) (Rs.) Imported 750,972,187 11 477,663,725 16 Indigenous 6,096,363,422 89 2,564,956,857 84 Total 6,847,335,609 100 3,042,620,582 100 (f) Consumption of imported and indigenous stores and spares Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Amount % age Amount % age (Rs.) (Rs.) Imported 5,556,272 4 1,749,696 2 Indigenous 122,861,867 96 100,400,755 98 Total 128,418,139 100 102,150,451 100 8. Value of imports on CIF basis (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Raw materials and packing materials 517,290,769 447,980,124 Spare parts 7,805,209 1,367,463 Capital goods 843,645,026 128,484,910 1,368,741,004 577,832,497 9. Expenditure in foreign currency (accrual basis) (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Travel 11,598,125 8,672,944 Management fees * 515,999,971 409,179,310 Interest ** 35,740,247 29,531,653 Professional and consultation fees 35,866,618 23,244,952 Others 4,624,002 8,791,717 Total 603,828,963 479,420,576 * Includes withholding taxes of Rs. 51,599,997 (previous year: Rs. 40,917,931) and research and development cess payable Rs. 25,799,999 (previous year: Rs. 20,458,965) **Includes withholding taxes of Rs. 1,669,945 (previous year: Rs. 2,450,361) 10. Earnings in foreign currency (accrual basis) (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Export sales at FOB value 161,031,946 67,529,043 SKOL Breweries Limited
    • Schedules to the financial statements 38-39 18. Notes to the accounts 11. Gratuity The Company has a gratuity plan for the employees of the Company. Every employee who has completed 5 years or more of service is eligible for gratuity on separation, worked out at 15 days salary (last drawn salary) for each completed year of service. The obligation under the scheme is partially funded by contributions being made towards qualifying insurance policies obtained from the insurer. Profit and loss account Net employee benefit expense (recognised in personnel expenses) (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Current service cost 7,335,412 6,028,085 Interest cost on benefit obligation 5,137,100 4,503,848 Expected return on plan assets (1,557,617) (1,569,374) Net actuarial loss recognised for the year 3,568,785 1,877,232 Net benefit expense 14,483,680 10,839,791 Actual return on plan assets 2,198,880 1,318,667 Balance Sheet Details of provisions for gratuity (Rs.) Particulars As at As at 31 March 2009 31 March 2008 Defined benefit obligations 75,152,540 62,980,939 Fair value of plan assets 22,454,555 18,491,154 Plan liabilities 52,697,985 44,489,785 Changes in the present value of the defined benefit obligation (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Opening defined benefit obligation 62,980,939 51,632,939 Current service cost 7,335,412 6,028,085 Interest cost 5,137,100 4,503,848 Benefits paid (4,510,959) (810,458) Actuarial loss on obligation 4,210,048 1,626,525 Closing defined benefit obligation 75,152,540 62,980,939 Changes in the fair value of plan assets (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Opening fair value of plan assets 18,491,154 17,982,945 Expected return on plan assets 1,557,617 1,569,374 Actuarial gain/(loss) on plan assets 641,263 (250,707) Contributions by employer 6,275,480 - Benefits paid (4,510,959) (810,458) Closing fair value of plan assets 22,454,555 18,491,154 The Company expects to contribute Rs.10,000,000 in the qualifying insurance policy during 2009-10. Major categories of plan assets as a percentage of the fair value of total plan assets Particulars As at As at 31 March 2009 31 March 2008 Qualifying insurance policies from the insurer 100% 100%
    • 18. Notes to the accounts Principal assumptions used in determining gratuity benefit obligations for the Company's plan (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Discount rate 6.40% 7.60% Expected rate of return on plan assets 7.50% 7.50% Salary increase 10% for Executives 10% for Executives 7% for Workers 7% for Workers Employee turnover 10% for Executives 10% for Executives 2% for Workers 2% for Workers Retirement age 55 - 60 Years 55 - 60 Years The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. The overall expected rate of return on plan assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. Amounts for the current and previous three periods (Rs.) Particulars As at As at As at As at 31 March 2009 31 March 2008 31 March 2007 31 March 2006 Defined benefit obligation 75,152,540 62,980,939 51,632,939 55,673,233 Plan assets 22,454,555 18,491,154 17,982,945 18,726,037 (Deficit) (52,697,985) (44,489,785) (33,649,994) (36,947,196) Experienced adjustments on plan liabilities (2,341,056) (293,399) (904,245) - Experienced adjustments on plan assets 641,263 (250,707) 149,941 (105,070) 12. Segmental reporting Business segments: The Company's sole business segment is 'Beer'. Consequently, the requirement for separate business segment disclosures as required under AS 17 - ‘Segment Reporting’ is not applicable. Geographical segments: The Company operates in two principal geographical areas of the world: India and rest of the world The accounting principles used in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments. Income and direct expenses in relation to segments are categorised based on items that are individually identifiable to that segment, while the remainder of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to the individual segments as these expenses are common in nature. The Company therefore believes that it is not practicable to provide segment disclosure relating to such expenses and accordingly such expenses are separately disclosed as unallocated and directly charged against total income. Certain segment assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors and loans and advances. Segment liabilities include trade creditors, creditors for expenses and other operating liabilities and provisions. Certain assets and liabilities that are not specifically allocable to the individual segments have been separately disclosed as unallocated. Revenue For the year ended For the year ended 31 March 2009 31 March 2008 India 12,999,144,293 10,558,776,583 Rest of world 161,031,946 67,529,043 13,160,176,239 10,626,305,626 Segment asset As at As at 31 March 2009 31 March 2008 India 18,060,449,424 15,556,454,184 Rest of world 5,990,695 2,853,344 18,066,440,119 15,559,307,528 SKOL Breweries Limited
    • Schedules to the financial statements 40-41 18. Notes to the accounts 13. Provisions for claims The provisions is utilised to settle previously anticipated and determined adverse outcomes of legal cases against the Company. The provision is based on independent advice obtained by the Company from external legal counsel. The time frame of utilisation of the provision is determined by the course of the legal proceedings. Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Provision for indirect tax cases Opening balance 171,556,592 260,118,088 Add: Addition during the year 60,416,512 - Less: Unused amounts reversed during the year - (88,561,496) Closing balance 231,973,104 171,556,592 Provision for water charges Opening balance 53,073,739 20,376,892 Add: Addition during the year 14,572,867 32,696,847 Closing balance 67,646,606 53,073,739 Provision for indirect taxes Details of provisions made during the year are: (i) Demand for non-submission of statutory forms A. Excise duty: The Uttar Pradesh State Excise Department has raised a demand against non-submission of Excise Verification Certificates ("EVC") for the years 2002-03 to 2007-08. The EVCs' are required to be submitted to the authorities within 90 days from the date of sale. Based on an assessment of the possibility of collection of the forms the Company has provided Rs. 19,264,044 against the said liability. B. Sales tax: Based on an assessment of the possibility of collecting of forms the Company has made the following provisions: a) The Maharashtra Sales Tax Authorities have raised a demand under Bombay Sales Tax Act and Central Sales Tax Act for the year 2002-03 for non-submission of forms. The Company has challenged the alleged order before the Maharashtra Sales Tax Tribunal and the matter has been remanded back for fresh hearing. The Company has provided Rs. 9,150,922 in the current year. b) The Maharashtra Sales Tax Authorities have raised a demand under Bombay Sales Tax Act and Central Sales Tax Act for the year 2002-03 on account of non-submission of forms. An appeal has been filed before the Joint Commissioner (Appeals) and the matter is pending for hearing. The Company has provided Rs. 4,984,290 in the current year. c) The Company has assessed the status of pending statutory C forms and accordingly created provision of Rs. 6,760,859 based on the ageing of the pending statutory forms to be collected. d) The Karnataka Commercial Tax authorities have raised a demand for the years 2002-03 and 2003-04 for non- submission of statutory forms and tax on purchases from unregistered dealers. The Company has provided Rs.1,895,250 in the current year. (ii) Local Area Development Tax ("LADT"): The Haryana Sales Tax Authorities have raised a demand towards LADT for the years 2000-01 to 2003-04 for purchases made. An appeal has been filed before the Joint Excise and Taxation Commissioner (Appeals) and the same is pending for hearing. The Company had provided Rs. 4,695,960 in the earlier years. During the current year the Company has made an additional provision of Rs. 5,354,466. The Company assesses the probability of an adverse outcome of the case and accordingly has made a provision against this case. (iii) For various other miscellaneous matters, the Company has provided Rs. 13,006,681 during the current year. Provision for water charges The Maharashtra Industrial Development Corporation ("MIDC") had, vide order no EE/E&M/785/2005 dated 25 May 2005, made a demand for increase in water charges with retrospective effect from 1 Nov, 2001. Waluj Industries Association of which the Company is a member has filed a writ petition against such demand in the Honourable High Court of Aurangabad. The Honourable High Court has given a stay order against such increase in water charges. However, the Company provides for the differential rate levied from 25 May 2005 (i.e. date of order) in the books pending final outcome of the writ petition.
    • 18. Notes to the accounts 14. Related parties (i) Names of related parties and description of relationship with the Company: Enterprises where control exists Ultimate holding Company SABMiller plc Holding Company SABMiller Breweries Private Limited Significant influence SABMiller Asia & Africa BV Names of other related parties with whom transactions have taken place during the year 1. Fellow subsidiaries MBL Property Developers Limited S.p.A. Birra Peroni MBL Investments Limited (Up to 30 September 2007) SABMiller India Limited SABMiller International BV SABMiller Management (IN) BV SABMiller Asia BV SABMiller Africa & Asia (Pty) Limited SABMiller Vietnam 2. Key managerial personnel Jean-Marc Delpon De Vaux, Managing Director (ii) Related party transactions (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 SABMiller Breweries Private Limited Income from contract bottling 73,147,185 83,191,895 Purchase of traded goods and raw materials 84,587,436 41,910,792 Interest expense 16,267,273 2,758,904 Reimbursement of expenses incurred on behalf of the Company 59,519,691 58,634,966 Reimbursement of expenses incurred on behalf of other Companies 6,383,899 12,115,883 Loan repaid, net 173,645,418 - Loan taken, net - 205,825,649 Sale of fixed assets - 1,352,663 SABMiller Asia & Africa BV Reimbursement of expenses incurred on behalf of the Company 13,204,232 17,437,179 Reimbursement of expenses incurred on behalf of other Companies 3,594,927 2,730,681 SABMiller plc Reimbursement of expenses incurred on behalf of other Companies 8,378,547 503,570 MBL Property Developers Limited Interest expense 2,822 - SABMiller Management (IN) BV Management fees 515,999,971 409,179,310 S.p.A. Birra Peroni Purchase of traded goods and raw materials 1,405,874 1,681,630 MBL Investments Limited Refund of inter corporate deposit given - 108,697,878 Purchase of investment - 9,313,175 Interest income - 3,444,182 SKOL Breweries Limited
    • Schedules to the financial statements 42-43 18. Notes to the accounts Particulars For the year ended For the year ended 31 March 2009 31 March 2008 SABMiller India Limited Interest expense 575,342 - Loan taken, net 46,119,164 - Reimbursement of expenses incurred on behalf of other Companies - 1,895,208 Interest income - 248,311 Refund of inter corporate deposit given - 9,249,723 SABMiller Asia BV Reimbursement of expenses incurred on behalf of the Company 4,911,927 - Reimbursement of expenses incurred on behalf of other Companies 7,107,664 - SABMiller Africa & Asia (Pty) Limited Purchase of traded goods and raw materials 870,604 108,761,522 Purchase of fixed assets - 738,310 SABMiller Vietnam Reimbursement of expenses incurred on behalf of the Company 85,957 - Reimbursement of expenses incurred on behalf of other Companies 688,142 - SABMiller International BV Reimbursement of expenses incurred on behalf of the Company - 217,094 Key managerial personnel Remuneration 20,819,277 18,219,410 (iii) Amount outstanding as at the balance sheet date: (Rs) Particulars As at As at 31 March 2009 31 March 2008 SABMiller Breweries Private Limited: Unsecured loan 211,624,493 385,269,911 SABMiller plc Receivable from group Companies 1,872,054 1,001,003 SABMiller Asia & Africa BV Payable to group Companies 1,163,486 12,953,750 SABMiller India Limited Unsecured loan 46,119,164 - SABMiller Management (IN) BV:BV: Payable to group Companies 1,447,043,134 982,643,160 S.p.A. Birra Peroni Creditors 476,747 1,334,068 SABMiller International BV Payable to group Companies - 1,290,001 SABMiller Africa & Asia (Pty) Limited Payable to group Companies - 9,974,109 (iv) The Company has obtained unsecured loans from its holding Company and a fellow subsidiary for which no terms and tenure for repayment have been specified. The loan from the fellow subsidiary is interest free. No interest rate is specified for the loan obtained from the holding Company, however, the holding Company recovers the actual interest cost incurred by it from the Company on the loan given. (v) Corporate guarantee has been given by SABMiller plc for loan facility obtained by the Company as at balance sheet date amounting to Rs. 2,364,241,360 (previous year: Rs. 600,600,334). (vi) SABMiller plc operates a variety of equity-settled share-based compensation plans for few select employees of the Company. (Refer note 20 below for further details).
    • 18. Notes to the accounts 15. Deferred tax assets/ (liabilities) (Rs.) P articulars As at As at 31 March 2009 31 March 2008 Deferred tax assets Investments 180,147 180,147 Debtors 72,926,057 94,153,813 Loans and advances 73,825,954 51,127,403 Provision for retirement benefits 33,925,557 31,571,602 Provision for claims 54,242,838 52,349,240 Others 3,511,469 7,681,544 Unabsorbed depreciation 956,544,840 728,559,450 Total 1,195,156,862 965,623,199 Deferred tax liabilities Fixed assets 1,195,156,862 1,029,367,235 Total 1,195,156,862 1,029,367,235 Deferred tax liabilities, net - (63,744,036) In view of the accumulated losses and in accordance with AS 22 - "Accounting for taxes on income", deferred tax assets on unabsorbed depreciation and other temporary timing differences have been recognised only to the extent of those timing differences, the reversal of which will result in sufficient taxable income. 16. Derivative instruments and un-hedged foreign currency exposure Derivative instruments Particulars Purpose As at As at 31 March 2009 31 March 2008 Forward contract Towards repayment USD 3,320,407 JPY 113,010,836 of foreign currency loan Forward contract Towards repayment EURO 835,842 - of sundry creditors Currency swap contract Towards repayment USD 3,500,000 USD 7,500,000 of foreign currency loan Currency swap contract Towards repayment JPY 933,000,000 JPY 260,000,000 of foreign currency loan Particulars of un-hedged foreign currency exposure as at the balance sheet date Underlying asset / liability As at March 2009 As at March 2008 Foreign currency Amount in Rs. Foreign currency Amount in Rs. amount amount Bank balance USD 18,230 928,808 USD 237,368 9,504,220 JPY 23,425,801 12,150,963 JPY 111,163,791 44,474,410 Sundry debtors USD 117,580 5,990,695 USD 71,262 2,853,344 Receivable from group USD 36,743 1,872,054 - - Companies Sundry creditors USD 2,496,972 (127,220,744) USD 645,120 (25,830,605) EURO 1,378,691 (93,034,069) EURO 950,423 (54,009,069) Interest accrued but USD 152,521 (7,770,948) USD 266,437 (10,668,131) not due JPY 806,296 (418,226) - - Payable to group ZAR 215,604 (1,163,486) ZAR 2,635,493 (12,953,750) Companies - - USD 5,409 (216,587) Total (208,664,953) (46,846,168) SKOL Breweries Limited
    • Schedules to the financial statements 44-45 18. Notes to the accounts 17. Provision for impairment of fixed assets The impairment loss amounting to Rs. 117,306,243 for the year ended 31 March 2008 represents the write down of certain fixed assets to their recoverable amount. These fixed assets have been rendered as redundant / idle as a result of significant capacity expansion at certain breweries and have been identified as such based on the physical verification conducted by the management during previous year. 18. Managerial remuneration The details of remuneration paid to the managing director are as follows: (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Salary and allowance 14,795,083 15,210,325 Contribution to Provident Fund 630,654 – Stock Compensation Cost 5,127,931 2,018,039 Perquisites 265,609 991,046 Total 20,819,277 18,219,410 Note: As the liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the amount pertaining to managing director is not ascertainable and, therefore not included above. 19 Based on the confirmations received from the suppliers who provide goods and services to the Company regarding their status 19. under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has prepared the following disclosure as required under the said Act. The Company however has not received any claim for interest from any supplier under the said Act. (Rs.) Particulars As at As at 31 March 2009 31 March 2008 (i) The principal amount remaining unpaid to any 14,096,363 34,095,709 supplier as at the end of each accounting year; (ii) The amount of interest paid by the Company along - - with the amounts of the payment made to the supplier beyond the appointed day during the year; (iii)The amount of interest due and payable for the period 525,113 191,971 of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under this Act; (iv)The amount of interest accrued and 1,060,236 535,123 remaining unpaid at the end of the year (v) The amount of further interest remaining due and 535,123 343,152 payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise. 20. Operating leases The Company is obligated under non-cancellable operating leases for a brewing facility and other office premises which are renewable at the option of the lessor and lessee. The total lease rental expense under non-cancellable operating leases amounted to Rs.71,318,214 (previous year: Rs. 8,260,160) for the year ended 31 March 2009. Future minimum lease payments under non-cancellable operating leases are as follows: (Rs.) Period As at As at 31 March 2009 31 March 2008 Not later than 1 year 67,342,145 16,336,414 Later than 1 year and not later than 5 years 56,886,147 32,588,625 Later than 5 years - - The Company is also obligated under cancellable lease for residential, vehicles and office premises, which are renewable at the option of both the lessor and lessee. The total rental expense under cancellable operating lease entered amounted to Rs. 99,066,598 (previous year: Rs. 67,001,641) for the year ended 31 March 2009. 21. Employee stock compensation cost Guidance Note on "Accounting for Employee Share Based Payments" issued by the ICAI ('the Guidance Note') establishes financial and reporting principles for employees share based payments plans. The Guidance Note applies to employee share based payment plans, the grant date in respect of which falls on or after 1 April 2005. SABMiller plc ('the Group') operates a variety of equity-settled share-based compensation plans for the employees of the Company.
    • 18. Notes to the accounts (i) During the year ended 31 March 2009, the Group had the following share-based payment arrangements for the employees of the Company. Executive Share Option Scheme [Approved and (No 2) Scheme] Particulars As at As at 31 March 2009 31 March 2008 Date of grant 16 May 2008 18 May 2007 Number of shares granted 137,550 92,200 Method of settlement Equity Equity Contractual life 10 years 10 years Vesting period 3 years 3 years Vesting conditions Achievement of a target Achievement of a target growth in earnings per share growth in earnings per share International Performance Share Award Sub-Scheme Particulars As at As at 31 March 2009 31 March 2008 Date of grant 16 May 2008 18 May 2007 Number of shares granted 9,000 7,000 Method of settlement Equity Equity Contractual life 10 years 10 years Vesting period 3 years 3 years Vesting conditions Achievement of a target Achievement of a target growth in earnings per share growth in earnings per share (ii) The details of the activity of shares issued after 1 April 2005 under Executive Share Option Scheme [Approved and (No 2) Scheme] are as follows: Particulars 31 March 2009 31 March 2008 Number of Options Weighted average Number of Options Weighted average exercise price (Rs) exercise price (Rs) Outstanding at the beginning of the year 217,877 866 125,677 801 Granted during the year 137,550 1,036 92,200 942 Lapsed during the year 48,550 986 3,950 794 Exercised during the year 29,050 661 - - Transferred during the year * - - 38,750 779 Outstanding at the end of the year 277,827 950 217,877 866 Exercisable at the end of the year 21,700 661 - - * The options transferred represents options relating to employees transferred to other companies within the SABMiller Group during the pervious year. The weighted average share price at the date of exercise for stock options exercised during the year was Rs. 1,001 (previous year: Rs. Nil). The options outstanding as at 31 March 2009 had a weighted average remaining contractual life of 8.1 years (previous year: 8.3 years). The details of the activity of shares issued after 1 April 2005 under International Performance Share Award Sub-Scheme are as follows: Particulars 31 March 2009 31 March 2008 Number of Options Weighted average Number of Options Weighted average exercise price (Rs) exercise price (Rs) Outstanding at the beginning of the year 7,000 - - - Granted during the year 9,000 - 7,000 - Outstanding at the end of the year 16,000 - 7,000 - Exercisable at the end of the year - - - - The weighted average share price at the date of exercise for stock options exercised during the year was Rs. Nil (previous year: Rs. Nil). The options outstanding as at 31 March 2009 had a weighted average remaining contractual life of 8.7 years (previous year: 9.1 years). SKOL Breweries Limited
    • Schedules to the financial statements 46-47 Schedules to the financial statements 18. Notes to the accounts (iii) The weighted average fair value of stock options granted during the year is Rs. 362 (previous year: Rs. 327). The estimate of fair value on the date of the grant was made using the Binomial model valuation and Monte Carlo model with the following assumptions: Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Share price at the grant date Rs. 1,051 Rs. 961 Exercise price at the grant date Rs. 1,036/ Rs. Nil Rs. 942/ Rs. Nil Expected volatility 25% 22.5% Contractual life (vesting and exercise period) in years 10 years 10 years Expected dividends 2.11% 2.11% Average risk-free interest rate 4.74% 4.48% The expected volatility was determined based on historical daily share price volatility of SABMiller plc share price over the last 6 years. (iv) Since the Company used the intrinsic value method the impact on the reported net profit and earnings per share is computed by applying the fair value based method. The Guidance Note requires the Proforma disclosures of the impact of the fair value method of accounting of employee stock compensation accounting in the financial statements. Applying the fair value based method defined in the said Guidance Note, the impact on the reported net profit and earnings per share would be as follows: (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Net (loss)/ income as reported (648,759,941) 344,777,187 Add: Employee stock compensation under intrinsic value method - - Less: Employee stock compensation under fair value method (32,765,238) (18,391,746) Proforma net income (681,525,179) 326,385,441 Earnings per share as reported - Basic (2.81) 1.52 - Diluted (2.81) 1.49 Proforma earnings per share - Basic (2.95) 1.44 - Diluted (2.95) 1.41 22. The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into with the associated enterprises during the financial year and expects such records to be in existence latest by September 2009 as required under law. Management is of the opinion that its international transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation. 23. The comparative figures have been regrouped/ reclassified, wherever necessary, to conform to the current year's presentation. for SKOL Breweries Limited Jean-Marc Delpon De Vaux Jonathan Andrew Kirby Managing Director Director (Bangalore) Kevin Heydenrych Pramod S M Chief Finance Officer Company Secretary (Bangalore) (Bangalore) Hong Kong 08 July 2009
    • “Water is the most critical resource issue of our lifetime and our children’s lifetime.The health of our waters is the principal measure of how we live on the land.” SKOL Breweries Limited
    • Cash flow statement 48-49 (Rs.) Particulars For the year ended For the year ended 31 March 2009 31 March 2008 Cash flows from operating activities (Loss)/ Profit before tax (725,733,738) 408,545,685 Adjustments: Provision for impairment of fixed assets (7,066,845) 117,306,243 Opening adjustment for returnable containers 340,493,099 - Depreciation 651,299,955 858,090,043 Dividend income (177,101) - Interest and financing charges 433,651,970 153,515,535 Interest income (2,008,395) (52,435,809) Gain on prepayment of sales tax deferral loan (14,322,809) - (Profit) on sale of fixed assets/ assets discarded (15,004,247) (111,962,935) Unrealised foreign exchange difference 8,506,675 (36,484,812) Operating cash flows before working capital changes 669,638,564 1,336,573,949 (Increase) in sundry debtors (853,425,251) (1,051,637,153) Decrease/ (Increase) in loans and advances 169,888,453 (233,978,153) (Increase) in inventories (215,102,652) (408,963,371) Increase in current liabilities and provisions 1,263,286,554 856,462,005 Cash generated from operations 1,034,285,668 498,457,278 Taxes paid (40,108,406) (46,116,860) Net cash provided by operating activities a 994,177,262 452,340,418 Cash flows from investing activities Purchase of fixed assets (2,746,590,974) (3,489,529,623) Proceeds from sale of fixed assets 17,417,206 179,184,235 Inter-corporate deposits, net - 117,947,601 Dividend income 177,101 - Interest received 1,510,239 52,367,945 Purchase of investments - (9,181,175) Net cash used in investing activities b (2,727,486,428) (3,149,211,017) Cash flows from financing activities Proceeds from borrowings 41,731,939,081 20,516,944,296 Repayment of borrowings (39,399,711,294) (21,374,219,612) Prepayment of sales tax deferral loan (18,993,546) - Interest and financing charges paid (572,831,153) (183,562,500) Unclaimed dividend paid (1,028,895) (740,705) Net cash provided by/ (used in) by financing activities c 1,739,374,193 (1,041,578,521) Effect of exchange rate changes on cash and cash equivalents d 79,309 2,237,372 Net increase in cash and cash equivalents a+b+c+d 6,144,336 (3,736,211,748) Cash and cash equivalents at the beginning of the year 311,251,107 4,047,462,855 Cash and cash equivalents at the end of the year 317,395,443 311,251,107 Net increase in cash and cash equivalents* 6,144,336 (3,736,211,748) * Includes Rs. 13,734,611 (previous year: Rs. 11,864,657) in margin money deposit account. As per our report attached for B S R & Co. for SKOL Breweries Limited Chartered Accountants Zubin Shekary Jean-Marc Delpon De Vaux Jonathan Andrew Kirby Partner Managing Director Director Membership No. 48814 (Bangalore) Kevin Heydenrych Pramod S M Chief Finance Officer Company Secretary (Bangalore) (Bangalore) Bangalore Hong Kong 08 July 2009 08 July 2009
    • Additional information pursuant to Part IV of Schedule VI of the Companies Act, 1956. COMPANY’S BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE I Registration Details Registration No : 49687 State Code :11 Balance Sheet Date: 31-Mar-09 II Capital Raised during the year (Amount In Rs Thousands) Public Issue Rights Issue Nil Nil Bonus Issue Private Placement Nil Nil III Position of Mobilisation and Deployment of Funds (Amount In Rs Thousands) Total Liabilities Total Assets 11,453,746 11,453,746 Sources of Funds Paid - up Capital Reserves and Surplus 2,311,837 6,140,638 Secured Loans Unsecured Loans 0 6,170,032 Application of Funds Net Fixed Assets Investments 11,014,325 11,359 Net Current Assets Misc Expenditure 1,250,339 1,457,236 Accumulated Losses 382,545 IV Performance of the Company (Amount In Rs Thousands) Turnover * Total Expenditure 13,303,749 14,215,434 Profit/(Loss) Before Tax Profit/ Loss After Tax (725,734) (648,760) Earnings Per Share in Rs Dividend Rate % (2.81) 0 V Generic Names of Three Principal Products/ Services of the Company (as per monetary terms) Item code No [ITC Code] 220300 Product Description Beer for SKOL Breweries Limited Jean-Marc Delpon De Vaux Jonathan Andrew Kirby Managing Director Director (Bangalore) Kevin Heydenrych Pramod S M Chief Finance Officer Company Secretary (Bangalore) (Bangalore) Hong Kong 8 July 2009 SKOL Breweries Limited
    • “Do one thing each day in the refrigerator instead “Keep a pitcher of waterthat will save water. Even if savings are small, drinks, so counts.” of running the tap for coldevery drop that every drop goes down you not the drain.”
    • ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ SKOL BREWERIES LIMITED ○ ○ Regd. Office: No.1, Mahal Industrial Estate, Mahakali Road, Andheri (East), Mumbai-400093 ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ PROXY FORM ○ ○ I/We ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ of ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ being a Member(s) of the above named Company hereby appoint ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ of ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ (or failing whom) ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ of ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ as my/our proxy to attend and vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held at ○ M.C. Ghia Hall, Bhogilal Hargovindas Building, 2nd Floor, 18/20, K. Dubash Marg, behind Prince of Wales Museum, Kala Ghoda, ○ Mumbai – 400 001 on Tuesday, the 15th September 2009 at 3.00 p.m. and at any adjournment thereof. ○ ○ ○ Signed this day of ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ Signed by the said ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ N.B.: This Proxy form must reach the Registered Office of the Company not less than 48 ○ ○ hours before the time of holding the meeting. ○ ○ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Please cut along this line- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ○ ○ ○ SKOL BREWERIES LIMITED ○ Regd. Office: No.1, Mahal Industrial Estate, Mahakali Road, Andheri (East), Mumbai-400093 ○ ○ ○ ATTENDANCE SLIP ○ ○ ○ Please complete this Attendance Slip and hand it over at the entrance of the Meeting Hall. ○ SKOL Breweries Limited ○ ○ No.1, Mahal Industrial Estate, Mahakali Road, Andheri (East), Mumbai-400093 ○ ○ ○ I hereby record my presence at the Annual General Meeting of the Company to be held at M.C. Ghia Hall, ○ Bhogilal Hargovindas Building, 2nd Floor, 18/20, K. Dubash Marg, behind Prince of Wales Museum, Kala Ghoda, ○ ○ Mumbai – 400 001 on Tuesday, the 15th September 2009 at 3.00 p.m. ○ ○ ○ Member’s Name (in Block Capitals): ○ ○ Share Ledger Folio No. : ○ ○ ○ DP ID No. ○ ○ ○ Client ID No. ○ ○ Member’s/Proxy’s Signature: ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ SKOL Breweries Limited ○ ○ ○ ○
    • “Water, like religion and ideology, has the power to move millions of people.”