1.         SIGNIFICANT ACCOUNTING POLICIES

            I.          Basis of Accounting

            The Company has brpared its financial statements in accordance with applicable accounting standards and generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

II.         Income and Expenditure

            Accounting of Income & Expenditure is done on accrual basis.

III.        Sales

Sales are shown inclusive of excise duty and net of sales tax, rebates and discounts etc.

IV.        Fixed Assets & Debrciation

a)         Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction and installation.

b)         Cenvat credit wherever availed on capital equipment is accounted for by credit to respective fixed assets.

c)         Incidental expenditure on Expansion/New Projects (including interest on loans obtained for acquisition of capital assets) has been allocated to eligible assets on pro-rata basis on completion of the Project.

d)         Debrciation on fixed assets is provided on Straight Line method at the rates and in the manner brscribed in Schedule XIV to the Companies Act, 1956. The company has during the year changed rates of providing  Debrciation on the assets mentioned below which are debrciated now on higher rates than the rates brscribed in Schedule XIV to the Companies Act, 1956 based on estimated useful life.

 

Assets	SLM rate of Debrciation	Estimated useful Life
CONTAINERS (BOTTLES & SHELLS)	15.83%	6 Years
VISICOOLERS & PMX MACHINES	11.88%	8 Years
OFFICE EQUIPMENTS	23.75%	4 Years
COMPUTERS AND SOFTWARES	23.75%	4 Years
VEHICLES (OTHER THAN DELIVERY VEHICLES)	13.57%	7 Years
FURNITURE & FIXTURES	9.50%	10 Years

e)         Breakages of containers (Bottles & Shells) are being adjusted on “First Bought First Broken” basis.

                                                                                                Contd...2...

-:  2  :-

V.         Inventories

            Inventories are valued on the following basis:-

 

a)	Finished Goods -       at bonded Godown   -       at duty paid Godown/depot	-   -	At lower of cost or estimated realisable value   At lower of Landed Cost or estimated realisable value
b)	Work-in-progress	-	At estimated cost
c)	Raw Materials	-	At cost calculated on Moving Average Basis
d)	Stores and Spares	-	At cost calculated on Moving Average Basis

VI.        Excise Duty

a)         Excise Duty is accounted for at the time of clearance of goods. However, liability towards Excise duty on closing stock lying in Bonded Warehouse is provided for as per relevant guidance note issued by the Institute of Chartered Accountants of India.

b)         Cenvat credit, to the extent availed, is adjusted towards cost of materials.

VII.       Retirement Benefits

            The Company’s obligations towards various employees’ benefits are recognized as follows:

            Defined Contribution plans-Provident fund is covered under this category. The Co’s contribution towards the provident fund is charged to Profit & Loss account and is being regularly deposited with the PF department.

            Defined Benefit plans- Gratuity and Leave Encashment are defined benefit plans. The brsent value of obligation under such defined benefit plans is determined based on actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

            The obligation is measured at the brsent value of estimated future cash flows. The discount rates used for determining the brsent value of obligation under defined benefit plans is based on the market yield of government Securities as at the balance sheet date, having  maturity period approximating to the terms of related obligations.

            Actuarial gains and losses are recognised immediately in the profit and loss account. (Also refer to note no.42)

Contd...3...

                                                                          -:  3  :-

VIII.      Sundry Debtors

            Sundry Debtors are shown net of claims payable. Expenses on Claims to the extent received and intimated are recognised.

IX.       Investments

            Long Term Investments are stated at cost. Provision for diminution is made only if such a decline is other than temporary. Current investments are carried in the financial statements at lower of cost and fair value determined.   

X.       Foreign Currency Transactions

a)    Transactions in foreign currency are recorded at the exchange rates brvailing at the date of the transaction. Exchange difference arising on settlement of foreign currency transactions are recorded in the Profit and Loss account. Monetary Assets and liabilities in foreign currency are revalued at the year end exchange rates. Exchange differences arising on such revaluation are recognized in Statement of Profit & Loss.

b)   Exchange differences arising on reporting of long term foreign currency monetary items, in so far as they relate to acquisition of a debrciable capital asset are adjusted in the cost of the asset as per Companies (Accounting standards) (second amendment) rules,2011.

XI.        Contingent Liabilities

            Contingent Liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.

XII.       Dividend is accounted for as per the date of declaration.

XIII.      Unless specifically stated to be otherwise, these policies are consistently followed.                                   

1.         SIGNIFICANT ACCOUNTING POLICIES

            I.          Basis of Accounting

            The Company has brpared its financial statements in accordance with applicable accounting standards and generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

II.         Income and Expenditure

            Accounting of Income & Expenditure is done on accrual basis.

III.        Sales

Sales are shown inclusive of excise duty and net of sales tax, rebates and discounts etc.

IV.        Fixed Assets & Debrciation

a)         Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction and installation.

b)         Cenvat credit wherever availed on capital equipment is accounted for by credit to respective fixed assets.

c)         Incidental expenditure on Expansion/New Projects (including interest on loans obtained for acquisition of capital assets) has been allocated to eligible assets on pro-rata basis on completion of the Project.

d)         Debrciation on fixed assets is provided on Straight Line method at the rates and in the manner brscribed in Schedule XIV to the Companies Act, 1956. The company has during the year changed rates of providing  Debrciation on the assets mentioned below which are debrciated now on higher rates than the rates brscribed in Schedule XIV to the Companies Act, 1956 based on estimated useful life.

 

Assets	SLM rate of Debrciation	Estimated useful Life
CONTAINERS (BOTTLES & SHELLS)	15.83%	6 Years
VISICOOLERS & PMX MACHINES	11.88%	8 Years
OFFICE EQUIPMENTS	23.75%	4 Years
COMPUTERS AND SOFTWARES	23.75%	4 Years
VEHICLES (OTHER THAN DELIVERY VEHICLES)	13.57%	7 Years
FURNITURE & FIXTURES	9.50%	10 Years

e)         Breakages of containers (Bottles & Shells) are being adjusted on “First Bought First Broken” basis.

                                                                                                Contd...2...

-:  2  :-

V.         Inventories

            Inventories are valued on the following basis:-

 

a)	Finished Goods -       at bonded Godown   -       at duty paid Godown/depot	-   -	At lower of cost or estimated realisable value   At lower of Landed Cost or estimated realisable value
b)	Work-in-progress	-	At estimated cost
c)	Raw Materials	-	At cost calculated on Moving Average Basis
d)	Stores and Spares	-	At cost calculated on Moving Average Basis

VI.        Excise Duty

a)         Excise Duty is accounted for at the time of clearance of goods. However, liability towards Excise duty on closing stock lying in Bonded Warehouse is provided for as per relevant guidance note issued by the Institute of Chartered Accountants of India.

b)         Cenvat credit, to the extent availed, is adjusted towards cost of materials.

VII.       Retirement Benefits

            The Company’s obligations towards various employees’ benefits are recognized as follows:

            Defined Contribution plans-Provident fund is covered under this category. The Co’s contribution towards the provident fund is charged to Profit & Loss account and is being regularly deposited with the PF department.

            Defined Benefit plans- Gratuity and Leave Encashment are defined benefit plans. The brsent value of obligation under such defined benefit plans is determined based on actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

            The obligation is measured at the brsent value of estimated future cash flows. The discount rates used for determining the brsent value of obligation under defined benefit plans is based on the market yield of government Securities as at the balance sheet date, having  maturity period approximating to the terms of related obligations.

            Actuarial gains and losses are recognised immediately in the profit and loss account. (Also refer to note no.42)

Contd...3...

                                                                          -:  3  :-

VIII.      Sundry Debtors

            Sundry Debtors are shown net of claims payable. Expenses on Claims to the extent received and intimated are recognised.

IX.       Investments

            Long Term Investments are stated at cost. Provision for diminution is made only if such a decline is other than temporary. Current investments are carried in the financial statements at lower of cost and fair value determined.   

X.       Foreign Currency Transactions

a)    Transactions in foreign currency are recorded at the exchange rates brvailing at the date of the transaction. Exchange difference arising on settlement of foreign currency transactions are recorded in the Profit and Loss account. Monetary Assets and liabilities in foreign currency are revalued at the year end exchange rates. Exchange differences arising on such revaluation are recognized in Statement of Profit & Loss.

b)   Exchange differences arising on reporting of long term foreign currency monetary items, in so far as they relate to acquisition of a debrciable capital asset are adjusted in the cost of the asset as per Companies (Accounting standards) (second amendment) rules,2011.

XI.        Contingent Liabilities

            Contingent Liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.

XII.       Dividend is accounted for as per the date of declaration.

 XIII.      Unless specifically stated to be otherwise, these policies are consistently followed.

42.       Disclosure pursuant to adoption of AS 15-“Employee Benefits”

(` in Million)

Defined Benefit Plans	GRATUITY	GRATUITY	LEAVE   ENCASHMENT	LEAVE   ENCASHMENT
	31.12.2012	31.12.2011	31.12.2012	31.12.2011
Reconciliation of opening and closing balances of the brsent value of the defined benefit obligation:
Obligations at period beginning	51.31	48.46	40.25	28.45
Amalgamation Adjustment	17.33	0	5.68	0
Current Service Cost	9.92	7.33	10.07	9.41
Interest on Defined benefit obligation	5.90	3.83	3.95	2.25
Benefits settled	(6.53)	(6.14)	(5.26)	(4.01)
Actuarial (gain)/loss	(2.20)	(2.17)	0.79	4.15
Obligations at period end	75.73	51.31	55.48	40.25
Defined benefit obligation liability as at the balance sheet is wholly funded by the company
Defined Benefit Plans
Change in plan assets
Plans assets at period beginning, at fair value (Amalgamation Adjustment)	7.36	0	0	0
Expected return on plan assets	0.67	0	0	0
Actuarial gain/(loss)	(0.09)	0	0	0
Assets distributed on settlements	0	0	0	0
Contributions	1.07	0	0	0
Benefits settled	(2.06)	0	0	0
Plans assets at period end, at fair value	6.96	0	0	0
Reconciliation of brsent value of the obligation and the fair value of the plan assets:
Closing PBO	75.73	51.31	55.48	40.25
Closing Fair value of plan assets	6.96	0	0	0
Closing Funded status	(68.78)	(51.31)	(55.48)	(40.25)
Unrecognised actuarial (gains).losses	0	0	0	0
Unfunded net asset/(Liability) recognized in the balance sheet	(68.78)	(51.31)	(55.48)	(40.25)
Liabilities at the closing date Current Liability	15.37	5.45	10.28	7.42
Non-Current Liability	53.41	45.86	45.20	32.83
Expenses recognised in the statement of P & L
Service cost	9.92	7.33	10.07	9.41
Interest cost	5.90	3.83	3.95	2.25
Expected return on plan assets	(0.67)	0	0	0
Actuarial (gain)/loss	(2.11)	(2.17)	0.79	4.15
Net Cost	13.04	8.99	14.81	15.81
Assumptions
Discount rate	8.10%	8.60%	8.10%	8.60%
Estimated rate of return on plan assets	9.15%	N.A.	N.A.	N.A.
Salary increase	5.00%	5.00%	5.00%	5.00%
Retirement age (Years)	58	58	58	58
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.

49.       Segmental Reporting:The business activity of the company falls within a single primary business segment viz “Beverages” and the sale of the products is primarily within the country. Hence the disclosure requirement of Accounting Standard 17 of “Segment Reporting” issued by the Institute of Chartered Accountants of India is not considered applicable.