1. Trade Tax (Sales tax) Rs. 270.81 lacs (including interest of Rs. 107.85 lacs) (Previous year: Rs. 280.33 lacs), levy of which is disputed, against which the Company has deposited Rs. 157.71 lacs (Previous Year: Rs. 157.31 lacs). The additional interest, if any, payable on the said liability has not been determined. However, part of the liability, if any, arising therefrom has been indemnified by United Breweries Limited in terms of Indemnity bond executed by them.

2. In respect of disputed claims of employees being contested by the Company: Rs 24,29,657/- (Previous year Rs. 24,29,657/-).

B. Other Notes :

1. Land and Building at Ambedkar Nagar, Uttar Pradesh, having book value of Rs. 11,13,901/-which was registered in the name of an Ex-Director as nominee of the Company, was sold out during the year.

2. The title deeds of the immovable property related to Aurangabad Winery Project of the book value of Rs 9.31 lacs (Previous Year. Rs. 9.31 lacs) are not in the possession of the Company. The building was built on a land which was leasehold and later acquired after the expiry of lease period at a nominal amount. This asset which was revalued and pledged to avail the CC limit from State Bank of Hyderabad. This CC limit was transferred by the Company to its then subsidiary company, Narang Distillery Limited as a result of sale of business agreement entered in the month of December, 2002. In the month of December, 2003, Narang Distillery ceased to be subsidiary company of the Company upon sale of its shares by the Company and the Company has asked State Bank of Hyderabad for the vacation of the charge on the said property. During the year in the month of January, 2005 the charge on the said property has been vacated by the Bank.

3. In the opinion of the Board, the value of sundry debtors and loans & advances, on realization in the ordinary course of business shall be at least equal to the amount at which they are stated

4. The Company has yet to obtain confirmations from various parties. The adjustment, if necessary, will be made on receipt thereof.

5. National Savings Certificates of the face value of Rs. 1,47,250/- (Previous Year: Rs. 1,47,250/-) are lodged as security with various Government Departments, therefore, not produced to the Auditors for verification

6. The names of Small Scale Industrial Undertakings to whom the Company owes the sum exceeding Rs 1 lac which is outstanding for more than thirty days are.

7. Travelling expenses include reimbursement to Managing Director Rs. Nil (Previous year: Rs 5.12.135/-) and to other Directors Rs. 38.153/- (Previous year: Rs. 15.070/-).

8. Interest under the head "Interest and Financial Charges" includes Rs. Nil (Previous year: Rs. 18,46,196/-) being the interest on Term Loan.

9. The Company has been maintaining cash in hand as per its needs, which the Auditors considered it more than the required needs of the Company. The closing cash in hand held by the Company was Rs. 5,97,726/-.

10. Short Term Loans include Rs. 4,70,000/- (Previous Year: Rs. 4,70,000/-) due to its subsidiary company, Mckilligan Distillery Ltd.. Maximum outstanding due is Rs. 4,70,000/- (Previous Year: Rs. 4,7O.OOO/-).

11. As there are heavy unabsorbed losses and accumulated depreciation, there is no convincing evidence that in future years sufficient taxable income will be available against Deferred Tax Asset. Therefore, following the provisions of Accounting Standard 22 issued by the Institute of Chartered Accountants of India, Deferred Tax Asset is not recognised.

12. The Whole time Company Secretary of the Company had resigned on 30.9.2002 and thereafter no Whole time Company Secretary had been appointed in his place due to non availability of a suitable person who would be willing to work in a loss making company. As such, the Company could not comply with the provisions of Section 383A of the Companies Act, 1956.

13. Current liabilities include an amount of Rs. 1,43,490/- (Previous year: Rs. 1,43,490/-) due against refund of application money received against public issue which came in the year 1992. The above amount is lying with the bank (State Bank of Hyderabad Refund Account) However, in compliance with Section 205C of the Companies Act, 1956, the Company has yet to deposit it in the Investors Education and Protection fund.

14. Figures have been rounded off to the nearest rupee.

15. Previous years figures have been rearranged or regrouped wherever necessary to make them comparable with that of the current year.

16. Schedules 1 to 17 form an integral part of the accounts and have been duly authenticated.