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

(i) Contingent liabilities : -

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

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

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

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

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

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

c. Details of derivative instruments:

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

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

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

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

1.4 (a) Current Tax:

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

(b) Deferred Tax:

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

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

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

Defined Benefit Plan:

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

Gratuity:

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

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

Other Long Term Employees Benefit

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

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

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

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