BIGGER.

BETTER Getting future-ready

ASSOCIATED ALCOHOLS & BREWERIES LIMITED

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HĢ őĂĆʼn ĢĢŖÁě ƒäłĩŅő ūä ĂÁŪä àĆʼnÚěĩʼnäà ùĩŅūÁŅàͿěĩĩėĆĢú
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CONTENTS
ÙĩŖőʼnʼnĩÚĆÁőäàěÚĩĂĩěʼnϞŅäūäŅĆäʼnZĆġĆőäà ̨̪
ZÁĢàŅŖʼnő ̨̬
DĩūūäĂÁŪääĢĂÁĢÚäàŪÁěŖäÁÚŅĩʼnʼnőĂäűäÁŅʼn ̨̮
ZäőőäŅőĩ‡ĂÁŅäĂĩěàäŅʼn ̨̱
©ĂÁőūäÁÚĂĆäŪäàĆĢ̠̞̟̥Ϳ̟̦ÁĢàūĂäŅäūääŰłäÚőőĩúĩ ̩̪
̬©ÁűʼnÙűūĂĆÚĂūääŰłäÚőőĩőŅÁĢʼnùĩŅġZ ̩̫
©ĂÁőġÁėäʼnĩŖŅÙŖʼnĆĢäʼnʼnġĩàäěàĆƅäŅäĢő ̪̪
gŖŅłäŅùĩŅġÁĢÚäÁġÙĆőĆĩĢ ̪̬
̤ĂĆĢúʼnőĂÁőäĢĂÁĢÚäàÁÁÙěΎʼnÚĩġłäőĆőĆŪäĢäʼnʼn ̪̮
'ĢĂÁĢÚĆĢúŪÁěŖäùĩŅʼnőÁėäĂĩěàäŅʼn ̪̰
`ÁĢÁúäġäĢő#ĆʼnÚŖʼnʼnĆĩĢÁĢàĢÁěűʼnĆʼn ̨̫
aĩőĆÚä ̬̫
#ĆŅäÚőĩŅʼnΎŅäłĩŅő ̨̭
ĩŅłĩŅÁőä<ĩŪäŅĢÁĢÚä ̮̰
;ĆĢÁĢÚĆÁěʼnőÁőäġäĢőʼn ̯̰

ūūū͠ÁʼnʼnĩÚĆÁőäàÁěÚĩĂĩěʼn͠Úĩġ
 BIGGER.
BETTER
The Indian alco-beverages
market is at the cusp of an
attractive opportunity.
A strategic shift by the some of
the largest organised players
in India’s alco-beverage sector
is creating an unprecedented
long-term opportunity for
Vision: To become an
mid-sized players with strong
industry leader in liquor managements and credible
manufacturing, distillation Balance Sheets.
and bottling in India and
to establish a foothold in At Associated Alcohols &
the liquor industry as one
of the most reputed liquor
Breweries Limited, we are
company responding to this reality with
speed and sensitivity.
By enlarging our core
manufacturing capacity.
By extending into value-added
products.
By strengthening our value
chain.
By widening our geographic
footprint.
By entering into
complementary alliances.
With the objective to emerge
bigger and better prepared for
the future.
2

THINGS Promoters’ background

Mr. Anand Kumar Kedia and Mr.
Prasann Kumar Kedia are the key

YOU NEED
promoters of the Company.
Mr. Anand Kumar Kedia, Chairman –
Business Promotion & Development,

TO KNOW
possesses a rich sectoral experience
across almost three decades. He
spearheads the strategic initiatives of

ABOUT
the Company.
Mr. Prasann Kumar Kedia, Vice
Chairman – Operation & Business

ASSOCIATED
Development, has been involved
with the Company for more than two
decades and oversees day-to-day

ALCOHOLS &
operations.

Presence
Associated Alcohols & Breweries

BREWERIES
Limited is one of the largest distilleries
in India enjoying a wide presence across
the country and a growing presence

LIMITED
across the sectoral value chain.
• Premium extra neutral alcohol /
grain spirit
• ƒäÚőĆƈäàʼnłĆŅĆő
• Indian made foreign liquor (IMFL)
• Indian made Indian liquor (IMIL)
Corporate background • Contract manufacturing partner
ʼnʼnĩÚĆÁőäàěÚĩĂĩěʼnϞŅäūäŅĆäʼnZĆġĆőäàĆʼnőĂäƉÁúʼnĂĆł (Diageo-USL)
company of the Associated Kedia Group – a H10,000 million
business conglomerate with interests in liquor manufacturing Facilities
and bottling. The Company was incorporated in 1989 by Late ĂäĩġłÁĢűΎʼnÚĩŅłĩŅÁőäĩƆÚäĆʼn
Shri Bhagwati Prasad Kedia. Associated Alcohols & Breweries situated in Indore; its state-of-the-art
Limited took over the existing distillery of the promoter group plant is at Khodigram (Barwaha, district
in 1990 and extended into the manufacture of premium Khargone, Madhya Pradesh). This plant
liquor products. accounts for bottling facilities, alcohol
production and packaging capacity.
3 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Expansion Contract manufacturing brands Installed capacity

The Company embarked on a large • Black Dog Scotch Whisky
across two
úŅääĢƈäěàäŰłÁĢʼnĆĩĢőĩÁààŅäʼnʼnőĂä • VAT 69 Scotch Whisky
sections
growing domestic and international • ‡ġĆŅĢĩƅ¨ĩàėÁ
demand. This initiative comprises the • Black & White Scotch Whisky
commissioning of modern alcohol
plants, increasing the production Ethical pedigree

̪̭
capacity from 31 million liters to 90 Vision: To become an industry leader
million litres per annum by 2021 – in liquor manufacturing, distillation
ÁŅĩŖĢàĂĆúĂäŅĩłäŅÁőĆĢúäƆÚĆäĢÚű͠ and bottling in India and to establish a
foothold in the liquor industry as one
Clientele of the most reputed manufacturing and Bottling lines facility
• Diageo/ United Spirits Limited marketing company
• Allied Blender & Distillers
Mission: Associated Alcohols &
• Government-regulated retail
Breweries Limited undertakes to
contractors/agencies (for IMFL & IMIL)
dedicate itself and all its resources
Proprietary products to achieving global excellence in the
• Titanium Triple Distilled Vodka with present sectors of operations and

̫̩
Orange and Green Apple Flavour seeking growth.
• Central Province Whisky
• James McGill Whisky
Values
• To cultivate the highest standards
• Jamaican Magic Rum
of professionalism, fairness and Alcohol production
• Bombay Special Series
total customer satisfaction in all our capacity (million
• Super Man Series
transactions and dealings. litres per annum)
Licensed brands /
• To create a profound and everlasting
franchised brands
impact on our customers through
• Bagpiper Deluxe Whisky
commitment and sincerity.
• Directors Special Whisky
• To continue the ongoing journey
• White Mischief Flavoured
towards honesty, sincerity and integrity
• Director’s Special Gold Whisky
with all our stakeholders.
• DSP Black Special Whisky

̮̭͠
• To spread our wings all across the
• McDowell’s No.1 XXX Rum
country and play a dominant role in the
liquor industry in India.

Packaging capacity
(million cases per
annum)
4

THIS ANNUAL
REPORT IS
ESSENTIALLY
g”ga'g¨'ƒ΅
ARCHING AABL
ATTRIBUTE.
TRUST.

Trust in AABL makes it possible for arguably the

world’s largest alco-beverage brand to outsource
the production of its most critical and quality-de-
manding brands to our company.
5 Associated Alcohols & Breweries Limited // Annual Report 2017-18

MILESTONES
Trust makes it possible for vendors to
provide our company with a sustainable ̩̱̰̱
resource supply across market cycles. Incorporated as public
limited company

̨̩̱̱
Started manufacturing and
marketing potable alcohol

Trust makes it possible for ̩̱̱̭

customers to invest in their growth on Modernised and expanded
the distillery
the assurance that a trusted vendor like
AABL will engage in corresponding and
timely capacity expansion. ̨̨̪̫
Captive power plant with
̤̞όʼnäěùͿʼnŖƆÚĆäĢÚűĆĢłĩūäŅ

̨̪̩̪
Revamped manufacturing facili-
ties and processes as per sectoral
requirements
Trust makes it possible for our trade
partners and intermediaries to work ̨̪̩̭
with us across the long-term. Implemented SAP-ERP across
all functional areas

̨̪̩̮
Issued bonus shares in
the ratio of 1:1

Trust makes proximate communities

believe that the Company’s manufacturing
̨̪̩̰
Embarked on an ENA capacity
expansion from 31.4 million
practices will be completely responsible. litres per annum to 45 million
litres per annum
 6

HOW WE HAVE ENHANCED VALUE ACROSS THE YEARS

Revenues (H lac) EBIDTA (H lac) aäőłŅĩƈőͳH lac) EBIDTA margin (%)
̨̨̫̩̬̪̰͡͠

̨̪̰̰̩̩̱͡͠

̨̪̱̩̮̯̬͡͠

̫̪̭̪̫̱̱͡͠

̨̫̭̮̮̭͡͠

̨̫̰̮̭̬͡͠

̬̪̯̪̬̫͡͠

̭̬̭̮̱̱͡͠

̩̪̫̫̮̬͡͠

̩̬̪̱̩̭͡͠

̩̮̱̩̪̬͡͠

̪̭̩̰̱̪͡͠

̩̩̯̭͠

̩̫̬̬͠

̩̬̬̩͠

̩̮̯̰͠
;¯̩̰

;¯̩̰

;¯̩̰

;¯̩̰
;¯̩̮

;¯̩̮

;¯̩̮

;¯̩̮
;¯̩̭

;¯̩̯

;¯̩̭

;¯̩̯

;¯̩̭

;¯̩̯

;¯̩̭

;¯̩̯
#äƈĢĆőĆĩĢ #äƈĢĆőĆĩĢ #äƈĢĆőĆĩĢ #äƈĢĆőĆĩĢ
Growth in sales net of taxes Earnings before the deduction €ŅĩƈőäÁŅĢäààŖŅĆĢúőĂäűäÁŅ 'H#ġÁŅúĆĢĆʼnÁłŅĩƈőÁ-
and excise duties ĩùƈŰäàäŰłäĢʼnäʼnͳĆĢőäŅäʼnő͡ after deducting all expenses bility ratio used to measure a
depreciation, extraordinary and provisions company’s pricing strategy and
Why this is measured items and tax) ĩłäŅÁőĆĢúäƆÚĆäĢÚű͠DĆúĂäŅőĂä
It highlights the service Why this is measured operating margin, the better for
acceptance and reach of the Why this is measured It highlights the strength the Company.
Company in the market. It is an index that showcases in the business model
the Company’s ability to in generating value for Why this is measured
Performance
optimise business operating shareholders. The EBIDTA margin indicates
Aggregate sales increased 12%
ÚĩʼnőʼnàäʼnłĆőäĆĢƉÁőĆĩĢÁŅű how much a company earns
to H32523.99 lakhs in FY2017- Performance
pressures and can be easily (before accounting for interest
18 on the back of a growing ĂäĩġłÁĢűΎʼnĢäőłŅĩƈő
compared with retrospective and taxes) on each rupee of sale.
demand for the Company’s has grown every single year
averages of sectoral peers.
products. during the last three years. Performance
Performance The Company reported a 50% The Company reported a 237
Value impact The Company’s EBIDTA ĆĢÚŅäÁʼnäĆĢaäő€ŅĩƈőĆĢ̠̞̟̥Ϳ bps increase in EBIDTA margin
Improved revenues helped has grown consistently. The ̟̦ÁĢààĩŖÙěäàłŅĩƈőʼnĆĢőĂä in 2017-18, its highest ever, the
the Company service the Company reported a 29% last four years, outperforming result of a stronger product
growing needs of customers increase in its EBIDTA in 2017- the sectoral growth average. basket and improved operating
better, strengthening overall 18 even as revenues increased äƆÚĆäĢÚĆäʼn͠
engagement. ̟̠όͿłŅĩƈőÁÙěäúŅĩūőĂ͠ Value impact
The virtuous cycle ensures Value impact
Value impact that adequate cash is The increase in margins (on a
Helped create a robust growth available for reinvestment, larger turnover) showcases en-
engine, resulting in increased strengthening business hanced competitiveness derived
reinvestment – the basis of momentum. from economies (procurement
business sustainability. and logistics) and value-addition.
 7 Associated Alcohols & Breweries Limited // Annual Report 2017-18

ROCE (%) Debt-equity ratio (x) Debt cost (H lac) Interest cover (x)
̩̯̮̯͠
̩̰̪̪͠

̩̯̮̰͠

̨̪̰̮͠

̨̬̱͠

̨̨̫͠

̨̩̮͠

̨̨̱͠

̮̭̫̮̫͠

̭̩̰̱̮͠

̨̨̬̬̩͠

̫̰̪̰̰͠

̭̫̮͠

̯̬̭͠

̨̩̭̰͠

̩̬̪̭͠
;¯̩̰

;¯̩̰

;¯̩̰

;¯̩̰
;¯̩̮

;¯̩̮

;¯̩̮

;¯̩̮
;¯̩̭

;¯̩̯

;¯̩̭

;¯̩̯

;¯̩̭

;¯̩̯

;¯̩̭

;¯̩̯
#äƈĢĆőĆĩĢ #äƈĢĆőĆĩĢ #äƈĢĆőĆĩĢ #äƈĢĆőĆĩĢ
ĂĆʼnƈĢÁĢÚĆÁěŅÁőĆĩġäÁʼnŖŅäʼn This is derived through the This is derived by calculating This is derived through the
ÁÚĩġłÁĢűΎʼnłŅĩƈőÁÙĆěĆőűÁĢà ratio of debt to net worth (less the average cost of division of EBIDTA by interest
äƆÚĆäĢÚűūĆőĂūĂĆÚĂÚÁłĆőÁěĆʼn revaluation reserves) consolidated debt ĩŖőƉĩū
employed in the business
Why this is measured Why this is measured Why this is measured
Why this is measured ĂĆʼnĆʼnĩĢäĩùőĂäàäƈĢĆĢú This indicates the extent of Interest cover indicates a
ROCE is a useful metric for measures of a company’s a company’s success when it company’s comfort when it
ÚĩġłÁŅĆĢúłŅĩƈőÁÙĆěĆőűÁÚŅĩʼnʼn ƈĢÁĢÚĆÁěĂäÁěőĂ͡ĆĢàĆÚÁőĆĢú comes to convincing bankers comes to servicing the debt
companies based on the the ability of the Company to and other debt providers of obligation.
amount of capital they use - remunerate shareholders over the robustness of its business
Performance
especially in capital-intensive debt providers (the lower the model.
The Company strengthened
sectors. gearing the better).
Performance its interest cover from 5.36 in
Performance Performance ĂäĩġłÁĢűΎʼnĆĢőäŅäʼnőĩŖőƉĩū FY15 to 14.25 in FY18.
The Company reported a 318 The Company’s gearing progressively declined from
bps increase in ROCE through moderated from 0.49 in H6.53 crore (2.17 % of sales) in Value impact
prudent capital allocation FY2014-15 to 0.09 in FY2017- FY2014-15 to H3.82 crore (1.18 'ĢĂÁĢÚäàÚÁʼnĂƉĩūʼn͡
spaces that generated 18. This ratio should be read in % of sales) in FY 2017-18. This strengthening business
superior business returns conjunction with an increase should be read in conjunction sustainability.
in EBIDTA to assess the with a rising interest cover.
Value impact Company’s ability to service
Enhanced ROCE can increase the debt obligation. Value impact
the available surplus for 'ĢĂÁĢÚäàÚÁʼnĂƉĩūʼnÁĢà
reinvestment and potentially Value impact strengthened credit rating
drive valuations / perception. Stronger gearing helps could result in a prospective
progressively moderate debt decline in debt cost.
ÚĩʼnőÁĢàäĢĂÁĢÚäłŅĩƈőÁÙĆěĆőű͠
8
9 Associated Alcohols & Breweries Limited // Annual Report 2017-18

LETTER TO SHAREHOLDERS

A number of concurrent realities make

India one of the most attractive liquor
markets of the world.

I
ndia adds an estimated 15 mn India a turnaround market
people to its population each year, Over the last decade, India has emerged
larger than any country. as possibly the fastest-growing major
This consistently growing market is liquor consuming market and still only
now marked by relatively new and consuming 5.1 litres of liquor per capita,
welcome developments: the population one of the lowest in the world (Asian
of social drinkers is increasing, the average 20.9 litres). This indicates that
availability and accessibility of liquor is ĢĩőĩĢěűĂÁʼnÁʼněääłĆĢúúĆÁĢőƈĢÁěěű
reaching wider and deeper across the awakened but that India addresses a
consumption landmass; the incidence multi-year growth opportunity.
of women drinkers is rising; the choice ĂäĩĢäùÁÚőĩŅġÁėĆĢúÁàĆƅäŅäĢÚäőĩ
of liquor products is widening; there country’s consumer landscape is the
is a graduation towards premium emergence of the millennial generation.
brands even as there is a consistent ĂĆʼnúäĢäŅÁőĆĩĢ΁àäƈĢäàÁʼnĩĢäÙĩŅĢ
movement towards enhancing product after 2000 – is economically productive,
ÁƅĩŅàÁÙĆěĆőűÁĢàūĆàäĢĆĢúőĂäġÁŅėäő͠ frequent consumer, brand conscious
and willing to pay more for premium
products. The result is that even as
India’s overall liquor market grew by an
estimated 7% in 2017-18, the country’s
premium segment outperformed
sectoral growth at 12%.
This divergence has resulted in a
strategic shift: Diageo-USL, the
country’s largest liquor company,
as a part of its strategy to vacate the
large mid-end of the country’s liquor
consumption pyramid and focus on

BIGGER.
premium labels instead. Besides, the
Company entered into multi-year
production outsourcing relationships -

BETTER
market, manufacture, distil and bottle
marquee products - with credible liquor
manufacturers.
These twin developments represent the
most exciting opportunities in India’s
liquor sector.
10

Bigger and better Better

These sectoral realities have opened For years, the Company was the An estimated demand of
a number of opportunities for outsourcing manufacturing partner 3.8 billion litres of ENA by
Associated Alcohols & Breweries for Diageo-United Spirits, the latter 2023 provides the Company
Limited. inspired by our commitment to ethical with an attractive marketing
cum quality practices, competitive opportunity
Bigger manufacture and proactive capacity
AABL recognised that if the investment.
overall Indian market continued
During the year under review, AABL
to outperform the global average,
took this prestigious engagement łŅĩƈőÁÙěäÚÁĢőääĢʼnőĩŅäàäłÁŅőġäĢő
it would require more than just
ahead. The company entered into a vertical.
the marketing of proprietary and
franchisee agreement with the market
outsourced brands: it would require
leader to manufacture its popular Reviewing FY2017-18
a larger pool of extra neutral alcohol,
premium brands in Madhya Pradesh I am pleased to state that AABL
the building block of India’s liquor
ĆĢěĆäŖĩùÁƈŰäàŅĩűÁěőűłÁűġäĢő͠ reported a record 2017-18, which
industry.
represents a robust growth
The result was that Company
In view of this, your Company foundation.
emerged as a market leader of IMFL
embarked on a decisive extra
products in the state. Besides, a The company reported 12% growth in
neutral alcohol capacity expansion
deeper engagement with Diageo- revenues, 29% growth in EBIDTA and
programme: from 31 million litres in
USL strengthened AABL’s respect, ̢̣όúŅĩūőĂĆĢĢäőłŅĩƈő͡ĆĢàĆÚÁőĆĢú
2017 to 45 million litres in 2018 in the
enhancing prospects of similar łŅĩƈőÁÙěäúŅĩūőĂàŖŅĆĢúőĂäűäÁŅ
ƈŅʼnőłĂÁʼnäÁĢàőĩ̧̞ġĆěěĆĩĢěĆőŅäʼnłäŅ
engagements with other premium under review.
annum in the second phase by 2021.
liquor players in India. A number of factors contributed
At a time when India’s extra neutral
The Company is enhancing the to an increase in the Company’s
alcohol consumption of 2.7 billion litres
presence of its proprietary brands EBIDTA margin by 237 bps during
(2017) is growing at a compounded
in Karnataka, Kerala and New Delhi. the year under review. The Company
6.1% (2010-2017), an estimated
The Company strengthened its standardised yields consistently
demand of 3.8 billion litres of ENA by
ńŖÁěĆƈÚÁőĆĩĢÚŅäàäĢőĆÁěʼnÙűŪäĢőŖŅĆĢú through the year. It moderated power
2023 provides the Company with an
and exploring into India’s large and ÁĢàùŖäěÚĩʼnőʼnőĂŅĩŖúĂäƅäÚőĆŪäÙĩĆěäŅ
attractive marketing opportunity.

Multiple Indias
Aspiring : Entering the consumption
cycle; price-sensitive segment.
Middle : Willing to pay for better
brands around superior perceived
value; to account for around 45% of
India’s population by 2025 – 80% of
Europe’s population, for the sake of
comparison.
ƇŖäĢő͢ High spenders; world-
travelling; more than double the
population of Australia (say).
Millennials : Two-thirds of India’s
population are young earners and
seeking new experiences.
11 Associated Alcohols & Breweries Limited // Annual Report 2017-18

utilisation. There was an increased scale and backward integration. on these realities through a prudent
focus on automation, enhancing The imposition of a ban on liquor combination of diverse strategies –
people productivity. The increased sales adjacent to State and national manufacture of a building block (B2B)
share of premium products in the ĂĆúĂūÁűʼnőäġłĩŅÁŅĆěűÁƅäÚőäà combined with franchised sale (B2C)
sales portfolio enhanced margins over ŅäŪäĢŖäʼnÙäùĩŅäÁÚěÁŅĆƈÚÁőĆĩĢ and the marketing of proprietary
steady merchant ENA sales. restored status quo in municipally- brands (B2C) – that is helping
Despite growing capex investments, governed areas. moderate risk on the one hand and
the Company moderated its long-term grow the business on the other.
debt-equity ration 0.09 (0.16 in FY 17). Outlook At AABL, we expect to enhance value
Even as India is already the third- through the timely commissioning of
Challenges addressed largest liquor market in the world our ENA capacity, increase in capacity
AABL’s record performance during with ~30% of its population alcohol at a cost lower than the industry
the year under review could have been consumers, the sector is still average, push deeper into the markets
better but for a decline in revenues considered sunrise. of our presence with our branded
ÁĢàłŅĩƈőÁÙĆěĆőűàŖŅĆĢú‚̢͠#ŖŅĆĢú Rural India is emerging as a larger products, move the organisational
this quarter, a large number of AABL market, the millennial population revenue needle towards value-addition
distributors (due for license renewal is growing, increased promotional and negotiate a lower cost funds from
on 1 April 2018) opted to destock in spending by liquor majors is helping banks with the objective to enhanced
`ÁŅÚĂ̠̞̟̦͡ÁƅäÚőĆĢúĩŖŅŅäŪäĢŖäʼn͠ widen the market, there is a growing our long-term sustainability.
Besides, the Company’s bottomline preference for eating and drinking out I must assure our shareholders that
could have been better but for the and the country is marked by larger the future is bright at our Company.
adoption of Ind-AS regulations, and as disposable incomes. Besides, emerging
prudent practice the Company made a trends with an impact on the demand-
provision for the contingent liabilities supply dynamics comprise the use
in its annual accounts. ĩùĢÁőŖŅÁěƉÁŪĩŖŅʼnÁĢàʼnūääőäĢäŅʼn͡ ŖʼnĂÁŅĂÁĢàÁŅĆ
addressing health concerns and the Whole Time Director
During the year, GST implementation
enhanced overall costs 2-3%. This was growing appetite for exotic drinks.
äƅäÚőĆŪäěűÚĩŖĢőäŅäàőĂŅĩŖúĂZΎʼn I must assure shareholders that AABL
robust fundamentals, economies of is attractively placed to capitalise

Cultural attitudes evolving Regulated Premiumisation

Social attitudes to alcohol changing. Alcohol is a State subject Need for people to be seen drinking
LPA+ population expected to (individual states regulating alcohol better.
increase by 183 million in 10 years manufacture, distribution, sale and Projected double-digit growth in
Rising disposable incomes pricing) prestige and above segment
Among the lowest per capita Restricted advertising and retail India largest whisky market in the
consumption in the world footprint in India world (200 mn cases)
Increasing social acceptability Alcohol is sold through about Average Indian retail price (750ml) a
(weddings, festivals, home 80,000 outlets (Spain 250,000+ ƈùőĂĩùúěĩÙÁěÁŪäŅÁúä
consumption, women drinking) outlets for instance). Large headroom
Prestige-and-above segment
Category relevance Popular segment
expected to contribute 70% of spirits
Spirits biggest TBA category Largest segment ĆĢàŖʼnőŅűłŅĩƈőʼnÙű̠̞̠̟
(almost 70% of TBA value) Competitive segment
Strong consumer fundamentals Contributes moderately to industry
łŅĩƈőłĩĩě
12

©D©'DH'¨'#Hą̪̩̯΅̩̰a#
WHERE WE EXPECT TO GO
CHALLENGES DH'¨'`'a‡̨̪̩̯͡΅̩̰ TARGET

Timely expansion Increased extra neutral Achieve 90 mn litre

alcohol production by 40% output by 2021 from
of the ENA capacity
(expected to commence 31 mn in 2017
with the objective commercial production by
to address growing August 2018).
customer needs.

Evolution of Achieved 50% automation. Complete

Moderated operating 100%-automation by
manufacture
costs. 2020 with the objective
processes from the Enhanced process to generate superior
semi-automated to consistency. competitiveness
the automated . Enhanced quality.

Stronger product mix Increased gross Target maximising

revenues by 12% in FY18. revenue from
through an increase
proprietary brands
in revenues from
proprietary brands.

Need to widen the Entered new product Explore canteen stores

segments and department of the
revenue base through
geographies . Indian Army and other
additional revenue major markets
streams.
13 Associated Alcohols & Breweries Limited // Annual Report 2017-18

̬©¯‡¯©DHD©''®€'g
TRANSFORM AABL

̨̩ ̨̪ ̨̫ ̨̬
By By By By
ÁŖúġäĢőĆĢú ùĩÚŖʼnĆĢúĩĢ ÁŖőĩġÁőĆĢú overcoming
our value-added our our locational
production branded and manufacturing barriers and
capacities premium processes expanding our
products presence

Expected outcome

Increased Widened Enhanced Assured Enhanced

extra neutral footprint credibility volumes people
alcohol productivity
volumes

‡ŖʼnőÁĆĢäàʼnÁěäʼnÁĢàƈĢÁĢÚĆÁěĩŖőłäŅùĩŅġÁĢÚä
14

Focus on value- Enhancing ENA

added products competitiveness
Premium brands outperforming
popular categories Proposed H120 cr expansion
AABL’s focus on premium spirits programmes

AABL launched four premium brands Evacuation of additional output based

in last three years across segments on organic market growth

AABL widened its footprint beyond Madhya Pradesh Part of additional output to be
consumed within (value-added
Strong franchise agreement with Diageo
premium brands)
Strengthened the complement of proprietary and
franchised brands
Exploring opportunities in the CSD supply
segment (high volumes)

Augmenting Environment
production capacities integrity
Embarked on extra neutral alcohol capacity
expansion in November 2017
Adequate water linkage in a
First expansion phase to be completed water-intensive business
by August 2018
High sectoral entry barriers
To enhance capacity from 31 million litres to 45
Ongoing environmentally-clean
million litres (Phase I)
operations
To double capacity to 90 million litres per annum
by 2021 (Phase II)
15 Associated Alcohols & Breweries Limited // Annual Report 2017-18

HOW WE ARE TRANSFORMING THE COMPANY

AUTOMATING OUR
MANUFACTURING
PROCESSES
AABL is graduating from semi-automation
to complete automation of its manufacturing
processes by 2020.

Automatic lines expected to shrink Company generates ~70% of its power

manufacturing cycles and improve requirement from within
äƆÚĆäĢÚű̟̣͠Ű

Installed state-of-the-art boilers All automation to be completed by 2020

generating high-pressure steam to
generate power; low pressure steam used
to manufacture extra neutral alcohol

BIGGER & BETTER

Early Payback – lower costs coupled with higher output

16

HOW WE ARE TRANSFORMING THE COMPANY

LEVERAGING
OUR LOCATIONAL
ADVANTAGE
Attractive plant location in Majority of India’s ENA
Madhya Pradesh capacity is in North India;
major consumption is in South
India

AABL located in Central India, AABL closer to Southern

giving it a logistical advantage market is better placed to
supply bulk ENA

90% of AABL’s grain needs sourced from within 600 kms

BIGGER & BETTER

Company emerged as one of the largest producers of extra neutral

alcohol in India
17 Associated Alcohols & Breweries Limited // Annual Report 2017-18

AABL is attractively placed

in terms of resource access
and sale of end products, the
logistical savings translating
into a competitive advantage.
18

AABL engaged in market-

ing, distilling, blending and
bottling popular ranges of
Diageo-USL products in the
state of Madhya Pradesh.
19 Associated Alcohols & Breweries Limited // Annual Report 2017-18

HOW WE ARE TRANSFORMING THE COMPANY

DRIVING SALES OF PREMIUM SPIRITS

Growing national focus Growing need to AABL preferred
on premiumisation outsource popular franchisee for Diageo-
brands to vendors via USL in Madhya Pradesh
stable franchise models

AABL engaged in ʼnʼnŖŅÁĢÚäĩƅőÁėäĩù Expected net revenue

marketing, distilling, 10 lac cases per annum implication of H90 cr in
blending and bottling (Diageo-USL >75% FY19 (following royalty
popular brands of market share in Madhya payment to Diageo-
Diageo-USL Pradesh) USL)

Brands belong to Franchise agreement Successful Diageo-USL

Diageo-USL provides access to key engagement enhanced
retailers; helps market AABL reputation as a
own brands at no credible partner
additional cost

BIGGER & BETTER

The Company expects to generate a major share of revenue from Diageo USL in a few years
from now.

W'¯#H<'g΅”‡Zƒa#‡`a”;”ƒ'#¯Z͹;ƒaDH‡'<ƒ''`'aͺ

Bagpiper Director’s Director’s

Deluxe Special Special
Whiskey Whiskey Gold
Whiskey

Blue Riband White McDowell’s

Premium Mischief No. 1
Extra Ultra-Pure Celebration
Dry Gin Vodka Matured
XXX Rum
20

HOW WE ARE TRANSFORMING THE COMPANY

WIDENING OUR
MARKET
PRESENCE

AABL now a liquor ZĆàäĢőĆƈäàėäű AABL engaged

brand with a markets to place its experienced
national ambition product portfolio professionals
to drive market
expansion

AABL focused on AABL entered AABL appointed a

cautious expansion - into back-to-back large distributors in
one state at a time engagements with its non-MP markets
bottling units
or proprietary
infrastructure
based on the size of
opportunity.

AABL’s asset-light AABL strengthened AABL due to its

model was replicated ĆőʼnńŖÁěĆƈÚÁőĆĩĢ centralised location,
successfully while in exploring the is better placed to
expanding its ʼnĆúĢĆƈÚÁĢőÚÁĢőääĢ service pan-India
footprint in other stores department canteen store
states. opportunity departments
21 Associated Alcohols & Breweries Limited // Annual Report 2017-18

AABL’s asset-light model

was replicated successfully
in Kerala; onward
replication is expected in
Delhi and Chhattisgarh.
22

WHAT MAKES OUR

BUSINESS MODEL DIFFERENT
Sectoral relevance AABL’s response

Foresight: The Company popular brands.

embarked on the exercise to
Growth-focused: The Company
őőĆőŖàäʼn: The taboos surrounding augment extra neutral alcohol
ĆàäĢőĆƈäàėäűġÁŅėäőʼnőĩ
alcohol are being progressively capacity, allocating ~ H25 crore
replicate its Madhya Pradesh
replaced, where it has been accepted (funded through accruals and
model. It engaged experienced
as integral to social integration debt).
professionals to drive market
among adults and teenagers of both Omnipresent: The Company expansion. It selected to enter
genders enjoys a visible presence across one State at a time with the
the liquor value chain. Its wide complement of a handful of
ĩĢʼnŖġłőĆĩĢ: ~30% of India’s portfolio includes products like brands, followed by probable
population consumes alcohol extra neutral alcohol, potable proprietary infrastructure
regularly. The percentage of under-15 alcohol, grain spirit and a investments.
boys who have never had alcohol number of proprietary IMIL
has gone down from 44% to 30% Eco-friendly: The Indian
and IMFL brands.
and for girls this has declined from alcohol manufacturing sector
50% to 31%. With rising aspirations Trusted: The Company focuses is marked by demanding
and increasing disposable incomes, on reinforcing its position environmental regulations.
consumers are upgrading towards ÁʼnÁƈŅʼnőͿÚĂĩĆÚäŪäĢàĩŅùĩŅ To enhance compliance,
premium spirits within the IMFL sectoral majors by scaling the Company invested in
segment or to international brands. capacities, benchmarking cutting-edge technologies.
manufacturing facilities with The Company’s manufacture
the best and investing in of grain-based alcohol and
Demographics: India is likely to
ethical uprightness. the decision to invest in
emerge as the youngest country
cogeneration ensured a low
by 2020, with two-third of its Well-placed: The Company’s
carbon footprint and zero
population comprising people under Central India location helped
discharge.
35. By 2025, India’s population at enhance proximity to key
1.46 billion (estimated) is likely to be markets over peers, The Asset-light: The Company
the largest in the world, potentially Company sourced > 90% of initiated an asset-light
strengthening alcoholic beverage grain from neighbouring approach, targeting one state
consumption. markets within 600 kms of the at a time, appointing large
plant, a logistical edge. distributors, leveraging their
Traction: Demand for extra neutral capabilities to gain foothold
Relationship-oriented: The
alcohol gained momentum as a result and investing in infrastructure
Company has demonstrated
of increasing alcohol consumption. only when it achieved critical
enduring engagement
In India, ~90% of the extra neutral mass in that market.
with partners resulting in
alcohol is used for manufacturing ÁʼnʼnŖŅäàěĩĢúͿőäŅġĩƅőÁėä͠
potable alcohol. ENA demand is likely The Company entered into a
to grow to 3.8 billion litres by 2023. franchised model with Diageo-
Apart from scotch, beer and wine, USL for marketing, distilling,
most IMFL manufacturers use ENA blending and bottling of its
as raw material (with blends).
 23 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Infrastructure Products Business model outcome

Prudent: The Company #ĆŪäŅʼnĆƈäà͢The Company

possesses substantial land manufactures a diverse
bank. The expansion is likely portfolio of alcoholic Multiple revenues streams:
to be implemented at a beverages across categories The Company derived the
considerably lower cost than a like country spirit, whisky, largest proportion of its
úŅääĢƈäěàłŅĩĔäÚőĩùőĂäʼnÁġä rum, gin and vodka, among revenues from IMIL sales
size and scope. others. (55 %) in 2017-18. Looking
Cutting-edge: The Company Strategic: The Company ahead, the Company expects
invested in cutting-edge selected to invest in the proportion of revenues
manufacturing technologies grain-based extra neutral derived from extra neutral
with a dual objective: alcohol (over the molasses alcohol to increase from 18%
enhancing competitiveness equivalent), permitting the to 25% and the proportion of
to reduce costs and shrink Company to derive a superior revenues derived from IMFL
carbon footprint. product in line with the sales to increase from 15% to
requirements of marquee 25% across the foreseeable
'ƆÚĆäĢő͢ The Company’s liquor manufacturers. future.
branded products are Besides, this resulted in lower
available in Madhya Pradesh, Attractive liquidity: The
äƇŖäĢőàĆʼnÚĂÁŅúäÁĢàěĩūäŅ
Delhi and Karnataka Company’s gearing improved
raw material consumption.
through a strong network from 2015 to 2018 even as
By shifting from single to a
of distributors and dealers. interest cover strengthened.
multiple grain mix allowed
The Company’s sales and the Company to counter risks
marketing teams engage posed by reduced availability
continuously with retailers and increased prices
to enhance product visibility,
ÁŪÁĆěÁÙĆěĆőűÁĢàĩƅőÁėä͠ VALIDATION OF OUR BUSINESS MODEL

Dedicated: As of 31st
Revenue growth EBIDTA growth
March 2018, the Company
ĂÁàäŰłäŅőʼnĂĩłƉĩĩŅ
workers, technologists and
management professionals
̩̪
(%) Y-o-Y
̪̰
(%) Y-o-Y
ĩĢĆőʼnłÁűŅĩěě͠ʼnĆúĢĆƈÚÁĢő over FY17 over FY17
proportion of employees
had been associated with the
Company for more than a
decade. EBIDTA margin Debt-equity
expansion ratio

̨̭̫
bps during the last
̨̨̱͠
as on 31st March
four years 2018
24

OUR PERFORMANCE AMBITION

Become an organisation that is respected

for its ability to consistently create value
for its stakeholders through innovative
strategies

Goal
Most promising,
growing and leading
liquor company in
Central India

DEMAND DRIVERS
Highly under-
Lifestyle changes driving
penetrated market
alcohol consumption in
the country

Growing young
Need for new and
population
premium products

Exposure to global trends

STRATEGIC ROADMAP

Capacity augmentation of Scale extra neutral

extra neutral alcohol alcohol volumes
supplied to merchants

'ĢĂÁĢÚäĩƅőÁėäĩù Leverage franchisee

proprietary liquor brands agreement with
Diageo-USL

HĢÚŅäÁʼnääƆÚĆäĢÚűőĂŅĩŖúĂ Utilise larger quantities

complete plant automation of extra neutral alcohol
captively

Rising popularity of alcohol among women

25 Associated Alcohols & Breweries Limited // Annual Report 2017-18

ASSESSING OUR PERFORMANCE

<ŅĩūĆĢúÙŖʼnĆĢäʼnʼnŪĩěŖġäʼn
Enhanced steady volumes during
őĂäłÁʼnőƈŪäűäÁŅʼn
Widened its nationwide present in
from 1 states to 4 states during the
past three years
Increased the number of in-house
brands
<ŅäūĢäőłŅĩƈőÙűġĩŅäőĂÁĢ
100% in last four years

‡őŅĩĢúƈĢÁĢÚĆÁěłäŅùĩŅġÁĢÚä
Grew revenues at a steady rate
àŖŅĆĢúőĂäłÁʼnőƈŪäűäÁŅʼn
HĢÚŅäÁʼnäàĢäőłŅĩƈőʼnÁőÁ<ƒĩù
20% during the past four years

AABL’s competitive edge

Grain-based ENA resulting in
downstream product with superior
quality
Utilises the residue derived
from the manufacturing process to
utilise as byproducts and generate
additional revenues
Grain-based operation consumes
Value creation at AABL lower amount of water, power and
steam on account of its higher
Created value for the recycling potential
stakeholders at large
26

6
THINGS THAT
ENHANCED AABL’S
COMPETITIVENESS

We created one of the largest ENA

manufacturing capacity in India
At AABL, we recognised that being the largest in
the region would help us strengthen our brand
as the provider of any quantity of ENA at any
time across the largest number of customers

We created a wide range of products - with

B2B and B2C impact
At AABL, we believe that the creation of
commodity and proprietary brands (IMIL,
IMFL, and ENA) will help us de-risk from a
őäġłĩŅÁŅűàäÚěĆĢäĆĢőĂäĩƅőÁėäĩùÁĢűĩĢä
segment; besides, the complement will provide
value-addition

We are one of the most competitive ENA

manufacturers in India
At AABL, we invested extensively in
manufacturing integration (resulting in value-
addition) and scale (resulting in economies)
with the objective to reduce costs and enhance
margins, strengthening overall competitiveness

We provide a high product quality

and integrity
At AABL, we are committed to unmatched
quality, which is helping us become a preferred
manufacturer for major international liquor
brands in India

We are largely asset-light

At AABL, we have invested in an asset-light
model to enter new markets followed by
subsequent investment in infrastructure after
reaching critical mass

We are an environmentally-responsible
manufacturer
At AABL, we invested in systems and processes
to emerge as a responsible manufacturer with
zero discharge i.e. low carbon footprint
27 Associated Alcohols & Breweries Limited // Annual Report 2017-18

THINGS THAT MAKE INDIA AN

ATTRACTIVE ALCO BEVERAGE
DESTINATION

India’s per capita consumption is a fraction of the global average

Growing per capita incomes leading to higher spending habits
There is an increasing share of premium brands in India’s liquor
consumption

WAYS AABL IS ADDRESSING

D'<ƒg©Ha<Ha#HZg΅
BEVERAGE MARKET

AABL entered into a franchise agreement with Diageo-USL to bottle

and market its popular brands in Madhya Pradesh
AABL is considering expansion of its ENA capacity, the basic resource
in liquor manufacture
AABL is consideing investment in a power plant for captive power
sourcing
The Company is investing in expansion of alcohol production capacity.

WAYS AABL STRENGTHENED

ITS PROFESSIONAL
CAPABILITY

The Company employed a team of vibrant professionals as on 31st

March 2018
The Company’s HR team focuses on employee welfare, culture,
training and practices
AABL followed systemic protocols coupled with adequate
documentation
28

WE ARE
TRANSFORMING
WITH A SINGULAR
OBJECTIVE:
ENHANCING
VALUE OF OUR
STAKEHOLDERS

AABL is pushing boundaries to emerge as a

bigger and better company – better controlled,
ġĩŅääƆÚĆäĢő͡äĢĂÁĢÚäàěĆńŖĆàĆőűÁĢà
adequately derisked.

ENHANCING
VALUE FOR
STAKEHOLDERS
 29 Associated Alcohols & Breweries Limited // Annual Report 2017-18

THE FOUR PILLARS OF VALUE ADDITION

Increased Proprietary Gradual pan- Stronger

capacity and franchised India presence Balance Sheet
brands

WE POSSESSED A MODEST ENA CAPACITY

g;̫̩`aZHƒ'‡͹ ;¯̩̯ͺ

We are increasing The capacity will Increased capacity

our capacity to scale existing will drive superior
45 million ltrs by customer volumes economies of scale
August 2018 and enhance
captive ENA
consumption

WE WERE LARGELY A MERCHANT ENA

AND IMIL MANUFACTURER

We have tied We launched We have entered Non-ENA

up with MNCs premium into a franchisee revenues now
to bottle proprietary brands agreement comprise
premium in categories like with USL to approx 80% of
brands for whisky, vodka and manufacture and total revenues
them rum, among others sell their brands FY17-18

WE ENJOYED BETTER GEARING AS

ga̫̩‡`ƒD̨̪̩̰

Major long We brought We strengthened We intent to

term debt has down our our Balance Sheet fund capacity
been repaid long- term to create a base through
debt-equity for sustainable accruals and
ratio to 0.09 in growth debt
FY18

Shareholders People Customers Business Society Environment

Steady dividend Employee ‚ŖÁěĆőűÁĢà Multiple ‡ĆúĢĆƈÚÁĢő Higher level of
Attractive and vendor seamless product business drivers contribution to recycling
market engagement supply €ŅĩƈőÁÙěä exchequer Moderated
capitalisation Promote strong Top-notch growth Job creation carbon footprint
growth work environment service Continuous
Focus on free Industry-best business
cash generation compensation strengthening
initiatives
30

MANAGEMENT DISCUSSION
AND ANALYSIS

Global economic overview Outlook 2016-17, the Indian economy headed

In 2017, a decade after the global The outlook for advanced economies for slower growth estimated at 6.7%
economy spiralled into a meltdown, improved, notably for the Euro area, but in 2017-18. Even with this lower
a revival became visible. Every major ĆĢġÁĢűÚĩŖĢőŅĆäʼnĆĢƉÁőĆĩĢŅäġÁĆĢäà growth for 2017-18, GDP growth
economy expanded and a growth wave weak, indicating that slack was yet to be averaged 7.3% for the period 2014-15
created jobs. This reality was marked eliminated, and prospects for growth in to 2017-18, achieved through lower
by ongoing Euro-zone growth, modest GDP per capita were held back by weak ĆĢƉÁőĆĩĢ͡ĆġłŅĩŪäàÚŖŅŅäĢőÁÚÚĩŖĢő
growth in Japan, late revival in China productivity growth and rising old- ÙÁěÁĢÚäÁĢàŅäàŖÚőĆĩĢĆĢƈʼnÚÁě
and improving realities in Russia and age dependency ratios. Global growth àäƈÚĆőőĩ<#€͠ĂäűäÁŅŖĢàäŅŅäŪĆäū
Brazil leading to an estimated 3.7% forecasts for 2018 and 2019 were revised was marked by various structural
global economic growth in 2017, some ŖłūÁŅàÙű̠̞Ùłʼnőĩ̡̧͠ό͡ŅäƉäÚőĆĢú reforms by the Government. In
60 bps higher than the previous year. improved momentum and the impact addition to GST introduction, the
Crude oil prices increased in 2017, the of tax policy changes in the US. (Source: űäÁŅūĆőĢäʼnʼnäàʼnĆúĢĆƈÚÁĢőŅäʼnĩěŖőĆĩĢ
prices at the beginning of the year bring WEO, IMF) of problems associated with
US$54.13 per barrel, declining to a low bank non-performing assets, FDI
of US$46.78 per barrel in June 2017 and Indian economic overview liberalisation, bank recapitalisation
closing the year at US$61.02 per barrel, After registering GDP growth of over and privatisation of coal mines. After
the highest since 2013. 7% for the third year in succession in remaining in negative territory for
a couple of years, export growth
rebounded during 2016-17 and
Global economic growth for 6 years strengthened in 2017-18; foreign
Year 2014 2015 2016 2017 (e) 2018 (f) 2019 (f) exchange reserves rose to US$ 414
Real GDP 3.5 3.2 3.1 3.7 3.9 3.0 billion as on January 2018. (Source:
Growth (%) CSO, economic survey 2017-18)
[Source: World Economic Outlook, January 2018] e: estimated f: forecasted
Global alcoholic beverages
industry overview
Estimation for the FY2017-18 versus FY2016-17 The global alcoholic beverages
market is pegged to cross the US$1.9-
Year 2017-18* 2016-17 trillion mark by 2025, growing from
GDP growth 6.7% 7.1% US$1.2 trillion in 2017 at a CAGR of
GVA growth 6.4% 9.0% 6.4%. Globally, beer is expected to
Farm growth 3% 9.0% remain the largest sub-segment
Manufacturing growth 5.1% 9.3% by value with a 42.7% share. Global
Power and gas growth 7.3% 6.5% revenues from alcoholic beverages
Mining growth 3% 1.9% industry amounted to US$67,661
Construction growth 4.3% 3.5% million in 2018 and this is expected
Trade, hotel, transport, telecom growth 8.3% 9.8% to grow at a CAGR of 10.4% during
Financials, realty growth 7.2% 9.8% 2019.
Public, admin, defence growth 10.1% 16.6%
Per capita income growth 8.3% 9.7% Many alcoholic beverage
manufacturing companies are
*Estimated (Source: PIB)
 31 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Mr. Anshuman Kedia from Associated Alcohols & Breweries Limited receiving Award for Best Popular Vodka (Silver) –
Titanium Triple Distilled Vodka

increasing their customer base through liquor is also increasing in rural areas and 2021). The Indian whiskey market
e-commerce platforms. It facilitates thanks to easy availability of alcohol. grew at a CAGR of >7% between
online alcoholic drink sales and Though India is one of the largest FY2010-11 to FY2016-17, and is expected
also gives companies access to new consumers of alcohol in the world, the to reach new heights in the near
markets without heavy investment per capita alcohol consumption of India future. The growing Indian whisky
in distribution channels. Alcohol is lower than Western countries. The market is the result of the economic
e-commerce is a well-developed per capita consumption of alcohol per development translating into higher
market in European countries such week for the year 2016 was estimated at purchasing power. Moreover, changing
as the UK, Germany, France and Italy. 147.3 millilitres and is expected to grow demographics and consumption
(Source: Business Wire, Transparency at a CAGR of 7.5% to 227.1 millilitres. An łÁőőäŅĢʼnʼnőŅäĢúőĂäĢäàūĂĆʼnėäűĩƅőÁėä͠
Market Research, Statista) average Indian male drinker consumed Southern India accounted for a >33%
3x more alcohol than an average female share of the total whisky consumed in
Indian alcoholic beverages industry drinker each year. Andhra Pradesh, the country. The year 2017 was riddled
overview Telangana, Kerala, Karnataka, Sikkim, with policy changes that put volumes
India is the third-largest and fastest- Haryana and Himachal Pradesh were under the pump. Those changes
growing liquor market in the world with among the largest consumers of alcohol included demonetisation, the Supreme
~30% of India’s population consuming in India. The most popular channel of Court’s liquor sales ban proximate to
alcohol. The industry is considered alcohol sale in India were liquor stores highways and GST implementation that
a sunrise industry owing to its high- as alcohol consumption was primarily enhanced input costs. The result: sales
growth potential and the increasing an outdoor activity and supermarkets volumes declined 1-3% in 2017. Few
social acceptance of alcohol as a and malls were primarily present in companies in the premium space with
recreational beverage. Tier-I and II cities. smaller bases grew at a healthy pace.
The alcoholic beverages market in India IMFL accounts for 93.1% of the alcohol (Source: Business Wire, PR Newswire)
is expected to grow at a CAGR of ~7.72% consumed in India with beer being
to H5.3 trillion by 2026. Consumption of the fastest-growing segment in the
country (CAGR of 7.5% between 2017
32

GLOBAL BEVERAGE MARKET

̫ό α̩̱͠
CAGR between 2016 trillion
and 2021 Estimated size by 2021

GLOBAL ALCOHOLIC BEVERAGE MARKET

α̩̪͠ α̩̱͠ ̮̬͠ό ̬̪̯͠ό

trillion trillion CAGR between 2017 Market share
Size of the industry Estimated size of the and 2025 of beer
in 2017 industry by 2025

ENA

̪̯͠ ̮̩͠ό ̫̰͠

billion litre CAGR between billion litre
Indian market 2010 and 2017 Estimated market size
size on 2017 by 2023

(Source: Business wire)

33 Associated Alcohols & Breweries Limited // Annual Report 2017-18

ENA

̯̱͠ό ̨̨̩̪̩̭͡͠ ̯̭͠ό

Revenue in the (ml) Estimates volume CAGR between 2017
alcoholic beverages of market for alcoholic and 2021
market CAGR between beverages by CY2021
CY2018 and 2021

ALCOHOLIC BEVERAGE MARKET IN INDIA

̨̫ό ̯̯̪͠ό H̭̫͠

India’s population CAGR in a 10 year trillion
consuming alcohol period ending in 2026 Estimated industry
value by 2026

̩̬̯̫͠`Z ̪̪̯̩͠`Z ̯̭͠ό

Per capita consumption Estimated per capita CAGR of per capita
of alcohol per week for consumption of alcohol consumption of alcohol
the year 2016 per week by 2022 per week between 2016
and 2022

̱̫̩͠ό ̮̰͠ό ̨̩͠ό

Drinkers consuming Drinkers consuming Drinkers consuming
IMFL/IMIL in India beer wine
34

Outlook
From 2018 onwards, India’s premium 'ŰőŅÁaäŖőŅÁěěÚĩĂĩěͳ'aʹ
spirits space is expected to grow Capacity in India
at ~12% while the regular range (Million Litres Per Annum)
96.30
is expected to grow at ~5-7%. In
value terms, the spirits industry is 3
expected to grow at a CAGR of 2.9% 15
18
till 2021, slower than the CAGR of 6.6% 424.80
518.50
registered between 2011 and 2016. It
is also slower than the overall volume
growth of ~4.2% between 2016 and 2021. 982.90
Haryana, Punjab and Uttar Pradesh 34
could possibly change the way alcohol is 873.90 30 Central
distributed to give the respective State North
Governments more control over the South
process. This could pose a challenge for West
ĩŅúÁĢĆʼnäàěĆńŖĩŅƈŅġʼnÁʼnʼnĩġäőĆġäʼn East & North
those managing state-run alcohol

outlets are lowly-paid employees, of whiskey in the world consuming

The Supreme Court issued leading to grafting. Also, election almost half the whisky produced
restrictions on the sale of alcohol years have traditionally been good for worldwide, accounting for ~60% of
near both state and national liquor consumption as political parties the IMFL market. From the cheapest
highways leading to the closure provide incentives and policies. (Source: IMFL variant to limited-edition
of ~33% of the country’s liquor Euromonitor, Edelweiss, Livemint) single-malt Scotch, Indians are
vendors, and a drop in the demand drinking more whisky today than
for whiskey, brandy, rum, vodka IMFL industry overview ever. Demand growth had been most
and gin. The decline was sharper Imported alcohol accounted for a conspicuous in the entry-level IMFL
when it came to price-sensitive meagre ~0.8% share of the Indian category (all alcoholic spirits made in
products, causing sales to fall by market. Heavy import duties and India, except beer and wine).
1-3% after the previous year’s sales taxes levied on imported alcohol put it (Source: businesswire, Livemint)
dip of 2.2%. beyond the reach of most individuals.
Though the popularity of wine and ENA industry overview
vodka is increasing at a remarkable The output of the extra neutral
The Indian spirits market was
CAGR of 21.8% and 22.8%, respectively, alcohol industry in India reached 2.7
valued at H1.84 trillion in 2016.
India remains the largest consumer billion litres in 2017, a CAGR of ~6.1%
Whiskey accounted for more than
̤̞όĩùőĂĆʼnƈúŖŅä͠ĂäÚĩŖĢőŅűĆʼn over the previous few years. Punjab
not only the largest market for the was the largest producer of extra
spirit but also the largest global neutral alcohol in India The market
producer of whiskey. Whiskey for extra neutral alcohol gained
consumption in India has grew momentum majorly as a result of the
by >2x, from 80.2 million nine- increasing consumption of alcohol
litre cases in 2007 to 193.1 million in the region. In India, ~90% of the
nine-litre cases in 2016. During extra neutral alcohol is used for
the same decadal period, global manufacturing potable alcohol. This
whiskey consumption rose from ƈúŖŅäĆʼnäŰłäÚőäàőĩŅäÁÚĂ̡̦͠ÙĆěěĆĩĢ
242.8 million to 399.2 million litres by 2023 owing to a rise in the
nine-litre cases. Of all the whiskey demand for potable alcohol. Extra
consumed in India last year, 189.7 neutral alcohol is a >H30,000-crore
million nine-litre cases, or 98.24%, industry and, apart from scotch, beer
was Indian-made. (Source: Global and wine, most IMFL manufacturers
Data, International Wine and use extra neutral alcohol as raw
Spirits Research) material with other blends. (Source:
IMARC, Times of India)
35 Associated Alcohols & Breweries Limited // Annual Report 2017-18

DEMAND DRIVERS

<ŅĩūĆĢúŖŅÙÁĢĆʼnÁőĆĩĢ͢ The urbanisation of India ƒŖŅÁěłŖʼnĂ͢Although a large number of people from

stands at 33.2% and is expected to reach 36.2% by rural India consume country liquor, the scenario in
2025. Growing urbanisation has resulted in more these areas is changing swiftly. With the so-called
consumers willing to try new products. barriers between rural and urban India slowly
(Source: Worldometers) dissipating, consumption levels are forecasted to
skyrocket.

Rising incomes: With rise in earnings people are ¯ĩŖőĂùŖěłĩłŖěÁőĆĩĢ͢ India is prepared to become
gradually shifting their preferences. Per capita the youngest country in the world by 2020, with two-
incomes during FY2017-18 was estimated at H1,11,782, third of its population consisting of people under the
rising by 8.3% compared to FY2016-17. Rising age of 35. This, in turn, will boost the consumption
disposable incomes will lend support to greater of alcoholic beverages across the nation. (Source:
discretionary spending and spending on alcoholic Bloomberg)
drinks, (Source: Economic Survey)

Demographic dividend: By 2025, India’s population Social acceptance: The taboos surrounding alcohol
is expected to be 1.46 billion and is projected to are progressively being disbanded across India,
overthrow China as the most populous country in the especially in metro cities, where it has been accepted
world. (Source: Population Pyramid) as a way of socialising, not only among adults but also
teenagers.

ĩĢʼnŖġłőĆĩĢěäŪäěʼn͢~30% of India’s population Emerging trends: Easy availability of liquor, access

consumes alcohol regularly. The percentage of to alcohol at home, curiosity, peer pressure and
under-15 boys who have never had alcohol has gone its association with a certain kind of lifestyle have
down from 44% to 30% and for girls it has decreased contributed to a shift in drinking patterns. With
from 50% to 31%. (Source: World Health Organisation, rising aspirations and increasing disposable incomes,
Organisation for Economic Cooperation and consumers are upgrading towards premium
Development) segments in the country, within the IMFL segment or
to international brands.
36

STRENGTHS

‡őŅĆÚőŅäúŖěÁőĆĩĢʼn͢Due to a strict regulatory regime,

obtaining a license for manufacturing as well as
àĆʼnőŅĆÙŖőĆĢúěĆńŖĩŅĆʼnàĆƆÚŖěő͡ŅäàŖÚĆĢúÚĩġłäőĆőĆĩĢ
from new entrants

Brand loyalty: It has been observed that generally

consumers do not believe in switching their preferred
brands

<ŅĩūĆĢúłĩłŖěÁőĆĩĢ͢ Because of India’s demographic

àĆŪĆàäĢà͡őĂäŅäĆʼnÁěūÁűʼnʼnŖƆÚĆäĢőàäġÁĢàùĩŅŪÁŅĆĩŖʼn
categories of liquor

CHALLENGES

High taxes: Liquor companies have heavy taxes levied

on them, which vary from state to state. The decision
to keep liquor out of the GST regime has been a
concern as input costs are going up and cascading
taxes will need to be eventually passed on to the
consumers thereby leading to higher prices.

Brand creation: Advertising alcoholic beverages is

prohibited in India and hence a large section of the
Indian population lacks brand awareness, most people
only know a couple of liquor brands and their variants.
Surrogate advertising has managed to raise awareness
of brands and this trend will continue to hold away
over the medium-term.

THREATS

úŅĆÚŖěőŖŅÁěłŅĆÚäʼn͢The liquor industry is heavily

dependent on the agriculture industry for raw
ġÁőäŅĆÁěʼnÁĢàÁĢűƉŖÚőŖÁőĆĩĢĩĢŖłłäŅʼnĆàäĆĢłŅĆÚäʼn
directly impacts the liquor industry.

ƒäúŖěÁőĩŅűĆʼnʼnŖäʼn͢The fragmented tax structure for

HĢàĆÁĢěĆńŖĩŅĆĢàŖʼnőŅűěäÁàʼnőĩŪÁŅĆĩŖʼnĆĢäƆÚĆäĢÚĆäʼn͡
as most states impose high ‘import’ duties on alcohol
made in other parts of the country. Manufacturers
are thus forced to operate small plants to serve every
state instead of a handful of bigger ones serving larger
ŅäúĆĩĢʼn͡ġÁėĆĢúěĩúĆʼnőĆÚʼnÁĢàńŖÁěĆőűÚĩĢőŅĩěàĆƆÚŖěő͠ Newly launched premium
whisky (May 2018)
37 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Internal control systems and their

adequacy
The company has engaged the services of
independent professional to carry out the
internal audit and ensure that recording and
reporting are adequate and proper, the internal
controls existing in the system and further
őĂÁőʼnŖƆÚĆäĢőġäÁʼnŖŅäʼnÁŅäőÁėäĢőĩĆġłŅĩŪä͡
update and strengthen the internal control
system.
HĢÁààĆőĆĩĢőĩʼnőÁőŖőĩŅűÁŖàĆő͡őĂäƈĢÁĢÚĆÁě
controls are also reviewed by the Internal
ÁŖàĆőĩŅʼn͡ūĂĩŅäłĩŅőőĂäĆŅƈĢàĆĢúʼnőĩőĂäĩÁŅà
and the Audit Committee. The committee
ensures the progress of the internal audit
ĆĢĆőĆÁőĆŪäʼn͡ʼnĆúĢĆƈÚÁĢőÁĢàġÁĔĩŅÁŖàĆő
observations and further planning and
implementation of follow up action required.

Information technology
In line with overall growth objectives and
strengthening of infrastructure base, the
Company continues to invest in IT (Information
Technology) viz SAP Enterprising Resource
Planning System and with the implementation
of these software’s the Company has improved
ĆőʼnĩłäŅÁőĆĩĢÁěäƆÚĆäĢÚĆäʼnőĂŅĩŖúĂŪÁŅĆĩŖʼn
functional integration.

Human resources and industrial relations

The company constantly facilitates and
encourages its employees at all levels to
enhance their knowledge and skills and
ÁěʼnĩƈŅġěűÙäěĆäŪäʼnőĂÁőDŖġÁĢƒäʼnĩŖŅÚä
Development (HRD) strategies and practices
will continue to provide a sustained competitive
advantage. The management of your company
deeply appreciate the spirit and commitment
of its dedicated team of [] Employees as on
31.03.2018

Cautionary statement
Estimates and expectations stated in this
Management Discussion and Analysis Report
may be” forward-looking statements” within
the meaning of applicable securities, laws
ÁĢàŅäúŖěÁőĆĩĢʼn͠ÚőŖÁěŅäʼnŖěőʼnÚĩŖěààĆƅäŅ
materially from those expressed or implied.
HġłĩŅőÁĢőùÁÚőĩŅʼnőĂÁőÚĩŖěàġÁėäÁàĆƅäŅäĢÚä
to your company’s operations include economic
ÚĩĢàĆőĆĩĢʼnÁƅäÚőĆĢúàäġÁĢàͭʼnŖłłěűÁĢàłŅĆÚä
conditions in the domestic and international
markets, changes in the governments
regulations, tax laws and other statutes and
incidental factors.
38
39 Associated Alcohols & Breweries Limited // Annual Report 2017-18

‡'<`'a΅©H‡'€'ƒ;gƒ`a'

The company has only one major operational business

segment encompassing liquor and related products,
which accounts for around 90% of the total turnover of
the Company.

H`HZͭg”aƒ¯ZH‚”gƒ

The company observed steady volume growth in

the category, the Company continues to enjoy the
monopoly over the allotted districts. This business
mainly composes of cash & convey. However
geographical boundary is the limitation in this
category.

IMFL

The Company’s market share on account of franchise

agreement has increased, the own brands category
also showed a moderate growth. The company’s
objective is to maintain the percentage of the IMFL in
sales mix.

ENA/RS

The company continued to be a sectoral leader in

supply of ENA/RS and enjoyed premium owing to
superior quality ENA.

BY PRODUCTS

The company’s byproducts are commonly known as

poultry feed, cattle feed which continued to add to
its top line. These byproducts are protein-rich and
in high demand throughout the year. Besides, the
Company also sold CO2 and fusel oil as byproducts.
40

Franchise Brands
41 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Own Brands
42

CSR ACTIVITIES AT AABL

€ŅĩġĩőĆĢúäàŖÚÁőĆĩĢĩùàĆƅäŅäĢőěűͿÁÙěäàÚĂĆěà͢ Session and seminar by Team AABL
43 Associated Alcohols & Breweries Limited // Annual Report 2017-18

NOTICE
NOTICE IS HEREBY GIVEN that the 29th Annual General SPECIAL BUSINESS
Meeting of the members of Associated Alcohols & 5. To consider and if thought fit, to pass with or without
Breweries Limited will be held on Friday, August 24, 2018 modification(s), the following resolution as an Special
at 10:00 AM at Shripati Singhania Hall, ‘Rotary Sadan, 94/2, Resolution:
Chowranghee Road, Kolkata-700020 to transact the “RESOLVED THAT pursuant to the provision of Section
following businesses: 13 read with Section 12 and other applicable provisions,
if any, of the Companies Act, 2013 and the Rules made
ORDINARY BUSINESS:
thereunder (including any statutory modification(s)
1. To receive, consider and adopt the Audited Financial
thereof or re-enactment thereof for the time being in
Statements together with Directors Report as also the
force) read with Company (Incorporation) Rules 2014
Auditors Report thereon for the year ended March 31,
and subject to the approval/sanction/permission of
2018.
the Central Government, Registrar of Companies,
2. To declare dividend on Equity Shares for the financial Regional Director, Eastern Region Kolkata or any other
year ending 31st March, 2018 appropriate authorities, statutory or otherwise, as are
3. To reappoint Mr. Manish Kumar Tibrewal (DIN required, consent of the members of the company be
00747559) as Director, who is liable to retire by and is hereby accorded to shift the registered office
rotation has offered himself for reappointment. of the company from 106 A Shyam Bazaar Street,
4. To consider and if thought fit, to pass with or without Kolkata -700005 State of West Bengal to 4th Floor,
modification(s), the following resolution as an BPK Star Tower, A.B. Road, Indore – 452008, State of
Ordinary Resolution: Madhya Pradesh i.e from jurisdiction of ROC-West
Bengal to the jurisdiction of ROC-Madhya Pradesh
“RESOLVED THAT pursuant to the provisions of
and that clause II of the Memorandum of Association
Sections 139, 142 and other applicable provisions, if
be altered accordingly to read as under:
any, of the Companies Act, 2013 (the Act) and the
Rules made thereunder, (including any statutory II. The registered office of the company will be situated
modification(s) or re-enactment thereof for the time in the state of Madhya Pradesh.”
being in force) and pursuant to the resolution passed 6. To consider, and if thought fit to pass, with or without
by Members at the Twenty Eighth Annual General modification(s), the following Resolution as an
Meeting appointing M/s. Singhi & Co., Chartered Ordinary Resolution:
Accountants, Kolkata (Firm Registration No. 302049E) “RESOLVED THAT pursuant to provisions of section
as Statutory Auditors of the Company to hold office 20 of the Companies Act, 2013 and other applicable
until the conclusion of Thirty Third Annual General provisions, if any of the said Act and relevant rules
Meeting of the Company, the Company hereby ratifies prescribed thereunder, whereby a document may be
and confirms the appointment of M/s. Singhi & Co., as served on any member by the company by sending it
Statutory Auditors of the Company for the financial to him by post or by registered post or by speed post
year ending 31st March, 2019 on such remuneration or by courier or by delivery to his office address or by
as recommended by the Audit Committee and as may such electronic or other mode as may be prescribed,
be mutually agreed between the Board of Directors of the consent of the Company be and is hereby
the Company and the Statutory Auditors.” accorded to charge from the member in advance
equivalent to the estimated actual expenses of delivery
of the documents pursuant to any request made
44

by the shareholder for delivery of such document to RESOLVED FURTHER THAT for the purpose of giving
him through a particular mode of service mentioned effect to this resolution, Directors or Key Managerial
above provided such request along with the requisite Personnel of the Company be and are hereby severally
fee had been duly received by the company at least authorised to do all such acts, deeds, matter and
one week advance of the dispatch of the document things as they may in their absolute discretion deem
by the company and that no such request shall be necessary, proper or desirable and settle any question,
entertained by the company to post the dispatch of difficulty, doubt that may arise in respect of the matter
such document by the company to the shareholder. aforesaid and further to do all such acts, deeds, and
things as may be necessary, proper or desirable or
expedient to give effect to the above resolution.”

Place: Indore By Order of the Board of Directors

Date: 28th May, 2018

Registered office
106A, Shyam Bazar, Street Sumit Jaitely
Kolkata – 700 005 Company Secretary
CIN: L15520WB1989PLC047211 FCS 9194

NOTES: so appointed shall not have any right to speak at the

1. The Explanatory Statement pursuant to Section 102 meeting. A Proxy form is attached hereto.
of the Companies Act, 2013 setting out the material 4. Corporate members intended to send their authorised
facts and reasons for the proposed resolutions at representative to attend the meeting are requested to
Item Nos. 5 & 6 above, are appended herein for your send to the company a certified copy of the board
consideration. resolution authorizing their representative to attend
2. A MEMBER ENTITLED TO ATTEND AND VOTE AT and vote on their behalf at the meeting.
THE MEETING IS ENTITLED TO APPOINT A PROXY 5. The Relevant documents referred to in the
TO ATTEND AND VOTE ON A POLL, INSTEAD OF accompanying Notice are open for inspection at the
HIMSELF / HERSELF AND SUCH PROXY NEED NOT Registered Office of the Company between 11:00 AM
BE A MEMBER OF THE COMPANY. to 01:00 PM on all working days except Saturdays,
A person can act as a proxy on behalf of a member not Sundays and public holidays, up to the date of the
exceeding 50 and holding in the aggregate not more Annual General Meeting.
than 10%of the total share capital of the Company 6. Members/Proxies/Authorised Representatives are
carrying voting rights. A member holding more than requested to bring the Attendance Slip duly filled in
10% of the total share capital of the Company carrying for attending the meeting and also their copy of the
voting rights may appoint a single person as proxy Annual Report.
and such person shall not act as a proxy for any other 7. The Register of Directors and Key Managerial
person/ shareholder. Personnel and their shareholding, maintained under
3. The instrument of proxy in order to be effective must Section 170 of the Companies Act, 2013, will be
be received by the company not less than 48 hours available for inspection by the members at the AGM
before the commencement of the meeting. A proxy
45 Associated Alcohols & Breweries Limited // Annual Report 2017-18

8. The Register of Contracts or Arrangements in which remote e-voting prior to AGM may attend the AGM
the directors are interested, maintained under Section but shall not be entitled to cast their votes again. The
189 of the Companies Act, 2013, will be available for instructions for e-voting are annexed to the Notice.
inspection by the members at the AGM. 15. The Annual Report 2017-18, the Notice of the 29th
9. The Register of Members and Share Transfer Books AGM and instruction for e-voting, along with the
will remain closed from 18th August, 2018 to 24th attendance slip and proxy form, are being sent
August, 2018 for the purpose of payment of the by electronic mode to all members whose email
dividend for the financial year ended March 31, 2018 address are registered with the company / Depository
and the AGM Participant(s), unless a member has requested for a
10. Subject to the provisions of the companies Act, 2013, physical copy of the documents. For members who
dividend as recommended by the Board of Directors, have not registered their e-mail address, physical
if declared at the AGM, will be paid within a period copies of the documents are being sent by the
of 30 days from the date of declaration, to those permitted mode.
members whose names appear on the Register of 16. Members may also note that the Notice of the 29th
Members as on 24th August, 2018. AGM and the Annual Report 2017-18 will be available
11. Members whose shareholding is in electronic mode on the Company’s website, www.associatedalcohols.
are requested to direct change of address notifications com members who require communication in physical
and updates of saving bank account details to their form in addition to e-communication, or have any
respective Depository Participant (s). Members are other queries, may write to us at investorrelations@
encouraged to utilize the Electronic Clearing System aabl.in.
(ECS) for receiving dividends. An ECS mandate form 17. Additional information, pursuant to regulation 36
attached herewith. of the SEBI (Listing Obligations and Disclosure
12. Members are requested to address all correspondence, Requirements) Regulations, 2015, in respect of the
including dividend-related correspondence, to the directors seeking appointment/re-appointment at
Registrar and Transfer Agent, M/s Ankit Consultancy the AGM, is furnished as annexure to the Notice. The
Private Limited, Unit; Associated Alcohols & Breweries directors have furnished consent/declaration for their
Ltd. 60, Electronic Complex, Pardeshipura, Indore – appointment/re-appointment as required under the
452010. Companies Act, 2013 and the rules made thereunder.

13. With a view to using natural resource responsibly, we 18. The Security Exchange Board of India (SEBI) has
request shareholders to update their email address mandated the submission of Permanent Account
with their Depository Participant to enable the Number (PAN) by every participant in securities
company to send communication electronically. market. Members holding share in electronic form
are, therefore, requested to submit their PAN to their
14. In compliance with the provisions of Section 108 of
Depository Participant(s). Member holding share
the Companies Act, 2013 read with Rule 20 of the
in physical form are required to submit their PAN
Companies (Management and Administration) Rules,
details to the Company’s Registrar and Transfer Agent
2014 as substituted by the Companies (Management
viz. Ankit Consultancy Pvt. Limited, 60, Electronic
and Administration) amendment Rules 2015 and
Complex, Pardeshipura, Indore – 452010.
Regulation 44 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, the 19. E-voting: The e-voting instructions for members
Company has provided a facility to the members receiving an e-mail or a physical copy of this notice of
to exercise their votes electronically through the Annual General Meeting are as under:
electronic voting service facility arranged by the
Instructions for E-Voting
Central Depository Securities Limited. The facilities to
(i) The voting period begins on Monday 20th August,
voting through ballot paper will also be made available
2018 at 09:00 AM (IST) and ends on Thursday
at the AGM and members attending the AGM, who
23rd August, 2018 at 05:00 PM (IST). During this
have not already cast their votes by remote e-voting
period shareholders’ of the Company, holding
shall be able to exercise their right at the AGM through
shares either in physical form or in dematerialized
ballot paper. Members who have cast their votes by
46

form, as on the cut-off date 17th August, 2018 For Members holding shares in Demat Form and
may cast their vote electronically. The e-voting Physical Form
module shall be disabled by CDSL for voting
Dividend Enter the Dividend Bank Details or Date of
thereafter.
B a n k Birth (in dd/mm/yyyy format) as recorded
(ii) The shareholders should log on to the e-voting Details in your demat account or in the company
website www.evotingindia.com records in order to login.
OR Date
(iii) Click on Shareholders.
of Birth • If both the details are not recorded with
(iv) Now Enter your User ID (DOB) the depository or company please enter
a. For CDSL: 16 digits beneficiary ID, the member id / folio number in the
Dividend Bank details field as mentioned
b. For NSDL: 8 Character DP ID followed by 8
in instruction (iv).
Digits Client ID,
c. Members holding shares in Physical Form NOTE: Please keep the sequence number in safe custody.
should enter Folio Number registered with (viii) After entering these details appropriately, click on
the Company. “SUBMIT” tab.
(v) Next enter the Image Verification as displayed (ix) Members holding shares in physical form will
and Click on Login. then directly reach the Company selection
(vi) If you are holding shares in demat form and had screen. However, members holding shares in
logged on to www.evotingindia.com and voted demat form will now reach ‘Password Creation’
on an earlier voting of any company, then your menu wherein they are required to mandatorily
existing password is to be used. enter their login password in the new password
field. Kindly note that this password is to be
(vii) If you are a first time user follow the steps given
also used by the demat holders for voting for
below:
resolutions of any other company on which they
For Members holding shares in Demat Form and are eligible to vote, provided that company opts
Physical Form for e-voting through CDSL platform. It is strongly
PAN Enter your 10 digit alpha-numeric PAN issued recommended not to share your password with
by Income Tax Department (Applicable for any other person and take utmost care to keep
both demat shareholders as well as physical your password confidential.
shareholders) (x) For Members holding shares in physical form,
• Members who have not updated their the details can be used only for e-voting on the
PAN with the Company/Depository resolutions contained in this Notice.
Participant are requested to use the first (xi) Click on the EVSN for Associated Alcohols
two letters of their name and the 8 digits &Breweries Limited on which you choose to vote.
of the sequence number in the PAN
(xii) On the voting page, you will see “RESOLUTION
field.
DESCRIPTION” and against the same the option
• In case the sequence number is less than “YES/NO” for voting. Select the option YES or NO
8 digits enter the applicable number as desired. The option YES implies that you assent
of 0’s before the number after the first to the Resolution and option NO implies that you
two characters of the name in CAPITAL dissent to the Resolution.
letters. Eg. If your name is Ramesh
(xiii) Click on the “RESOLUTIONS FILE LINK” if you
Kumar with sequence number 1 then
wish to view the entire Resolution details.
enter RA00000001 in the PAN field.
(xiv) After selecting the resolution you have decided
to vote on, click on “SUBMIT”. A confirmation box
will be displayed. If you wish to confirm your vote,
click on “OK”, else to change your vote, click on
“CANCEL” and accordingly modify your vote.
47 Associated Alcohols & Breweries Limited // Annual Report 2017-18

(xv) Once you “CONFIRM” your vote on the resolution, • The list of accounts linked in the login should
you will not be allowed to modify your vote. be mailed to helpdesk.evoting@cdslindia.
(xvi) You can also take a print of the votes cast by com and on approval of the accounts they
clicking on “Click here to print” option on the would be able to cast their vote.
Voting page. • A scanned copy of the Board Resolution and
(xvii) If a demat account holder has forgotten the login Power of Attorney (POA) which they have
password then Enter the User ID and the image issued in favour of the Custodian, if any,
verification code and click on Forgot Password & should be uploaded in PDF format in the
enter the details as prompted by the system. system for the scrutinizer to verify the same.

(xviii) Shareholders can also cast their vote using CDSL’s (xx) In case you have any queries or issues regarding
mobile app m-Voting available for android based e-voting, you may refer the Frequently Asked
mobiles. The m-Voting app can be downloaded Questions (“FAQs”) and e-voting manual available
from Google Play Store. Apple and Windows at www.evotingindia.com, under help section or
phone users can download the app from the App write an email to [email protected].
Store and the Windows Phone Store respectively.
Other Instructions
Please follow the instructions as prompted by the
(1) The Chairman shall, at the AGM at the end of discussion
mobile app while voting on your mobile.
on the resolution on which voting is to be held, allow
(xix) Note for Non – Individual Shareholders and
voting with the assistance of the scrutinizer, by use of
Custodians
“poling Paper” for all those member who are present
• Non-Individual shareholders (i.e. other than at the AGM but have not cast their votes by availing
Individuals, HUF, NRI etc.) and Custodian are the remote e-voting facility.
required to log on to www.evotingindia.com
(2) Mr. Arun Kumar Khandelia, Practicing Company
and register themselves as Corporates.
Secretary (CP No. 2270), has been appointed as the
• A scanned copy of the Registration Form Scrutinizer to scrutinize the e-voting process as well as
bearing the stamp and sign of the entity the voting by way of poll, to be conducted at the Annual
should be emailed to helpdesk.evoting@ General Meeting, in a fair and transparent manner.
cdslindia.com.
(3) The results declared along with the Scrutinizer’s report
• After receiving the login details a Compliance shall be communicated to BSE Limited and website
User should be created using the admin login of CDSL viz. www.evotingindia.com Limited and
and password. The Compliance User would made available on the Company’s website viz.: www.
be able to link the account(s) for which they associatedalcohols.com within two days of passing of
wish to vote on. the resolutions at the Annual General Meeting of the
Company.

EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013.

Item No. 5

The registered office of the company is presently situated activities and operation so as to lead to synergies and
at 106A Shyam Bazaar Street, 1st Floor Kolkata. The to eliminate duplication / multiplication of legal and
corporate office is situated at 4th Floor, BPK Star Tower, regulatory compliances and in the existing circumstances,
A.B. Road, Indore – 452008 and all the operations of the to carry on the business more economically and more
company and administrative activities of the company efficiently, the Board of Directors of the company at
are carried out from the corporate office. Almost all their meeting held on 28th May, 2018 proposed to shift
the meetings of the Board of Directors are held at the the registered office of the company from 106 A Shyam
Corporate Office Bazar Street, 1st Floor, Kolkata – 700005 to BPK Star Tower
4th Floor A.B. Road, Indore – 452008 State of Madhya
In order to facilitate effective and efficient management of
Pradesh i.e from jurisdiction of ROC-West Bengal to the
the day to day affairs of the company, optimal utilization
jurisdiction of ROC-Madhya Pradesh
of resources and with a view to consolidate administrative
48

In terms of the provisions of Section 12 of the Item No 6

Companies Act, 2013 and the rules made thereunder, As per the provisions of Section 20 of the Companies
approval of the members is required by passing a Act, 2013, a document may be served on any member
Special Resolution and subsequent approval for the by sending it to him by post or by registered post or by
approval of the CentralGovernment is also required speed post or by courier or deliver at his office r address of
pursuant to the provisions of Section 13(4) of the by such electronic or other mode as may be prescribed.
Companies Act and the Rules made thereunder. Further a member may request for delivery of any
document through a particular mode, for which he shall
Accordingly, consent of the members is sought by passing
pay fees in advance as may be determined in its Annual
a Special Resolution as set out in Notice for shifting of
General Meeting.
Registered Office of the company from Kolkata, West
Bengal to Indore, Madhya Pradesh None of the Directors or Key Managerial Personnel
including their relatives is concerned or interested,
None of the Directors or Key Managerial Personnel of
financially or otherwise, in the said resolution.
the Company or their relatives is directly or indirectly
concerned to interested in the proposed resolution as The Board recommends the Ordinary Resolution as set
set out in Notice. The Board recommends the special out in item no. 6 for approval of the members
resolution as set out in item no. 5 for approval of the
members

Place: Indore By Order of the Board of Directors

Date: 28th May, 2018

Registered office
106A, Shyam Bazar, Street Sumit Jaitely
Kolkata – 700 005 Company Secretary
CIN: L15520WB1989PLC047211 FCS 9194

DETAIL IN PURSUANCE OF REGULATION 36 OF SEBI (LISTING OBLIGATIONS AND DISCLOSURES

REQUIREMENTS) REGULATIONS, 2015 OF DIRECTORS/PERSONS SEEKING APPOINTMENT/ RE-
APPOINTMENT AT THIS ANNUAL GENERAL MEETING.
Name of the Director Mr. Manish Kumar Tibrewal
Date of Birth 05.07.1977
DIN 00747559
Date of Appointment on the Board 20.10.2001
Qualifications Graduate in Commerce
Experience and Expertise Rich exposure of industry and commercial transactions
and having wide and vivid experience of 18 years of
multi-dimensional and functional areas.

Part of the Board and long associated with Core

Management Team of the company.
No. of meetings of Board attended during the year. 5
List of Directorship/Membership/ Chairmanship of Nil
Committees of other Board.
Shareholding in AABL (Equity) Nil
Terms & conditions of appointment or re-appointment As per Nomination and Remuneration Policy of the
along with details of remuneration sought to be paid and Company and terms of agreement with Whole Time
remuneration last drawn by such person. Director as displayed on the company’s website viz.
www.associatedalcohols.com
49 Associated Alcohols & Breweries Limited // Annual Report 2017-18

The route map for the venue of AGM

50

Directors
Report

Your Directors have pleasure in presenting their 29th Annual Report together with the Audited Accounts and Auditor’s
Report of the Company for the year ended on 31st March 2018.

1. FINANCIAL RESULTS
A summary of the company’s financial result year 2017-18 is as under:

FINANCIAL RESULTS (H in Lakhs)

Particulars 2017-2018 2016-2017 *
Gross Revenue from Operations 32523.99 29106.74
Profit/(Loss) before Interest, Depreciation & Tax 5456.99 4224.98
Less: Interest 382.88 410.24
Profit before Depreciation 5074.11 3814.74
Less: Depreciation 1131.71 1094.72
Profit / (Loss) before Tax 3942.40 2720.02
Provision of Tax 1423.48 1028.78
Net Profit/Loss 2518.92 1691.24

*The figures are restated as per Ind-AS

2. FINANCIAL PERFORMANCE There has been a substantial increase in the other

Your Company reported a top line growth of 12% over the expenses which is because of fixed royalty paid to Diageo-
previous year and has achieved a turnover of B32523.99 USL for franchise agreement, substantial hike in bottling
lakhs in the current year against B29106.74 lakhs in the fees, franchise duty other state excise levy of MP State
previous year, the increase in revenue can be majorly Excise on IMFL production (franchise brands), further on
attributed to the IMFL sales on account of franchise account of provisions of contingent liabilities with certain
arrangements with Diageo-USL brands. estimates and write offs made in the Q4 2017-18, and also
on account of increase Brand marketing overheads on
Earnings Before Interest Depreciation & Tax (EBIDTA)
IMFL.
for the year stood at B5456.99 lakhs, an increase of 29%
from B4224.98 lakhs in the previous year. Operating Profit The company continues to retain and reinforce its market
before tax (PBT) stood at B3942.4 lakhs an increase on 45% leadership in the allocated segments in which it operates.
from B2720.02 lakhs in the previous year & the net profit There are no material changes or commitments affecting
for the year was B2518.92 lakhs as against B1691.24 lakhs the financial position of the company, which have
an increase of about 49% from the previous year. occurred between the end of the financial year and the
date of this report.
The company has achieved better economies of scale in
Power and Fuel and saved substantial cost when compared
on year on year basis
51 Associated Alcohols & Breweries Limited // Annual Report 2017-18

3. SHARE CAPITAL The market leader Diageo as part of its strategy where they
The paid-up equity share capital of the company as at believe the local partners can maximize the value they
March 31, 2018 stood at B1807.92 lakhs divided into have started appointing franchises and as a result we being
18079200 equity shares of B10/- each. the loyal trusted partner been entrusted with the franchise
agreement.
4. DIVIDEND & RESERVES
Your directors have pleasure in recommending dividend for 7. EXPANSION PROJECT
approval of the members at the Annual General Meeting The company’s much awaited capacity expansion project
a dividend of 10% i.e B1.00/- each (previous year 10% i.e. of the first phase of expansion is on the verge of completion
B1.00/- each) on 18079200 Equity Shares of face value of and the existing capacity will be increased from 31.4 Million
B10/- each the aggregate amount being B180.79 lakhs. Bulk Liters per annum to 45 Million Bulk Liters per annum.
As the company has been operating at optimum capacity
During the year under review B100 lakhs was transferred to
from the last 3 years the additional capacity will increase
General Reserve from retained earnings.
the market base of the products of the company. The
5. FINANCE & ACCOUNTS second phase of capacity expansion from 45 Million Bulk
As mandated by the Ministry of Corporate Affairs, the Liters to 90 Million Bulk Liters will be commencing upon
financial statements for the year ended on March 31, the stabilization of the production in due course.
2018 has been prepared in accordance with the Indian
8. AWARDS & ACCOLADES
Accounting Standards (IND AS) notified under Section
The company product ‘Titanium’ Vodka has been awarded
133 of the Companies Act, 2013 read with the Companies
as the Best Popular Vodka (Silver) at Indspirit 2018 awards
(Accounts) Rules, 2014. The estimates and judgments
at New Delhi
relating to the Financial Statements are made on a prudent
basis, so as to reflect in a true and fair manner, the form 9. VAT/GST ON RECTIFIED SPIRIT
and substance of transactions and reasonably present the The industry is in the dilemma awaiting clarification from
Company’s state of affairs, profits and cash flows for the the state authority and central authority on levy of GST or
year ended March 31, 2018 VAT on the sale of Extra Neutral Alcohol (ENA)/ Rectified
Spirit.
6. USL – DIAGEO FRANCHISE AGREEMENT
The company has backed the USL-Diageo Franchise In absence of any clarity in respect to levy of Goods &
Agreement from May 2017 manufacture and market its Service Tax (GST) on sale of Rectified spirit (RS) & Extra
popular range brands for the state of Madhya Pradesh Neutral Alcohol (ENA), the company continued to collect
(MP). With the franchise agreement the company became Value Added Tax (VAT) and Central Sales Tax (CST) for intra
one of the strongest IMFL player in the Central Region, the state and interstate respectively on sale of these products
company was doing the job work of these popular brands w.e.f. 01st July 2017. Pending clarification, VAT collected
earlier but post arrangements the brands are now distilled, during the year (from 01st July 2017 to 31st March 2018)
manufactured and marketed by the company in the state on sales of RS & ENA amounting to B197.23 lakhs have
of MP. been withheld by the company and would be deposited
upon receipt of necessary clarification.
52

The company has approached Commissioner and other f) that the director had devised proper system to ensure
senior officers at state and is awaiting clarification on the compliance with the provision of all applicable laws
issue from same. and that such system were adequate and operating
effectively.
However, if GST is levied on Extra Neutral Alcohol/Rectified
Spirit, the manufacturing company’s like us will be in an 12. COMPOSITION OF BOARD
advantageous position. In accordance with the provisions of section 152 of
the Companies Act, 2013 and Company’s Articles of
10. INCOME TAX SEARCH Association, Mr. Manish Kumar Tibrewal, Director retires
The Income Tax Search was carried out in the premises by rotation at the forthcoming Annual General Meeting.
of the company in November, 2017, the company has
provided full cooperation to the department and has The Board provides leadership, strategic guidance, objective
furnished all explanation, information and clarification and independent view to the Company’s management
required by them and assured for further cooperation. while discharging its fiduciary responsibilities thereby
ensuring that the management adheres to high standards
At AABL we follow ethical and legal standards of the highest of ethics, transparency and disclosure. The Board has
order in all our activities and have robust institutional constituted Audit Committee, Stakeholder Relationship
measures to monitor as well as implement corporate Committee, Nomination & Remuneration Committee and
governance of the highest standards as evident from the Corporate Social Responsibility Committee.
fact that the company is having the best ERP integrated
system and software in place and also a team of vibrant 13. DECLARATION BY INDEPENDENT DIRECTORS
professionals. Necessary declarations have been obtained from all the
We further state that the senior management is hopeful Independent Directors under sub section (7) of section 149
that there are no chances of any information which can of the Companies Act, 2013.
be considered to have material impact or implication on
14. KEY MANAGERIAL PERSONNEL
the financials of AABL.
During the period under review Mrs. Dishita Tibrewal has
11. DIRECTORS’ RESPONSIBILITY STATEMENT tender her resignation as director on 26.05.2017, Mr. Sanjay
As required under section 134(5) of the Companies Act, Kumar Tibrewal was appointed as the Chief Financial
2013 the Directors confirm that: Officer of the company on 26.05.2017

a) that in the preparation of the annual accounts, the The following are the Key Managerial Personnel of the
applicable accounting standards have been followed. company

b) that appropriate accounting policies have been 1. Mr. Tushar Bhandari- Whole Time Director
selected and applied consistently and that judgments 2. Mr. Sanjay Kumar Tibrewal – Chief Financial Officer
and estimates made are reasonable and prudent so as
3. Mr. Sumit Jaitely – Company Secretary
to give a true and fair view of the state of affairs of the
company as on 31st March, 2018 and of its profit for 15. MEETING
the year ended on that date. During the year Five Board Meetings, Four Audit Committee,
c) that proper and sufficient care has been taken for the Fourteen Stakeholders Relationship committee, Two
maintenance of adequate accounting records under Nomination & Remuneration Committee and Two CSR
the provisions of the Act for safeguarding the assets of Committee Meeting were convened and held.
the Company and for preventing and detecting fraud
16. PERFORMANCE EVALUATION OF BOARD,
and other irregularities.
COMMITTEES & DIRECTORS
d) that the annual financial statements have been Pursuant to the provisions of the Companies Act, 2013
prepared on a going concern basis. and the Regulation 25 SEBI (Listing Obligations and
e) that the directors had laid down internal financial Disclosure Requirements) Regulations, 2015, the Board
control to be followed by the company and that of Directors adopted a formal mechanism for evaluating
such internal financial control is adequate and were its performance and as well as that of its committees and
operating effectively. individual Directors.
53 Associated Alcohols & Breweries Limited // Annual Report 2017-18

The Directors were satisfied with the evaluation results, The Internal Auditor, the Audit Committee as well as the
which reflected overall engagement of the Board and its Board of Directors conduct from time to time an evaluation
Committees with the Company. of the adequacy and effectiveness of the system of internal
controls for financial reporting with respect to financial
17. CORPORATE SOCIAL RESPONSIBILITY statements.
INITIATIVES
As part of its initiatives under “Corporate Social 21. AUDITORS
Responsibility” (CSR), the company has constituted M/s Singhi & Co., Chartered Accountants were appointed
Corporate Social Responsibility Committee. The CSR as Statutory Auditors of your company at the 28th Annual
Committee has framed the CSR policy of the company. General Meeting held on 05th August, 2017, for a term
The Committee has made expenditure which form part of five consecutive years. As per the provision of the
of this report. Companies Act 2013 the appointment of the Auditors is
to be ratified by the Members at every Annual General
Annual Report on CSR activities is annexed herewith as:
Meeting.
“Annexure B”
In accordance with the notification no. GSR 432 (E) issued
18. CORPORATE GOVERNANCE on 07 the May, 2018 by the Ministry of Corporate Affairs
The Company has complied with the mandatory provisions the appointment of statutory auditors is not required to
of Corporate Governance as prescribed in the Regulation be ratified at every Annual General Meeting, however the
27 of the SEBI (LODR) Regulations, 2015 as applicable to company as a measure of extra precaution and based
the Company. A separate report on Corporate Governance on the fundamental that the remuneration may undergo
and Auditors Report there on are included as part of the change in the appointed years has placed the ratification/
Annual Report. appointment to be considered in the upcoming Annual
General Meeting.
19. RELATED PARTY TRANSACTIONS
All related party transactions that were entered during the The Report given by the Auditors on the financial statement
financial year were on an arm’s length basis and were in of the company is part of this Report. There has been no
the ordinary course of business and that the provision of qualification, reservation, adverse remark or disclaimer
section 188 of the Companies Act, 2013 and the Rules given by the Auditors in their Report.
made thereunder are not attracted. Thus, disclosure in
form AOC-2 in terms of section 134 of the Companies Act, 22.SECRETARIAL AUDIT
2013 is not required. Further there is no material related As required under section 204(1) of the companies Act,
party transaction during the year under review with the 2013 and the Companies (Appointment and Remuneration
Promoter, Directors or Key Managerial Personnel of management Personnel) Rules, 2014 the Company
has appointed M/s K. Arun & Co. (Company Secretaries)
All related party transactions are places before the Audit Kolkata – 700017, as Secretarial Auditor of the company.
Committee as also the Board of Directors for approval. Secretarial Audit report is annexed herewith as “Annexure
Omnibus approval was obtained on a yearly basis for C” and forms part of this report.
transactions which are repetitive in nature.
23. EXTRACT OF ANNUAL RETURN
20. RISK MANAGEMENT AND ADEQUACY OF The detail forming part of the extract of the Annual Return
INTERNAL FINANCIAL CONTROLS in form MGT–9 is annexed herewith as “Annexure D” and
The Company’s system of financial and compliance
forms part of this report.
controls with reference to the financial statements and
risk management is embedded in the business process by 24.CONSERVATION OF ENERGY, TECHNOLOGY
which the Company pursues its objectives. ABSORPTION AND FOREIGN EXCHANGE
EARNINGS / OUTGO
Management is responsible for establishing and
Information required under Section 134(3) (m) of the
maintaining adequate disclosure controls and procedures
Companies Act, 2013 read with Rule 8(3) of the Companies
and adequate internal controls over financial reporting with
(Account) Rules, 2014 with respect to conservation of
respect to financial statements besides its effectiveness in
energy, technology absorption and foreign exchange
the context of applicable regulations
54

earnings/outgo is appended hereto as “Annexure E” and the Directors place on record their appreciation for the
forms part of this report. efficient services rendered by the employees at all levels.

Disclosures pertaining to remuneration and other details

25. PARTICULARS OF LOANS, GUARANTEES AND
INVESTMENTS UNDER SECTION 186 OF THE as required under Section 197(12) of the Act read with Rule
COMPANIES ACT, 2013 5(1) of the Companies (Appointment and Remuneration of
The particulars of Loans, Guarantees and Investment in Managerial Personnel) Rules, 2014 is annexed
pursuance to Section 186 of the Companies Act, 2013 are hereto as “Annexure – A” and forms part of this report.
given in the Notes to the financial statements.
29.VIGIL MECHANISM/ WHISTLE BLOWER POLICY
26. FIXED DEPOSITS The company has a Vigil Mechanism/Whistle Blower
During the year your company has not accepted any Policy to deal with instance of fraud and mismanagement,
deposit from public under Section 73 of the Companies if any. The details of the policy is explained in the corporate
Act, 2013 and Companies (Acceptance of Deposit) Rules, Governance Report and also posted on the website of the
2014. company.

27. GENERAL 30. ACKNOWLEDGEMENT

Your Directors state that no disclosure or reporting is Your Directors express their sincere appreciation for the
required in respect of the following items as there were no co-operation and support received from shareholders,
transactions on these items during the year under review: bankers, financial institutions, regulatory bodies,
• Issue of equity shares with differential rights as to customers, suppliers, employees and other business
dividend, voting or otherwise. constituents during the year under review.

• Issue of shares (including sweat equity shares) to

employees of the Company under any scheme.
• No significant or material orders were passed by the
Regulators or Courts or Tribunals which impact the
going concern status and Company’s operations in
future.
• During the year under review, there were no cases
filed or reported pursuant to the sexual harassment
of Women at Workplace (Prevention, Prohibition and
Redressal) Act,2013

28. PARTICULARS OF EMPLOYEES AND RELATED

DISCLOSURE
The relation between the employees and the management
has been cordial throughout the year under review and

FOR AND ON BEHALF OF THE BOARD

Tushar Bhandari Nitin Tibrewal

Place: Indore Director Director
Date: 28th May, 2018 DIN: 03583114 DIN: 01892892
55 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Annexure A

DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12)

OF THE COMPANIES ACT, 2013 READ WITH RULES 5(1) OF THE COMPANIES
(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

I. Ratio of the remuneration of each executive Director to the median remuneration of the Employees of the company
for the financial year 2017-18, the percentage increase in remuneration of Whole Time Directors, Chief Financial
Officer and Company Secretary during the financial year 2017-18

Sr. Name of Director/KMP and Designation Ratio of % increase in Remuneration

No. Designation remuneration of in the Financial Year 2017-18
1 Mr. Tushar Bhandari Whole Time Director 14.40x 140%
2 Mr. Sanjay Kumar Tibrewal Chief Financial Officer 12.95x NA
3 Mr. Sumit Jaitely Company Secretary 5.72x 16%
II. There were 332 permanent employees on the roll of the company as on 31st March, 2018
III. Median Remuneration of the employee of the Company during the financial year was B1.73 Lakh.
IV. Average percentage increase made in the salaries of employees other than the managerial personnel in the last
financial year 2017-18 was 9%.
V. The parameters for the variable component of remuneration availed by the directors are considered by the board
of directors based on the recommendation of Nomination and Remuneration Committee as per the Remuneration
Policy of the Directors, Key managerial personnel and other employees.
VI. It is herby affirm that the remuneration paid is as per the Remuneration Policy for the Directors, key managerial
Personnel and other employees.
Note: The Non Executive Directors of the company are entitled for sitting fees as per the statutory provisions the detail
of which is provided in the are provided in the Corporate Governance Report.

STAEMENT OF PARTICULARS OF EMPLOYEE PURSUANT TO PROVISIONS OF SECTION 197(12) OF THE

COMPANIES ACT, 2013 READ WITH COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL
PERSONNEL) RULES, 2014 EMPLOYED THROUGHOUT THE FINANCAL YEAR 2017-18
Name Age Qualification Designation Date of Commencement of the employment Experience (Years) Gross Remuneration
Previous Employment Previous Designation
Mr. Anand Kumar Kedia, 53, Post Graduate in Commerce, Chairman – Business Promotion & Development, 01/04/1990,
28 years, B444.32 Lakh, Mr. Prasann Kumar Kedia, 46, MBA, Vice Chairman – Operation & Business Development,
01/04/1994 , 24 years, B444.32 Lakh.

FOR AND ON BEHALF OF THE BOARD

Tushar Bhandari Nitin Tibrewal

Director Director
DIN: 03583114 DIN: 01892892
56

Annexure B

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES

1. CSR Policy & Philosophy

AABL is committed to operate and grow its business in a socially responsible way with a vision to be an environmental
friendly corporate citizen. The Company is committed to Social service, ecological balance and environmental protection,
AABL has taken up various Corporate Social Responsibility (CSR) initiatives earlier and will continue to do so in future.
CSR activities at AABL reflect its commitment to make things happen at every project we undertake.
Our passion in these activities make us more responsible year after year. As a responsible corporate citizen, we try
to contribute for possible social, educational and environmental causes on a regular basis. We firmly believe that to
succeed, an organization must maintain highest standards of corporate behavior towards its investors, stakeholders,
employees and societies in which it operates.
Constitution of a Corporate Social Responsibility Committee of the Board and formulation of a Corporate Social
Responsibility Policy has become mandatory under the Companies Act, 2013. Accordingly, our Company has formulated
this CSR Policy which encompasses its philosophy and guides its sustained efforts for undertaking and supporting socially
useful programs.
2. CSR Vision
Improve quality of life for all our communities through integrated and sustainable development in every possible way.
3. Constitution of CSR Committee
In terms of section 135 of the Companies Act, 2013 and the Rules made thereunder, Board of Directors of the Company
at its meeting held on 04th April, 2014 has constituted a CSR Committee and the following are its members;

Sr. No. Name Status Designation

1 Mr. Tushar Bhandari Executive Director Chairman
2 Mr. Nitin Tibrewal Independent Director Member
3 Mr. Manish Kumar Tibrewal Non-Independent Member
Director
4. Average Net Profit of the Company for last three financial years: B23,51,74,764
5. Prescribed CSR Expenditure (Two percent of amount as in item no. 4 above): B47,03,495
6. Detail of CSR spends for the financial year:
a. Total Amount Spent for the Financial Year: 12,05,000
b. Amount Unspent if any: B34,98,495
c. Manner in which the amount spent during the financial year:
57 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Sr. CSR Project or Activity Sector Area/ Amount Amount Cumulative Amount Spent:
No. Identified in which Location Outlay Spent Expenditure Direct/Through
Covered Implementation
Agency
1 Ensuring environmental Animal Indore 500000 500000 500000 Aware Indore
sustainability Welfare
2 Ensuring environmental Conservation Local 100000 100000 600000 Isha Outreach
sustainability of River
3 Promoting education Education Barwaha 80000 80000 680000 Direct
differently abled child
4 Contribution To Prime PMS’ Relief PAN 500000 500000 1180000 Direct
Minister Relief Fund Fund India
5 Promoting Health Health Indore 25000 25000 1205000 MP Thelesimia
Welfare Society
7. Reason for amount unspent: The company will pursue the CSR project in identifiable areas and hopeful to spent the
allocated amount.

FOR AND ON BEHALF OF THE BOARD

Tushar Bhandari Nitin Tibrewal

Place: Indore Director Director
Date: 28th May, 2018 DIN: 03583114 DIN: 01892892
58

Annexure C

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31st Day of March, 2018
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2015]

To, (a) The Securities and Exchange Board of India

The Members, (Substantial Acquisition of Shares and Takeovers)
Associated Alcohols & Breweries Limited Regulations, 2011;
We have conducted the Secretarial Audit of the compliance (b) The Securities and Exchange Board of India (Issue of
of applicable statutory provisions and the adherence Capital and Disclosure Requirements) Regulations,
to good corporate practices by Associated Alcohols & 2009;
Breweries Limited (hereinafter called “the Company”). (c ) The Securities and Exchange Board of India
The Audit was conducted in a manner that provided us (Prohibition of Insider Trading) Regulations, 2015;
a reasonable basis for evaluating the corporate conducts/
(d)The Securities and Exchange Board of India
statutory compliances and expressing our opinion thereon.
(Registrars to an Issue and Share Transfer Agents)
Based on our verification of books, papers, minute books, Regulations, 1993;
forms and returns filed and other records maintained by V. The following Industry Specific law(s):
the Company and also the information provided by the
a. Madhya Pradesh Excise Act, 1915 and Madhya
Company, its officers, and authorized representatives
Distillery Rules, 1995.
during the conduct of Secretarial Audit, we hereby report
We have also examined the compliance by the
that in our opinion the Company has, during the audit
company of the following statutory provisions/
period covering the financial year ended 31st March, 2018
standards/regulations:
complied with the statutory provisions listed hereunder
and also that the Company has proper board-processes a. The uniform Listing Agreements entered into by
and compliance-mechanism in place to the extent, in the the Company, with BSE Limited;
manner and subject to the reporting made hereinafter: b. The Securities & Exchange Board of India (Listing
Obligations and Disclosure Requirements)
We have examined the books, papers, minute books,
Regulations, 2015;
forms and returns filed and other records maintained by
the Company for the financial year ended 31st March, 2018 c. The Secretarial Standards (SS - 1 and SS – 2) issued
according to the provisions of: by the Institute of Company Secretaries of India.

I. The Companies Act, 2013(the Act) and the rules made We further report that:
thereunder; The Board of Directors of the Company is duly constituted
II. The Securities Contracts (Regulation) Act, 1956 and with proper balance of Executive Director, Non-Executive
the rules made thereunder; Directors, Independent Directors and a Woman Director.
The changes in the composition of the Board of Directors
III. The Depositories Act, 1996 and the Regulations and
that took place during the period under review were carried
Bye-laws framed thereunder;
out in compliance with the provisions of the Companies
IV. The following Regulations (as amended from time to
Act, 2013 and SEBI (Listing Obligations and Disclosure
time) and Guidelines prescribed under the Securities
Requirements) Regulations, 2015.
and Exchange Board of India Act, 1992:-
Adequate Notice is given to all Directors to schedule the
Board/Committee meetings. Information and circulation
59 Associated Alcohols & Breweries Limited // Annual Report 2017-18

of the agenda with detailed information thereof, convening and operations of the Company to monitor and ensure
of meetings was done in compliance with the applicable compliance with applicable laws, rules, regulations and
laws, rules, regulations and guidelines, etc. A system guidelines as also represented by the management.
exists for seeking and obtaining further information and
We further report that during the period under review
clarifications on the agenda items before the meeting and
Mr. Sanajy Kumar Tibrewal appointed in the post of Chief
for meaningful participation at the meeting.
Financial Officer of the company w.e.f 26.05.2017.
We further report that, there are adequate systems and
processes in the Company commensurate with the size

Place: Kolkata For K. Arun & Co.

Date: 28.05.2018 Company Secretaries

Minu Tulsian
Partner
C.P. No.: 16669
 60

Annexure D

FORM NO. MGT 9

EXTRACT OF ANNUAL RETURN
AS ON FINANCIAL YEAR ENDED ON 31.03.2018
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the
Company (Management & Administration) Rules, 2014.

I REGISTRATION & OTHER DETAILS:

I CIN L15520WB1989PLC047211
II Registration Date 07.07.1989
III Name of the Company Associated Alcohols & Breweries Limited
IV Category/Sub-category of the Company Limited by Shares
V Address of the Registered office & contact details 106A, Shyam Bazar Street, 1st Floor, Kolkata - 700005 (W.B)
E-mail – [email protected] Ph. No. +91 81000 11422,
VI Whether listed company Yes
VII Name, Address & contact details of the Registrar & Ankit Consultancy Pvt. Ltd. 60, Electronic Complex,
Transfer Agent, if any. Pardeshipura, Indore - 452010
Ph. (0731) 2551745,2551746 | E-mail: [email protected]

II PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10% or more of the total turnover of the company shall be stated

SL Name & Description of main products/services NIC Code of the % to total turnover
No Product /service of the company
1 Liquor 11012 100

III PARTICULARS OF HOLDING, SUBSIDIARY & ASSOCIATE COMPANIES

Sl Name & Address of the CIN/GLN Holding/Subsidiary/ % Of shares Applicable
No Company Associate Held Section
NA NA NA NA NA

IV SHAREHOLDING PATTERN (Equity Share capital Break up as % to total Equity)

I Category wise Shareholders

No. of Shares held at the No. of Shares held at the
%
beginning of the year end of the year
Category of change
% of
Shareholders % of Total during
Demat Physical Total Total Demat Physical Total
Shares the year
Shares
A. Promoters
(1) Indian
a) Individual/HUF 10566440 Nil 10566440 58.45 10566440 Nil 10566440 58.45 Nil
 61 Associated Alcohols & Breweries Limited // Annual Report 2017-18

No. of Shares held at the No. of Shares held at the

%
beginning of the year end of the year
Category of change
% of
Shareholders % of Total during
Demat Physical Total Total Demat Physical Total
Shares the year
Shares
b) Central Govt.or State
Nil Nil Nil Nil Nil Nil Nil Nil Nil
Govt.
c) Bodies Corporates Nil Nil Nil Nil Nil Nil Nil Nil Nil
d) Bank/FI Nil Nil Nil Nil Nil Nil Nil Nil Nil
e) Any other Nil Nil Nil Nil Nil Nil Nil Nil Nil
SUB TOTAL:(A) (1) 10566440 Nil 10566440 58.45 10566440 Nil 10566440 58.45 Nil
(2) Foreign
a) NRI- Individuals Nil Nil Nil Nil Nil Nil Nil Nil Nil
b) Other Individuals Nil Nil Nil Nil Nil Nil Nil Nil Nil
c) Bodies Corp. Nil Nil Nil Nil Nil Nil Nil Nil Nil
d) Banks/FI Nil Nil Nil Nil Nil Nil Nil Nil Nil
e) Any other… Nil Nil Nil Nil Nil Nil Nil Nil Nil
SUB TOTAL (A) (2) Nil Nil Nil Nil Nil Nil Nil Nil Nil
Total Shareholding of
Promoter 10566440 Nil 10566440 58.45 10566440 Nil 10566440 58.45 Nil
(A)= (A)(1)+(A)(2)
B. PUBLIC SHAREHOLDING
(1). Institution
a) Mutual Funds Nil Nil Nil Nil Nil Nil Nil Nil Nil
b) Banks/FI Nil 2400 2400 0.01 Nil 2400 2400 0.01 Nil
c) Central govt Nil Nil Nil Nil Nil Nil Nil Nil Nil
d) State Govt. Nil Nil Nil Nil Nil Nil Nil Nil Nil
e) Venture Capital Fund Nil Nil Nil Nil Nil Nil Nil Nil Nil
f) Insurance Companies Nil Nil Nil Nil Nil Nil Nil Nil Nil
g) FIIS Nil Nil Nil Nil Nil Nil Nil Nil Nil
h) Foreign Venture
Capital Funds/Foreign 125127 Nil 125127 0.69 10000 Nil 10000 0.06 -0.63
Portfolio investor
i) Others (specify) Nil Nil Nil Nil Nil Nil Nil Nil Nil
SUB TOTAL (B)(1): 125127 2400 127527 0.71 10000 2400 12400 0.07 -0.63
(2) Non Institutions
a) Bodies corporates Nil Nil Nil Nil Nil Nil Nil Nil Nil
i) Indian 3429559 82400 3511959 19.43 3190297 79900 3270197 18.09 -1.34
ii) Overseas Nil Nil Nil Nil Nil Nil Nil Nil Nil
b) Individuals Nil Nil Nil Nil Nil Nil Nil Nil Nil
i) Individual
shareholders holding
1587232 971800 2559034 14.15 1688506 896400 2584906 14.30 0.15
nominal share capital
upto H1 lakhs
ii) Individuals
shareholders holding
1034235 84800 1119035 6.19 1371402 83400 1454802 8.05 1.86
nominal share capital
in excess of H1 lakhs
 62

No. of Shares held at the No. of Shares held at the

%
beginning of the year end of the year
Category of change
% of
Shareholders % of Total during
Demat Physical Total Total Demat Physical Total
Shares the year
Shares
c) Others (NRI/OCB) 51885 122000 173885 0.96 39568 112000 151568 0.84 -0.12
d) Any other (clearing
21320 Nil 21320 0.12 38887 Nil 38887 0.22 0.10
member)
SUB TOTAL (B)(2): 6124233 1261000 7385233 40.85 6328660 1171700 7500360 41.49 0.64
Total Public
Shareholding 6249360 1263400 7512760 41.55 6338660 1174100 7512760 41.55 Nil
(B)= (B)(1)+(B)(2)
C. Shares held by
Custodian for Nil Nil Nil Nil Nil Nil Nil Nil Nil
GDRs & ADRs
Grand Total (A+B+C) 16815800 1263400 18079200 100 16905100 1174100 18079200 100 Nil

II. Promoters Shareholding

Sl. Shareholders' Shareholding at the beginning of the Shareholding at the end of the year % Chang
No. Name year in share-
No. of % of total % of Shares No. of % of total % of Shares holding
Shares shares pledged / Shares shares pledged/ during
of the encumbered of the encumbered the year
company to total shares company to total shares
1 Ram Dulari Kedia 1971600 10.91 Nil 1971600 10.91 Nil Nil
2 Sweta Kedia 1542000 8.53 Nil 1542000 8.53 Nil Nil
3 Sangita Kedia 1486400 8.22 Nil 1486400 8.22 Nil Nil
4 Prasann Kumar 956200 5.29 Nil 956200 5.29 Nil Nil
Kedia
5 Anshuman Kedia 903800 5.00 Nil 903800 5.00 Nil Nil
6 Prasann Kumar 896600 4.96 Nil 896600 4.96 Nil Nil
Kedia HUF
7 Bhagwati Prasad 789640 4.37 Nil 789640 4.37 Nil Nil
Prasann Kumar
HUF
8 Anand Kumar Kedia 727400 4.02 Nil 727400 4.02 Nil Nil
9 Bhagwati Prasad 492400 2.72 Nil 492400 2.72 Nil Nil
Kedia HUF
10 Ram Dulari Anand 480000 2.66 Nil 480000 2.66 Nil Nil
Kumar HUF
11 Anand kumar Kedia 320400 1.77 Nil 320400 1.77 Nil Nil
HUF
Total 10566440 58.45 Nil 10566440 58.45 Nil Nil
 63 Associated Alcohols & Breweries Limited // Annual Report 2017-18

(III) Change in promoters’ shareholding (please Specify, if there is no change)

Shareholding at the Cumulative Shareholding
beginning of the year during the year
No. of % of total shares No. of % of total shares
Shares of the company Shares of the company
At the beginning of the year 10566440 58.45 10566440 58.45
Date wise increase/Decrease in Promoters share - - - -
holding during the year specifying the reasons for
increase/ Decrease(e.g. allotment/transfer /bonus/
Sweat equity shares etc.
At the end of the year 10566440 58.45 10566440 58.45

(IV) Shareholding pattern of top ten shareholders (other than Directors, promoters and Holders of GDRs and ADRs
S l . For each of the top 10 Shareholders of the year Shareholding at the beginning Shareholding at the End of
No of the year the year
No. of % of total shares No. of % of total shares
Shares of the company Shares of the company
1 Garnet Tradlink Private Limited 1665000 9.21 1665000 9.21
2 Attic Dealcom Private Limited 1316890 7.28 1041649 5.76
3 Dolly Khanna 53389 0.30 187279 1.04
4 Prabha Mohta Nil Nil 155000 0.86
5 Kishan Gopal Mohta Nil Nil 106762 0.59
6 Pritty Devi Sarawagi 80160 0.44 80160 0.44
7 Manoj Kumar Bhura(HUF) 70900 0.39 70900 0.39
8 Gayatri Devi Tibrewal 53852 0.30 53852 0.30
9 Bodhivriksha Advisors LLP Nil Nil 50000 0.28
10 Suryatej Advisors LLP Nil Nil 50000 0.28

(V) Shareholding of Directors & KMP

Shareholding at the beginning Cumulative Shareholding

Sl. of the year during the year
For Each of the Directors & KMP
No No. of % of total shares No of % of total shares
shares of the company shares of the company
Tushar Bhandari
At the beginning of the year 4868 0.027 4868 0.027
1 Date wise increase/decrease in Share holding
- - 500 0.002
during the year.
At the end of the year 4868 0.027 5368 0.029
Nitin Tibrewal
At the beginning of the year 200 0.00 200 0.001
2 Date wise increase/decrease in Share holding
- - - -
during the year.
At the end of the year 200 0.00 200 0.001
 64

Shareholding at the beginning Cumulative Shareholding

Sl. of the year during the year
For Each of the Directors & KMP
No No. of % of total shares No of % of total shares
shares of the company shares of the company
Manish Kumar Tibrewal
At the beginning of the year Nil Nil Nil Nil
3 Date wise increase/decrease in Share holding
- - - -
during the year.
At the end of the year Nil Nil Nil Nil
Abhijit Nagee
At the beginning of the year Nil Nil Nil Nil
4 Date wise increase/decrease in Share holding
- - - -
during the year.
At the end of the year Nil Nil Nil Nil
Sanjay Kumar Tibrewal
At the beginning of the year 1886 0.01 1886 0.01
5 Date wise increase/decrease in Share holding
- - - -
during the year.
At the end of the year 1886 0.01 1886 0.01
Sumit Jaitely
At the beginning of the year Nil Nil Nil Nil
6 Date wise increase/decrease in Share holding
- - - -
during the year.
At the end of the year Nil Nil Nil Nil

V INDEBTEDNESS H in Lakh
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 3168.95 0.00 NIL 3168.95
ii) Interest due but not paid
iii) Interest accrued but not due 7.12 7.12
Total (i+ii+iii) 3176.07 0.00 3176.07
Change in Indebtedness during the financial year
Additions 1264.85 105.00 1369.85
Reduction (2284.66) (105.00) (2389.66)
Net Change (1019.81) (0.00) (1019.81)
Indebtedness at the end of the financial year
i) Principal Amount 2143.67 0.00 2143.67
ii) Interest due but not paid
iii) Interest accrued but not due 12.59 12.59
Total (i+ii+iii) 2156.26 0.00 2156.26
 65 Associated Alcohols & Breweries Limited // Annual Report 2017-18

VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole time director and/or Manager:
H in Lakh
Sl. Particulars of Remuneration Tushar Bhandari Total
No WTD Amount
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the 23.44 23.44
Income Tax. 1961.
(b) Value of perquisites u/s 17(2) of the Income tax Act, 1961 1.49 1.49
(c ) Profits in lieu of salary under section 17(3) of the Income Nil Nil
Tax Act, 1961
2 Stock option Nil Nil
3 Sweat Equity Nil Nil
4 Commission Nil Nil
as % of profit Nil Nil
others (specify) Nil Nil
5 Others, please specify Nil Nil
Total (A) 24.93 24.93

B. Remuneration to other directors:

H in Lakh
Sl. No Particulars of Remuneration Name of the Directors Total Amount
1 Independent Directors Nitin Tibrewal Abhijit Nagee
(a) Fee for attending board
0.09 0.08 0.17
committee meetings
(b) Commission Nil Nil Nil
(c ) Others, please specify Nil Nil Nil
Total (1) 0.09 0.08 0.17
2 Other Non Executive Directors Manish Kumar Tibrewal
(a) Fee for attending board
0.06 0.06
committee meetings
(b) Commission Nil Nil
(c ) Others, please specify. Nil Nil
Total (2) 0.06 0.06
Total (B)=(1+2) 0.23 0.23
 66

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

H in Lakh
Key Managerial Personnel
Sumit Jaitely
Sl. No. Particulars of Remuneration Sanjay Kumar
(Company Total
Tibrewal (CFO)
Secretary)
1 Gross Salary
(a) Salary as per provisions contained in section 17(1) of the
21.00 9.91 30.91
Income Tax Act, 1961.
(b) Value of perquisites u/s 17(2) of the Income Tax Act,
1.43 Nil 1.43
1961
(c ) Profits in lieu of salary under section 17(3) of the Income
Nil Nil Nil
Tax Act, 1961
2 Stock Option Nil Nil Nil
3 Sweat Equity Nil Nil Nil
4 Commission Nil Nil Nil
as % of profit Nil Nil Nil
others, specify Nil Nil Nil
5 Others, please specify Nil Nil Nil
Total 22.43 9.91 32.34

VII PENALTIES/PUNISHMENT/COMPPOUNDING OF OFFENCES

Type Section of the Brief Details of Penalty/ Authority (RD/ Appeal made if
Companies Act Description Punishment/Compounding NCLT/ Court) any (give details)
fees imposed
A. COMPANY
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
B. DIRECTORS
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
C. OTHER OFFICERS IN DEFAULT
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil

FOR AND ON BEHALF OF THE BOARD

Tushar Bhandari Nitin Tibrewal

Place: Indore Director Director
Date: 28th May, 2018 DIN: 03583114 DIN: 01892892
67 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Annexure E

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION

AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Information required under Section 134(3) (m) of the Companies Act, 2013 read
with Rule 8(3) of the Companies (Account) Rules, 2014

A ) CONSERVATION OF ENERGY
Your Company continues to give the highest priority to the conservation of the energy. All aspects of generation and
usage are regularly reviewed and the company is committed towards conservation of energy and aimed at improving
efficiency through innovative measures.

Steps taken or impact on conservation of energy.

I. Installation of energy efficient lighting fixtures

II. Reducing power consumption in cooling towers
III. Replacement of inefficient motors

B ) TECHNOLOGY ABSORPTION
Your company continues to invest in research and development and as a result the Company has adopted the latest
technology in its production process. The Company has an inbuilt system of research and development and has not
imported any technology.

C ) FOREIGN EXCHANGE EARNINGS AND OUTGO H in Lakh

Particular 2017-18 2016-17
Purchase of Stores Spares/Import of Machinery 22.40 7.63
Travelling Expenses 11.18 35.69
Expenditure in Foreign Currency/ Professional Development Expenses 44.34 44.75

FOR AND ON BEHALF OF THE BOARD

Tushar Bhandari Nitin Tibrewal

Place: Indore Director Director
Date: 28th May, 2018 DIN: 03583114 DIN: 01892892
68

Corporate Governance
Report

COMPANY’S PHILOSOPHY ON CORPORATE control by setting the goals & targets, policies, governance
GOVERNANCE standards, reporting mechanism & accountability and
Associated Alcohols & Breweries Limited (AABL) is decision making process to be followed.
committed to the adoption of best governance practices.
(ii) Committees of Directors - such as Audit Committee,
The company’s vision document spells out a direction
Nomination & Remuneration Committee, CSR Committee,
for the policies and procedures which ensure long term
Stakeholder Relationship Committee are focused on
sustainability. Value creation for stakeholders is thus a
financial reporting, audit & internal controls, compliance
continuous endeavor at AABL.
issues, appointment and remuneration of directors and
On the same lines the Company has always followed fair senior management employees, implementation and
business and corporate practices while dealing with the monitoring of CSR activities and the risk management
shareholders, employees, customers, creditors, lenders framework.
and the society at large. In harmony with this philosophy,
(iii) Executive Management – The entire business including
the Company relentlessly strives for excellence by
the support services are managed with demarcated
benchmarking itself with esteemed companies with good
responsibilities and authorities at different levels.
corporate governance.

Your company is compliant with Regulation 27 of the SEBI 2. BOARD OF DIRECTORS

(LODR) Regulations, 2015 as applicable to the Company. A. Composition of the Board
The details of which are as follows: The Board of directors of the company consists of an
optimum combination of executive, non-executive
1. THE GOVERNANCE STRUCTURE: and independent directors, to ensure the independent
AABL’s governance structure is based on the principles functioning of the Board. The composition of the Board
of freedom to the executive management within a given also complies with the provisions of the Companies
framework to ensure that the powers vested in the Act, 2013 and the Listing Regulations. As at the end of
executive management are exercised with due care and corporate financial year 2017-18, the total Board consists of
responsibility so as to meet the expectation of all the Four (4) directors, out of which Two (2) are non-executive
stakeholders. In line with these principles, the Company independent directors who are having expertise in their
has formed three tiers of Corporate Governance structure, respective functional areas and capable of bringing in a
viz.: wide range of managerial skills, business and professional
acumen.
(i) The Board of Directors - The primary role of the Board
is to protect the interest and enhance value for all the The composition of the Board of directors and the number
stakeholders. It conducts overall strategic supervision and of Board Committee in which they are chairman/ member
as on 31st March, 2018 are as under:
69 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Name of Director Category Total Number of other No. of Committee position held in
Public Ltd/Private Ltd. other public Companies
Directorship as on date Chairman Member
Mr. Tushar Bhandari WTD & Executive Director Nil Nil Nil
Mr. Manish Kumar Non Executive & Non Nil Nil Nil
Tibrewal Independent Director
Mr. Nitin Tibrewal Non Executive & Independent 1 Nil Nil
Director
Mrs. Abhijit Nagee Non Executive & Independent Nil Nil Nil
Director

B. Selection and Appointment/Reappointment of Director:

The Nomination & Remuneration Committee have approved a policy for the selection, appointment and Remuneration
of directors. In line with the said policy, the committee facilitates the Board in identification and selection of the directors
who shall be of high integrity with relevant expertise and experience so as to have well diverse Board. The abstract of
the said policy forms part of the Directors’ Report. Directors are appointed or re-appointed with the approval of the
shareholders and shall remain in office in accordance with the provisions of the law and the retirement policy laid down
by the Board from time-to-time.

C. Meetings, agenda and proceedings etc. of the Board Meeting:

Meetings and attendance during the year:

During the financial year 2017-18 the Board of Directors met 5 (five) times on 26th May, 2017, 25th August, 2017, 25th
November, 2017,11th December,2017, 10th February, 2018, The details of Board attendance are as under:

Name of Director No. of Board Meeting held during the No. of Board Meeting Attendance at the
year(after appointment/before resignation) Attended last AGM
Mr. Tushar Bhandari 05 05 Yes
Mr. Nitin Tibrewal 05 05 Yes
Mr. Manish Kumar Tibrewal 05 05 No
Mrs. Dishita Tibrewal* 01 01 No
Mrs. Abhijit Nagee 05 04 No

Note: *Stepped down on 26th May, 2017

70

D. Separate Meeting of Independent Directors: H. Code of Conduct:

As stipulated by the Code of Independent Directors under All the Board members and senior management personnel
the Companies Act, 2013 and the Listing Regulations, have confirmed compliance with the code. A declaration
a separate meeting of the Independent Directors of the to that effect signed by the WTD & CFO is attached and
Company was held on 10th February, 2018 to review forms part of the Annual Report of the Company.
the performance of Executive Directors (including the
Chairman) and the entire Board. The Independent Directors I. Prevention of Insider Trading Code:
also reviewed the quality, content and timeliness of the flow As per SEBI (Prohibition of Insider Trading) Regulation,
of information between the Management and the Board 2015, the Company has adopted a Code of Conduct for
and its’ Committees which is necessary to effectively and Prevention of Insider Trading. All the Directors, employees
reasonably perform and discharge their duties. and third parties such as auditors, consultants etc. who
could have access to the unpublished price sensitive
E. Agenda: information of the Company are governed by this code.
All the meetings are conducted as per well designed The trading window is closed during the time of declaration
and structured agenda. All the agenda items are backed of results and occurrence of any material events as per the
by necessary supporting information and documents code. The Company has appointed Company Secretary as
(except for the critical price sensitive information, which Compliance Officer, who is responsible for setting forth
is circulated separately or placed at the meeting) to enable procedures and implementation of the code for trading in
the Board to take informed decisions. Agenda also includes Company’s securities. During the year under review there
minutes of the meetings of all the Board, Committees for has been due compliance with the said code.
the information of the Board.
J. Disclosure of Relationship between Directors inter-se:
F. Support and Role of Company Secretary: None of the directors are related inter se.
The Company Secretary is responsible for convening
the Board and Committee meetings preparation and K. No. of Shares held By Non- Executive Director
distribution of Agenda and other documents and recording Name of Director No. of Shares Held
of the Minutes of the meetings. He acts as interface Mr. Nitin Tibrewal 200
between the Board and the Management and provides Mr. Manish Kumar Tibrewal Nil
required assistance and assurance to the Board and the
Mrs. Abhijit Nagee Nil
Management on compliance and governance aspects.
L. Web link where detail of familiarization programme is
G. Board Evaluation: disclosed:
During the year, the Board adopted a formal mechanism www.associatedalcohols.com
for evaluating its performance and effectiveness as
well as that of its Committees and individual directors, 3. AUDIT COMMITTEE
including the Chairman of the Board. For Board and its
(a) Terms of reference:
Committees, the exercise was carried out through a
The Board has constituted a well-qualified Audit Committee.
structured evaluation process covering various aspects of
All the members of the Committee are Non-Executive
the Boards functioning such as composition of the Board
Directors (except Mr. Tushar Bhandari) with majority of
& committees, experience & competencies, performance
them are Independent Directors including Chairman. They
of specific duties & obligations, governance issues etc. In
possess sound knowledge on accounts, audit, finance,
case of evaluation of the individual directors, one to one
taxation, internal controls etc.
meeting of each Director with the Chairman of the Board
and the Chairman of the Nomination & Remuneration The Company Secretary acts as secretary to the committee.
Committee was held. The Audit Committee has adequate powers and detailed
The Directors were satisfied with the evaluation results, terms of reference to play effective role as required
which reflected the overall engagement and effectiveness under the provisions of section 177 of the Companies
of the Board and its Committees. Act, 2013 and Regulation 18 of SEBI (Listing Obligations
and Disclosure Requirements) Regulation, 2015 the Audit
71 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Committee reviews reports of the internal auditor, meets under review. The said meetings were held on 26th May,
statutory auditors as and when required and discuss their 2017, and 10th February, 2018.
findings, suggestions, observations, and other related
Name of Directors Designation Nos. of meetings
matters. attended

(b Composition, Meeting and Attendance during the year: Mr. Nitin Tibrewal Chairman 2
The Audit Committee of the Company as on 31st March, Mr. Manish Kumar Member 2
2018 comprises of the following Directors of the Company. Tibrewal
The Committee met four times during the year under Mrs. Abhijit Nagee Member 2
review. The said meetings were held on 26th May, 2017,
(c) Performance Evaluation for Independent Directors:
25th August, 2017, 11th December, 2017 and 10th February,
Pursuant to the Provisions of the Companies Act, 2013 and
2018.
as stipulated under regulation 25 of SEBI (Listing Obligations
Name Designation No. of meeting and Disclosure Requirements) Regulation, 2015, the Board
attended of Directors adopted a formal mechanism for evaluating
Mr. Nitin Tibrewal Chairman 4 its performance and as well as that of its Committees
Mr Tushar Bhandari Member 4 and individual Directors. A structured evaluation process
covering various aspects of the Boards functioning such
Mrs. Abhijit Nagee Member 4
as Composition of the Board & committees, experience
Two out of three members of the audit committee are & competencies, performance of specific duties &
non-executive independent directors. obligations, governance issues etc.
4. NOMINATION & REMUNERATION COMMITTEE (d) Remuneration Policy:
(a) Terms of reference: The Company follows a policy on remuneration of
The Remuneration Committee recommends remuneration, Directors and Senior Management Employees.
promotions, increments etc. for the whole time directors Details of Remuneration to Whole Time Director & Non-
to the Board for approval. Executive Director:
(b) Composition, Meeting and attendance during the The terms of remuneration of Mr. Tushar Bhandari, Whole
year: Time director was approved by the Board of Director and
The Remuneration Committee of the Company as on 31st approved by shareholders in the previous Annual General
March, 2018 comprises of the following Directors of the Meeting of the company.
Company. The Committee met Two times during the year During the financial year 2017-18, the particulars of
remuneration paid to Whole-time Director is as under: -

Name of Director Salary (Hin Lakh) Perquisites Commission Stock option Details Period of Contract
Mr. Tushar Bhandari 23.44 1.49 - - 5 years from 05.01.2017

Remuneration/Sitting fee to Other Non Executive Directors:

The details of sitting fee paid to each of the other non executive/Independent Directors during the year 2017-18 ended on 31st March,
2018 are given below:
(Amount in Lakh)

Name Sitting Fee Other Payment Total

Mr. Nitin Tibrewal 0.09 - 0.09
Mr. Manish Kumar Tibrewal 0.06 - 0.06
Mrs. Abhijit Nagee 0.08 - 0.08
Mrs. Dishita Tibrewal 0.01 - 0.01
72

5. STAKEHOLDER RELATIONSHIP COMMITTEE:

The Committee constituted under section 178(5) of the companies Act, 2013 and Regulation 20 of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 to attend and address the Shareholders’ and Investors’ grievances. This
Committee meets periodically to approve transfer of shares and resolve investor’s grievances, if any. The Committee
overseas the performance of Registrars and Transfer Agents and recommends measures for overall improvement of the
quantity of investor services.

Name of Directors Category Total Meetings 2017-2018 Nos. of meetings attended

Mr. Nitin Tibrewal Chairman 14 14
Mr. Manish Kumar Tibrewal Member 14 14
Mr. Tushar Bhandari Member 14 14
b) Compliance Officer: CS Sumit Jaitely, Company Secretary of the company is designated as compliance officer.
c) Share holder Compliant Status during the financial year 2017-18:

No. of Shareholder Compliant received No. of Complaint resolved No. of Compliant Pending.
91 91 0

6. CORPORATE SOCIAL RESPOSIBILTY COMMITTEE

The Committee constituted under section 135(1) of the companies Act, 2013 for consideration and approval of fund to
be decided and application thereof.

S.No Name of Directors Category Total Meetings 2017-2018 Nos. of Meetings attended
1. Mr. Tushar Bhandari Chairman 2 2
2. Mr. Manish Kumar Tibrewal Member 2 2
3. Mr. Nitin Tibrewal Member 2 2

7. WTD Certification
The Whole Time Director(WTD) have issued certificate pursuant to the provisions of Regulation 17(8) of the SEBI(LODR)
Regulations, 2015 certifying that the financial statements do not contain any materially untrue statement and these
statements represent a true and fair view of the Company’s affairs. The said certificate is annexed and forms part of the
Annual Report.

8. INFORMATION ON GENERAL BODY MEETINGS

The details of location and time where last three Annual General Meetings were held:

AGM No. Place Date Time

28th “Shripati Singhania Hall” , Rotary Sadan, 94/2, Chowranghee Road, 05.08.2017 10:00 AM
Kolkata – 700 020
27th “Shripati Singhania Hall” , Rotary Sadan, 94/2, Chowranghee Road, 13.09.2016 11:00 AM
Kolkata – 700 020
26th Dum Dum Municipality Town Hall, Dum Dum municipality, 44, Dr. Sailen 28.09.2015 03:00 PM
Das Sarani, Dum Dum, Kolkata – 700028

9. MEANS OF COMMUNICATION
The quarterly, half-yearly and yearly financial results of the Company are sent to the Stock Exchanges immediately after
these are approved by the Board. These are widely published in following newspapers. These results are simultaneously
posted on the website of the Company at www.associatedalcohols.com and also uploaded on the website of the BSE
Ltd.
73 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Quarterly Results News papers Publication Displayed at Website

31.03.2018 Financial Express & Arthik Lipi www.associatedalcohols.com
31.12.2017 Financial Express & Arthik Lipi www.associatedalcohols.com
30.09.2017 Financial Express & Arthik Lipi www.associatedalcohols.com
30.06.2017 Financial Express & Arthik Lipi www.associatedalcohols.com

10. GENERAL SHAREHOLDER INFORMATION.

a. Annual General Meeting
Date 24th August, 2018
Venue “Shripati Singhania Hall”Rotary Sadan, 94/2, Chowranghee, Kolkata – 700 020
Time 10:00 AM

b. Dividend payment date:

Dividend will be paid within 30 days of approval of the same in the Annual General Meeting.

c. Financial Year:
Financial Year 2018-19 from April 01, 2018 to March 31, 2019

The tentative due dates for declaration of quarterly results

Unaudited Financial Results for the 1st Quarter ended 30th June, 2018 Within 45 days
Unaudited Financial Results for the 2nd Quarter ended 30th September, 2018 Within 45 days
Unaudited Financial Results for the 3rd Quarter ended 31st December, 2018 Within 45 days
Audited Financial Results for the 4th Quarter ended 31st March, 2019 Within 60 days

d. Book Closure date :

18th August 2018 to 24th August, 2018

e. Listing in Stock Exchange:

Bombay Stock Exchange
Stock Code 507526
ISIN INE073G01016

f. Annual Listing Fee:

Annual listing fee for the Year 2018-19 of the Stock Exchange have been paid.

g. Custodial Fees to Depositories:

Fee for the year 2018-19 to NSDL and CDSL has been paid.

h. Market Price Data:

High & Low of each month in the last Financial Year- 2017-18

Months High Low

April 2017 161.00 108.95
May 2017 137.80 108.00
June 2017 136.05 115.05
July 2016 178.75 137.00
August 2017 164.85 120.00
September 2017 179.00 147.20
October 2017 197.00 148.35
74

Months High Low

November 2017 233.50 170.00
December 2017 279.40 197.00
January 2018 309.00 245.00
February 2018 289.80 211.00
March 2018 285.00 231.15

i. Registrar & Transfer Agents:

Ankit Consultancy Pvt. Ltd., 60, Electronics Complex, Pardeshipura, Indore – 452010.
Phone No. 0731- 4281333 /2551745 /2551746, E-mail: [email protected]

j. Share Transfer System:

The Share transfer/transmission work and dematerialization/re-materialization work is assigned to M/s. Ankit Consultancy
Private Limited, the Registrars and Share Transfer Agent. Shares in physical form for transfer/transmission are normally
registered and issued within 15 days from lodgment, subject to the documents being in order. The board has delegated
the authority for approval of transfer, transmission etc. to stakeholder relationship committee comprising two non-
executive directors and one executive director. A summary of transfer/transmission of shares so approved by committee
is placed before the Board. The Company has entered into agreement with CDSL and NSDL to facilitate holding of shares
of the Company in dematerialized form.

k. Distribution of Shareholding as on 31st March, 2018

Range in No. of Shares Number of Holders % to Total Holders Shares Amount in H % to total Capital
Up to 1000 2693 33.13 1249100 0.69
1001 to 2000 3525 43.36 6891370 3.81
2001 to 3000 239 2.94 640420 0.35
3001 to 4000 430 5.29 1690390 0.93
4001 to 5000 155 1.91 756570 0.42
5001 to 10000 544 6.69 4328580 2.39
10001 to 20000 254 3.12 4048110 2.24
20001 to 30000 80 0.98 2088410 1.16
30001 to 40000 42 0.52 1528020 0.85
40001 to 50000 25 0.31 1143830 0.63
50001 to 100000 65 0.80 4728170 2.62
100000 above 77 0.95 151699030 83.91
Total 8129 100.00 180792000 100.00
l. Categories of Equity Shareholders as on 31st March, 2018:

Sr. No Particulars No. of Shares % to the total Paid up Share Capital

1 Promoters/Directors & Relatives 105,66,440 58.45
2 Mutual Funds/ UTI, FIs, Banks 2400 0.01
3 Bodies Corporate 3270197 18.09
4 Foreign Portfolio Investors 10000 0.06
5 Indian Public 4039708 22.33
6 NRIs/ OCBs 151568 0.84
7 Any other(clearing member) 38887 0.22
Total 1,80,79,200 100.00
75 Associated Alcohols & Breweries Limited // Annual Report 2017-18

m. Dematerialization of shares and liquidity:

93.51 % of the Company’s share capital is held in dematerialized form as on 31st March, 2018 the Company’s shares
are being regularly traded on the Bombay Stock Exchange., ISIN in CDSL and NSDL for Company’s equity shares is
INE073G01016. The code for the Share on Bombay Stock Exchange is 507526.

n. Plant Location:
Distillary complex: Khodigram, Tehsil- Barwaha, Distt. Khargone – 451115 (Madhya Pradesh)

Bottling plant: Udyog Bihar, Chorhata, Rewa, Madhya Pradesh

Contract manufacturing unit: Bangalore, Karnataka and Trichur, Kerala

o. Correspondence address:
BPK Star Tower, 4th Floor, A. B. Road, Indore – 452008 (Madhya Pradesh)

11. DISCLOSURES:
a. Details of materially significant related party transactions:
The Company does not have any related party transaction that may have a potential conflict with interests of the
Company.
b. The Company has complied with all the requirements of regulatory authorities on capital market and no penalties
or strictures have been imposed against it by Stock Exchange or SEBI or other Statutory Authorities during last three
years.
c. Vigil Mechanism/Whistle Blower Policy:
The company has a vigil mechanism named fraud and risk management policy to deal with instance of fraud and
mismanagement, if any. In staying true to our values of strength, performance and passion and in line with our vision
of being one of the most respected companies in India, the company is committed to high standard of corporate
governance and stakeholder responsibility. The fraud risk management policy ensures that strict confidentiality is
maintained while dealing with concern and also that no discrimination will be meted out to any person for genuinely
raised concern.
d. Web link where, policy for determining material subsidiaries, policy on dealing with related party transactions, is
disclosed:
www.associatedalcohols.com.

FOR AND ON BEHALF OF THE BOARD

Tushar Bhandari Nitin Tibrewal

Place: Indore Director Director
Date: 28th May, 2018 DIN: 03583114 DIN: 01892892
76

CERTIFICATION
[Issued in accordance with the provisions of Regulation 17(8) of SEBI (LODR), 2015]

To
The Board of Directors,
Associated Alcohols & Breweries Limited.

Dear Sirs,

We have reviewed the financial statements and the cash flow statement for the quarter and year ended 31st March, 2018
to the best of our knowledge and belief,

a). (i). These statements do not contain any material untrue statement or omit any material fact or contain statements
that may be misleading;
(ii). These statements together present a true and fair view of the Company’s affairs and are in compliance with
existing accounting standards, applicable laws and regulations.
b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year
which are fraudulent, illegal or in violation of the Company’s code of conduct.
c) We accept responsibility for establishing and maintaining internal controls for financial reporting. And that we have
evaluated the effectiveness of internal control systems of the Company and have disclosed to the Auditors and the
Audit Committee, deficiencies in the design or operation of internal controls, if any, and steps taken or propose to
be taken for rectifying these deficiencies.
d) We have indicated to the Auditors and the Audit Committee:
(i). Significant changes in internal control over financial reporting during the year;
(ii) Significant changes in accounting policies made during the year and that the same have been disclosed suitably
in the notes to the financial statements; and
(iii) There have been no instances of fraud.
Yours sincerely,
For Associated Alcohols & Breweries Limited

Tushar Bhandari Sanjay Kumar Tibrewal

Whole Time Director Chief Financial Officer
DIN: 03583114

DECLARATION REGARDING CODE OF CONDUCT

I hereby declare that all the Directors and Senior Management Personnel have confirmed compliance with the Code of
Conduct as adopted by the Company.

Yours sincerely,
For Associated Alcohols & Breweries Limited

Tushar Bhandari Sanjay Kumar Tibrewal

Place: Indore Whole Time Director Chief Financial Officer
Date: 28th May, 2018 DIN: 03583114
77 Associated Alcohols & Breweries Limited // Annual Report 2017-18

AUDITORS’ REPORT ON CORPORATE GOVERNANCE TO THE MEMBERS OF

ASSOCIATED ALCOHOLS & BREWERIES LIMITED

To
The Members of
Associated Alcohols & Breweries Limited.

This Certificate is issued in accordance with the terms of our engagement with Associated Alcohols & Breweries Limited (‘the Company’).

We have examined the compliance of conditions of Corporate Governance by the Company, for the year ended 31st March, 2018 as
stipulated in regulations 17 to 27 and clause (b) to (i) of regulation 46(2) and Para C and D of Schedule V of Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”).

Management’s Responsibility
The compliance of conditions of Corporate Governance is the responsibility of the management. This responsibility includes the design,
implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of the Corporate
Governance stipulated in Listing Regulations.

Auditor’s Responsibility
Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring compliance
with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the
Company.

We have examined the books of account and other relevant records and documents maintained by the Company for the purposes of
providing reasonable assurance on the compliance with Corporate Governance requirements by the Company.

We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on Certification of
Corporate Governance issued by the Institute of the Chartered Accountants of India (the ICAI), to the extent relevant, the Standards on
Auditing specified under Section 143(10) of the Companies Act, 2013, in so far as applicable for the purpose of this certificate and as per
the Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires that we comply with the ethical
requirements of the Code of Ethics issued by the ICAI.

We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that
Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Opinion
Based on our examination of the relevant records and according to the information and explanations provided to us and the
representations provided by the Management, we certify that the Company has complied with the conditions of Corporate Governance
as stipulated in the above-mentioned Listing Regulations during the year ended 31st March, 2018.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the Management has conducted the affairs of the Company.

For Singhi & Co.

Chartered Accountants
Firm Registration No.302049E

(Gopal Jain)
Place: Indore Partner
Date: 28th May, 2018 Membership No. 59147
78

Independent Auditor’s Report

To the Members of
Associated Alcohols & Breweries Limited

Report on the Ind AS Financial Statements We have taken into account the provisions of the Act, the
We have audited the accompanying financial statements Accounting and Auditing Standards and matters which
of Associated Alcohols & Breweries Limited (“the are required to be included in the audit report under the
Company”), which comprise the Balance Sheet as at provisions of the Act and the Rules made there under.
March 31, 2018, and the Statement of Profit and Loss
We conducted our audit of the Ind AS financial statements
(including Other Comprehensive Income), and Cash Flow
in accordance with the Standards on Auditing specified
Statement and the Statement of changes in Equity for the
under section 143(10) of the Act. Those Standards require
year then ended, and a summary of significant accounting
that we comply with ethical requirements and plan and
policies and other explanatory notes for the year ended
perform the audit to obtain reasonable assurance about
on that date (hereinafter referred to as “Ind AS Financial
whether the Ind AS financial statements are free from
Statements”).
material misstatement.
Management’s Responsibility for the Ind AS An audit involves performing procedures to obtain audit
Financial Statements evidence about the amounts and the disclosures in the Ind
The Company’s Board of Directors is responsible for the
AS financial statements. The procedures selected depend
matters stated in section 134(5) of the Companies Act 2013
on the auditor’s judgment, including the assessment of
(“the Act”) with respect to the preparation of these Ind AS
the risks of material misstatement of the Ind AS financial
financial statements that gives a true and fair view of the
statements, whether due to fraud or error. In making those
state of affairs (financial position), Profit or loss (financial
risk assessments, the auditor considers internal financial
performance including other comprehensive income),
control relevant to the Company’s preparation of the Ind
cash flows and changes in Equity of the Company in
AS financial statements that give a true and fair view in
accordance with the accounting principles generally
order to design audit procedures that are appropriate in
accepted in India, including the Indian Accounting
the circumstances. An audit also includes evaluating the
Standards (Ind AS) prescribed under section 133 of the Act
appropriateness of the accounting policies used and the
read with the Companies (Indian Accounting Standards)
reasonableness of the accounting estimates made by the
Rules, 2015, as amended.
Company’s Directors, as well as evaluating the overall
This responsibility also includes maintenance of adequate presentation of the Ind AS financial statements.
accounting records in accordance with the provisions
We believe that the audit evidence we have obtained is
of the Act for safeguarding the assets of the company
sufficient and appropriate to provide a basis for our audit
and for preventing and detecting frauds and other
opinion on the Ind AS financial statements.
irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that Opinion
are reasonable and prudent; and design, implementation In our opinion and to the best of our information and
and maintenance of adequate internal financial controls according to the explanations given to us, the aforesaid
that were operating effectively for ensuring the accuracy Ind AS financial statements give the information required
and completeness of the accounting records, relevant to by the Act in the manner so required and give a true and
the preparation and presentation of the Ind AS financial fair view in conformity with the accounting principles
statements that gives a true and fair view and are free from generally accepted in India including the Ind AS, of the
material misstatement, whether due to fraud or error. state of affairs of the Company as at 31st March, 2018, and
its Profit (including other comprehensive income) and its
Auditor’s Responsibility Cash Flows and the changes in equity for the year ended
Our responsibility is to express an opinion on these Ind AS
on that date.
financial statements based on our audit.
79 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Emphasis of Matter c. The Balance Sheet, the Statement of Profit and Loss
We draw attention to Note no. 40.2 of the Ind-AS Financial including Other Comprehensive Income, the Cash
statements in respect of levy of Goods & Service Tax (GST) Flow Statement and Statement of Changes in Equity
on sale of Rectified spirit (RS) & Extra Neutral Alcohol dealt with by this Report are in agreement with the
(ENA) in which the company continues to collect Value relevant books of account.
Added Tax (VAT) and Central Sales Tax (CST) for intra d. In our opinion, the aforesaid Ind AS financial
state and interstate sale of above products respectively statements comply with the Indian Accounting
w.e.f. 1st July 2017. Pending clarification, VAT collected Standards prescribed under section 133 of the Act.
from 1st July 2017 to 31st March 2018 on sales of RS &
ENA amounting to H 197.23 lacs shall be deposited upon e. The matters described in the Emphasis of Matter
receipt of necessary clarification. Further as enumerated paragraph above, in our opinion, may not have an
in the note, differential liability if any will be accounted for adverse effect on the functioning of the Company;
upon getting necessary clarification from the department. f. On the basis of the written representations received
Our opinion is not modified in respect of above matter. from the directors as on 31st March, 2018 taken on
record by the Board of Directors, none of the directors
Other Matter is disqualified as on 31st March, 2018 from being
The comparative Ind AS financial information of the appointed as a director in terms of Section 164(2) of
Company for the year ended March 31, 2017 and the the Act.
transition date opening balance sheet as at April 01, 2016
included in these Ind AS financial statements, are based g. With respect to the adequacy of the internal financial
on the previously issued statutory financial statements controls over financial reporting of the Company and
prepared in accordance with accounting principles the operating effectiveness of such controls refer
generally accepted in India, including the Companies to our separate Report in “Annexure B”. Our report
(Accounting Standard) Rules, 2006 (as amended) specified expresses an unmodified opinion on the adequacy
under Section 133 of the Act, read with the Companies and operating effectiveness of the Company’s internal
(Accounts) Rules, 2014, audited by the predecessor financial controls over financial reporting.
auditor whose report for the year ended March 31, 2017 h. With respect to the other matters to be included in
and March 31, 2016 dated May 26, 2017 and May 30, 2016 the Auditor’s Report in accordance with Rule 11 of
respectively expressed an unmodified opinion on those the Companies (Audit and Auditors) Rules, 2014,
financial statements, as adjusted for the differences in as amended, in our opinion and to the best of our
the accounting principles adopted by the Company on information and according to the explanations given
transition to Ind AS, which have been audited by us. to us:
Report on Other Legal and Regulatory i. The Company has disclosed the impact of
Requirements pending litigations on its financial position in its
As required by the Companies (Auditor’s Report) Order, financial statements as stated in Note 40 to the
2016 (“the Order”) issued by the Central Government of financial statement;
India in terms of sub-section (11) of Section 143 of the Act,
ii. The Company did not have any long-term
we give in the “Annexure A” a statement on the matters
contracts including derivative contracts for which
specified in paragraphs 3 and 4 of the Order, to the extent
there were any material foreseeable losses.
applicable.
iii. There has been no delay in transferring amounts,
Further to our comments in the annexure referred to in
required to be transferred, to the Investor
the paragraph above, as required by Section 143(3) of the
Education and Protection Fund by the Company.
Act, we report that:

a. We have sought and obtained all the information and For Singhi & Co.
explanations which to the best of our knowledge and Chartered Accountants
belief were necessary for the purposes of our audit. Firm Registration No.302049E

b. In our opinion, proper books of account as required (Gopal Jain)

by law have been kept by the Company so far as it Place: Indore Partner
appears from our examination of those books. Dated: 28 May 2018 Membership No. 059147
80

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

Referred to our report of even date to the members of securities to parties covered under section 185 of the
Associated Alcohols & Breweries Limited as at and for the Companies Act, 2013. Further as per the information
year ended March 31, 2018: and explanations given to us, provision of section 186
of the Companies Act, 2013 in respect of loans and
i. In respect of its fixed assets:
advances given, investments made and guarantees
a) The Company has maintained proper records and securities given have been complied with by the
showing full particulars, including quantitative Company.
details and situation of fixed assets.
v. The Company has not accepted any deposits within
b) As explained to us, fixed assets have been the meaning of Sections 73 to 76 of the Act and the
physically verified during the year by the Companies (Acceptance of Deposits) Rules, 2014 (as
management based on a phased manner and amended). Accordingly, the provisions of clause 3(v)
no material discrepancies have been noticed of the Order are not applicable.
on such physical verification. In our opinion, this
periodicity of physical verification is reasonable vi. To the best of our knowledge and according to
having regard to the size of the Company and the information and explanations given to us, the
nature of its assets. Government has not specified maintenance of the
cost records under section 148(1) of the Companies
c) According to the information and explanations Act, 2013 in respect of company’s product.
given to us and on the basis of our examination
of the records of the Company, the title deeds of vii. (a) Undisputed statutory dues including provident
immovable properties are held in the name of the fund, employees’ state insurance, income tax,
Company. sales tax, service tax, duty of customs, duty of
excise, value added tax, goods and service tax,
ii. As informed to us, the inventories of the Company cess and other statutory dues have generally
except for materials in transit and finished goods lying been regularly deposited with the appropriate
with third parties have been physically verified by the authorities though there has been a slight delay in
management and/or by an independent agency at a few cases.
the reasonable intervals. In our opinion and according
to the information and explanations given to us, the (b) According to information and explanations
frequency of such verification is reasonable. For given to us, no undisputed amounts payable
stocks lying with third parties at the year-end, written in respect of provident fund, employees’ state
confirmations have been obtained and in respect of insurance, income tax, service tax, sales tax,
goods-in-transit, subsequent goods receipts have duty of customs, duty of excise, value added tax,
been verified or confirmations have been obtained goods and services tax, cess and other statutory
from the parties. The discrepancies noticed on dues were outstanding at the year end , for a
verification between the physical stocks and the book period of more than six months from the date
records were not material. they become payable except non Deposit of VAT
on sale of Rectified Spirit and ENA amounting to
iii. The Company has not granted any loans secured or H 50.54 Lacs.
unsecured to companies, firms or parties covered in
the register maintained under Section 189 of the Act. (c) According to the information and explanation
Accordingly, clause 3 (iii) of the Order is not applicable given to us, the dues of sales tax, income tax,
to the Company. duty of customs, duty of excise, service tax and
value added tax which have not been deposited
iv. In our opinion and according to the information on account of any dispute and the forum where
and explanations given to us, the company has the dispute is pending as on 31st March, 2018 are
not given any loans or provided any guarantees or as under :-
81 Associated Alcohols & Breweries Limited // Annual Report 2017-18

S r . Name of the Statute Nature of Case Amount Period to which Forum at which case is pending
No. (H In Lakh) Amount Relates
1 Income tax Act, 1961Income Tax 10.32 AY 2011-12 & Commissioner of Income Tax
Demand 2013-14 (Appeals), Kolkata
2 Entry tax Act, 1976 Entry Tax 60.86 2008-09, 2012- M.P Commercial Tax Appellate
Demand 13 & 2013-14 board, Indore bench
3 The Madhya Pradesh VAT Demand 463.98 2013-14 & M.P Commercial Tax Appellate
VAT Act, 2002 2014-15 board, Indore bench
329.96 2015-16 Hon'ble High court of Madhya
Pradesh (Indore Bench)
4 The Central sales tax Central Sales 7.84 2013-14 to MP Commercial Tax Appellate board,
Act, 1956 Tax Demand 2015-16 Indore bench
5 The Madhya Pradesh Excise Duty 138.01 2007-08 to Board of Revenue/Hon'ble High
Excise Act ,1915 Demand 2017-18 Court of Madhya Pradesh (Gwalior &
Indore Bench)
177.52 2008-09 to State Excise commissioner, Madhya
2015-16 Pradesh

viii. In our opinion and according to the information xiii. According to the information and explanations given
and explanations given by the management, the to us and based on our examination of the records
Company has not defaulted in repayment of loans or of the Company, transactions with the related parties
borrowing to banks. Based on our audit procedures are in compliance with sections 177 and 188 of the
and as per the information and explanations given Act where applicable and details of such transactions
by the management, the Company did not have have been disclosed in the financial statements as
any outstanding dues to a financial institution or required by the applicable accounting standards.
government or due to debentures holders.
xiv. According to the information and explanations give
ix. In our opinion and according to the information and to us and on overall examination of the balance
explanations given by the management, the Company sheet, the Company has not made any preferential
has utilized the monies raised by way of term loans allotment or private placement of shares or fully or
for the purposes for which they were raised. Based partly convertible debentures during the year under
on the information and explanations given by the review and consequently the reporting requirements
management, the Company has not raised any under clause 3 (xiv) are not applicable to the company
money by way of initial public offer, further public and not commented upon.
offer and debt instruments.
xv. According to the information and explanations given
x. Based upon the audit procedures performed for the to us and based on our examination of the records
purpose of reporting the true and fair view of the of the Company, the Company has not entered into
financial statements and according to the information non-cash transactions with directors or persons
and explanations given by the management, we connected with him. Accordingly, paragraph 3(xv) of
report that no fraud by the company or fraud on the Order is not applicable.
the company by the officers and employees of the
xvi. According to the information and explanations given
company has been noticed or reported during the
to us, the provisions of section 45-IA of the Reserve
year.
Bank of India Act, 1934 are not applicable to the
xi. According to the information and explanations given company.
to us and based on our examination of the records
of the Company, the Company has paid/provided
for managerial remuneration in accordance with the For Singhi & Co.
requisite approvals mandated by the provisions of Chartered Accountants
section 197 read with Schedule V to the Act. Firm Registration No.302049E
xii. In our opinion and according to the information and
explanations given to us, the Company is not a Nidhi (Gopal Jain)
Company. Accordingly, paragraph 3(xii) of the Order Place: Indore Partner
is not applicable. Dated: 28 May 2018 Membership No. 059147
82

ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT

Annexure B” to the Independent Audit Report of even date on the IND AS Financial Statements of Associated Alcohols
& Breweries Limited.

REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (i) OF SUB-
SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (“THE ACT”)

We have audited the internal financial controls over financial requirements and plan and perform the audit to obtain
reporting of Associated Alcohols & Breweries Limited (“the reasonable assurance about whether adequate internal
Company”) as of March 31, 2018 in conjunction with our financial controls over financial reporting was established
audit of the Ind AS financial statements of the Company and maintained and if such controls operated effectively
for the year ended on that date. in all material respects.

Our audit involves performing procedures to obtain audit

Management’s Responsibility for Internal Financial
evidence about the adequacy of the internal financial
Controls
controls system over financial reporting and their
The Company’s management is responsible for establishing
operating effectiveness. Our audit of internal financial
and maintaining internal financial controls based on the
controls over financial reporting included obtaining
internal control over financial reporting criteria established
an understanding of internal financial controls over
by the Company considering the essential components
financial reporting, assessing the risk that a material
of internal control stated in the Guidance Note on Audit
weakness exists, and testing and evaluating the design
of Internal Financial Controls over Financial Reporting
and operating effectiveness of internal control based on
issued by the Institute of Chartered Accountants of India.
the assessed risk. The procedures selected depend on
These responsibilities include the design, implementation
the auditor’s judgement, including the assessment of the
and maintenance of adequate internal financial controls
risks of material misstatement of the financial statements,
that were operating effectively for ensuring the orderly
whether due to fraud or error.
and efficient conduct of its business, including adherence
to company’s policies, the safeguarding of its assets, We believe that the audit evidence we have obtained is
the prevention and detection of frauds and errors, the sufficient and appropriate to provide a basis for our audit
accuracy and completeness of the accounting records, opinion on the Company’s internal financial controls
and the timely preparation of reliable financial information, system over financial reporting.
as required under the Companies Act, 2013.
Meaning of Internal Financial Controls over
Auditor’s Responsibility Financial Reporting
Our responsibility is to express an opinion on the Company’s A company’s internal financial control over financial
internal financial controls over financial reporting based reporting is a process designed to provide reasonable
on our audit. We conducted our audit in accordance with assurance regarding the reliability of financial reporting
the Guidance Note on Audit of Internal Financial Controls and the preparation of financial statements for external
Over Financial Reporting (the “Guidance Note”) issued by purposes in accordance with generally accepted
the Institute of Chartered Accountants of India and the accounting principles. A company’s internal financial
Standards on Auditing prescribed under Section 143(10) of control over financial reporting includes those policies and
the Companies Act, 2013, to the extent applicable to an procedures that (1) pertain to the maintenance of records
audit of internal financial controls. Those Standards and that, in reasonable detail, accurately and fairly reflect the
the Guidance Note require that we comply with ethical transactions and dispositions of the assets of the company;
83 Associated Alcohols & Breweries Limited // Annual Report 2017-18

(2) provide reasonable assurance that transactions are Opinion

recorded as necessary to permit preparation of financial In our opinion, to the best of our information and
statements in accordance with generally accepted according to the explanations given to us, the Company
accounting principles, and that receipts and expenditures has, in all material respects, an adequate internal financial
of the company are being made only in accordance controls system over financial reporting and such internal
with authorisations of management and directors of the financial controls over financial reporting were operating
company; and (3) provide reasonable assurance regarding effectively as at March 31, 2018, based on the internal
prevention or timely detection of unauthorised acquisition, control over financial reporting criteria established by
use, or disposition of the company’s assets that could the Company considering the essential components of
have a material effect on the financial statements. internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued
Inherent Limitations of Internal Financial Controls by the Institute of Chartered Accountants of India.
over Financial Reporting
Because of the inherent limitations of internal financial
controls over financial reporting, including the possibility of
collusion or improper management override of controls,
material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation
For Singhi & Co.
of the internal financial controls over financial reporting
Chartered Accountants
to future periods are subject to the risk that the internal
Firm Registration No.302049E
financial control over financial reporting may become
inadequate because of changes in conditions, or that the
(Gopal Jain)
degree of compliance with the policies or procedures
Place: Indore Partner
may deteriorate.
Dated: 28 May 2018 Membership No. 059147
84

BALANCE SHEET as at 31st March, 2018

(H in Lacs)
Note As at As at As at
No. 31st March, 2018 31st March, 2017 1st April, 2016
ASSETS
1 NON-CURRENT ASSETS
a Property, Plant and Equipment 5 7,957.96 8,507.42 9,059.97
b Capital Work-In-Progress 2,270.59 481.83 155.69
c Intangible Assets 6 30.18 10,258.73 90.03 9,079.28 127.18 9,342.84
d Financial Assets
i Investments 7 267.56 234.72 202.69
ii Loans 8 119.15 87.36 106.13
iii Other Financial Assets 9 55.14 205.89 175.83
e Other Non-Current Assets 10 780.61 1,222.46 647.30 1,175.27 570.16 1,054.81
2 CURRENT ASSETS
a Inventories 11 3,807.37 2,855.86 2,881.87
b Financial Assets
i Trade Receivables 12 1,889.22 1,752.37 1,118.05
ii Cash and Cash Equivalents 13 254.10 306.43 329.90
iii Bank balances other than Note 13 14 167.94 50.33 277.42
iv Loans 15 2,067.27 1,103.64 743.03
v Other Financial Assets 16 57.50 48.19 526.19
c Other Current Assets 17 487.40 8,730.80 550.65 6,667.47 533.01 6,409.47
Total Assets 20,211.99 16,922.02 16,807.12
EQUITY AND LIABILITIES
EQUITY
a Equity Share Capital 18 1,807.92 1,807.92 1,807.92
b Other Equity 19 10,269.02 12,076.94 7,887.55 9,695.47 6,289.57 8,097.49
LIABILITIES
1 NON-CURRENT LIABILITIES
a Financial Liabilities
i Borrowings 20 326.03 816.53 1,796.76
b Deferred Tax Liabilities (Net) 21 794.12 954.50 1,031.18
c Non-Current Tax Liabilities 22 7.64 1,127.79 7.64 1,778.67 7.64 2,835.58
2 CURRENT LIABILITIES
a Financial Liabilities
i Borrowings 23 1,123.74 1,622.17 1,464.30
ii Trade Payables 24
- Dues to Micro and Small enterprises 24.34 - -
- Others 1,933.17 1,679.09 2,205.96
iii Other Financial Liabilities 25 2,361.55 1,290.69 1,209.25
b Other Current Liabilities 26 761.71 381.66 590.42
c Provisions 27 76.79 82.19 60.52
d Current tax liabilities 28 725.96 7,007.26 392.08 5,447.88 343.60 5,874.05
Total Equity and Liabilities 20,211.99 16,922.02 16,807.12
Basis of Accounting 2
Significant Accounting Policies 3
Significant Judgement & Key Estimate 4

Accompanying notes form an integral part of the financial statements.

As per our report of even date
For Singhi & Co. For and on behalf of the Board of Directors
Chartered Accountants
(Firm Registration No.302049E)
(Gopal Jain) Tushar Bhandari Nitin Tibrewal
Partner Whole Time Director Director
(Membership No.059147) DIN:03583114 DIN: 01892892
Indore Sanjay Kumar Tibrewal Sumit Jaitely
May 28, 2018 Chief Financial Officer Company Secretary
85 Associated Alcohols & Breweries Limited // Annual Report 2017-18

STATEMENT OF PROFIT & LOSS for the year ended 31st March, 2018
(H in Lacs)
Note For the year ended For the year ended
No. 31st March, 2018 31st March, 2017
INCOME
Revenue from Operations 29 32,523.99 29,106.74
Other Income 30 307.45 263.86
Total Income (A) 32,831.44 29,370.60
EXPENSES
Cost of Materials Consumed 31 16,427.85 15,835.33
Purchases of Stock -in- Trade 32 72.36 495.74
Changes in Inventories of Finished Goods & Work-in- 33 (308.10) 50.84
Progress
Employee Benefits Expense 34 2,241.47 1,945.27
Finance Costs 35 382.88 410.24
Depreciation and Amortisation Expense 36 1,131.71 1,094.72
Power and Fuel 2,833.61 3,146.74
Other Expenses 37 6,107.26 3,671.70
Total Expenses (B) 28,889.04 26,650.58
Profit before Exceptional Items and Tax 3,942.40 2,720.02
Exceptional Items (C) - -
Profit before Tax (A-B-C) 3,942.40 2,720.02
Tax Expense: 38
Current Tax 1,553.87 1,097.10
Deferred Tax (185.79) (76.67)
Taxes for earlier years 55.40 8.35
Total Tax Expenses 1,423.48 1,028.78
Profit for the year (D) 2,518.92 1,691.24
Other Comprehensive Income
Items that will not be reclassified to profit or loss
a) Remeasurement of defined benefit plan 72.72 (25.24)
b) Equity instrument through Other Comprehensive 32.84 32.04
Income
c) Income tax relating to above items (25.41) 8.74
Other Comprehensive Income for the Year (Net of Tax) (E) 80.15 15.54
Total Comprehensive Income for the Year (D+E) 2,599.07 1,706.78
Earnings per Equity Shares of par value of H 10 each
Basic & Diluted Earnings Per Share (H) 39 13.93 9.35
Basis of Accounting 2
Significant Accounting Policies 3
Significant Judgement & Key Estimate 4

Accompanying notes form an integral part of the financial statements.

As per our report of even date
For Singhi & Co. For and on behalf of the Board of Directors
Chartered Accountants
(Firm Registration No.302049E)
(Gopal Jain) Tushar Bhandari Nitin Tibrewal
Partner Whole Time Director Director
(Membership No.059147) DIN:03583114 DIN: 01892892
Indore Sanjay Kumar Tibrewal Sumit Jaitely
May 28, 2018 Chief Financial Officer Company Secretary
86

CASH FLOW STATEMENT for the year ended 31st March, 2018
(H in Lacs)
Note For the year ended For the year ended
No. 31st March, 2018 31st March, 2017
A CASH FLOW FROM OPERATING ACTIVITIES
Profit Before TAX 3,942.40 2,720.02
Adjustments for:
Depreciation / Amortisation 1,131.71 1,094.72
Finance Cost 382.88 410.24
Provision for doubtful receivables / advances / deposits 121.01 39.31
Interest Income (113.16) (86.20)
(Profit)/Loss on disposal of Property, Plant & Equipment 72.15 91.47
Net Gain on Sale of Investment - (0.06)
Sundry Balances Written Back (76.74) (172.23)
Advances written off - 18.33
Other Provisions Created/(utilised) 9.73 (2.76)
Operating Profit before Working Capital Changes 5,469.98 4,112.84
Movement in Working Capital :
(Increase)/Decrease in Trade Receivables (257.86) (618.87)
(Increase)/Decrease in Inventories (961.24) 26.01
(Increase)/Decrease in Financial Assets (72.36) 566.53
(Increase)/Decrease in Other Assets 69.64 (73.96)
Increase/(Decrease) in Trade Payables 355.17 (354.64)
Increase/(Decrease) in Financial Liabilities 96.79 58.32
Increase/(Decrease) in Other Liabilities & Provisions 520.10 (214.01)
Cash Generated from Operations 5,220.22 3,502.22
Direct Taxes Paid (1,336.56) (1,043.87)
Net Cash Flow generated from Operating Activities 3,883.66 2,458.35
B Cash Flow from Investing Activities
Purchase of property, plant & equipment and Intangibles (1,599.23) (1,081.26)
Proceed from the Sale of property, plant & equipment 69.65 26.92
Proceed from the sale of investment - 0.07
Loan (Given)/Refund (Net) (933.74) (409.55)
(Investment in)/Maturities of Fixed Deposits 34.50 103.12
Interest Income 113.16 86.20
Net Cash Flow used in Investing Activties (2,315.66) (1,274.50)
C Cash Flow from Financing Activties
Proceeds from/(Repayment of) Non Current Borrowings (526.95) (859.21)
Proceeds from/(Repayment of) Current Borrowings (498.43) 157.88
Finance Cost (377.35) (397.19)
Dividend paid to equity shareholders (180.79) (90.40)
Dividend Distribution tax (36.81) (18.40)
Net Cash Flow used in Financing Activities (1,620.33) (1,207.32)
Net increase/(decrease) in Cash and Cash equivalent (52.33) (23.47)
(A+B+C)
Cash & Cash equivalent at the beginning of the year 306.43 329.90
Cash & Cash equivalent at the end of the year 254.10 306.43
87 Associated Alcohols & Breweries Limited // Annual Report 2017-18

CASH FLOW STATEMENT for the year ended 31st March, 2018
Notes:
a) Reconciliation of Liabilities arising from financing activities

As at Cash Flow Non Cash As at

31.03.2017 Changes 31.03.2018
Non Current Borrowings (including current maturities) 1,536.08 (526.95) 11.62 1,020.74
Current Borrowings 1,622.17 (498.43) - 1,123.74

b) The above Statement of Cash Flows has been prepared under the ‘Indirect Method’ as set out in Ind AS 7, ‘Statement
of Cash Flows’.

c) The composition of Cash & Cash Equivalent has been determined based on the Accounting Policy No. 3.2.

d) Figures for the previous year have been re-grouped wherever considered necessary.

e) Direct Taxes paid are treated as arising from operating activities and are not bifurcated between investing and
financing activities.

Accompanying notes form an integral part of the financial statements.

As per our report of even date

For Singhi & Co. For and on behalf of the Board of Directors
Chartered Accountants
(Firm Registration No.302049E)

(Gopal Jain) Tushar Bhandari Nitin Tibrewal

Partner Whole Time Director Director
(Membership No.059147) DIN:03583114 DIN: 01892892

Indore Sanjay Kumar Tibrewal Sumit Jaitely

May 28, 2018 Chief Financial Officer Company Secretary
88

Statement of Change in Equity for the year ended 31st March, 2018
a) Equity Share Capital (H in Lacs)
Balance as at 1st April 2016 1,807.92
Add/(Less): Changes in Equity Share Capital during the year -
Balance as at 31st March 2017 1,807.92
Add/(Less): Changes in Equity Share Capital during the year -
Balance as at 31st March 2018 1,807.92

b) Other Equity
Particulars Reserves and Surplus Other Comprehensive Income Total
Securities General Retained Remeasure- Equity
Premium Reserve Earnings ments of instrument
defined through Other
benefit plans Comprehensive
Income
Balance as at 1st April, 2016 163.10 789.07 5,334.72 - 2.68 6,289.57
Profit for the year - - 1,691.24 - - 1,691.24
Other Comprehensive Income (16.50) 32.04 15.54
Total Comprehensive Income for the - - 1,691.24 (16.50) 32.04 1,706.78
year
Dividend including Dividend (108.80) (108.80)
Distribution Tax
Transfer from Retained Earnings to - 100.00 (100.00) - - -
General Reserve
Transfer of Remeasurements of defined - - (16.50) 16.50 - -
benefit plans to Retained Earnings
- 100.00 (225.30) 16.50 - (108.80)
Balance as at 31st March, 2017 163.10 889.07 6,800.66 - 34.72 7,887.55
Profit for the year - - 2,518.92 - - 2,518.92
Other Comprehensive Income 47.31 32.84 80.15
Total Comprehensive Income for the - - 2,518.92 47.31 32.84 2,599.07
year
Dividend including Dividend (217.60) - - (217.60)
Distribution Tax
Transfer from Retained Earnings to - 100.00 (100.00) - - -
General Reserve
Transfer of Remeasurements of defined - - 47.31 (47.31) -
benefit plans to Retained Earnings
- 100.00 (270.29) (47.31) - (217.60)
Balance as at 31st March, 2018 163.10 989.07 9,049.29 - 67.56 10,269.02

Basis of Accounting 2
Significant Accounting Policies 3
Significant Judgement & Key Estimate 4
Accompanying notes form an integral part of the financial statements.

As per our report of even date

For Singhi & Co. For and on behalf of the Board of Directors
Chartered Accountants
(Firm Registration No.302049E)

(Gopal Jain) Tushar Bhandari Nitin Tibrewal

Partner Whole Time Director Director
(Membership No.059147) DIN:03583114 DIN: 01892892

Indore Sanjay Kumar Tibrewal Sumit Jaitely

May 28, 2018 Chief Financial Officer Company Secretary
89 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
1. CORPORATE AND GENERAL INFORMATION
Associated Alcohols & Breweries Limited (“the Company”) is a public limited company domiciled and incorporated in
India under the Companies Act 1956 and has its listing on the BSE Limited. The registered office of the Company is
situated at Kolkata, West Bengal. The Company is one of the leading and largest liquor manufacturers in Central India.
The Company’s principal business is manufacturing and trading of ENA, Indian Made Indian Liquor (Country Liquor) and
Indian Made Foreign Liquor.

2. BASIS OF PREPARATION & PRESENTATION OF FINANCIAL STATEMENT

2.1. Statement of Compliance
These financial statements have been prepared in accordance with the Indian Accounting Standards (“Ind AS”) as
prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (“the Act”), read with
the Companies (Indian Accounting Standards) Rules, 2015 (as amended), other relevant provisions of the Act and
other accounting principles generally accepted in India.

The financial statements for all periods up to and including the year ended 31st March, 2017, were prepared in
accordance with Generally Accepted Accounting Principles (GAAP) in India, which includes the accounting standards
prescribed under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 and other
provisions of the Act (collectively referred to as “Indian GAAP”). These financial statements for the year ended 31st
March, 2018 are the first Ind AS Financial Statements with comparatives, prepared under Ind AS. The Company has
consistently applied the accounting policies used in the preparation of its opening Ind AS Balance Sheet at 1st April,
2016 throughout all periods presented, as if these policies had always been in effect and are covered by Ind AS 101
“First Time Adoption of Indian Accounting Standards”.

An explanation of how the transition to Ind AS has affected the previously reported financial position, financial
performance and cash flows of the Company is provided in Note No. 48. Certain of the Company’s Ind-AS accounting
policies used in the opening Balance Sheet differed from its Indian GAAP policies applied as at 31st March, 2016 and
accordingly the adjustments were made to restate the opening balances as per Ind-AS. The resulting adjustment
arising from events and transactions before the date of transition to Ind-AS were recognized directly through retained
earnings as at 1st April, 2016 as required by Ind- AS 101. The financial statements of the Company for the year ended
31st March, 2018 has been approved by the Board of Directors in their meeting held on 28th May, 2018.
2.2. Basis of Measurement
The Company maintains accounts on accrual basis following the historical cost convention, except for followings:
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2.3. Functional and Presentation Currency
The Financial Statements are presented in Indian Rupee (INR), which is the functional currency of the Company
and the currency of the primary economic environment in which the Company operates. All amounts disclosed in
financial statements and notes have been rounded off to the nearest lacs (with two places of decimal) as per the
requirements of Schedule III, unless otherwise stated.
2.4. Use of Estimates and Judgements
The preparation of financial statements in conformity with Ind AS requires judgements, estimates and assumptions
to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of
the financial statements and the reported amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period in which the results are known/ materialized.
90

Notes to the Financial Statements for the year ended 31st March, 2018
2.5. Presentation of Financial Statements
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the
Schedule III to the Companies Act, 2013 (“the Act”). The Statement of Cash Flows has been prepared and presented
as per the requirements of Ind AS 7 “Statement of Cash flows”. The disclosure requirements with respect to items
in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by
way of notes forming part of the financial statements along with the other notes required to be disclosed under the
notified Indian Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 (as amended).
2.6. Operating Cycle for current and non-current classification
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle
and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1.The Company has ascertained
its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

An asset is classified as current when it is:

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A liability is current when:

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The Company classifies all other liabilities as non-current. Deferred Tax Assets and Liabilities are classified as non-
current assets and liabilities respectively.
2.7. Measurement of Fair Values
A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both
financial and non-financial assets and liabilities.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place either:

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BEWBOUBHFPVT
NBSLFU
GPS
UIF
BTTFU
PS
MJBCJMJUZ

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or
a liability is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest. A fair value measurement of a non-financial
asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant that would use the asset in its highest and best use.
91 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
the fair value hierarchy, described as follows, based on the input that is significant to the fair value measurement as
a whole:

Ŕ
-FWFM

ŋ
2VPUFE
VOBEKVTUFE

NBSLFU
QSJDFT
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Ŕ
-FWFM

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is directly or indirectly observable and

Ŕ
-FWFM

ŋ
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is unobservable.

External valuers are involved for valuation of significant assets & liabilities. Involvement of external valuers is decided
by the management of the company considering the requirements of Ind AS and selection criteria include market
knowledge, reputation, independence and whether professional standards are maintained.
2.8. New Standards / Amendments to Existing Standard issued but not yet effective upto the date of issuance of the
Company’s Financial Statement are disclosed below:
On 28th March, 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contracts with
Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the Company from
1st April 2018.

Ŕ
*OE
"4
3FWFOVF
GSPN
$POUSBDUT
XJUI
$VTUPNFST
Ind AS 115 supersedes Ind AS 11, Construction Contracts and Ind AS 18, Revenue. Ind AS 115 requires an entity
to report information regarding nature, amount, timing and uncertainty of revenue and cash flows arising from
contract with customers. The principle of Ind AS 115 is that an entity should recognize revenue that demonstrates
the transfer of promised goods and services to the customers at an amount that reflects the consideration to
which the entity expects to be entitled in exchange for those goods and services.

Based on preliminary assessment performed by the Company, the impact of the application of the standard is
not expected to be material.

Ŕ
"NFOENFOU
UP
&YJTUJOH
JTTVFE
*OE
"4
Ind AS 12 - Income Taxes
Ind AS 21 - The Effects of Changes in Foreign Exchange Rates
Ind AS 28 - Investment in Associates and Joint Ventures
Ind AS 112 - Disclosure of Interests in Other Entities

The impact of the above standards on the financial statements, as assessed by the Company, is not expected to
be material.

3. ACCOUNTING POLICIES
A summary of the significant accounting policies applied in the preparation of the financial statements are as given
below. These accounting policies have been applied consistently to all the periods presented in the financial statements.
3.1. INVENTORIES
Inventories are valued at the lower of cost and net realizable value (NRV). Cost is measured by including, unless
specifically mentioned below, cost of purchase and other costs incurred in bringing the inventories to their present
location and condition. However materials and other items held for use in the production of inventories are not
92

Notes to the Financial Statements for the year ended 31st March, 2018
written down below cost if the finished products in which they will be incorporated are expected to be sold at or
above cost. NRV is the estimated selling price in the ordinary course of business, less estimated costs of completion
and the estimated costs necessary to make the sale. Cost is ascertained on weighted average basis for all inventories
except for by products and scrap materials which are valued at net realizable value.
3.2. CASH AND CASH EQUIVALENTS
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of change in value.

For the purpose of the statement of cash flows, cash and cash equivalents includes cash on hand, term deposits
and other short-term highly liquid investments, net of bank overdrafts as they are considered an integral part of the
Company’s cash management. Bank overdrafts are shown within short term borrowings in the balance sheet.
3.3. INCOME TAX
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses. Current and deferred tax is recognized in the statement of profit
& loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity.
In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.
3.3.1. Current Tax:
Current tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid to
(recovered from) the taxation authorities using the tax rates (and tax laws) that have been enacted or substantively
enacted, at the end of the reporting period.
3.3.2. Deferred Tax
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asset is realized or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.

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liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e., tax
base). Deferred tax is also recognized for carry forward of unused tax losses and unused tax credits.

Ŕ
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UBY
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BSF
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which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses
can be utilized.

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reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient
taxable profit will be available to allow the benefit of part or that entire deferred tax asset to be utilized. Any such
reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be available.

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other comprehensive income or in equity. Deferred tax items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.

Ŕ
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against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the
Company intends to settle its current tax assets and liabilities on a net basis.
93 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
3.4. PROPERTY, PLANT AND EQUIPMENT
3.4.1. Tangible Assets
3.4.1.1. Recognition and Measurement:
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administrative purposes, are stated in the balance sheet at cost, less any accumulated depreciation and
accumulated impairment losses (if any), except for freehold land which are carried at historical cost.

Ŕ
$PTU
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duties and non-refundable purchase taxes, after deducting any trade discounts and rebates, any directly
attributable costs of bringing the assets to its working condition and location for its intended use and present
value of any estimated cost of dismantling and removing the item and restoring the site on which it is
located.

Ŕ
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TJHOJţDBOU
QBSUT
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accounted for as separate items (major components) of property, plant and equipment.

Ŕ
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Profit and Loss.
3.4.1.2. Subsequent Measurement:
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benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured
reliably. The carrying amount of any component accounted for as a separate asset is derecognized when
replaced.

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.BKPS
*OTQFDUJPO
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0WFSIBVMJOH
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property, plant and equipment as a replacement if the recognition criteria are satisfied. Any Unamortized
part of the previously recognized expenses of similar nature is derecognized.
3.4.1.3. Depreciation and Amortization:
Ŕ
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PO
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&RVJQNFOU
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assets prescribed in Schedule II of the Companies Act, 2013 or as reassessed by the Company based on the
technical evaluation.

Ŕ
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DBTF
UIF
DPTU
PG
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part is different from the remaining useful life of the asset, depreciation has been provided on straight line
method based on internal assessment and independent technical evaluation carried out by external valuers,
which the management believes that the useful lives of the component best represent the period over
which it expects to use those components.

Category Useful life (Years)

Buildings
Non-Factory Building (RCC Frame Structure) 30/60
Fences 5
Factory Building 30
Plant and Machinery
Other than Continuous Process Plant 5/10/15/20
Wind Power Plant 22
Computer Equipment
Servers and networks 6
Others 3
Furniture and Fixtures 10
Office Equipment 5
94

Notes to the Financial Statements for the year ended 31st March, 2018
Category Useful life (Years)
Vehicles
Motor cycles, scooters 10
Others 8

Ŕ
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on which asset is ready for use (disposed of).

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if appropriate.
3.4.1.4. Disposal of Assets
An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or
retirement of an item of property, plant and equipment is determined as the difference between net disposal
proceeds and the carrying amount of the asset and is recognized in the statement of profit and loss.
3.4.1.5. Capital Work in Progress
Capital work-in-progress is stated at cost which includes expenses incurred during construction period,
interest on amount borrowed for acquisition of qualifying assets and other expenses incurred in connection
with project implementation in so far as such expenses relate to the period prior to the commencement of
commercial production.
3.5. LEASES
3.5.1. Determining whether an arrangement contains a lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement
is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or
assets, even if that right is not explicitly specified in an arrangement.
3.5.2. Company as lessor

Ŕ
Finance Lease
Leases which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership of
the leased item are classified and accounted for as finance lease. Lease rental receipts are apportioned between
the finance income and capital repayment based on the implicit rate of return. Contingent rents are recognized
as revenue in the period in which they are earned.

Ŕ
Operating Lease
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset
are classified as operating leases. Rental income from operating leases is recognized on a straight-line basis
over the term of the relevant lease except where scheduled increase in rent compensates the Company with
expected inflationary costs.
3.5.3. Company as lessee

Ŕ
Finance Lease
Finance Leases, which effectively transfer to the lessee substantially all the risks and benefits incidental to
ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum
lease payments at the inception of the lease term and disclosed as leased assets. Lease Payments under such
leases are apportioned between the finance charges and reduction of the lease liability based on the implicit rate
of return. Finance charges are charged directly to the statement of profit and loss. Lease management fees, legal
charges and other initial direct costs are capitalized.
95 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
If there is no reasonable certainty that the Company will obtain the ownership by the end of lease term, capitalized
leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

Ŕ
Operating Lease
Assets acquired on leases where a significant portion of risk and reward is retained by the lessor are classified as
operating leases. Lease rental are charged to statement of profit and loss on a straight-line basis over the lease
term, except where scheduled increase in rent compensates the Company with expected inflationary costs.
3.6. REVENUE RECOGNITION
Revenue is recognized based to the extent it is probable that the economic benefit will flow to the company and
revenue can be reliably measured regardless of when the payment is being made. Revenue is measured at the fair
value of the consideration received or receivable, taking into account contractually defined terms of payment, and
excludes taxes & duties collected on behalf of the Government and is reduced for estimated customer returns,
rebates and other similar allowances.
3.6.1. Sale of Products:
The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that
future economic benefits will flow to the Company and significant risk and reward incidental to sale of products
is transferred to the buyer, usually on delivery of the goods. Accruals for sales return, chargebacks and other
allowances are provided at the point of sale based on the past experience.
3.6.2. Revenue from tie-up manufacturing arrangements:
The company has entered into arrangement with Contract Manufacturing Unit (CMU), where-in CMU
manufactures and sells on behalf of the Company. Accordingly, the transactions of the CMU under such
arrangements have been recorded as gross revenue, excise duty and expenses as they were transactions of the
Company.
3.6.3. Revenue from rendering of services:
Revenue from rendering of services is recognized on pro-rata basis over the period of contract and when the
performance of agreed contractual task has been completed.
3.6.4. Other Income:
3.6.4.1. Interest Income: For all debt instruments measured either at amortized cost or at fair value through
other comprehensive income (FVTOCI), interest income is recorded using the effective interest rate (EIR).
EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial
instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset.

3.6.4.2. Dividend Income: Dividend income is accounted in the period in which the right to receive the same is
established.

3.6.4.3. Other Income: Other items of income are accounted as and when the right to receive such income
arises and it is probable that the economic benefits will flow to the company and the amount of income
can be measured reliably.
3.7. EMPLOYEE BENEFITS
3.7.1. Short Term Benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related
services are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to
be settled wholly within twelve months after the end of the period in which the employees render the related
service are recognized in respect of employees’ services up to the end of the reporting period.
96

Notes to the Financial Statements for the year ended 31st March, 2018
3.7.2. Other Long Term Employee Benefits
The liabilities for earned/privilege leave that are not expected to be settled wholly within twelve months are
measured as the present value of the expected future payments to be made in respect of services provided
by employees up to the end of the reporting period using the projected unit credit method. The benefits
are discounted using the government securities (G-Sec) at the end of the reporting period that have terms
approximating to the terms of related obligation. Remeasurements as the result of experience adjustment and
changes in actuarial assumptions are recognized in statement of profit and loss.
3.7.3. Post-Employment Benefits
The Company operates the following post-employment schemes:

Ŕ
Defined Contribution Plan

Defined contribution plans such as Provident Fund, Employee State Insurance etc. are charged to the statement
of profit and loss as and when incurred and paid to Authority.

Ŕ
Defined Benefit Plans

The liability or asset recognized in the Balance Sheet in respect of defined benefit plans is the present value of
the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The Company’s
net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount
of future benefit that employees have earned in the current and prior periods. The defined benefit obligation is
calculated annually by Actuaries using the projected unit credit method.

The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the
reporting date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains
or losses and past service costs. The net interest cost is calculated by applying the discount rate to the net
balance of the defined benefit obligation and the fair value of plan assets. The benefits are discounted using the
government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of
related obligation.

Remeasurements of the net defined benefit obligation, which comprise actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the asset ceiling, are recognized in other comprehensive
income. Remeasurements recognized in other comprehensive income is reflected immediately in retained
earnings and will not be reclassified to the statement of profit and loss.
3.8. FOREIGN CURRENCY TRANSACTIONS
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the spot rates of exchanges at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency spot rate of exchanges at the reporting date.

Ŕ
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monetary assets and liabilities are generally recognized in profit or loss in the year in which they arise except for
exchange differences on foreign currency borrowings relating to assets under construction for future productive
use, which are included in the cost of those qualifying assets when they are regarded as an adjustment to interest
costs on those foreign currency borrowings, the balance is presented in the Statement of Profit and Loss within
finance costs.

Ŕ
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exchange rate at the transaction date).
3.9. BORROWING COSTS
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Borrowing costs also includes foreign exchange difference to the extent regarded as an adjustment to the borrowing
costs.
97 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
Ŕ
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of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its
intended use or sale.

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Interest Rate (EIR) method. All other borrowing costs are recognized in the statement of profit and loss in the period
in which they are incurred.
3.10. FINANCIAL INSTRUMENTS
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
3.10.1. Financial Assets

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All financial assets are initially recognized when the company becomes a party to the contractual provisions of
the instruments. A financial asset is initially measured at fair value plus, in the case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

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For purposes of subsequent measurement, financial assets are classified in four categories:.
o Measured at Amortized Cost;
o Measured at Fair Value Through Other Comprehensive Income (FVTOCI);
o Measured at Fair Value Through Profit or Loss (FVTPL); and
o Equity Instruments designated at Fair Value through Other Comprehensive Income (FVTOCI).

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.

o Measured at Amortized Cost: A debt instrument is measured at the amortized cost if both the following
conditions are met:
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cash flows; and
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payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included
in finance income in the statement of profit or loss. The losses arising from impairment are recognized in the
profit or loss. This category generally applies to trade receivables, cash and bank balances, loans and other
financial assets of the company.

o Measured at FVTOCI: A debt instrument is measured at the FVTOCI if both the following conditions are met:
Ŕ
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the financial assets; and
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411*
Debt instruments meeting these criteria are measured initially at fair value plus transaction costs. They
are subsequently measured at fair value with any gains or losses arising on remeasurement recognized in
other comprehensive income, except for impairment gains or losses and foreign exchange gains or losses.
Interest calculated using the effective interest method is recognized in the statement of profit and loss in
investment income.
98

Notes to the Financial Statements for the year ended 31st March, 2018
o Measured at FVTPL: FVTPL is a residual category for debt instruments. Any debt instrument, which does
not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition,
the company may elect to designate a debt instrument, which otherwise meets amortized cost or FVTOCI
criteria, as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with
all changes recognized in the statement of profit and loss. Equity instruments which are, held for trading are
classified as at FVTPL.

o Equity Instruments designated at FVTOCI: For equity instruments, which has not been classified as FVTPL
as above, the company may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value. The company makes such election on an instrument-by-instrument
basis. The classification is made on initial recognition and is irrevocable. In case the company decides
to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale
of investment.

Ŕ
Derecognition:
The Company derecognizes a financial asset on trade date only when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity.

Ŕ
Impairment of Financial Assets:

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is
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recognizes impairment loss for trade receivables that do not constitute a financing transaction using expected
credit loss model, which involves use of a provision matrix constructed on the basis of historical credit loss
experience. For all other financial assets, expected credit losses are measured at an amount equal to the 12
month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on
the financial asset has increased significantly since initial recognition.
3.10.2. Financial Liabilities

Ŕ
Recognition and Initial Measurement:
Financial liabilities are classified, at initial recognition, as at fair value through profit or loss, loans and borrowings,
payables or as derivatives, as appropriate. All financial liabilities are recognized initially at fair value and, in the case
of loans and borrowings and payables, net of directly attributable transaction costs.

Ŕ
Subsequent Measurement:
Financial liabilities are measured subsequently at amortized cost or FVTPL. A financial liability is classified as
FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense,
are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the
effective interest rate method. Interest expense and foreign exchange gains and losses are recognized in profit
or loss. Any gain or loss on derecognition is also recognized in profit or loss.

Ŕ
Financial Guarantee Contracts:

Financial guarantee contracts issued by the company are those contracts that require a payment to be made
to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due
in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a
liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per
impairment requirement of Ind AS 109 and the amount recognized less cumulative amortization.

Ŕ
Derecognition:
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
99 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
3.10.3. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or
realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on
future events and must be enforceable in the normal course of business and in the event of default, insolvency
or bankruptcy of the counterparty.
3.11. Earnings Per Share
Basic Earnings per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders
by the weighted average number of equity shares outstanding during the year. Diluted EPS amounts are calculated
by dividing the profit attributable to equity holders adjusted for the effects of potential equity shares by the weighted
average number of equity shares outstanding during the year plus the weighted average number of equity shares that
would be issued on conversion of all the dilutive potential equity shares into equity shares.
3.12. Impairment of Non-Financial Assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. An
asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value
in use and net selling price. Value in use is computed at net present value of cash flow expected over the balance
useful lives of the assets. For the purpose of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or
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identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been an
improvement in recoverable amount.
3.13. Provisions, Contingent Liabilities and Contingent Assets
3.13.1. Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event and
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. Provisions are determined by discounting
the expected future cash flows (representing the best estimate of the expenditure required to settle the present
obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value
of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.
3.13.2. Contingent Liabilities
Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Company or a present obligation that arises from past events but is not recognized because it is not
possible that an outflow of resources embodying economic benefit will be required to settle the obligations or
reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of
contingent liabilities in Other Notes to Financial Statements.
3.13.3. Contingent Assets
Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an
inflow of economic benefits. Contingent Assets are not recognized though are disclosed, where an inflow of
economic benefits is probable.
3.14. Intangible Assets
3.14.1. Recognition and Measurement
Intangible asset are stated at cost on initial recognition and subsequently measured at cost less accumulated
amortization and accumulated impairment loss, if any.
100

Notes to the Financial Statements for the year ended 31st March, 2018
3.14.2. Amortization
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the expected useful life of the assets is significantly different from previous estimates, the amortization period is
changed accordingly.

3.15. Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker of the Company is responsible for allocating resources and
assessing performance of the operating segments and accordingly is identified as the chief operating decision maker.

The Company has identified one reportable segment “Potable Alcohol” based on the information reviewed by the CODM.

4. SIGNIFICANT JUDGEMENTS AND KEY SOURCES OF ESTIMATION IN APPLYING ACCOUNTING POLICIES

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Company and that are believed to be reasonable
under the circumstances. Information about Significant judgements and Key sources of estimation made in applying
accounting policies that have the most significant effects on the amounts recognized in the financial statements is
included in the following notes:

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assessment of the probability of the Company’s future taxable income against which the deferred tax assets can be
utilized. In addition, significant judgement is required in assessing the impact of any legal or economic limits.

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leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but
not limited to, transfer of ownership of leased asset at end of lease term, lessee’s option to purchase and estimated
certainty of exercise of such option, proportion of lease term to the asset’s economic life, proportion of present
value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

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which include mortality and withdrawal rates as well as assumptions concerning future developments in discount
rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that
the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may
have a material impact on the resulting calculations.

Ŕ
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made in accordance with Indian Accounting Standards (Ind AS) 37, ‘Provisions, Contingent Liabilities and Contingent
Assets’. The evaluation of the likelihood of the contingent events is applied best judgement by management regarding
the probability of exposure to potential loss.

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annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying
amount, the impairment loss is accounted for.

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of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the
expectation is different from the original estimate, such difference will impact the carrying value of the trade and
other receivables and doubtful debts expenses in the period in which such estimate has been changed.

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recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is
measured using valuation techniques including the Discounted Cash Flow model. The input to these models are
taken from observable markets where possible, but where this not feasible, a degree of judgement is required in
establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.
Notes to the Financial Statements for the year ended 31st March, 2018
5 PROPERTY, PLANT AND EQUIPMENT (H in Lacs)
Particulars Year Ended 31st March 2018
Gross Carrying Amount Accumulated Depreciation
Depreciation
As at As at As at As at
charged Net Carrying
31st March Additions Disposals 31st March 31st March Deductions 31st March
during the Amount
2017 2018 2017 2018
year
Leasehold Land 0.82 - 0.82 0.01 0.01 0.02 0.80
Freehold Land 420.01 - 420.01 - - - 420.01
Sub-Total 420.83 - - 420.83 0.01 0.01 - 0.02 420.81
Buildings 1,264.24 21.96 3.82 1,282.38 59.33 62.51 1.05 120.79 1,161.59
Plant and Equipment 6,950.94 578.57 180.92 7,348.59 835.08 885.89 50.69 1,670.28 5,678.31
Furniture & Fixtures 109.94 3.43 0.35 113.02 17.38 17.72 0.16 34.94 78.08
Office Equipment 57.81 11.30 7.06 62.05 12.48 12.51 2.27 22.72 39.33
Vehicles 364.60 34.21 5.98 392.83 57.12 56.63 2.37 111.38 281.45
Wind Power Plant 291.80 - - 291.80 17.31 17.31 - 34.62 257.18
Computer 61.74 11.36 0.20 72.90 15.77 15.92 - 31.69 41.21
Total 9,521.90 660.83 198.33 9,984.40 1,014.48 1,068.50 56.54 2,026.44 7,957.96
(H in Lacs)
Particulars Year Ended 31st March 2017
Gross Carrying Amount Accumulated Depreciation
Depreciation
Deemed As at As at
101 Associated Alcohols & Breweries Limited // Annual Report 2017-18

As at charged Net Carrying

cost as at Additions Disposals 31st March Deductions 31st March
1st April 2016 during the Amount
1st April 2016 2017 2017
year
Leasehold Land 0.82 0.82 - 0.01 - 0.01 0.81
Freehold Land 420.01 420.01 - - - 420.01
Sub-Total 420.83 - - 420.83 - 0.01 - 0.01 420.82
Buildings 1,048.81 215.43 1,264.24 - 59.33 - 59.33 1,204.91
Plant and Equipment 6,778.28 306.03 133.37 6,950.94 - 854.06 18.98 835.08 6,115.86
Furniture & Fixtures 98.34 11.64 0.04 109.94 - 17.39 0.01 17.38 92.56
Office Equipment 28.20 33.58 3.97 57.81 - 13.84 1.36 12.48 45.33
Vehicles 337.58 29.33 2.31 364.60 - 58.06 0.94 57.12 307.48
Wind Power Plant 291.80 - 291.80 - 17.31 - 17.31 274.49
Computer 56.13 5.61 61.74 - 15.77 15.77 45.97
Total 9,059.97 601.62 139.69 9,521.90 - 1,035.77 21.29 1,014.48 8,507.42
Notes:
5.1 As permitted by para D5-D8B of Ind AS 101, the Company has elected to measure items of property, plant and equipment at its carrying value as Deemed cost at the transition
date as on 1st April 2016.
5.2 Refer note no. 41 for information on property, plant and equipment pledged as securities by the Company .
Notes to the Financial Statements for the year ended 31st March, 2018
102

6 INTANGIBLE ASSETS (H in Lacs)

Particulars Year Ended 31st March 2018
Gross Carrying Amount Accumulated Amortisation
As at As at As at Amortisation As at
Net Carrying
31st March Additions Disposals 31st March 31st March charged during Deductions 31st March
Amount
2017 2018 2017 the year 2018
Computer Software 148.98 3.36 - 152.34 58.95 63.21 - 122.16 30.18
Total 148.98 3.36 - 152.34 58.95 63.21 - 122.16 30.18
(H in Lacs)
Particulars Year Ended 31st March 2017
Gross Carrying Amount Accumulated Amortisation
Deemed As at As at Amortisation As at
Net Carrying
cost as at Additions Disposals 31st March 1st April charged during Deductions 31st March
Amount
1st April 2016 2017 2016 the year 2017
Computer Software 127.18 21.80 - 148.98 - 58.95 - 58.95 90.03
Total 127.18 21.80 - 148.98 - 58.95 - 58.95 90.03
Notes:
6.1 As permitted by para D5-D8B of Ind AS 101, the Company has elected to measure intangible assets at its carrying value as Deemed cost at the transition date as on 1st April 2016.
6.2 Refer note no. 41 for information on Intangibles Assets pledged as securities by the Company.

7 NON - CURRENT INVESTMENTS

(Fully Paid up except otherwise stated) (H in Lacs)
Face Value As at 31st March 2018 As at 31st March 2017 As at 1st April 2016
(H) Qty Amount Qty Amount Qty Amount
INVESTMENTS AT FAIR VALUE THROUGH OTHER
COMPREHENSIVE INCOME
Investments in Unquoted Equity Instruments
Mount Everest Breweries Limited 10 2,00,000 267.56 2,00,000 234.72 2,00,000 202.68
Associated Infrastructure & Housing Limited 10 - - 100 0.01
267.56 234.72 202.69
Aggregate Amount of Unquoted Investments 267.56 234.72 202.69
103 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
8 LOANS (Unsecured and Considered good) (H in Lacs)
Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
Security deposits 119.15 87.36 87.80
Loan to a body corporate - - 18.33
119.15 87.36 106.13

9 OTHER FINANCIAL ASSETS (H in Lacs)

Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
Fixed Deposits with Banks (Maturities over 12 9.1 34.83 186.94 62.97
months)
Other deposits and advances
Considered good 9.2 20.31 18.95 112.86
Considered doubtful 167.62 167.62 112.86
Less: Impairment allowances for doubtful (167.62) (167.62) (112.86)
advances
55.14 205.89 175.83

9.1 Includes deposit of H 34.83 Lacs (2017: H 186.94 lacs, 2016: H 62.97 lacs) held as margin money & security against
tender and label registration.

9.2 Deposit amounting to H 20.31 Lacs (at amortized cost) (P.Y. 2017 H18.95 Lacs and P.Y. 2016 “Nil”) lying with Reserve
Bank of India under Pradhan Mantri Garib Kalyan Yojana 2016.

10 OTHER NON CURRENT ASSETS (H in Lacs)

Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Capital Advances 304.04 164.35 143.53
Advances other than Capital Advances
Deposit - Appeals 461.17 464.37 411.98
Prepaid Expenses 15.40 18.58 14.65
780.61 647.30 570.16

11 INVENTORIES (H in Lacs)
Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
(At lower of cost or net realisable value)
Raw Materials 392.98 240.44 357.61
Work-in-Progress /Semi Finish goods 350.10 299.50 287.12
Finished Goods 1,883.63 1,626.13 1,689.35
Stores and Spares 392.17 337.05 247.75
Packing Materials (net of obsolescence) 11.3 788.49 352.74 300.04
3,807.37 2,855.86 2,881.87

11.1 The above includes goods-in-transit as under:

Raw Materials 3.46 - -
Stores & Spares 5.64 - -
9.10 - -
104

Notes to the Financial Statements for the year ended 31st March, 2018
11.2 Refer note no. 41 for information on inventories pledged as securities by the Company.

11.3 The net provision on Obsolete & Non moving item is recognized as expense during the year and included in Other
manufacturing expense in Statement of Profit & Loss amounting to H9.73 lacs [PY 2017 “Nil” & PY 2016 “Nil”].

12 TRADE RECEIVABLES (H in Lacs)

Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
Trade Receivables 12.1 2,037.28 1,779.42 1,160.55
2,037.28 1,779.42 1,160.55
Less: Impairment allowances for Doubtful (148.06) (27.05) (42.50)
Receivables
Total Trade Receivables 1,889.22 1,752.37 1,118.05
Break Up of Security Details
Unsecured, considered good 1,889.22 1,752.37 1,118.05
Unsecured, considered doubtful 148.06 27.05 42.50
2,037.28 1,779.42 1,160.55
Less: Impairment allowances for Doubtful (148.06) (27.05) (42.50)
Receivables
Total Trade Receivables 1,889.22 1,752.37 1,118.05
12.1 Trade receivables are non-interest bearing and are generally on terms of 30 to 60 days.
12.2 Refer note no. 41 for information on inventories pledged as securities by the Company.

13 CASH AND CASH EQUVALENTS (H in Lacs)

Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Balances With Banks :
In Current Account 176.64 111.67 152.40
Cash on Hand 77.46 194.76 177.50
254.10 306.43 329.90

14 BANK BALANCES (OTHER THAN NOTE: 13) (H in Lacs)

Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
Fixed Deposits with Banks(having maturity of 14.1 152.60 43.29 274.79
more than 3 months)
Balance in Unpaid Dividend Account 15.34 7.04 2.63
167.94 50.33 277.42

14.1 Includes deposit of H 152.60 Lacs (2017: H 43.29 Lacs, 2016: H 274.78 Lacs) held as margin money & security against
tender and label registration.

15 LOANS (Unsecured and Considered good) (H in Lacs)

Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
Security Deposit 194.16 164.27 213.21
Loans to other body corporates 1,511.54 893.24 479.37
Loans and advances to employees 15.1 361.57 46.13 50.45
2,067.27 1,103.64 743.03
105 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
15.1 H 6.00 Lacs (P.Y. 2017- H9.00 Lacs & P.Y. 2016- H 10.00 Lacs) is due from a director of the company and represents
advance against salary.

16 OTHERS FINANCIAL ASSETS (H in Lacs)

Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Interest Receivable - 5.71 51.11
Other Receivables 57.50 42.48 475.08
57.50 48.19 526.19

17 OTHER CURRENT ASSETS (H in Lacs)

Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Advances for supply of goods and rendering of services 202.34 310.58 171.77
Balances with Government & Statutory Authorities 98.34 89.40 205.67
Prepaid Expenses 182.72 150.67 151.29
Others 4.00 - 4.28
487.40 550.65 533.01

18 EQUITY SHARE CAPITAL (H in Lacs)

Particulars As at 31st March 2018 As at 31st March 2017 As at 1st April 2016
No. of No. of No. of
Amount Amount Amount
Shares Shares Shares
18.1 Authorised Share Capital
Equity Shares:
Equity Shares of H 10/- each 2,50,00,000 2,500.00 2,50,00,000 2,500.00 2,50,00,000 2,500.00
2,50,00,000 2,500.00 2,50,00,000 2,500.00 2,50,00,000 2,500.00

18.2 Issued Share Capital

Equity Shares of H 10/- each 1,80,79,200 1,807.92 1,80,79,200 1,807.92 1,80,79,200 1,807.92
1,80,79,200 1,807.92 1,80,79,200 1,807.92 1,80,79,200 1,807.92

18.3 Subscribed and Paid-up Share Capital

Equity Shares of H 10/- each 1,80,79,200 1,807.92 1,80,79,200 1,807.92 1,80,79,200 1,807.92
1,80,79,200 1,807.92 1,80,79,200 1,807.92 1,80,79,200 1,807.92

18.4 Reconciliation of the number of shares at the beginning and at the end of the year
There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.

18.5 Terms/ Rights attached to Equity Shares :

The Company has only one class of issued shares i.e. Equity Shares having par value of H 10/- per share. Each holder
of Equity Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of
Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim
dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company
after payment of all preferential amounts, in proportion to their shareholding.

18.6 Shareholding Pattern with respect of Holding or Ultimate Holding Company

The Company does not have any Holding Company or Ultimate Holding Company.
106

Notes to the Financial Statements for the year ended 31st March, 2018
18.7 Details of Equity Shareholders holding more than 5% shares in the Company (H in Lacs)
Particulars As at 31st March 2018 As at 31st March 2017 As at 1st April 2016
No. of No. of No. of
Percentage Percentage Percentage
Shares Shares Shares
Equity Shares of H 10/- each fully
paid
Smt. Ramdulari Kedia 19,71,600 10.91% 19,71,600 10.91% 19,71,600 10.91%
M/s Garnet Tradelink Pvt. Ltd. 16,65,000 9.21% 16,65,000 9.21% 16,65,000 9.21%
Smt. Shweta Kedia 15,42,000 8.53% 15,42,000 8.53% 15,42,000 8.53%
Smt. Sangita Kedia 14,86,400 8.22% 14,86,400 8.22% 14,86,400 8.22%
M/s Attic Dealcom Pvt. Ltd. 10,41,649 5.76% 13,16,890 7.28% 13,16,890 7.28%
Shri Prasann Kumar Kedia 9,56,200 5.29% 9,56,200 5.29% 9,56,200 5.29%

18.8 No equity shares have been reserved for issue under options and contracts/ commitments for the sale of shares/
disinvestment as at the Balance Sheet date.
18.9 No equity shares have been bought back by the Company during the period of 5 years preceding the date as at
which the Balance Sheet is prepared.
18.10 9039600 nos. of equity shares have been issued as bonus shares during the financial year 2015-16 in the ratio of
1:1 to all the equity shareholders.
18.11 No securities convertible into equity shares have been issued by the Company during the year.
18.12 No calls are unpaid by any Director or Officer of the Company during the year.

19 OTHER EQUITY (H in Lacs)

Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
Securities Premium 19.1 163.10 163.10 163.10
General Reserve 19.2 989.07 889.07 789.07
Retained Earnings 19.3 9,049.29 6,800.66 5,334.72
Other Comprehensive Income 19.4 67.56 34.72 2.68
10,269.02 7,887.55 6,289.57
Nature/ Purpose of each reserve
a) Securities Premium: The amount received in excess of face value of the equity shares is recognised in Securities
Premium Reserve. This reserve is utilised in accordance with the provisions of the Companies Act 2013.
b) General Reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of
Companies Act 1956.
c) Retained Earning: Generally represents the undistributed profit/amount of accumulated earnings of the company.
d) Other Comprehensive Income(OCI): Other Comprehensive Income (OCI) represents the balance in equity for items
to be accounted under OCI and comprises of the following:
i) Equity Instruments through OCI: The company has elected to recognise changes in the fair value of certain
investment in equity instrument in other comprehensive income.

ii) Re-measurement of defined benefit obligations: The actuarial gains and losses arising on defined benefit
obligations have been recognised in OCI.
107 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
(H in Lacs)
Particulars As at As at
31st March 2018 31st March 2017
19.1 Securities Premium
Balance at the beginning and at the end of the year 163.10 163.10

19.2 General Reserve

Balance at the beginning of the year 889.07 789.07
Add: Transfer from Retained Earnings 100.00 100.00
Balance at the end of the year 989.07 889.07

19.3 Retained Earnings

Balance at the beginning of the year 6,800.66 5,334.72
Add: Profit for the year 2,518.92 1,691.24
9,319.58 7,025.96
Less: Transfer to General Reserve (100.00) (100.00)
Less: Dividend including Dividend Distribution Tax (217.60) (108.80)
Add/(Less): Other Comprehensive Income arising from Remeasurements of 47.31 (16.50)
defined benefit obligation (net of tax)
(270.29) (225.30)
Balance at the end of the year 9,049.29 6,800.66

19.4 Other Comprehensive Income

Equity instrument through Other Comprehensive Income
Balance at the beginning of the year 34.72 2.68
Add: Change in Fair Value (net of tax) 32.84 32.04
Balance at the end of the year 67.56 34.72
Remeasurement of Defined Benefit Obligation
Balance at the beginning of the year - -
Add/(Less): Changes during the year (net of tax) 47.31 (16.50)
Add/(Less): Transferred to Retained Earnings (47.31) 16.50
Balance at the end of the year - -
10,269.02 7,887.55

20 NON CURRENT BORROWINGS (H in Lacs)

Particulars Refer Non-Current Portion Current Maturities
Note As at As at As at As at As at As at
No. 31st March 31st March 1st April 31st March 31st March 1st April
2018 2017 2016 2018 2017 2016
Secured
Term loan from banks 20.1 (a) 311.72 745.25 1,396.49 623.42 651.22 529.36
Vehicle loan from banks 20.1 (b) 14.31 71.28 121.64 71.29 68.32 63.03
& (c)
Unsecured
Loan from other body corporates - - 278.63 - - -
326.03 816.53 1,796.76 694.71 719.54 592.39
Less: transfer to other current - - - (694.71) (719.54) (592.39)
financial liability
326.03 816.53 1,796.76 - - -
108

Notes to the Financial Statements for the year ended 31st March, 2018
20.1 Details of Security:
a. Rupee Term loan of H1,246.85 Lacs from a bank is secured by pari passu charge over entire fixed assets of the
Company and second pari passu charge over entire current assets of the Company. The loan is repayable in
remaining six equal quarterly instalments. The interest rate is 9.90% p.a. The loan outstanding as on 31st March 2017
and 31st March 2016 from another bank were repaid in current/ earlier year. The loan is further secured by personal
guarantees of certain KMPs/Employees of the Company.

b. Vehicle loans from a bank amounting to H 30.82 Lacs are secured against hypothecation of vehicles purchased
against the loan. The loans are repayable in monthly instalments ranging from 36 to 60 months and carrying an
interest rate varying from 8.50% p.a. to 10.86% p.a. The loan outstanding as on 31st March 2017 and 31st March 2016
was H 30.55 Lacs & H 44.54 Lacs respectively.

c. Vehicle loans from a bank amounting to H 54.79 lacs are secured against hypothecation of vehicles purchased
against the loan. The loans are repayable in 36 monthly instalments and carrying an interest rate varying from 9.65%
p.a. to 9.83% p.a. The loan outstanding as on 31st March 2017 and 31st March 2016 was H 109.05 Lacs & H 140.13 Lacs
respectively.

20.2 The Carrying amount of the Financial and Non financial assets pledged as security for current and non current
borrowings is given in note. 41.

21 DEFERRED TAX LIABILITIES (NET) (H in Lacs)

Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Deferred Tax Liabilities
Arising on account of :
Property, Plant & Equipment & Intangible Assets 933.07 1,017.85 1,078.81
Financial liability measured at amortised cost - 4.02 6.14
933.07 1,021.87 1,084.95
Less: Deferred Tax Assets
Arising on account of :
Impairment allowances for Doubtful Receivables 110.31 67.37 53.77
Provision for Gratuity 1.81 - -
Provision for Leave encashment 26.83 - -
138.95 67.37 53.77
Deferred Tax Liabilities (Net) 794.12 954.50 1,031.18

21.1 Movement in deferred tax asset and deferred tax liabilities during the year ended 31st March, 2017 and
31st March, 2018 (H in Lacs)
Particulars As at Charge/(credit) Charge/ As at
1st April, in Statement of (credit) in Other 31st March,
2016 Profit & Loss Comprehensive 2017
Income
Property, Plant & Equipment & Intangible Assets 1,078.81 (60.96) - 1,017.85
Financial liability measured at amortised cost 6.14 (2.12) - 4.02
Impairment allowances for Doubtful Receivables (53.77) (13.60) - (67.37)
Provision for Gratuity - - - -
Provision for leave encashment - - - -
1,031.18 (76.67) - 954.50
109 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
(H in Lacs)
Particulars As at Charge/(credit) Charge/ As at
31st March, in Statement of (credit) in Other 31st March,
2017 Profit & Loss Comprehensive 2018
Income
Property, Plant & Equipment & Intangible Assets 1,017.85 (84.78) - 933.07
Financial liability measured at amortised cost 4.02 (4.02) - -
Impairment allowances for Doubtful Receivables (67.37) (42.94) - (110.31)
Provision for Gratuity - (27.22) 25.41 (1.81)
Provision for leave encashment - (26.83) - (26.83)
954.50 (185.79) 25.41 794.12

21.1 Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the Company has a legally enforceable
right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities
relate to income tax levied by the same taxation authority.

22 NON CURRENT TAX LIABILITY (NET) (H in Lacs)

Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Provision for tax (net) 7.64 7.64 7.64
7.64 7.64 7.64

23 CURRENT BORROWINGS (H in Lacs)

Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
Secured
Working Capital loans from Banks repayable 23.1 (a) 1,122.93 1,621.45 1,463.59
on demand
Other lease obligation 23.1 (b) 0.81 0.72 0.71
1,123.74 1,622.17 1,464.30

23.1 Details of Security

a. Working capital facilities from the banks (fund based and non fund based) are secured by first pari passu charge over
entire current assets of the Company and second pari passu charge over entire fixed assets of the Company. The
facilities are also secured by personal guarantees of certain KMPs/Employees of the Company. The interest rates are
varying from 9.90% p.a. to 10.50% p.a.

b. Other lease obligation are secured by asset underlying lease.

23.2 Refer note no. 41 for information on the carrying amounts of financial and non-financial assets pledged as security
for current borrowings.

24 TRADE PAYABLES (H in Lacs)

Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Trade Payables for goods and services
Dues to Micro and Small enterprises 24.34 - -
Others 1,933.17 1,679.09 2,205.96
1,957.51 1,679.09 2,205.96
110

Notes to the Financial Statements for the year ended 31st March, 2018
25 OTHER FINANCIAL LIABILITIES (H in Lacs)
Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
Current maturities of long term debts 694.71 719.54 592.39
Amount payable for Capital Goods 1,019.33 25.90 136.78
Security Deposit 82.85 67.55 51.00
Interest accrued and not due on Borrowings 12.59 7.12 0.26
Unpaid dividends 25.1 15.34 7.04 2.63
Employees related dues 142.52 159.08 308.65
Other Payable 394.21 304.46 117.54
2,361.55 1,290.69 1,209.25

25.1 There are no amounts due for payment to the Investor Education and Protection Fund at the end of the year.

26 OTHER CURRENT LIABILITIES (H in Lacs)

Refer As at As at As at
Particulars
Note No. 31st March 2018 31st March 2017 1st April 2016
Statutory Dues Payable 754.95 332.94 546.70
Advances Received from Customers 6.76 48.72 43.72
761.71 381.66 590.42

27 PROVISIONS (H in Lacs)
Particulars Refer As at As at As at
Note No. 31st March 2018 31st March 2017 1st April 2016
Provision for Employee Benefits
Gratuity - 45.10 33.54
Leave encashment 76.79 37.09 26.98
76.79 82.19 60.52

27.1 Movement of Provision (H in Lacs)

Particulars Employee Benefit
As on 1st April, 2016 60.52
Add: Created 54.94
Less: Utilized/ Reversed 33.27
As on 31st March, 2017 82.19
Add: Created 63.99
Less: Utilized/ Reversed 69.39
As on 31st March, 2018 76.79

28 CURRENT TAX LIABILITY (NET) (H in Lacs)

Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Provision for tax 1,641.76 1,038.40 832.42
Less: Advance Income Tax 915.80 646.32 488.82
725.96 392.08 343.60
111 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
29 REVENUE FROM OPERATIONS (H in Lacs)
Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Sale of Products (including Excise Duty) 32,200.31 28,615.64
Sale of Services 117.49 330.63
Sale of Wind Power 29.19 35.25
Other Operating Revenues
- Miscellaneous Sales 177.00 125.22
32,523.99 29,106.74

30 OTHER INCOME (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Interest Income from Financial Asset measured at amortised cost
on Fixed deposits 13.06 28.75
on Loans 100.10 57.45
Other Non Operating Income
Net Gain/ (Loss) on Sale of Non Current Investment - 0.06
Sundry Balances Written Back 76.74 172.23
Guarantee Commission Received 10.80 -
Claim Receipts 92.76 4.84
Miscellaneous Receipts 13.99 0.53
307.45 263.86

31 COST OF MATERIALS CONSUMED (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Raw Materials 12,030.55 12,423.70
Packing Materials 4,397.30 3,411.63
16,427.85 15,835.33

32 PURCHASE OF STOCK - IN -TRADE (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Purchases of Stock -in- Trade 72.36 495.74
72.36 495.74

33 CHANGES IN INVENTORIES OF FINISHED GOODS & WORK-IN-PROGRESS (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Inventories at the beginning of the year
Finished Goods 1,626.13 1,689.35
Work in progress 299.50 287.12
1,925.63 1,976.47
Inventories at the end of the year 1,883.63 1,626.13
Finished Goods 350.10 299.50
Work in progress 2,233.73 1,925.63
(308.10) 50.84
112

Notes to the Financial Statements for the year ended 31st March, 2018
34 EMPLOYEE BENEFITS EXPENSE (H in Lacs)
Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Salaries, Wages & Bonus 2,134.14 1,864.74
Gratuity 22.38 16.57
Contribution to Provident & Other funds 61.17 44.66
Staff Welfare Expenses 23.78 19.30
2,241.47 1,945.27

35 FINANCE COST (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Interest Expenses 278.03 383.13
Other Borrowing Costs 104.85 27.11
382.88 410.24

36 DEPRECIATION AND AMORTISATION EXPENSES (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
On Tangible Assets 1,068.50 1,035.77
On Intangible Assets 63.21 58.95
1,131.71 1,094.72

37 OTHER EXPENSES (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Manufacturing, Administrative & Selling Expenses
Consumption of Stores and Spares 437.12 375.06
Excise Duty 112.08 11.27
Insurance 54.16 70.86
Brand Franchise fees 619.92 -
Bottling Fees 1,131.83 73.59
Bottling Expenses 564.91 558.54
Other Manufacturing Expenses 510.99 312.73
Rent 88.12 58.24
Rates & Taxes 580.06 479.85
Repairs & Maintenance:
Building 10.39 14.39
Plant & Machinery 99.13 77.32
Others 21.64 9.51
Warehouse Handling Charges 302.64 273.84
Freight, Forwarding & Transportation 579.95 402.04
Corporate Social Responsibility Expenditure (Refer Note No. 45) 12.05 -
Impairment allowance for Doubtful Receivable/Advances 121.01 39.31
Loss on Sales/Discard of Property Plant & Equipment 72.15 91.47
113 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Payment to the Auditors:
Audit Fees 8.75 8.34
Taxation related matters 1.50 2.35
Certification / Other Services 11.00 0.24
Reimbursement of expenses 0.33 -
Other Expenses 767.53 812.75
6,107.26 3,671.70

38 TAX EXPENSE (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Current Tax 1,553.87 1,097.10
Deferred Tax (185.79) (76.67)
Taxes for earlier years 55.40 8.35
1,423.48 1,028.78

38.1 Reconciliation of estimated Income Tax expense at Indian statutory Income tax rate to income tax expense
reported in statement of Profit & Loss (H in Lacs)
Particulars 31/03/18 31/03/17
Profit before income tax expense 3,942.40 2,720.02
Indian Statutory Income Tax rate* 34.61% 34.61%
Estimated Income Tax Expense 1,364.39 941.34
Tax effect of adjustments to reconcile expected Income tax expense to
reported Income tax expense
Effect of Deferred Tax created at different rate (1.79) -
Expenses not Deductible 36.91 1.86
Effect of Income Tax for Earlier Years 55.40 8.35
Others (31.43) 77.23
59.09 87.44
Income tax expense in Statement of Profit & Loss 1,423.48 1,028.78
* Applicable Indian Statutory Income Tax rate for Financial Year 2018 & 2017 is 34.61%.

39 Earning per Shares (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Nominal Value of Equity Shares (H) 10.00 10.00
Profit attributed to the Equity shareholders of the Company 2,518.92 1,691.24
Weighted average number of equity shares 1,80,79,200 1,80,79,200
Basis and diluted earning per shares (H) 13.93 9.35
There are no dilutive equity shares in the Company.
114

Notes to the Financial Statements for the year ended 31st March, 2018
40 Contingent Liabilities & Commitment to the extent not provided for:
40.1 Contingent Liabilities (H in Lacs)
Sl. Particulars As at As at As at
No. 31st March 2018 31st March 2017 1st April 2016
A Claims/Disputes/Demands not acknowledged as
debts -
i. Entry Tax demand under dispute 84.40 95.79 75.12
ii. State Excise Duty demand under dispute 313.30 580.42 603.98
iii. Madhya Pradesh GATSAVA demand under dispute - 28.64 19.00
iv. Income Tax demand 2.68 16.60 16.60
v. Central Sales Tax demand under dispute 10.46 4.20 2,092.82
vi. M.P. VAT demand under dispute 890.76 654.18 364.93
B Guarantee -
i. Guarantee given to the Banks amounting to 2,969.00 3,136.96 2,859.39
H 5,200.00 Lacs (P.Y. 2016 & 2017- H 6,400.00 Lacs)
against credit facilities extended to a company. The
amount of outstanding credit facility lying in the
books of beneficiary:
ii. Bank Guarantees outstanding at the Year end 426.99 362.98 325.97

40.2 In absence of any clarity in respect of levy of Goods & Service Tax on sale of Rectified spirit (RS) & Extra Neutral
Alcohol (ENA), the Company continues to collect Value Added Tax (VAT) and Central Sales Tax (CST) for intra-state and
inter-state respectively on sales of these products w.e.f 1st July 2017. Pending clarification, VAT collected during the
year (from 1st July 2017 to 31st March 2018) on sales of Rs & ENA amounting to H 197.23 Lacs has been withheld by
the company and would be deposited upon receipt of necessary clarification. Differential liability, if any, is not presently
ascertainable at this point and will be accounted for upon getting necessary clarification.

40.3 During the year, the Income Tax department had carried out a search u/s 132 of the Income Tax Act, 1961 at the
premises of the Company. The Company did not receive any communication in the nature of show cause/demand
from the department till date. The Management does not foresee any implication/material impact in this regard on the
financial statement of the company.

40.4 In respect of above, future cash flows are determinable only on receipt of judgements pending at various forums/
authorities which in the opinion of the Company is not tenable and there is no possibility of any future cash outflow in
case of above.

40.5 Commitments (H in Lacs)

Sl. Particulars As at As at As at
No. 31st March 2018 31st March 2017 1st April 2016
i. Estimated amount of contracts remaining to be 755.73 336.52 262.14
executed on Capital Account (net of advances)
115 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
41 Assets pledged as security
The carrying amounts of assets pledged as security for borrowings are: (H in Lacs)
Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Current
Financial assets
First charge/ Second charge
Trade Receivables 1,889.22 1,752.37 1,118.05
Cash and cash equivalents 254.10 306.43 329.90
Other Financial Asset 2,124.77 1,151.83 1,269.23
Non-financial assets
First charge/ Second charge
Inventories 3,807.37 2,855.86 2,881.87
Other Current Assets (excluding taxes paid in advance & 206.34 310.57 176.06
pre-paid expenses)
Total current assets pledged as security 8,281.80 6,377.06 5,775.11
Non-current
First charge/ Second charge
Leasehold land 0.80 0.81 0.82
Freehold land 420.01 420.01 420.01
Buildings 1,161.59 1,204.91 1,048.81
Plant & Machinery 5,935.49 6,390.35 7,070.08
Furniture, fittings and equipment 158.61 183.86 182.67
Vehicle 281.45 307.48 337.58
Intangible assets (Computer software) 30.18 90.03 127.18
Other Non Current Assets (excluding taxes paid in 304.04 164.35 143.53
advance & pre-paid expenses)
Financial Asset
Other Financial Asset 174.29 293.24 281.96
Total non-currents assets pledged as security 8,466.46 9,055.04 9,612.65
Total assets pledged as security 16,748.26 15,432.10 15,387.76

42 Disclosure as required under the Micro, Small and Medium Enterprises Development Act, 2006, to the extent ascertained,
and as per notification number GSR 679 (E) dated 4th September, 2015 (H in Lacs)

Sl. Particulars As at As at As at
No. 31st March 2018 31st March 2017 1st April 2016
i The principal amount and the interest due thereon 24.34 - -
remaining unpaid to any supplier at the end of each
financial year.
ii The amount of interest paid by the buyer in terms - - -
of section 16 of the Micro, Small and Medium
Enterprises Development Act, 2006, along with
the amount of the payment made to the supplier
beyond the appointed day during each accounting
year.
iii The amount of interest due and payable for the - - -
period of delay in making payment but without
adding the interest specified under the Micro, Small
and Medium Enterprises Development Act, 2006
116

Notes to the Financial Statements for the year ended 31st March, 2018
Sl. Particulars As at As at As at
No. 31st March 2018 31st March 2017 1st April 2016
iv The amount of interest accrued and remaining - - -
unpaid at the end of each accounting year
v The amount of further interest remaining due and - - -
payable even in the succeeding years, until such
date when the interest dues above are actually
paid to the small enterprise, for the purpose of
disallowance of a deductible expenditure under
section 23 of the Micro, Small and Medium
Enterprises Development Act, 2006

The above details has been determined to the extent such suppliers have been identified on the basis of information
provided by the suppliers.

43 Leases
43.1 Operating Lease as lessee
The Company has Operating leases for certain Land & Premises which include both cancellable and non-cancellable
leases, ranging between 11 months to 30 years generally and are usually renewable by mutual consent at agreeable terms.
With respect to non-cancellable operating lease, the future minimum lease payment at the balance sheet date is as under.

43.1.1 Future Minimum Lease Payments

At 31st March, the future minimum lease payments to be made under non-cancellable operating leases are as
follows: (H in Lacs)
Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Payable within one year 40.66 32.39 30.82
Payable later than one year but not later than 135.73 146.91 178.32
five years
Payable later than five years 11.33 12.00 11.48

43.1.2 Amounts recognized in Profit or Loss (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Minimum lease payments 32.39 30.82
Total rental expense relating to operating leases 32.39 30.82

44 Disclosure pursuant to Indian Accounting Standard - 19 ‘Employee Benefits’ as notified u/s 133 of the Companies Act,
2013 read with Rule 7 of Companies (Accounts) Rules, 2014.
44.1 Defined Contribution Plan:
44.1.1 Provident Fund & Employee’s State Insurance Contribution
Provident Fund as per the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952.
Employee State Insurance contribution as per the provisions of the Employees State Insurance Act, 1948.
44.1.2 The amount recognized as an expense for the Defined Contribution Plans are as under:
(H in Lacs)
Particulars For the year ended For the year ended
31st March 2018 31st March 2017
a Provident Fund 43.28 37.60
b Employee State Insurance contribution 12.19 2.80
117 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
44.2 Defined Benefit Plan:
The following are the types of defined benefit plans
44.2.1 Gratuity Plan
Every employee who has completed five years or more of service is entitled to Gratuity as per the provisions of
the Payment of Gratuity Act, 1972. The present value of defined obligation and related current cost are measured
using the Projected Unit Credit Method with actuarial valuation being carried out at Balance Sheet date.
44.2.2 Risk Exposure
Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which
are detailed below:

ASSET VOLATILITY The plan liabilities are calculated using a discount rate set with reference to
bond yields; if plan assets underperform this yield, this will create a deficit.
The Company has made investment in Plan Asset through Life Insurance
$PSQPSBUJPO
JO
2VBMJţFE
*OTVSBODF
1PMJDZ

CHANGES IN BOND YIELDS A decrease in bond yields will increase plan liabilities, although this will be
partially offset by an increase in the value of the plans’ bond holdings.
SALARY GROWTH RISK The present value of defined benefit plan liability is calculated by reference
to the future salaries of plan participants. An increase in the salary of plan
participants will increase the plan liabilities.
LIFE EXPECTANCY The plan liability are to provide benefits for the life of the member, so
increases in life expectancy will result in an increase in the plans’ liabilities.
This is particularly significant where inflationary increases result in higher
sensitivity to changes in life expectancy.

44.2.3 Reconciliation of the net defined benefit (asset)/ liability

The following table shows a reconciliation from the opening balances to the closing balances for the net defined
benefit (asset)/ liability and its components:
(H in Lacs)
Particulars Gratuity
2017-18 2016-17
Balance at the beginning of the year 204.05 172.96
Current Service Cost 19.09 13.87
Interest Cost on Defined Benefit Obligation 14.88 13.77
Actuarial Gain and Losses arising from
Changes in demographic assumptions - -
Changes in financial assumptions (6.67) 13.12
Experience Adjustment (65.29) 9.63
Benefits Paid from the Plan Assets (9.46) (19.29)
Balance at the end of the year 156.60 204.05

44.2.4 Reconciliation of the Plan Assets

The following table shows a reconciliation from the opening balances to the closing balances for the Plan Assets
and its components:
(H in Lacs)
Particulars Gratuity
2017-18 2016-17
Balance at the beginning of the year 158.93 137.68
Interest Income on Plan Assets 11.59 11.07
118

Notes to the Financial Statements for the year ended 31st March, 2018
(H in Lacs)
Particulars Gratuity
2017-18 2016-17
Remeasurements of Defined Benefit Obligation:
Return on plan assets greater/ (lesser) than discount rate 0.76 (2.49)
Employer Contributions to the Plan 24.82 31.96
Benefits Paid from the Plan Assets (9.46) (19.29)
Balance at the end of the year 186.65 158.93

44.2.5 Amount recognized in Balance sheet

(H in Lacs)
Gratuity
Particulars
2017-18 2016-17
Present value of Benefit Obligation at the end of the year (156.60) (204.05)
Fair value of Plan Assets at the end of the year 186.65 158.93
Funded Status (Surplus/(Deficit)) 30.05 (45.10)
Net (Liability)/Asset recognized in the Balance sheet 30.05 (45.10)

44.2.6 Expenses recognized in Profit or Loss

(H in Lacs)
Particulars Gratuity
2017-18 2016-17
Current Service Cost 19.09 13.87
Interest Cost 14.88 13.77
Interest Income on Plan Assets (11.59) (11.07)
Expenses recognized 22.38 16.57

44.2.7 Remeasurements recognized in Other Comprehensive Income

(H in Lacs)
Particulars Gratuity
2017-18 2016-17
Actuarial (gain)/ Loss on defined benefit obligation (71.96) 22.75
Return on plan assets greater/ (lesser) than discount rate (0.76) 2.49
Net(income)/ Expense for the period recognized in OCI (72.72) 25.24

44.2.8 Remeasurements recognized in Other Comprehensive Income

Particulars Gratuity
2017-18 2016-17
2VBMJţFE
*OTVSBODF
1PMJDZ 100% 100%

The Gratuity Scheme is invested in a New Group Gratuity Cash Accumulation Plan Policy offered by Life Insurance
Corporation (LIC). The information on the allocation of the fund into major asset classes and expected return
on each major class are not readily available. The expected rate of return on plan assets is based on market
expectations, at the beginning of the period, for returns over the entire life of the related obligation

44.2.9 Asset-Liability Matching Strategy

The Company’s investment are being managed by Life Insurance Company and at the year end interest is being
credited to the fund value. The company has not changed the process used to manage its risk from previous
periods . The Company’s investment are fully secured and would be sufficient to cover its obligations.
119 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
44.2.10 Actuarial Assumptions
Particulars Gratuity
2017-18 2016-17
Financial Assumptions
Discount Rate 7.78% 7.29%
Salary Escalation Rate 7.00% 7.00%
Demographic Assumptions
Mortality Rate Indian assured lives Indian assured lives
Mortality (2006-08) Mortality (2006-08)
Attrition rate 2% 2%

44.2.11 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 in the employment market.

44.2.12 At 31st March 2018, the weighted average duration of the defined benefit obligation was 10 years (previous
year 11 years). The distribution of the timing of benefits payment i.e., the maturity analysis of the benefit payments
is as follows:
(H in Lacs)
Expected benefits payment for the year ending on Gratuity
31st March 2019 8.41
31st March 2020 12.95
31st March 2021 21.72
31st March 2022 8.71
31st March 2023 11.20
31st March 2024 to 31st March 2028 62.92

44.2.13 The Company expects to contribute H“NIL” (previous year H37.75 Lacs) to its gratuity fund in 2018-19
44.2.14 Sensitivity Analysis
The sensitivity analysis below have been determined based on a method that extrapolates the impact on defined
benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting
period. Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding
other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
Particulars Gratuity
2017-18 2016-17
Effect on DBO due to 1% increase in Discount Rate (12.19) (17.31)
Effect on DBO due to 1% decrease in Discount Rate 14.17 20.09
Effect on DBO due to 1% increase in Salary Escalation Rate 13.90 19.94
Effect on DBO due to 1% decrease in Salary Escalation Rate (12.38) (17.50)

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does
provide an approximation of the sensitivity of the assumptions shown.

45 In accordance with the Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities,
the requisite disclosure as follows:
45.1 (H in Lacs)
Particulars 2017-18 2016-17
Gross Amount required to be spent by the Company during the year 47.03 34.95
120

Notes to the Financial Statements for the year ended 31st March, 2018
45.2 (H in Lacs)
Particulars 2017-18 2016-17
In Cash Yet to be paid In Cash Yet to be paid
in cash in cash
Amount spent during the year on:
Construction/ Acquisition of any asset - - - -
On purpose other above 12.05 - - -
Unspent Amount 34.98 - 34.95 -

46 Related Party Disclosures

46.1 Name of the related parties and description of relationship
A) Key Management Personnels (KMP)
- Mr. Tushar Bhandari, Whole Time Director
- Mr. Manish Kumar Tibrewal, Director
- Mr. Nitin Tibrewal, Director
- Ms. Abhijeet Nagee, Director
- Mr. Sanjay Kumar Tibrewal, CFO
- Mr. Sumit Jaitely - Company Secretary
- Mr. Anand Kumar Kedia (KMP as per the definition of IND AS)
- Mr. Prasann Kumar Kedia (KMP as per the definition of IND AS)
- Mr. Ashish Kumar Gadia, Director (till 5th January, 2017)

Relatives:
- Mr H.K. Bhandari (Father of Mr Tushar Bhandari)
- Mrs Udita Bhandari (Mother of Mr Tushar Bhandari)
- Mrs. Ram Dulari Kedia (Mother of Mr Anand Kumar Kedia & Mr Prasann Kumar Kedia)
- Mrs. Sangita Kedia (Spouse of Mr Anand Kumar Kedia)
- Mrs. Shweta Kedia (Spouse of Mr Prasann Kumar Kedia)
- Mr. Anshuman Kedia (Son of Mr Anand Kumar Kedia)
- Mrs. Ravisha Sanghi (Daughter of Mr Anand Kumar Kedia)
- Mr. Vedant Kedia (Son of Mr Prasann Kumar Kedia)

46.2 Summary of transactions with the related parties (H in Lacs)

Particulars 2017-18 2016-17
Key Relatives of Key Relatives of
Management KMP's Management KMP's
Personnels Personnels
Remuneration 946.82 182.59 723.95 95.46
Rent Expenses 12.00 17.99 - 6.72
Purchase of Goods / Assets - - - 0.70
Purchase of Services - - - 0.93
Advances Given (Net) 320.87 - - -
Sitting fees 0.22 - 0.23 -
121 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
46.3 Summary of Outstanding balances with the related parties (H in Lacs)
Particulars As at 31st March 2018 As at 31st March 2017 As at 1st April 2016
Key Man- Relatives Key Man- Relatives Key Man- Relatives
agement of KMP's agement of KMP's agement of KMP's
Personnels Personnels Personnels
Remuneration payable 5.45 4.68 7.77 7.40 2.62 2.65
Balances Receivable 326.87 - - - - -

46.4 Key Management Personnel compensation (H in Lacs)

Particulars For the year ended For the year ended
31st March 2018 31st March 2017
Short-term employee benefits 946.82 723.95
Post-employment benefits * - 1.16
Long term benefits * - -
Total compensation 946.82 725.11

* Post-employment benefits and other long-term benefits is being disclosed based on actual payment made on
retirement/resignation of services, but does not includes provision made on actuarial basis as the same is available
for all the employees together.
46.5 Major terms and conditions of transactions with related parties
Transactions with related parties are carried out in the normal course of business.

47 Segment Reporting
Operating segments are defined as components of an enterprise for which discrete financial information is available
that is evaluated regularly by the Chief Operating Decision Maker, in deciding how to allocate resources and assessing
performance. Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. Based on the management approach as defined in Ind AS 108, the Chief Operating
Decision Maker evaluates the Company’s performance based on only one segment i.e. manufacturing and trading
of Potable Alcohol.

No customer individually accounts for more than 10% of the revenues from the external customers during the years.

48 Transition to Ind AS
48.1 Basis for Preparation
For all period up to and including the year ended March 31, 2017, the Company has prepared its financial statements
in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements for
the year ended March 31, 2018 are the Company’s first annual Ind AS Financial Statements and have been prepared
in accordance with Ind AS.

The Company has prepared the opening balance sheet as per Ind AS as at April 1, 2016 (the transition date) by
recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or
liabilities which are not permitted by Ind AS, by reclassifying certain items from Previous GAAP to Ind AS as required
under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities. The accounting
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The accounting policies set out in note 3 have been applied in preparing the financial statements for the year ended
31 March 2018, the comparative information presented in these financial statements for the year ended 31 March
2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the date of transition). This note
122

Notes to the Financial Statements for the year ended 31st March, 2018
explains the principal adjustments made by the Company in restating its financial statements prepared in accordance
with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Company’s financial
position, financial performance and cash flows.
48.2 Exceptions and Exemptions Applied
Ind AS 101 “First-time adoption of Indian Accounting Standards” (hereinafter referred to as Ind AS 101) allows first time
adopters certain exemptions from the retrospective application of certain IND AS, effective for April 1, 2016 opening
balance sheet. In preparing these financial statements, the Company has applied the below mentioned optional
exemptions and mandatory exceptions.
48.2.1 Optional Exemptions Availed
a Property Plant and Equipment and Intangible Assets
As permitted by Para D5-D8B of Ind AS 101, the Company has elected to measure items of property, plant and
equipment and intangible assets at its previous GAAP carrying value on the transition date as deemed cost.
b Determining whether an arrangement contains a Lease
Para D9-D9AA of Ind AS 101 includes an optional exemption that permits an entity to apply the relevant
requirements in Appendix C of Ind As 17 “Leases” for determining whether an arrangement existing at
the date of transition contains a lease by considering the facts and circumstances existing at the date of
transition (rather than at the inception of the arrangement). The Company has applied the above transition
provision and has assessed all the arrangements at the date of transition.
c Designation of previously recognised financial instruments
Para D19B of Ind AS 101 permits an entity to designate particular investments in equity instruments as at
fair value through other comprehensive income (FVOCI) based on facts and circumstances at the date
of transition to Ind AS (rather at initial recognition). The Company has opted to avail this exemption to
designate its investments in equity instruments as FVOCI on the date of transition.
48.2.2 Mandatory Exceptions
a Estimates
As per Para 14 of Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind
AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the
case may be, should be consistent with estimates made for the same date in accordance with the previous
GAAP unless there is objective evidence that those estimates were in error. However, the estimates should
be adjusted to reflect any differences in accounting policies.

As per Para 16 of the standard, where application of Ind AS requires an entity to make certain estimates that
were not required under previous GAAP, those estimates should be made to reflect conditions that existed
at the date of transition or at the end of the comparative period.

The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered
in preparation of the financial statement that were not required under the previous GAAP are listed below:

- Fair Valuation of financial instruments carried at FVTPL and/ or FVOCI.

- Impairment of financial assets based on the expected credit loss model.
- Determination of the discounted value for financial instruments carried at amortized cost.
b De-recognition of Financial Assets and Liabilities
As per Para B2 of Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, “Financial
Instruments”, prospectively for transactions occurring on or after the date of transition to Ind AS. However,
Para B3 gives an option to the entity to apply the derecognition requirements from a date of its choice if the
information required to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result
of past transactions was obtained at the initially accounting for those transactions. The company has elected
to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
123 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
c Classification and measurement of Financial Assets
Para B8 - B8C of Ind AS 101 requires an entity to assess classification of financial assets on the basis of
facts and circumstances existing as on the date of transition. Further, the standard permits measurement
of financial assets accounted at amortized cost based on facts and circumstances existing at the date of
transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and
circumstances that exist on the date of transition. Measurement of the financial assets accounted at
amortized cost has been done retrospectively.

48.3 Impact of Transition to Ind AS

The following is a summary of the effects of the differences between IND AS and Indian GAAP on the Company’s
total equity shareholders’ funds and profit and loss for the financial periods previously reported under Indian GAAP
following the date of transition to IND AS.
48.3.1 Reconciliation of Equity as at date of transition (1st April 2016) (H in Lacs)
Particulars Refer Previous GAAP* Adjustment Ind AS
Note No.
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment (g) & (h) 9,062.64 (2.67) 9,059.97
Capital Work-In-Progress 155.69 - 155.69
Goodwill (c) 72.00 (72.00) -
Intangible Assets 127.18 127.18
Financial Assets
Investments (a) 200.01 2.68 202.69
Loans 106.13 - 106.13
Other Financial Assets (b) 288.68 (112.85) 175.83
Other Non-Current Assets (h) 555.51 14.65 570.16
10,567.84 (170.19) 10,397.65
CURRENT ASSETS
Inventories 2,881.87 - 2,881.87
Financial Assets
Trade Receivables (b) 1,160.55 (42.50) 1,118.05
Cash and Cash Equivalents 329.90 - 329.90
Bank balances other than above 277.42 - 277.42
Loans 743.03 - 743.03
Other Financial Assets 526.19 - 526.19
Other Current Assets (a) & (h) 532.41 0.60 533.01
6,451.37 (41.90) 6,409.47
Total Assets 17,019.21 (212.09) 16,807.12
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital 1,807.92 - 1,807.92
Other Equity (j) 6,281.94 7.63 6,289.57
8,089.86 7.63 8,097.49
124

Notes to the Financial Statements for the year ended 31st March, 2018
Particulars Refer Previous GAAP* Adjustment Ind AS
Note No.
LIABILITIES
NON-CURRENT LIABILITIES
Financial Liabilities
Borrowings (a) 1,808.37 (11.61) 1,796.76
Deferred Tax Liabilities (Net) (e) 1,078.80 (47.62) 1,031.18
Non Current tax liability 7.64 - 7.64
2,894.81 (59.23) 2,835.58
CURRENT LIABILITIES
Financial Liabilities
Borrowings 1,463.59 0.71 1,464.30
Trade Payables 2,205.96 - 2,205.96
Other Financial Liabilities (a) 1,215.38 (6.13) 1,209.25
Other Current Liabilities 590.42 - 590.42
Provisions (d) 215.59 (155.07) 60.52
Current Tax Liabilities ( Net) 343.60 - 343.60
6,034.54 (160.49) 5,874.05
Total Equity and Liabilities 17,019.21 (212.09) 16,807.12

* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the
purposes of this note.

48.3.2 Reconciliation of Equity as at date of transition (31st March 2017) (H in Lacs)

Particulars Refer Previous GAAP* Adjustment Ind AS
Note No.
ASSETS
NON-CURRENT ASSETS
Property, Plant and Equipment (g) & (h) 8,483.18 24.24 8,507.42
Capital Work-In-Progress 481.83 - 481.83
Goodwill (c) 72.00 (72.00) -
Intangible Assets 90.03 - 90.03
Financial Assets
Investments (a) 200.00 34.72 234.72
Loans 87.36 - 87.36
Other Financial Assets (b) 379.56 (173.67) 205.89
Other Non-Current Assets (h) 628.72 18.58 647.30
10,422.68 (168.13) 10,254.55
CURRENT ASSETS
Inventories (g) 2,873.72 (17.86) 2,855.86
Financial Assets
Trade Receivables (b) 1,779.42 (27.05) 1,752.37
Cash and Cash Equivalents 306.43 - 306.43
Bank balances other than above 50.33 - 50.33
Loans 1,103.64 - 1,103.64
Other Financial Assets 48.19 - 48.19
Other Current Assets (a) & (h) 548.56 2.09 550.65
6,710.29 (42.82) 6,667.47
Total Assets 17,132.97 (210.95) 16,922.02
125 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
Particulars Refer Previous GAAP* Adjustment Ind AS
Note No.
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital 1,807.92 - 1,807.92
Other Equity (j) 8,019.79 (132.24) 7,887.55
9,827.71 (132.24) 9,695.47
LIABILITIES
NON-CURRENT LIABILITIES
Financial Liabilities
Borrowings (a) 822.01 (5.48) 816.53
Deferred Tax Liabilities (Net) (e) 1,017.85 (63.35) 954.50
Non Current tax liability 7.64 - 7.64
1,847.50 (68.83) 1,778.67
CURRENT LIABILITIES
Financial Liabilities
Borrowings 1,621.45 0.72 1,622.17
Trade Payables 1,679.09 - 1,679.09
Other Financial Liabilities (a) 1,296.83 (6.14) 1,290.69
Other Current Liabilities 381.66 - 381.66
Provisions 86.65 (4.46) 82.19
Current Tax Liabilities ( Net) 392.08 - 392.08
5,457.76 (9.88) 5,447.88
Total Equity and Liabilities 17,132.97 (210.95) 16,922.02

* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the
purposes of this note.

48.3.3 Reconciliation of Total Comprehensive Income for the year ended 31 March 2017 (H in Lacs)
Particulars Refer Previous GAAP* Adjustment Ind AS
Note No.
INCOME
Revenue from Operations (i) 29,646.53 (539.79) 29,106.74
Other Income 263.86 - 263.86
Total Income (A) 29,910.39 (539.79) 29,370.60
EXPENSES
Cost of Materials Consumed (i) 15,532.28 303.05 15,835.33
Purchases of Stock -in- Trade (i) 1,080.62 (584.88) 495.74
Changes in Inventories of Finished Goods & 50.84 - 50.84
Work-in-Progress
Employee Benefits Expense (f) 1,928.70 16.57 1,945.27
Finance Costs (a) 404.01 6.23 410.24
Depreciation and Amortisation Expense (g) & (h) 1,094.77 (0.05) 1,094.72
Power and fuel 3,146.74 - 3,146.74
Other Expenses (a), (b), 3,898.79 (227.08) 3,671.70
(g), (i)
Total Expenses (B) 27,136.75 (486.16) 26,650.58
126

Notes to the Financial Statements for the year ended 31st March, 2018
Particulars Refer Previous GAAP* Adjustment Ind AS
Note No.
Profit before Exceptional Items and Tax (A-B) 2,773.65 (53.63) 2,720.02
Exceptional Items - - -
Profit before Tax 2,773.65 (53.63) 2,720.02
Tax Expense:
Current Tax (f) 1,088.38 8.74 1,097.10
Deferred Tax (e) (60.94) (15.73) (76.67)
Income Tax for earlier years 8.35 8.35
Profit for the year 1,737.86 (46.62) 1,691.24
Other Comprehensive Income
Items that will not be reclassified to profit or loss
a) Remeasurement of defined benefit plan (f) - (25.24) (25.24)
b) Equity instrument through Other (a) - 32.04 32.04
Comprehensive Income
c) Income tax relating to above items (f) - 8.74 8.74
Other Comprehensive Income for the Year - 15.54 15.54
(Net of Tax)
Total Comprehensive Income for the period 1,737.86 (31.08) 1,706.78

48.3.4 Reconciliation of Total Equity (H in Lacs)

Particulars Refer Note No. As on As on
31st March 2018 31st March 2017
Total Equity as per previous GAAP 9,827.71 8,089.86
Add/ (less): Adjustments for GAAP difference
Effect of Fair valuation of Investment (a) 34.72 2.68
Impact of application of Expected Credit loss (b) (194.67) (155.36)
model
Effect of derecognition of Goodwill (c) (72.00) (72.00)
Derecognition of Proposed dividend including (d) (0.00) 108.80
dividend tax
Impact of application of Effective Interest rate (a) 11.61 17.75
method
Impact of others 24.75 58.14
Tax adjustment on above (e) 63.35 47.62
Total Equity as per Ind AS 9,695.47 8,097.49
127 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
48.3.5 Reconciliation of Total Comprehensive Income for the year ended 31 March 2017 (H in Lacs)
Particulars Refer Note No. 2016-17
Total Profit as per previous GAAP 1,737.86
Add/ (less): Adjustments for GAAP difference
Effect of Fair valuation of Investment (a) 32.04
Impact of application of Expected Credit loss model (b) (39.31)
Impact of application of Effective Interest rate method (a) (6.14)
Impact of others (33.40)
Tax adjustment on above (e) 15.73
Total Comprehensive Income as per Ind AS 1,706.78

48.3.6 Impact of Ind AS adoption on the statements of cash flows for the year ended 31 March 2017
(H in Lacs)
Particulars Notes Previous GAAP* Adjustment Ind AS
Net cash flow from Operating Activities (g) 2,440.49 17.86 2,458.35
Net cash flow from Investing Activities (g) (1,256.64) (17.86) (1,274.50)
Net cash flow from Financing Activities (1,207.32) - (1,207.32)
Net increase/(decrease) in cash and cash (23.48) - (23.48)
equivalents
Cash and cash equivalents as at 1 April 2016 329.90 - 329.90
Cash and cash equivalents as at 31 March 2017 306.43 - 306.43

48.3.7 Notes to First Time Adoption

a Measurement of Financial Assets and Financial Liabilities
i Investment in Equity instruments: Under the previous GAAP, investments in Equity instruments were
classified as long-term investments or current investments based on the intended holding period and
reliability. Long-term investments were carried at cost less provision for other than temporary decline in
the value of such investments. Current investments were carried at lower of cost and fair value. Under
Ind AS, these investments are required to be measured at fair value. The resulting fair value changes
of these investments (other than equity instruments designated as at FVOCI) have been recognised in
retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31
March 2017.

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been
recognised in other equity under Equity Investment through FVOCI as at the date of transition and
subsequently in the other comprehensive income for the year ended 31 March 2017.

ii Fair valuation of interest free security deposits : Under previous GAAP, interest free security deposit
were carried at cost. Under Ind AS the same are measured at fair value on initial recognition and
subsequently measured at amortised cost.

iii Application of effective interest rate on borrowing: Under Indian GAAP, transaction costs incurred in
connection with borrowings are amortised upfront and charged to the Statement of Profit and Loss for
the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial
liability and charged to profit or loss using the effective interest method.
128

Notes to the Financial Statements for the year ended 31st March, 2018
b Expected Credit Loss Model
Under Ind AS, the impairment allowances for doubtful receivables/advances has been determined based
on expected credit loss model as per the requirements of Ind AS 109. The provision created on the date of
transition has been adjusted with retained earning and subsequent adjustments in the provision has been
taken to statement of profit and loss account.
c Derecognition of Goodwill
The Company has derecognised goodwill at the date of transition as it does not meet the recognition
criteria of Intangible Assets.
d Proposed Dividend
Under Indian GAAP, proposed dividends are recognized as liability in the period to which they relate
irrespective of the approval by shareholders. Under Ind AS, a proposed dividend is recognised as a liability in
the period in which it is declared by the entity (on approval of Shareholders in a general meeting) or paid.

In the case of the entity, the declaration of dividend occurs after period end. Therefore, the liability for the
year ended 31 March 2016 recorded for dividend has been derecognised against retained earnings on 1 April
2016.
e Deferred Tax
Indian GAAP requires Deferred tax accounting using the Income statement approach, which focuses on
differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to
account for deferred taxes using the balance sheet approach, which focuses on temporary differences
between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of
Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not
required under Indian GAAP.

In addition, the various transitional adjustments lead to different temporary differences. According to the
accounting policies, the company has to account for such differences. Deferred tax adjustments are
recognized in correlation to the underlying transaction either in retained earnings or Other comprehensive
income reserve.
f Remeasurements of post-employment benefit obligations
Under the previous GAAP, these Remeasurements were forming part of statement of profit or loss for the
year. Under Ind AS, Remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding
amounts included in the net interest expense on the net defined benefit liability are recognised in other
comprehensive income instead of statement of profit or loss.
g Spare Part considered as Property, Plant and Equipment
As per Ind AS 16, Spare parts, Stand- by equipment and Servicing equipment are recognised as Property,
Plant and Equipment (‘PPE’) when they meet the following criteria:
- Are held for use in the production or supply of goods or services, for rental to others, or for administrative
purposes; and
- Are expected to be used during more than one period.
Based on the above provision, Stores and Spares satisfying above criteria are de-recognised from Inventory
and capitalized as PPE from the date of purchase.
h Leasehold land considered as Operating Lease
Under IGAAP, Leasehold Land were classified as Fixed Assets as the standard on leases excluded Land.
However, as per Ind AS 17, where the substantial risks and rewards incidental to ownership of an asset has
not been transferred in the name of Company, the Company has classified such land under Operating
Leases. The amount paid towards such leases has been shown as prepayments under Other non-current
assets & Other current assets.
129 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
i Reclassification between Previous GAAP and Ind AS
i. Excise duty and Export duty which were earlier netted off with revenue now has been grossed up and
separately shown as expenses.

ii. Trade discounts, Rebates to customers (both primary and secondary) has been reclassified from other
expenses to revenue.

iii. Other necessary reclassification are in line with Ind AS.

j Retained Earnings
Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

49 Fair Value Measurement

Categories of Financial Assets & Financial Liabilities as at 31st March 2018 and 31st March 2017 (H in Lacs)
Particulars 31st March 2018 31st March 2017
FVTPL FVOCI Amortized FVTPL FVOCI Amortized
Cost Cost
Financial Assets
Investment
- Equity Instruments - 267.56 - - 234.72 -
Trade Receivables - - 1,889.22 - - 1,752.37
Cash and Cash Equivalents - - 254.10 - - 306.43
Bank Balance other than above - - 167.94 - - 50.33
Loans to Employees - - 361.57 - - 46.13
Loans to Body corporates - - 1,511.54 - - 893.24
Security Deposits - - 313.31 - - 251.62
Other Financial Assets - - 112.64 - - 254.08
Total Financial Assets - 267.56 4,610.32 - 234.72 3,554.20
Financial Liabilities
Borrowings - - 2,144.48 - - 3,158.25
Trade Payables - - 1,957.51 - - 1,679.09
Other Financial Liabilities - - 1,666.84 - - 571.15
Total Financial Liabilities - - 5,768.83 - - 5,408.49

As at 1st April 2016 (H in Lacs)

Particulars FVTPL FVOCI Amortized
Cost
Financial Assets
Investment
- Equity Instruments - 202.69 -
Trade Receivables - - 1,118.05
Cash and Cash Equivalents - - 329.90
Bank Balance other than above - - 277.42
Loans to Employees - - 50.45
Loans to Body corporate - - 497.70
Security Deposits - - 301.00
Other Financial Assets - - 702.02
Total Financial Assets - 202.69 3,276.54
130

Notes to the Financial Statements for the year ended 31st March, 2018
As at 1st April 2016 (H in Lacs)
Particulars FVTPL FVOCI Amortized
Cost
Financial Liabilities
Borrowings - - 3,853.44
Trade Payables - - 2,205.96
Other Financial Liabilities - - 616.86
Total Financial Liabilities - - 6,676.26

50 Fair Values of Financial Assets and Financial Liabilities measured at Amortised Cost
50.1 The following is the comparison by class of the carrying amounts and fair value of the Company’s financial
instruments that are measured at amortized cost:
(H in Lacs)
Particulars 31st March 2018 31st March 2017 1st April 2016
Carrying Fair Value Carrying Fair Value Carrying Fair Value
Amount Amount Amount
Financial Assets
Trade Receivables 1,889.22 1,889.22 1,752.37 1,752.37 1,118.05 1,118.05
Cash and Cash Equivalents 254.10 254.10 306.43 306.43 329.90 329.90
Bank Balance other than above 167.94 167.94 50.33 50.33 277.42 277.42
Loans to Employees 361.57 361.57 46.13 46.13 50.45 50.45
Loans to Body corporate 1,511.54 1,511.54 893.24 893.24 497.70 497.70
Security Deposits 313.31 313.31 251.62 251.62 301.00 301.00
Other Financial Assets 112.64 112.64 254.08 254.08 702.02 702.02
Total Financial Assets 4,610.32 4,610.32 3,554.20 3,554.20 3,276.54 3,276.54
Financial Liabilities
Borrowings 2,144.48 2,144.48 3,158.25 3,158.25 3,853.44 3,853.44
Trade Payables 1,957.51 1,957.51 1,679.09 1,679.09 2,205.96 2,205.96
Other Financial Liabilities 1,666.84 1,666.84 571.15 571.15 616.86 616.86
Total Financial Liabilities 5,768.83 5,768.83 5,408.49 5,408.49 6,676.26 6,676.26

50.2 The management assessed that the fair values of cash and cash equivalents, trade receivables, trade payables,
current borrowings, current loans and other financial assets & liabilities approximates their carrying amounts largely due
to the short-term maturities of these instruments.

50.3 The management considers that the carrying amounts of Financial assets and Financial liabilities recognised at
nominal cost/amortised cost in the Financial statements approximate their fair values.

50.4 Non current borrowings has been contracted at floating rates of interest, which are reset at short intervals. Fair value
of floating interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost.

51 Fair Value Hierarchy

The following are the judgements and estimates made in determining the fair values of the financial instruments that
are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed
in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the
company has classified its financial instruments into the three levels of fair value measurement as prescribed under the
Ind AS 113 “Fair Value Measurement”. An explanation of each level follows underneath the tables.
131 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
51.1 Assets and Liabilities measured at Fair Value - recurring fair value measurements
As at 31st March 2018 and 31st March 2017 (H in Lacs)
Particulars 31st March 2018 31st March 2017
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Financial Assets
Investment
- Equity Instruments 267.56 234.72
Total Financial Asset - - 267.56 - - 234.72
Financial Liability
Financial Guarantee - - - - - -
Total Financial Liability - - - - - -

As at 1st April 2016 (H in Lacs)

Particulars Level 1 Level 2 Level 3
Financial Assets
Investment
- Equity Instruments - - 202.69
Total Financial Assets - - 202.69
Financial Liability
Financial Guarantee - - -
Total Financial Liability - - -

51.2 Description of significant unobservable inputs to Valuation (H in Lacs)

Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Fair Value of Equity Instrument 267.56 234.72 202.69
Significant unobservable input - Cost of Equity 16.90% 12.00% 12.00%
Sensitivity Factor (+/-) 1% 1% 1%
Sensitivity of input on Fair Value of Equity Instrument
Increase 25.40 36.37 36.76
Decrease (21.85) (28.98) (28.86)

51.2.1 During the year ended March 31, 2018 and March 31, 2017, there were no transfers between Level 1 and Level
2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

51.3Explanation to the Fair Value hierarchy

The Company measures Financial instruments, such as, unquoted investments and financial guarantee at fair value
at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. All assets and liabilities for which
fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based
on the lowest level input that is significant to the fair value measurement as a whole. The valuation of unquoted
shares and financial guarantee have been made based on level 3 inputs as per the hierarchy mentioned in the
Accounting Policies. The valuation of unquoted equity instrument and financial guarantee have been valued based
on the valuation technique applicable.
132

Notes to the Financial Statements for the year ended 31st March, 2018
52 Financial Risk Management
Financial management of the Company has been receiving attention of the top management of the Company. The
management considers finance as the lifeline of the business and therefore, financial management is carried out
meticulously on the basis of detailed management information systems and reports at periodical intervals extending
from daily reports to long-term plans. Importance is laid on liquidity and working capital management with a view
to reduce over-dependence on borrowings and reduction in interest cost. Various kinds of financial risks and their
mitigation plans are as follows:

52.1Credit Risk
The credit risk is the risk of financial loss arising from counter party failing to discharge an obligation. The credit risk
is controlled by analysing credit limits and credit duration for customers on continuous basis. Further, in order to
manage the credit risk, the security deposits are obtained from customers where ever considered necessary.

On account of adoption of Ind AS 109, the Company uses an expected credit loss model to assess the impairment
loss. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables.

a. Trade receivables
As on 31st March, 2018 (H in Lacs)
Ageing schedule 0-365 days 366-720 days Above 720 days
Gross carrying amount 1,800.15 214.99 22.14
Expected loss rate 0.58% 53.69% 100.00%
Expected credit losses (Loss allowance provision) 10.50 115.42 22.14
Carrying amount of trade receivables (net of impairment) 1,789.65 99.57 -

As on 31st March, 2017 (H in Lacs)

Ageing schedule 0-365 days 366-720 days Above 720 days
Gross carrying amount 1,738.44 18.58 22.41
Expected loss rate - 25.00% 100.00%
Expected credit losses (Loss allowance provision) - 4.64 22.41
Carrying amount of trade receivables (net of impairment) 1,738.44 13.93 -

As on 1st April, 2016 (H in Lacs)

Ageing schedule 0-365 days 366-720 days Above 720 days
Gross carrying amount 1,104.74 17.75 38.06
Expected loss rate - 25.00% 100.00%
Expected credit losses (Loss allowance provision) - 4.44 38.06
Carrying amount of trade receivables (net of impairment) 1,104.74 13.31 -

(H in Lacs)
Reconciliation of loss allowance provision – Amount
Loss allowance on 1 April 2016 42.50
Changes in loss allowance (15.45)
Loss allowance on 31 March 2017 27.05
Changes in loss allowance 121.01
Loss allowance on 31 March 2018 148.06
133 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
52.2 Liquidity Risk
The Company determines its liquidity requirement in the short, medium and long term. This is done by drawing up
cash forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any
significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time
maintaining adequate cash and cash equivalent position. The management has arranged for funding from banks and
inter corporate and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a
regular basis. Surplus funds not immediately required are invested in certain fixed deposits which provides flexibility
to liquidate.

52.2.1 Maturity analysis for financial liabilities

a. The following are the remaining contractual maturities of financial liabilities as at 31st March 2018
(H in Lacs)
Particulars On Demand Less than 6 months More Total
6 months to 1 year 1 years
Borrowings
Term loan from banks* - 349.31 345.40 326.03 1,020.74
Current Borrowings 1,123.74 - - - 1,123.74
Trade payables - 1,957.51 - - 1,957.51
Other financial liabilities - 1,666.84 - - 1,666.84
Total 1,123.74 3,973.66 345.40 326.03 5,768.83

* represents actual unamortised contractual cash outflows.

b. The following are the remaining contractual maturities of financial liabilities as at 31st March 2017
(H in Lacs)
Particulars On Demand Less than 6 months More Total
6 months to 1 year 1 years
Borrowings
Term loan from banks* - 364.84 360.84 822.01 1,547.69
Current Borrowings 1,622.17 - - - 1,622.17
Trade payables - 1,679.09 - - 1,679.09
Other financial liabilities - 571.15 - - 571.15
Total 1,622.17 2,615.08 360.84 822.01 5,420.10

* represents actual unamortised contractual cash outflows.

c. The following are the remaining contractual maturities of financial liabilities as at 1st April 2016
(H in Lacs)
Particulars On Demand Less than 6 months More Total
6 months to 1 year 1 years
Borrowings
Term loan from banks* - 296.90 301.63 1,529.74 2,128.27
Loan from other body corporates - - - 278.63 278.63
Current Borrowings 1,464.30 - - - 1,464.30
Trade payables - 2,205.96 - - 2,205.96
Other financial liabilities - 616.86 - - 616.86
Total 1,464.30 3,119.72 301.63 1,808.38 6,694.02

* represents actual unamortised contractual cash outflows.

134

Notes to the Financial Statements for the year ended 31st March, 2018
d. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact
of netting agreements (if any). The interest payments on variable interest rate loans in the tables above reflect
market forward interest rates at the respective reporting dates and these amounts may change as market interest
rates change. Except for these financial liabilities, it is not expected that cash flows included in the maturity
analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not
fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

52.3 Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises of Foreign Exchange Risk and Interest Rate Risk.

52.3.1 Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of the movement in foreign
exchange rate. The Company does not have any material foreign currency exposure at the balance sheet date
except a capital commitment of H91.58 Lacs (equivalent to 1,13,600 Euros). The Foreign currency exposure is
Unhedged at the balance sheet date.

52.3.2 Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market rates. The company’s exposure to the risk of changes in market interest rate relates primarily
to company’s borrowing with floating interest rates. The Company do not have any significant interest rate risk
on its current borrowing due to their short tenure.

The Company is also exposed to interest rate risk on surplus funds parked in loans. To manage such risks, such
loans are granted for short durations with fixed interest rate in line with the expected business requirements for
such funds.
a. Exposure to interest rate risk (H in Lacs)
Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Non current Borrowing at floating rate 935.14 1,396.48 1,925.84
TOTAL 935.14 1,396.48 1,925.84

b Sensitivity Analysis
Profit or loss is sensitive to higher/ lower interest expense from borrowings as a result of changes in interest
rates. This analysis assumes that all other variables, in particular exchange rates, remain constant and ignores
any impact of forecast sales and purchases.
As at 31st March 2018 and 31st March 2017 (H in Lacs)
Particulars 31st March 2018 31st March 2017
Sensitivity Impact on Sensitivity Impact on
Analysis Profit Other Analysis Profit Other
before tax Equity before tax Equity
Interest Rate Increase by 1% -9.35 -6.12 1% -13.96 -9.13
Interest Rate Decrease by 1% 9.35 6.12 1% 13.96 9.13
135 Associated Alcohols & Breweries Limited // Annual Report 2017-18

Notes to the Financial Statements for the year ended 31st March, 2018
53 Capital Management
The Company objective to manage its capital is to ensure continuity of business while at the same time provide reasonable
returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of
capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure
and strategic investments. Sourcing of capital is done through judicious combination of equity/internal accruals and
borrowings, both short term and long term. Net debt (total borrowings less cash and cash equivalents) to equity ratio is
used to monitor capital.
(H in Lacs)
Particulars As at As at As at
31st March 2018 31st March 2017 1st April 2016
Net Debt 1,890.39 2,851.82 3,523.54
Total Equity 12,076.94 9,695.47 8,097.49
Net Debt to Equity Ratio 0.16 0.29 0.44

54 Revenue recognition under agency arrangement

The arrangement with M/s Kalpatharu Breweries & Distilleries Private Limited has been considered an agency relationship
based on principles of Ind AS 18 and accordingly its trial balance, relating to operations of the Company started from
Financial year 17-18, have been consolidated on line by line basis. The summary of adjustments made are as below:
(H in Lacs)
Particulars As at
31st March 2018
Non-current assets
Financial assets -Loans 0.30
Other non-current assets -
Current assets
Inventories 118.36
Trade receivables 16.77
Other current assets 3.20
Current liabilities
Trade payables 0.63
Financial liabilities - Others 158.74

(H in Lacs)
Particulars 2017-18
Revenue from operations (gross of excise duty) 75.78
Cost of materials consumed 30.63
Increase in inventories of finished goods, work-in-progress and stock-in-trade (83.04)
Other expenses 148.93

Note: In view of arrangement with M/s Kalptharu Breweries & Distilleries Private Limited entered in current year 2017-18
itself, hence previous year figures are not available.
136

Notes to the Financial Statements for the year ended 31st March, 2018
55 Details of Loans given, Investment made and Guarantee given covered u/s 186 (4) of the Companies
Act, 2013
(H in Lacs)
Company Nature of facility 31st March 2018 31st March 2017 1st April 2016
Mount Everest Breweries Limited Investment 267.56 234.72 202.69
Mount Everest Breweries Limited Loan 975.23 293.51 -
Millennium Urja Ltd. Loan 231.84 300.41 250.82
Smilington Holdings Pvt. Ltd. Loan - 71.05 78.10
Malwa Realities Pvt. Ltd. Loan 176.00 158.21 150.44
Manjit Singh Bhatia Loan 128.47 70.06 -
Mount Everest Breweries Limited Guarantee 5,200.00 6,400.00 6,400.00
All loans and corporate guarantee are given for normal business purpose.

56 The Board of Directors at its meeting held on 28th May, 2018 recommended final dividend of H1 per equity share
of face value of H 10 each for the financial year ended 31st March, 2018. The same amounts to H 217.95 Lacs (including
dividend distribution tax of H 37.16 Lacs). The above is subject to approval at the ensuing Annual General Meeting of the
Company and hence not recognized as a liability.

57 Previous GAAP figures have been reclassified/regrouped to confirm the presentation requirements under IND AS and
the requirements laid down in Division-II of the Schedule-III of the Companies Act, 2013.

As per our report of even date

For Singhi & Co. For and on behalf of the Board of Directors
Chartered Accountants
(Firm Registration No.302049E)

(Gopal Jain) Tushar Bhandari Nitin Tibrewal

Partner Whole Time Director Director
(Membership No.059147) DIN:03583114 DIN: 01892892

Indore Sanjay Kumar Tibrewal Sumit Jaitely

May 28, 2018 Chief Financial Officer Company Secretary
 ASSOCIATED ALCOHOLS & BREWERIES LIMITED
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ECS MANDATE FORM

I hereby authorised you to make all payment in respect of my holding in your Company to my bankers for crediting to
my account as detail below:

1. Shareholder Name: __________________________________________________________________________

(In Block Letters) (First holder)

2. FolioNumber/DPID & Client ID No.:______________________________________________________________

(Joint holder, if any)

3. No. of shares held :__________________________________________________________________________

4. Name of the Bank :__________________________________________________________________________

5. Branch Name & Address :______________________________________________________________________

6. Account type : SB A/c Current A/c Other ....................

(Please Specify)

7. Bank Account Number : ______________________________________________________________________

8. IFSC Code : ________________________________________________________________________________

9. PAN :_____________________________________________________________________________________

10. E-mail ID :_________________________________________________________________________________

I/We hereby declare that the particulars given above are correct and complete, if credit is not effected for the reason (s)
of incomplete or incorrect information I/We would not hod the Company responsibility.

Note: Please attach cancelled cheque issued by your bank relating to your above account for verifying the accuracy of
the code number.

Date: ______________________ __________________________________

Signature of the first holder
(As appearing in the Company records)

Certificate of the Investor’s Bank

Certified that the particulars of the bank account furnished above are correct as per our records.

__________________________________
Signature of the first holder
(As appearing in the Company records)
 PROXY FORM
[FORM NO. MGT – 11]

Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies
(Management and Administration) Rules, 2014

Name of the Company Associated Alcohols & Breweries Limited

CIN L15520WB1989PLC047211
Registered office "
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2 Name
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as my /our proxy to attend and vote(on a poll)for me/us and on my/ our behalf at the 29th Annual General Meeting (AGM)
of the Company, to be held on the 24th day of August, 2018 at 10:00 AM at “Shripati Singhania Hall” Rotary Sadan, 94/2,
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Resolution No. Description Option

Ordinary Business For Against
1 To receive, consider and adopt the Audited Financial Statements together with Directors
Report as also the Auditors Report thereon for the year ended March 31, 2018.
2 To declare dividend on Equity Shares for the financial year ending 31st March, 2018
3 To reappoint Mr. Manish Kumar Tibrewal (DIN: 00747559), who is liable to retire by
rotation and has offered himself for reappointment.
4 To confirm reappointment M/s Singhi & Co. as the Auditor of the company on such
remuneration as may be decided by the Board
Special Business
5 To change the registered office of the company from one state to another i.e from
jurisdiction of ROC Kolkata, West Bengal to ROC Gwalior, Madhya Pradesh.
6 To pass resolution relating to service of documents.

Signed this …………………....................……..day of ………………2018

Affix
Signature of Shareholder................................................................................
Revenue
Stamp
Signature of Proxy holder(s)..........................................................................

Note: this form of proxy in order to be effective should be duly completed and deposited at the registered office of the
Company, not less than 48 hour before the commencement of the Annual General Meeting (AGM) i.e. by 10:00 AM on
22nd August, 2018.
 ASSOCIATED ALCOHOLS & BREWERIES LIMITED
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ATTENDANCE SLIP
(To be surrendered at the time of entry)

29th ANNUAL GENERAL MEETING Friday, 24th day of August, 2018 at 10:00 AM
Venue “Shripati Singhania Hall” Rotary Sadan, 94/2, Chawranghee Road, Kolkata – 700 020

I/We hereby certify that I/We/am are registered shareholder / proxy for the registered shareholder of the company and
record my presence at the 29th Annual General Meeting of the Company.

Name:

Folio / DPID /CLID / User Id:

Name of the joint Holders:

Signature of Member(s) / Proxy Present:

Note: This attendance slip should be signed and handed over at the entrance of the meeting hall. The admission may,
however, be subjected to further verification / checks as may be deemed necessary, under no circumstances, will any
duplicate attendance slip be issued at the entrance to the meeting hall.
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