RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

At each balance sheet an assessment is made whether any indication exists that an
asset has been impaired. If any such indication exists, an impairment loss, i.e., the
amount by which the carrying amount is excess against Recoverable amount, is provided
in the books of accounts.
B. CHANGES IN ACCOUNTING POLICIES IN THE YEARS/PERIODS COVERED IN THE
RESTATED FINANCIALS
There is no change in significant accounting policies during the reporting period except as and
when Accounting Standards issued by the Institute of Chartered Accountants of India were made
applicable on the relevant dates.
ANNEXURE-IV
NOTES TO ACCOUNTS
1. In the opinion of the Board, the value of Current Assets, Loans & Advances in the
ordinary course of business will not be less than the value at which they have been
stated in the Balance sheet.
2. Balances of Debtor & creditors and Advances to and from parties are subject to
Reconciliation & Confirmation.
3. The amount falling due within one year in respect of Secured Loans is Rs.92,00,000/-
4. The profit & loss account and Balance sheet comply with accounting standards referred
to in section 211(3C) of the companies Act 1956.
5. Accounting Standard (AS) -17 on “Segment Reporting “ is not applicable in case of
company because company is involved in only one type of product, i.e., Industrial &
Potable Alcohol.
6. There is no amount due to small-scale industries over Rs.1 lac shown under the head
“sundry creditors”.
7. “Deferred revenue- Brand Promotion Expenses” appearing in the Balance Sheet
(Annexure – I) are the expenditure incurred on promoting company’s new IMFL brands
already launched during the year 2007 and which will give perpetual benefit to the
company and thus it is shown under the head Deferred revenue- Brand Promotion
Expenses, which will be written off in five years.
8. In accordance with the Accounting Standards (AS-18) on “Related Party Disclosures”,
where control exists and where key management personnel are able to exercise
significant influence and, where transactions have taken place during the year, alongwith
description of relationship as identified, are given below:-
RELATED PARTIES DISCLOSURES
DETAILS OF RELATED PARTIES - AS PER AS 18
Nature of relationship Name of related party
Enterprises in which
the Key Management
Persons have total
control
M/s Associated Distilleries Limited
(ADL)
M/s Rambagh Estate Pvt. Ltd.
M/s SVP Industries Ltd.
Remarks
Transactions incurred during 2004-05,
2005-06, 2006-07, 2007-08, 2008-09 &
quarter ended June 2009.
(Transaction occurred during 2006-07,
2007-08, 2008-09 & quarter ended June
2009.)
(Transaction occurred only during 2005-
06 and not a related party during 2006-
07 and thereafter)
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