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

Northern India Alcohol
Sales Pvt. Ltd.
The Company is into trading
activities
The main objects is to carry on the
business of traders of Whisky, Gin,
Rum, Brandy, Country Liquor,
Industrial Alcohol, Absolute Alcohol,
other alcohol etc., brokers,
merchants, exporters, importers
etc.
Northern India Alcohol Sales Pvt Ltd
was established for marketing and
developing IMFL, Country Liquor,
Rectified Spirit and Extra-Neutral
Alcohol. The main function of the
company is marketing and trading.
During the past years, the company
has done marketing of Rectified
Spirit, Extra-Neutral Alcohol and
IMFL. At present, the company is
not doing any business.
Promoted by Mr. Ajay Kumar
Swarup
Mr. Ajay Kumar Swarup holds
82.06% equity. Mr. Ajay
Kumar Swarup along with
Mrs. Madhavi Swarup and
Mrs. Saroj Rani Swarup hold
97% equity.
Please refer to page no. 174, 179 and 178 of this Red Herring Prospectus for further details
on the above companies.
20. Non-registration of Company’s registered Office under the Delhi Shops and
Establishment Act may hamper continuation of its administrative operations at a
later date
The Company does not have registration under the Delhi Shops and Establishment Act for its
registered office. If the Company continues not to have the said registration the same may
lead to administrative and/other statutory problems at a later date.
21. The Company has not applied for Registration under Contract Labour (Regulation &
Abolition) Act, 1970 for its Samalkha Unit. Though the Company has registration
under Contract Labour (Regulation & Abolition) Act, 1970 for its Behror Unit, the
application for renewal of the registration was made only on August 5, 2008
though the registration expired on December 31, 2007. The registration under
Contract Labour (Regulation & Abolition) Act, 1970 for Behror Unit has been
renewed upto December 31, 2009.The Non-registration/Delay in registration under
the Contract Labour (Regulation & Abolition) Act, 1970 may hamper continuation
of its operations at a later date.
B. EXTERNAL RISK FACTORS
1. IMFL industry is heavily regulated by the Government
The business of the Company is subject to the respective State government‘s policy on
excise. Changes in the fiscal policies of the Government could have an adverse impact on
the profitability of the Company. A significant change in the Government liberalization and
deregulation policies could affect business and economic conditions in India and the business
of the Company in particular. Adverse changes in other regulation such as the distribution
norms may affect the operations of the Company. States may individually decide to impose
prohibition on the sale of alcoholic beverages including IMFL, as has been done in the past in
a couple of states.
Management Perception
This is a risk applicable to the entire industry. The Company will address the same as and
when required, by falling in line with other industry players. However, any change in
Government Policy that may adversely impact the liquor industry is highly unlikely as the
state governments are heavily dependent on liquor for a large part of their revenues.
xx