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

Particulars
As on
31.03.2005 31.03.2006 31.03.2007 31.03.2008 31.03.2009 30.06.2009
(D)
Net Worth (A+B+C-D) 1,159.43 1,683.54 2,549.26 4,683.62 5,976.98 6654.62
Represented by Share Capital (I) 768.85 768.85 768.85 1,225.77 1,225.77 1225.77
Reserves 391.76 915.64 1,781.16 3,458.40 4,751.55 5429.18
Less: Revaluation Reserve - - - - - -
Reserves (Net of Revaluation
Reserves) II
391.76 915.64 1,781.16 3,458.40 5,977.32 6654.95
Less Miscellaneous Expenditure III 1.18 0.95 0.75 0.55 0.34 0.33
Net Worth (I+II-III) 1,159.43 1,683.54 2,549.26 4,683.62 5,976.98 6654.62
Notes: None of the fixed assets were revalued during any of the year under reporting.
The reasons for large increase in Sundry Debtors & Current Liabilities during the year ending 31 st
March, 2007 as compared to the previous year ended 31 st March, 2006 are as follows:
i. Sundry Debtors:
a. Sales revenue (net of excise) during the year 2006-07 grew to Rs. 11199.53 lakhs
from Rs. 8683.41 lakhs during the year 2005-06.
b. Country Liquor sales in Delhi commenced from the year 2006-07. It was not there in
the year 2005-06.
c. In Haryana, the Country Liquor policy changed from Auction to Licensing system In the
year 2005-06, the Country Liquor was under auction system; whereby the liquor
traders who got in auction took materials from the factory on cash and carry basis.
From the year 2006-07, for the first time the licensing of shops were introduced and
free competition started. In order to sell the Company’s products, Direct Sales to
Retailers commenced and credit had to be allowed to keep pace with the competition.
d. In Rajasthan, the policy of Country Liquor also changed. In the year 2005-06, the
Trade was in private hands i.e., through auction of individual districts both for
wholesale and retail. Thus the debtors were comparatively low. From the year 2006-07
onwards, the wholesale segment was taken over by Government and the payments
were also released by Government at certain intervals. Thus the level of debtors
increased.
ii.
Sundry Liabilities:
a. Creditors for packing materials increased - Packing materials are required for sales of
Bottled liquor which during the year 2006-07 increased by 58% as compared to the
previous year; increasing the creditors as packing materials are available on credit of
30 days to 60 days period.
b. During the year 2006-07, some balancing equipments were installed in both the
factories for increasing efficiencies and production. The addition to capital during the
year was Rs. 868 lakhs. Thus the creditors for capital goods and capital contractors
increased by Rs. 130.97 lakhs.
c. The provision for taxes in FY 2006-07 increased by Rs 90 lakhs.
The reasons for increase in Sundry Debtors & current Liabilities during the year ending 31 st
March, 2008 as compared to the previous year ended 31 st March, 2007 are as follows:
i. Sundry Debtors:
a. Gross Sales revenue during the year 2007-08 grew to Rs. 23526.01 lakhs from Rs.
11666.70 lakhs during the year 2006-07 i.e. by 102%. Sundry Debtors includes excise
duty also as goods are sold after duty payment. Thus Sundry debtors also increased
proportionately.
b. Country Liquor sales in Delhi commenced from the year 2006-07and the market share
in that year was 8%. In the year 2007-07 the market share increased to 26% resulting
increase in debtors.
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