RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits
RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits
In respect of the Capital goods and allied machinery being purchased for ongoing projects, the benefit of Cenvat credit is available under Rule 4 of the Cenvat Credit Rules, 2004 subject to fulfilment of the conditions specified. Notes: 1. The above Statement of Possible Direct Tax Benefits sets out the provisions of law in a summary manner only and is not a complete analysis or listing of all potential tax consequences of the purchase, ownership and disposal of equity shares; 2. The above Statement of Possible Direct Tax Benefits sets out the possible tax benefits available to the Company and its shareholders under the current tax laws as amended by the Finance Act, 2006 presently in force in India. Several of these benefits are dependent on the Company or its shareholders fulfilling the conditions prescribed under the relevant tax laws; 3. This statement is only intended to provide general information to the investors and is neither designed nor intended to be a substitute for professional tax advice. In view of the individual nature of the tax consequences, the changing tax laws, each investor is advised to consult his or her own tax consultant with respect to the specific tax implications arising out of their participation in the issue; 4. In respect of non-residents, the tax rates and the consequent taxation mentioned above shall be further subject to any benefits available under the Double Taxation Avoidance Agreement, if any, between India and the country in which the non-resident has fiscal domicile; and 5. The stated benefits will be available only to the sole/first named holder in case the shares are held by joint shareholders. 6. In view of the individual nature of tax consequences, each investor is advised to consult his/her own tax advisor with respect to specific tax consequences of his/her participation in the issue. For B.M. Chatrath & Co. Chartered Accountants (UMESH C. PANDEY) Partner Membership No. : 55252 Place: New Delhi Date : 01.08.2009 63
SECTION IV: ABOUT THE ISSUER COMPANY INDUSTRY OVERVIEW Manufacture of alcohol Alcohol is a member of a class of organic compounds containing carbon, hydrogen and oxygen, considered as hydroxyl derivatives of hydrocarbons, produced by the replacement of one or more hydrogen atoms by one or more hydroxyl (-OH) GROUPS. (Source: About Distillery Industry of India from www.aidaindia.org/aida/about_distillery.html) In India, the bulk of alcohol is being produced from sugarcane molasses. Molasses is a thick viscous bye-product of the sugar industry, which is acidic in nature, rich in salts; dark brown in colour and it also contains sugar, which could not be crystallized. For manufacturing alcohol, the Molasses is diluted with water into a solution containing 15-16% of sugar. This solution is then inoculated with yeast strain and is allowed to ferment at room temperature. The fermented wash is distilled in a series of distillation columns to obtain alcohol of adequate/ requisite strength and quality/ specification. This alcohol is used for various purposes, both potable and industrial. For manufacture of alcoholic beverages, the alcohol is, if required, matured and blended with malt alcohol (for manufacture of whisky) and diluted to requisite strength to obtain the desired type of liquor/ Indian Made Foreign Liquor (IMFL). This is then bottled in bottles of various sizes for the convenience of consumers. (Source: www.aidaindia.org) India is the third largest market for alcoholic beverages in the world. It has over 295 distilleries, which are scattered throughout the country, having an installed capacity for production of 3,540 million litres of alcohol. There has been a steady increase in the production of alcohol in the country, with the production doubling from 887.2 million litres in 1992-93 to 1,654 million litres in 1999-2000 and is estimated to treble to 2300 million litres by 2007-08. The licensed capacity is concentrated mainly in 3 states, viz., Uttar Pradesh, Maharashtra and Tamilnadu. (source: www.aidaindia.org/public/AboutAida.php & www.ptinews.com) According to the Reserve Bank of India’s latest Report on ‘State finances: A study of budgets of 2006-07’, Liquor (Excise) alone is slated to yield Rs. 29,533.48 Cr, making it the largest revenue source for the States after Sales Tax (being Rs. 1,20,709.15 Cr). 64
- Page 39 and 40: Jawahar Vyapar Bhawan, 14th Floor 1
- Page 41 and 42: STATEMENT OF INTER SE ALLOCATION OF
- Page 43 and 44: The grading is however, constrained
- Page 45 and 46: Industry Outlook & Prospects The do
- Page 47 and 48: on a proportionate basis. For furth
- Page 49 and 50: CAPITAL STRUCTURE OF THE COMPANY Sh
- Page 51 and 52: others # 17.4.1995 $ 2,11,640 10 47
- Page 53 and 54: 1.11.1994 Acquisition 18,75,000 10
- Page 55 and 56: Category Code Category of Sharehold
- Page 57 and 58: 8. Mr. Ashok Kumar 33 0.0003 9. Mr.
- Page 59 and 60: OBJECTS OF THE ISSUE The Company pr
- Page 61 and 62: In case of variations in the actual
- Page 63 and 64: 1. Plant and Machinery for 35 KLPD
- Page 65 and 66: Taxes & Duties 127.00 Total 918.00
- Page 67 and 68: Franchise Fees - - - 4.00 Bond Fees
- Page 69 and 70: Mass Media options: • Hoardings 3
- Page 71 and 72: Alcobrew has vide its letter dated
- Page 73 and 74: K GENERAL CORPORATE PURPOSES: The l
- Page 75 and 76: FUNDS DEPLOYED As per the certifica
- Page 77 and 78: Terms of Payment Margin Amount empl
- Page 79 and 80: BASIS FOR ISSUE PRICE The Issue Pri
- Page 81 and 82: Note: The average return on net wor
- Page 83 and 84: STATEMENT OF TAX BENEFITS TAX BENEF
- Page 85 and 86: According to section 10(38) of the
- Page 87 and 88: As per the provisions of Section 11
- Page 89: Tax. However, the aforesaid income
- Page 93 and 94: In India alcohol is largely produce
- Page 95 and 96: Government Policy & Regulations The
- Page 97 and 98: • Scotch rose by 7.0%. Scotch bra
- Page 99 and 100: substantial market share to India s
- Page 101 and 102: As the Company is increasing its In
- Page 103 and 104: Higher level of instrumentation has
- Page 105 and 106: II. ORDERS ALREADY PLACED: Sl. No 1
- Page 107 and 108: Engineering, Plot No. 65, Bhagwati
- Page 109 and 110: 2 nd Stage (Bio-composting) The was
- Page 111 and 112: converts the slurry into a hydrated
- Page 114 and 115: FLOW CHART OF FINISHING GOODS Recti
- Page 116 and 117: The availability of grain particula
- Page 118 and 119: Domestic - 10 KL Per Day TOTAL - 14
- Page 120 and 121: Power Generation Present Requiremen
- Page 122 and 123: The Spent Wash generated from disti
- Page 124 and 125: • White Lace Duet Gin GR 8 Times
- Page 126 and 127: Indian IMFL Industry has undergone
- Page 128 and 129: Certificate dated 23 rd January 200
- Page 130 and 131: 6. Manufacturing Agreement Parties:
- Page 132 and 133: its distinct identity in the Countr
- Page 134 and 135: PROPERTY A. Properties owned by the
- Page 136 and 137: Date of Agreement: 25.3.1995 vide D
- Page 138 and 139: Date of Agreement: 12.1.1995 vide D
SECTION IV:<br />
ABOUT THE ISSUER COMPANY<br />
INDUSTRY OVERVIEW<br />
Manufacture of alcohol<br />
Alcohol is a member of a class of organic compounds containing carbon, hydrogen and oxygen,<br />
considered as hydroxyl derivatives of hydrocarbons, produced by the replacement of one or<br />
more hydrogen atoms by one or more hydroxyl (-OH) GROUPS. (Source: About Distillery<br />
Industry of India from www.aidaindia.org/aida/about_distillery.html)<br />
In India, the bulk of alcohol is being produced from sugarcane molasses. Molasses is a thick<br />
viscous bye-product of the sugar industry, which is acidic in nature, rich in salts; dark brown in<br />
colour and it also contains sugar, which could not be crystallized.<br />
For manufacturing alcohol, the Molasses is diluted with water into a solution containing 15-16%<br />
of sugar. This solution is then inoculated with yeast strain and is allowed to ferment at room<br />
temperature. The fermented wash is distilled in a series of distillation columns to obtain alcohol<br />
of adequate/ requisite strength and quality/ specification. This alcohol is used for various<br />
purposes, both potable and industrial. For manufacture of alcoholic beverages, the alcohol is, if<br />
required, matured and blended with malt alcohol (for manufacture of whisky) and diluted to<br />
requisite strength to obtain the desired type of liquor/ Indian Made Foreign Liquor (IMFL). This is<br />
then bottled in bottles of various sizes for the convenience of consumers.<br />
(Source: www.aidaindia.org)<br />
India is the third largest market for alcoholic beverages in the world. It has over 295 distilleries,<br />
which are scattered throughout the country, having an installed capacity for production of 3,540<br />
million litres of alcohol. There has been a steady increase in the production of alcohol in the<br />
country, with the production doubling from 887.2 million litres in 1992-93 to 1,654 million litres<br />
in 1999-2000 and is estimated to treble to 2300 million litres by 2007-08. The licensed capacity<br />
is concentrated mainly in 3 states, viz., Uttar Pradesh, Maharashtra and Tamilnadu. (source:<br />
www.aidaindia.org/public/AboutAida.php & www.ptinews.com)<br />
According to the Reserve Bank of India’s latest Report on ‘State finances: A study of budgets of<br />
2006-07’, Liquor (Excise) alone is slated to yield Rs. 29,533.48 Cr, making it the largest revenue<br />
source for the States after Sales Tax (being Rs. 1,20,709.15 Cr).<br />
64
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