(m) Provisions, Contingent liabilities and contingent assets:
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount
can be reliably estimated. Provisions are measured at the present value of management’s best estimate of the
expenditure required to settle the present obligation at the end of the reporting period.
A contingent liability exists when there is a possible but not probable obligation, or a present obligation that
may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be
estimated reliably.
All known Liabilities, wherever material, are provided for and Liabilities, which are disputed, are referred to
by way of Notes on Accounts.
(n) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value.
(o) Earnings Per Share:
Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period. The weighted average number
of equity shares outstanding during the period is adjusted for events of bonus issue; bonus element in a rights
issue to existing shareholders; share split; and reverse share split (consolidation of shares).
(p) Fair value measurement:
The Company measures financial instruments at fair value at each balance sheet 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 statement are categorised
within the fair value hierarchy.
(q) Financial Instruments:
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions
of the instruments. All the financial assets and liabilities are measured initially at fair value. Transaction costs
that are directly attributable to the acquisition or issue of financial asset and financial liabilities (other than
financial assets and liabilities carried at fair value through profit or loss) are added or deducted from the fair
value measured on initial recognition of financial asset or financial liability.
(r) Financial assets
Classification and Measurement
All the financial assets are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition of financial asset (other than financial assets carried at fair value through profit or loss) are added
to or deducted from the fair value measured on initial recognition of financial asset.
Subsequent measurement of a financial assets depends on its classification i.e., financial assets carried at
amortised cost or fair value (either through other comprehensive income or through profit or loss). Such
classification is determined on the basis of Company’s business model for managing the financial assets and
the contractual terms of the cash flows.
The Company’s financial assets primarily consists of cash and cash equivalents, trade receivables, loans to
employees and security deposits etc. which are classified as financial assets carried at amortised cost.
Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortised cost. A gain or loss on a financial assets that is subsequently
measured at amortised cost is recognised in profit or loss when the asset is derecognised or impaired. Interest
income from these financial assets is recognised using the effective interest rate method.
Impairment of financial assets
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried
at amortised cost. For trade receivables, the Company provides for lifetime expected credit losses recognised
from initial recognition of the receivables.
Derecognition of financial assets
A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from
the financial asset or retains the contractual rights to receive the cash flows of the financial asset, but assumes
a contractual obligation to pay the cash flows to one or more recipients.
(s) Income recognition
Interest income
Interest income is recognised at contracted rate of interest.
Dividends
Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable
that the economic benefits associated with the dividend will flow to the Company, and the amount of the
dividend can be measured reliably.
(t) Cash flow statement
Cash flows are reported using the indirect method, whereby profit/ loss before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing flows. The cash flows from
operating, investing and financing activities of the Company are segregated
25. Investment Properties
Investment property is measured at cost.
Investment property consists of residential flats, property occupied by tenants and property occupied as tenants.
The Fair Market Value of Investment Property based on ready reckoner rates/ cost is 117.69 crores as on March
31, 2025.
In case of property occupied by tenants, rental income earned is disclosed in the accounts.
26. Clarification regarding note pertaining to “Transport Fee Liability” mentioned in earlier years.
The Company had, along with other manufacturers of Country Liquor and IMFL in the State of Maharashtra,
filed a Writ Petition in the Hon’ble Bombay High Court challenging the applicability of “Transport Fee” under
Bombay Rectified Spirit (Transport in Bond) Rules 1951.
The Hon’ble Bombay high Court by its Order and Judgment dated 6th May, 2011 had allowed the Writ
Petitions and set aside the levy of Transport Fee under the said Rules. The Hon’ble Bombay High Court has
also directed the Government of Maharashtra to Refund the “Transport Fee” Deposited pursuant to the Interim
Order. The Government is yet to Refund the deposit of “Transport Fee” made by the Company.
The State of Maharashtra has also filed a Special Leave Petition in the Hon’ble Supreme Court of India against
the said Order of the Bombay High Court which is pending for admission.
27. MVAT / Income Tax / GST
As alcoholic liquor for human consumption has been kept out of the purview of Goods and Services Tax (GST)
introduced from July 01, 2017, the company’s finished product namely country liquor continues to be taxed
under Maharashtra Value Added Tax (MVAT).
Under the MVAT Act in force from 1/4/2005 there is no procedure for assessment. The Company is filing
monthly MVAT returns on regular basis and all dues have been paid as per the returns. The MVAT department
of Government of Maharashtra has completed Audit of the company’s transactions up to the financial year
2019-20. The Company has also filed the audit report as required under the MVAT Act up to the financial year
2023-24. The GST audit is completed up to F.Y.2021-2022.
The Company has received an order dated March 28, 2025 from the MVAT department, Government of
Maharashtra for the year 2019-20 raising a total demand of Rs. 2,00,92,920/- (Comprising of Tax amount
Interest penalty)
The demand is on account of disallowance of Input Tax credit for the Rectified Spirit purchased from m/s New
Phaltan Sugar Works Distillary Division Limited as the supplier, who even though sold under MVAT, has
made tax payment under GST.
M/s New Phaltan Sugar Works Distillary Division Limited has filed a Writ petition in the Honourable Bombay
High Court seeking clarification whether Rectified Spirit is taxable under MVAT or GST and the Writ Petition
is pending for final disposal.
The Company has also filed an intervener application in the Writ Petition filed by M/s New Phaltan Sugar
Works Distillary Division Limited which is admitted by the honourable Mumbai Highcourt and as such the
matter is Sub-Judice.
The Company now proposes to file an appeal with Jt. Commissioner (Appeals) against the order within the
statutory period of 60 days from the date of the order with prayers to stay the demand till the final disposal of
the Writ Petition by the Bombay High Court.
In view of the Notification dated October 07, 2023 of the GST council, the company is confident of getting a
favourable verdict from the Bombay High Court in this regard. In any case the said demand order will not have
material impact on the financial operations of the company.
The company’s Income Tax assessment has been completed up to assessment year 2020-21 and the demands
raised by the department ( Except demands in disputes ) has already been paid by the company.
33. Deferred Tax
During the year company has created and adjusted deferred tax asset against deferred tax liability of Rs.38.24
Lakhs on account of timing difference of depreciation as per Income Tax Act, 1961 & depreciation debited in
the books of accounts as per the Company’s Act 2013.
34. Segment Reporting:
The Company at present is engaged in the business of manufacture and sale of country liquor, which constitutes
a single business segment.
36. Employees Benefits:
The company has made provisions in the accounts for gratuity base on actuarial valuation. The particulars
under the AS 15 (revised) furnished below are those which are relevant and available to company for this
year.
38. The company has invested a sum of Rs.5.11 Crores in IL&FS by way of preference shares and the company
has received dividend on these shares for the year 2017-18. Even though IL&FS is presently undergoing a
liquidity crisis, pending complete resolution of debt and clarity on rights of preference Shareholders Company
has decided to carry investment at cost.
39. Additional Regulatory Information
Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance
Sheet as given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the
extent relevant and other than those given elsewhere in any other notes to the Financial Statements.
a. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
b. The Company has not been declared as a willful defaulter by any lender who has powers to declare a
company as a willful defaulter at any time during the financial year or after the end of reporting period but
before the date when the financial statements are approved.
c. The Company does not have any transactions with struck-off companies.
d. The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of
Companies (ROC) beyond the statutory period.
e. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the
Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
f. The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including
foreign entities(intermediaries), with the understanding that the intermediary shall;
-Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiaries), or
-Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
g. The Company has not received any funds from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall;
-Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate beneficiaries), or
- Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
h. The Company does not have any transactions which is not recorded in the books of accounts but has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
( such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
i. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
40. As per the proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account
using accounting software which has a feature of recording audit trail ( Edit Log) facility is complied by the
company.
41. The figures of the previous years have been regrouped / rearranged wherever necessary.
Notes forming part of the financial statements & 1 to 41 For & on behalf of Board of Directors
Standard Accounting Policies 1 & 2 G M Breweries Limited
CIN: L15500MH1981PLC025809
As per our report of even date attached Chairman & Managing Director Jimmy Almeida Kashyap DIN 00111905
For V.P. Mehta & Co. Wholetime Director Jyoti Almeida Kashyap DIN 00112031
Chartered Accountants
Firm’s Registration Number :106326W Wholetime Director Kiran Parashare DIN 06587810
Vipul P. Mehta Chief Financial officer S Swaminathan
Proprietor
Membership No.:035722 VP- Finance & C.S. Sandeep Kutchhi
Mumbai, April 15, 2025 Mumbai, April 15, 2025
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