SKOL Breweries Limited

Annual Report 2008

 Managing Director
Speaks
prospects of the Industry and the Group.
This time the conference was held in
Our core brands are...
India keeping in mind the growth Hayward’s 5000
potential of the Indian beer market and Launched in 1983, Hayward’s 5000 is
the way the Indian economy has been synonymous with strong beer and is one
performing. The holding of the of the largest selling beers in India.
Conference in India shows the The hallmark of an original and authentic
commitment and confidence that the strong beer, it perfectly combines strength
SABMiller Group has in India, in the and quality to meet the high expectations
management team here and in India’s of today’s demanding consumers.
growth story. Hayward’s 5000 has recorded a growth
I am happy to report that the year of 13%. The growth could have been
2007-2008 has been a good year for much higher but for our inability to
the Company. The Company has made participate fully in Tamil Nadu.
a profit of Rs 34.4 Crores. The net During the year under review the Brand
turnover of the Company has increased has signed up Bollywood superstars
from Rs. 897.59 crores to Rs. 1086.67 Mr. Sanjay Dutt and Mr. Sunil Shetty as
crores resulting in a growth of 25%. brand ambassadors. The macho image
We are happy to say that the net of the stars goes well with the strong
turnover has crossed Rs.1000 crores. image of the Brand. This association will
take the Brand to new heights.
Royal Challenge
Sales in Rs. Crores
1200
Launched in the year 1983,
Royal Challenge Premium Lager is the
Dear Shareholders, 1086 second largest selling mild beer in India.
The brand positioning is that this is the
I extend my warm greetings to all of you 1000
beer for the discerning consumer who has
and have the pleasure of presenting the the confidence to make a choice based
897
Annual Report for the year 2007-08. on superior taste and knowledge and
The Indian economy is generally on a 800 stand apart rather than be part of a
roll and the GDP growth rate has been crowd.
at 8.7% for the year ended March 2008. 611 It offers a difference with an edge.
This is commendable as the last three 600
Besides its international class packaging,
years growth rate has been around 9%. 501 premium image and path breaking
The only concern now is the slow rate advertising, what sets the brand apart
of agricultural growth, a marginal slow 400
is a distinctly smooth and easy
down in manufacturing sector flowing taste.
and the biggest challenge being control
of inflation primarily led by galloping 200 Royal Challenge has grown by 12.8%.
oil prices. In Andhra Pradesh, the largest beer
market in the Country, the brand is the
The consumer confidence and raising market leader with a mild beer segment
0
income levels help in accelerating 2005 2006 2007 2008 share of 52.8% and has grown by 20.9%.
the momentum in the beer industry. Years
Increasing urbanization and development Knockout
of a large middle class is bringing in new Launched in 1984, Knock Out has clearly
The industry has grown at 14.3% and carved for itself a distinctive segment –
consumers, with new attitudes and our growth is 15.8%, which is well above
behaviors towards beer. “The Strongest Beer” and is the 3rd largest
the Industry’s average. This growth has, selling strong beer brand in the country.
With the Indian economy doing so well however, been limited by production It has continued to perform well and has
everyone is looking at India, SABMiller capacity which is being addressed. grown at 20.5% over the pervious year.
is no exception. Every three years the Your Company is taking steps to The brand has strong presence in
SABMiller group has a global leadership increase its manufacturing capacity not most southern and central states in India.
conference in which the top 300 only to meet the present demand but The brand has Kannada action hero
executives meet to discuss the future also the future demand. Mr. Darshan as its ambassador.

SKOL Breweries Limited 1

Foster’s more responsive and in tune with market putting up will have the latest technology
Completed one year after coming into the conditions. for conserving water and we will
SABMiller stable. The Brand had not been On the manufacturing front there has benchmark our water usage to global
performing up to its potential before it was been an all round improvement in the standards. Even in our Saanjhi Unnati
taken over by us on account of production Company. Water usage per HL is down programme we are looking at ways to
and distribution constraints. We are happy 14%, Power Consumption is down 6%. grow barley using less water.
to state that the decline which the brand This is in addition to the saving of 14% In terms of our Corporate Social
was facing has not only been stemmed in water and 13% in power last year. Responsibility, an agreement has been
but the brand has grown over 45%. These actions continue to enhance our signed with the ILO for promoting
The Brand is now available all over India. competitiveness in the market. HIV/AIDS awareness. The Company’s
Foster's is a clear leader in the premium Saanjhi Unnati Programme for
segment both in volume and image terms. De-regulation of the market remains the
biggest challenge for the Industry. There development of Barley cultivation in
It leads the development of what we call India has been progressing very well and
the worthmore segment in India. has been some progress but a lot needs
to be done. Tamil Nadu opening its a large number of farmers particularly in
For the year ended March 08 we had market for imports from other states is Rajasthan have been benefited.
an all India market share of 34.8%. good news, considering that it is the We believe that the Saanjhi Unnati
The Company is in the forefront of new Second biggest beer market in India. programme will in the long run help us to
product development and firmly believes But the import duty fees being charged be self sufficient in Barley and at the
that in order to grow the market it has to by Tamil Nadu are on the higher side. same time will have a positive impact on
continuously innovate. As a part of this Your Company along with AIBA is in the the lives of the farmers, thereby being a
innovation the Company proposes to forefront of lobbying with the various win-win situation for both.
launch Indus Pride in the Mild segment state governments for the rationalization
which will be India's first 100% malt- As India is one of the fastest growing
in policies across states in this Industry. markets, your Company will continue to
based Beer alongwith a 100% malt-based
beverage. The beer has been specially Your Company believes in sustainable receive strong regional and global
developed in accordance with research growth. Water is very important to backing from SABMiller, and access to
findings to suit the Indian tastes. sustaining of life and a critical raw its intellectual, technology, brands and
material for our industry. Your Company human capital.
Your Company has introduced its global believes in saving water and has adopted
brand Peroni in Mumbai last year and the I wish to thank each one of you for your
the 5R' philosophy at its manufacturing support. We look forward to an exciting
same has also been launched in New locations. Namely, Replenish, Reduce,
Delhi and Bangalore. Peroni Nastro year ahead of us.
Recycle, Re-use and Redistribute. Your
Azzurro is an intensely crisp, dry and Company has tied up with CII and other
refreshing lager, with a clean character & stakeholders to identify opportunities to
clarity. It is expertly brewed in Italy to the Cheers
manage watersheds and harvesting of
original recipe since 1963 and has an rain water to augment the reserves that Jean - Marc Delpon de Vaux
unmistakable touch of Italian style. we have. All the new plants we are
This premium beer uses the finest variety
of spring-planted barley and the highest
quality maize, malts and hops. It has been
very well received in the market.
In Mumbai it already has 35% market
share of the imported beer market.
The Company is evaluating the market to
see which other international brands it can
launch in India.
During the last couple of years five major
international brewers have entered into the
Indian Beer market. With Heineken likely
to partner UB the market dynamics is
going to undergo a sea change. With
increased competition the market is only
expected to grow.
Your Company in order to take the
business to the next level of growth has
restructured itself as an organization in
order to drive profitable growth.
The new structure will make the Company
 SKOL Breweries Limited
SKOL currently manages nine breweries continuous improvement at all breweries. Central Distilleries & Breweries
across India. These breweries share a The MEP “tree” symbol is displayed at (CDB),Uttar Pradesh
common basic function; to brew beer to all breweries and reminds everyone what Brewery capacity was enhanced by the
be sold to our customers. Beer is a we are trying to achieve. commissioning of a new warehouse and
beverage produced by the fermentation
of cereal sugars by yeast. The brewing
process is very similar at all of our THE BREWERY PROCESS
breweries to ensure that are brands are Barley Malt

produced consistently across the country.

Throughout the year our breweries
focused on making sure our processes
were consistent across the country.
In addition, much effort has been made
MILLING MASHING LAUTERING BOILING
to increase our capability by enhancing WHIRLPOOLING
the competence levels of our workers,
installing new plant and equipment and
ensuring that all our breweries run
smoothly and according to their design.
All this has been done to ensure that our FILTERING MATURING FERMENTING
COOLING
customers have ready access to our
brands, at the right price and in perfect
condition.
During the year our breweries faced some
common issues which were dealt with PACKAGING DISTRIBUTION
effectively. These include variable quality
of raw materials (especially malt and glass
bottles), easing environmental stress by Here are some highlights from upgradation of brewing and packaging
reducing power and water usage rates our breweries: plants. In January 2008 Fosters Lager was
and improving the quality of our brewing brewed here for the first time.
Rochees Breweries (RB), Rajasthan
and packaging processes to provide our Management also focused on workplace
The brewery motto, “Solid 10 in 10”,
customers with the best beer possible. safety and crisis management. A training
reflects the team’s commitment to
In addition to brewing beer and achieving the best tasting beer. Developing plan was implemented to improve
consistently meeting market demand, staff capability was a priority in 2007/8. workplace competence even further.
management and staff at all our breweries RBL is the “Campus Brewery” focusing on A major clean up operation and a medical
demonstrated commitment to serving hygiene and cleanliness. camp were held to help improve quality of
their local communities, protecting the life in the local community.
Significant investment has been made
environment and assuring the safety and
enabling the successful commissioning Pals (PB), Maharashtra
good health of everybody working in or
of a new can packaging line, effluent and The major effort was to improve quality as
visiting our facilities.
water treatment plants, filtration plant the “Campus Brewery” focusing on best
During the year SKOL introduced the and yeast drier. Thus the overall capacity practice in bright beer production.
concept of “Campus Breweries”. of the brewery was significantly enhanced.
This concept is an effective method of A competition was held for brewery staff
In the community the team facilitated to design the brewery motto. The winner
developing and communicating learnings
plantation of 900 trees, organized blood was “SONERI SOMRAS SONERI SANDHI”.
from one brewery to others. This enables
donation camp, HIV awareness
other breweries in the group to learn from A training session was held to certify 27
workshops, health camps and polio
each other and develop faster. Campus advanced tasters into the SABMiller Global
vaccinations drives.
breweries have been set up at our larger (Beer) Tasting System. Delegates were
breweries to perform specific projects, Haryana Breweries (HB), Haryana from all over India.
which are of benefit to all the other Construction of a new 1 million hl pa
East Coast Breweries (ECB), Orissa
breweries in the group. The driving force brewery on the current site commenced.
The brewery stepped forward in terms of
for this is a manufacturing excellence The existing brewery maintained very high
quality and safety management.
programme (MEP), which is the tool for quality standards.

2
SKOL Breweries Limited 3
4

Environment and safety awareness All employees were given basic fire-fighting SICA Breweries (SB), Puducherry
sessions were held in the local community. and first aid training. Several workers with A major expansion took place to increase
The ECB team also drove HIV awareness more than 25 years service each had their capacity above 300,000 hl pa. Extensive
and set up a health camp for the people achievement recognized at a ceremony upgrades took place in Brewing,
of Cuttack. in February. Packaging and Utilities supply areas.
Employees were encouraged to enjoy Malabar Breweries (MB), Kerala Management focused on workplace
themselves at work (“puja, picnics & Brewery capacity has been increased safety and environmental management
prizes”). An employee competition was by upgrading cellars tanks and raw improvement.
held to decide on the brewery safety materials storage facilities. In August the
management statement. brewery was awarded the SABMiller India
ECB was nominated by the labour “Best Brewery” award.
commissioner to receive the award for
the best factory with the “Employer –
Employee Relationship”
Charminar Breweries (CB), Andhra
Pradesh
Managed by SKOL since 2003, CBL is
our largest brewery.
Work also commenced to increase that
capacity a further 50% (including a new
21,000 bottles per hour packaging line,
draft beer unit, effluent/water treatment
plants, solid fuel boiler). The brewery
motto is “winning & working in teams”.
There has been emphasis on team-
building and skills enhancement.
Major strides in 2007/8 include
implementation of a new maintenance
management system and a major
reduction in power and water usage
ratios (the best in SABMiller India).
CBL was runner up in the SABMiller Africa
and Asia “Best Brewery” competition.
CBL is the “Campus Brewery” for both
yeast management and bottle washing.
The team has been very active in the
community; health care programmes,
disease awareness programmes (AIDS, TB,
Polio), providing drinking water and street
lighting in Shivampet village and helping to
develop the local school.
Mysore Breweries (MB), Karnataka
A new 15,000 units per hour canning line
was commissioned. MBL is the “Campus
Brewery” for the improvement of bottle
labelling and outer packaging appearance.
There has been much focus on
environment and safety management,
both in the brewery and the local
community. During the annual “Safety
Awareness Week” employees were given
training on managing safety in the home.
Families were involved and industrial
theatre was used as a communication tool.
 SKOL Breweries Limited

Board of Directors Registered Office

Mr. Ari Mervis - Chairman No.1, Mahal Industrial Estate,
Mr. Jonathan Andrew Kirby Mahakali Road,
Ms. Sue Clark Andheri (East),
Mr. Richard (Pete) L Lloyd Mumbai – 400 093
Ms. Maya Makanjee - up to 23.06.2008
Mr. T.S.R. Subramanian - from 23.06.2008 Corporate Office
Mr. Jean-Marc Delpon de Vaux - Managing Director Jalahalli Camp Road,
Yeshwanthpur,
Statutory Auditors Bangalore-560 022
BSR & Co.,
Chartered Accountants Audit Committee
Maruthi Info-Tech Centre, Mr. Jonathan Andrew Kirby - Chairman
11-12/1, Inner Ring Road, Mr. Ari Mervis
Koramangala, Bangalore – 560 071 Ms. Maya Makanjee - up to 23.06.2008
Mr. Richard (Pete) L Lloyd - from 23.06.2008
Bankers
Standard Chartered Bank
ABN Amro Bank
The Hongkong & Shanghai Banking Corporation
Societe Generale
ICICI Bank Limited

Registrar & Shar

Sharee T ransfer Agent
Transfer
Sharepro Services (India) Pvt Ltd
Satam Estate, 3rd Floor,
Above Bank of Baroda, Haryana
Cardinal Gracious Road, CDB
HB
Chakala, Andheri (E), Mumbai – 400 099 RB
Uttar Pradesh
Rajasthan

Orissa

PALS ECB

Maharashtra

Andhra Pradesh

CB
Karnataka

MB

HB: Haryana Breweries

CDB: Central Distilleries & Breweries
Malabar
RB: Rochees Breweries
PALS: PALS Pondicherry
ECB: East Coast Breweries Kerala SICA
CB: Charminar Breweries
MB: Mysore Breweries
Malabar: Malabar Breweries
SICA: SICA Breweries

4
SKOL Breweries Limited
5
Notice

NOTICE is hereby given that the 19th RESOL

RESOLVEDVED THA
THATT Mr. T.S.R. All other terms and conditions as
Annual General Meeting of the members Subramanian, who in terms of approved by the Central
of the Company will be held at M.C. Ghia Section 260 of the Companies Act, Government and members will
Hall, Bhogilal Hargovindas Building, 2nd 1956 holds office till the date of this remain same.
floor, 18/20, K. Dubash Marg, Behind Annual General Meeting, and in
RESOL
RESOLVEDVED FUR THER THA
FURTHER T in the
THAT
Prince of Wales Museum, Kala Ghoda, respect of whom a notice has been
event of loss or absence or
Mumbai – 400 001 on Wednesday, the received from a Member under
inadequacy of profits during any
10th September, 2008 at 3.00 p.m. to Section 257 of the said Act, be and
financial year, the above
transact the following business: is hereby appointed a Director of the
remuneration shall be treated as
Company liable to retire by rotation.
Ordinary Business: minimum remuneration payable to
06. To consider revision of remuneration Mr. Jean-Marc Delpon de Vaux.
01. To receive, consider and adopt the
of Mr. Jean-Marc Delpon de Vaux,
Audited Balance Sheet as at 31st 07. To consider increase in Borrowing
Managing Director of the Company.
March, 2008 and the Profit & Loss Powers.
Account for the year ended on that To consider and if thought fit, to
To consider and if thought fit, to
date and the Report of the Directors pass, with or without modification/s,
pass, with or without modification/s,
and Auditors thereon. the following Resolution as a Special
the following Resolution as a Special
Resolution:
02. To appoint a Director in place of Resolution:
Mr. Jonathan Andrew Kirby, who RESOL
RESOLVED VED THA
THATT pursuant to the
RESOL
RESOLVED VED THA
THAT T pursuant to
retires by rotation at this meeting provisions of Sections 198, 269,
Section 293(1)(d) of the Companies
and being eligible, offers himself for 309 and 310 and other applicable
Act, 1956 and other enabling
re-appointment. provisions, if any, of the Companies
provisions, if any, of the said Act,
Act, 1956 (hereinafter called the
03. RESOL
RESOLVEDVED THA
THAT T M/s. BSR & Co., consent be and is hereby accorded
“Act”) read with Schedule XIII to the
Chartered Accountants, who retire to the Board of Directors of the
said Act as amended up to date or
at the conclusion of this Annual Company for borrowing any sum or
any statutory modification or re-
General Meeting be and are hereby sums of money from time to time
enactment thereof and subject to
appointed as Statutory Auditors of from one or more body corporate,
the approval of shareholders and
the Company till the next Annual banks or financial institutions or the
Central Government, the
General Meeting at a remuneration public by way of cash, credit
remuneration payable to Mr. Jean-
to be fixed by the Board of Directors advances, deposits or other loans
Marc Delpon de Vaux is being
and billed progressively. whether secured or unsecured by
increased as set out below with
mortgage, charge, hypothecation or
Special Business: liberty to the Directors to alter and
pledge of the Company’s assets and
vary the terms and conditions of the
04. To consider appointment of Mr. Ari properties whether movables and/or
remuneration as the case may be as
Mervis as Director of the Company. immovables or stock-in-trade
suggested by the shareholders/
(including book debts, bills, raw
To consider and if thought fit, to Central Government and agreed to
materials, stores and spare parts
pass with or without modification, between the Directors and Mr. Jean-
and components in stock or in
the following Resolution as an Marc Delpon de Vaux or as may be
transit) work-in-progress and debts
Ordinary Resolution: varied in the General Meeting.
and advances notwithstanding that
RESOL
RESOLVEDVED THA
THAT T Mr. Ari Mervis, I. (a) Salary : Up to Rs. 25,00,000/- per the sum or sums so borrowed
who in terms of Section 260 of the month together with the money’s, if any,
Companies Act, 1956 holds office till already borrowed by the Company
The annual increments will be
the date of this Annual General (apart from the temporary loans
decided by the Board of Directors
Meeting, and in respect of whom a obtained from the Company’s
depending upon the profitability of
notice has been received from a the Company and other relevant
Member under Section 257 of the factors.
said Act, be and is hereby appointed
a Director of the Company liable to
retire by rotation.
05. To consider appointment of
Mr. T.S.R. Subramanian as Director
of the Company.
To consider and if thought fit, to
pass with or without modification,
the following Resolution as an
Ordinary Resolution:
 bankers in the ordinary course of V. The Authorised Share Capital of the SABMiller Asia B.V. 50,000,000
business) may exceed in the Company is Rs. 3,000,000,000 Equity shares of the Company of the
aggregate paid-up capital of the (Rupees Three hundred crores only) face value of Rs.10/- each at a
Company and its free reserves divided into 300,000,000 Equity premium of Rs. 46/- per share.
which have not been set part for any shares of Rs.10/- each. The
RESOL
RESOLVED VED FUR THER THA
FURTHER THAT T such
specific purpose but so that the Company has power, from time to
new equity shares shall rank pari
total amount up to which the time, to increase or reduce its
passu with the existing equity shares
moneys may be so borrowed shall capital and divide the shares in the
of the Company, except that they
not at any one time exceed capital for the time being into several
shall not rank for dividend, if any,
Rs.1500 crores. classes and to attach thereto
declared or paid in respect of any
respectively such preferential,
08. To consider an increase in the financial year of the Company prior
deferred, qualified or other special
Authorized Share Capital of the to the financial year in which they are
rights, privileges conditions or
Company: allotted and shall rank for dividend
restrictions as may be determined
pari passu from the date of their
To consider and if thought fit, to by or in accordance with the Articles
allotment in respect of the financial
pass, with or without modification/s, of Association of the Company and
year in which they are allotted.
the following Resolution as a Special to vary, modify or abrogate any
Resolution. such right, privilege or condition or RESOL
RESOLVED VED FUR THER THA
FURTHER THATT Mr.
restrictions in such manner as may Jean-Marc Delpon de Vaux and Mr.
RESOL
RESOLVEDVED THA
THAT T in accordance for the time being be permitted by Kevin Heydenrych be and are hereby
with the provisions of Section 94 the Articles of Association of the jointly and/or severally authorized to
and other applicable provisions of Company or the legislative negotiate, execute and deliver any
the Companies Act, 1956 (including provisions for the time being in force agreement, letter, deed or document
any statutory modification(s) or re- in that behalf. or any amendments or modifications
enactment thereof, for the time
thereto in connection with the
being in force) the existing 09. To consider a preferential issue of
aforesaid preferential issue of shares
Authorised Share Capital of the shares.
in favour of SABMiller Asia B.V. and
Company be and is hereby
To consider and if thought fit, to to sign, execute, deliver and/or file all
increased from Rs. 2,500,000,000
pass, with or without modification/s, relevant forms, filings, reports,
(Rupees Two hundred fifty crores
the following Resolution as a Special documents, etc., required by any
only) divided into 250,000,000
Resolution. applicable regulations including with
Equity shares of Rs.10/- (Rupees
any regulatory authorities or an
ten only) each to Rs. 3,000,000,000 RESOL
RESOLVED VED THA
THAT T , pursuant to the
authorized dealer in terms of Indian
(Rupees Three hundred crores only) provisions of Section 81(1A) and
exchange control regulations.
divided into 300,000,000 Equity other applicable provisions (if any) of
shares of Rs.10/- (Rupees Ten only) the Companies Act, 1956, the BY ORDER OF THE BOARD
each and the Memorandum of Unlisted Public Companies
Pramod S M
Association of the Company be (Preferential Allotment) Rules, 2003
Company Secretary
altered accordingly. and the relevant provisions of the
Memorandum and Articles of Date : 23rd June, 2008
RESOL
RESOLVEDVED FUR THER THA
FURTHER THATT the
Association of the Company, the Place : Bangalore
existing Clause V of the
consent of the Company be and is
Memorandum of Association be and
hereby accorded to offer, issue and/
is hereby substituted by the
or allot on preferential basis to
following Clause V:

6
SKOL Breweries Limited
7
NOTES: unclaimed and unpaid for a period of 5. Mr. T.S.R. Subramanian is a Diploma
7 years and transferred to the Fund in Mathematics from Imperial
01. A member entitled to attend and and no payment shall be made in College, London and has done his
vote at the meeting is entitled to respect of any such claim. Masters in Public Administration
appoint a proxy to attend and vote from Harvard University. He is an
on a poll in his/her stead. A proxy Explanatory Statement pursuant to
Ex IAS officer who held various
need not be a member of the Section 173(2) of the Companies
senior positions in the Government
Company. Proxies in order to be Act, 1956.
including the post of Cabinet
effective must be deposited at the Secretary to the Government
Item Nos. 2, 4, 5, 6, 7, 8 and 9
registered office of the Company not of India.
less than forty-eight hours before A brief resume of the Directors
the meeting. A blank proxy form is offering themselves for re-election is Except for Mr. T.S.R. Subramanian,
enclosed. given below: no other Director is interested in the
aforesaid Resolution.
02. The Register of Members and the 2. Mr. Jonathan Andrew Kirby is a
Share Transfer Books of the B. Accounting (University of the 6. Mr. Jean-Marc Delpon de Vaux was
Company will remain closed from Witwatersrand), CA (SA) and has 21 appointed as Managing Director of
1st September, 2008 to 10th years of rich experience. He is the the Company w.e.f. 1st August, 2006
September, 2008 [both days CFO of SABMiller Africa. at the Board Meeting held on 17th
inclusive]. July, 2006. His appointment and
Except for Mr. Jonathan Andrew remuneration payable has been
03. For convenience of members an Kirby, no other Director is interested approved by the members and the
attendance slip is also annexed. in the aforesaid Resolution. Central Government vide its letter
Members are requested to affix their dated 18th June, 2007. The
4. Mr. Ari Mervis is a B.Com with major
signature at the space provided Remuneration Committee, subject
therefore and handover the same at in Economics, Marketing and
Commercial Law. He is the Managing to the approval of the Members and
the place of meeting. The proxy of a the Central Government has
member should mark on the Director of SABMiller Asia. He has
held a number of senior positions in approved the increase in
attendance slip as Proxy. Members remuneration of Mr. Jean-Marc
are also requested to bring their the SABMiller Group.
Delpon de Vaux. Accordingly
copies of the Annual Report to the Except for Mr. Ari Mervis, no other resolution for increase in
venue of the meeting. Director is interested in the aforesaid remuneration of Mr. Jean-Marc
Resolution. Delpon de Vaux as Managing
04. All queries relating to non-receipt of
share certificates after transfer/ Director is placed before you for
transmission/ dematerialization/ your approval. The information as
rematerialisation, mandates, change required under Schedule XIII Part II,
of address, nomination, etc., may be Section II 1 (C) is given below:
sent to the Registrar & Share
Transfer Agents, M/s. Sharepro I. General Information:
Services (India) Pvt. Ltd, Satam
Estate, 3rd Floor, Above Bank of 1. Nature of Industry The Company is engaged in
Baroda, Cardinal Gracious Road, manufacture and sale of Beer
Chakala, Andheri (East), Mumbai
2. Date or expected date of The Company is an existing Company
400 099, Tel: (022) 67720334 /
commencement of commercial
67720300, Fax: (022) 28375646,
production
Email [email protected].
3. In case of new companies, N.A.
05. Pursuant to Section 205C of the
expected date of
Companies Act, 1956 all unclaimed
commencement of activities
dividends up to the Financial Year
as per project approved by
1999-2000 have been transferred
financial institutions appearing
to the Investor Education and
in the prospectus.
Protection Fund. Members of the
erstwhile Mysore Breweries Limited, 4. Financial performance based on 31-3-09 31-3-10 31-3-11
Pals Distilleries Limited, Charminar given indicators Rs.Crores
Breweries Limited and SICA
Turnover 2732 3127 3700
Breweries Limited who have not yet
claimed their dividend for the Profit before tax (41) 20 29
financial year 2000-2001 and
thereafter, may claim from the 5. Export performance and net 31-3-06 31-3-07 31-3-08
Company before the same is foreign exchange collaborations Rs.Crores
transferred to the Fund. It may be 0.06 Nil 7
noted that no claims shall lie against
6. Foreign investments or Nil
the Company or the Fund in respect
collaborators, if any
of individual amounts which were
 Notice

II. Information about the appointee: IV

IV.. Disclosures:
As the Company is not a listed
1. Background details
company, disclosure on Corporate
Mr. Jean-Marc Delpon de Vaux worked for Unilever for 25 years where he held Governance is not mandatory and
numerous senior marketing and general management positions, including hence not given.
Chairman and CEO of the Maghreb region.
None of the Directors are interested
in the said resolution except
Mr. Jean-Marc Delpon de Vaux
2. Past remuneration 2006-07 2007-08
to the extent of remuneration
Rs.1,49,74,236 2,24,34,669 proposed.
7. At the Annual General Meeting of
3. Recognition or awards NA the Company held on 29th
November 2005, the Members
4. Job profile and his suitability With the vast and rich experience empowered the Board of Directors
Mr. Jean-Marc Delpon de Vaux is a under Section 293(1)(d) of the
suitable candidate to look after the entire Companies Act, 1956 to borrow
Indian beer operations. Under his tenure monies for the business purposes
as Managing Director the Turnover of the of the Company up to a limit of
Company has increased by 28%. Rs.1000 Crores. Keeping in view
the Company’s business
requirements and its investment and
5. Remuneration proposed As set out in the resolution growth plans, it is considered
desirable to increase the said
6. Comparative remuneration Mr. Jean-Marc Delpon de Vaux represents borrowing limits to Rs.1500 Crores
profile with respect to industry SABMiller which is among the leading as outlined in the resolution.
size of the Company, profile of breweries of the world and his
the position and person (in compensation is determined in In terms of the provisions of Section
case of expatriates the accordance with the prevalent system in 293 (1) (d) of the Companies Act,
relevant details would be w.r.t. the SABMiller Group and in keeping with 1956, approval of the members is
the country of his origin) persons of his qualification, experience. being accordingly sought through
resolution under item no.7 for such
7. Pecuniary relationship directly No pecuniary relationship increase in limits.
or indirectly with the Company, Directly or Indirectly with the Company or 8. The Company requires to be
or relationship with the any managerial personnel capitalized to enable it to pay down
managerial personnel, if any. some of its debts and for other
corporate purposes. The Company
proposes to issue and allot, on
III. Other information: preferential basis 50000000 equity
shares of face value Rs. 10/- each
to SABMiller Asia B.V. at a premium
1. Reasons of loss or The cost of Malt and fuel the main raw of Rs. 46/- per share.
inadequate profits material has gone up during the year by This will require the Company to
more than 100%. Higher Depreciation raise its Authorized Share Capital.
and interest costs The Special Resolution set out at
item no. 8 in the notice is intended
2. Steps taken or proposed to The Company has started building long to obtain such approval and the
be taken for improvement term collaborative relationships with Board recommends the resolution
farming communities through for your approval.
programmes such as Saanjhi Unnati. To
bring down the interest cost equity None of the Directors of the
infusion is being considered. Company are deemed to be
interested in the said resolution. The
3. Expected increase in Board recommends the adoption of
productivity and profits in the resolution.
measurable terms. 31-3-09 31-3-10 31-3-11 9. As stated above, the Company
Rs.Crores proposes to issue and allot, on a
preferential basis 50000000 equity
Turnover 2732 3127 3700 shares of face value Rs. 10/- each
Profit before tax (41) 20 29 to SABMiller Asia B.V. at a premium
of Rs. 46/- per share (based on the
valuation report) which requires

8
SKOL Breweries Limited
9
Notice

shareholders’ approval under Shares of the Company to

section 81 (1A) of the Companies SABMiller Asia B.V. for cash and to
Act, 1956. utilize the money received hereunder
for the purpose of paying down
Information as required under
some of its debts and for other
Unlisted Public Companies
corporate purposes.
(Preferential Allotment) Rules, 2003
is given below. d. The class or classes of persons to
whom the allotment is proposed to
a. The price of price band at which
be made: The allotment will be made
allotment is proposed: The Equity
to SABMiller Asia B.V.
Shares of Rs.10/- each will be
allotted at a premium of Rs.46/- per e. Intention of promoters/directors/key
Share. management persons to subscribe
to the offer: SABMiller Asia B.V. has
b. The relevant date on the basis of
signified its intention of subscribing
which price has been arrived at: 31st
to the issue.
March, 2008
f. Shareholding pattern of promoters
c. The objects of the issue through
and others classes of shares before
preferential offer: To issue Equity
and after the offer: The shareholding

Category Pre Issue Post Issue

No of Shares % No of Shares %

A Promoter
omoter’’s holding
Promoter 229384473 99.22 279384473 99.38
Sub total 229384473 99.22 279384473 99.38

B Non-Promoters Holding
Institutional Investors
a Mutual Funds and UTI 2240 0.00 2240 0.00
b Banks, Insurance co, FI 4008 0.00 4008 0.00
c FII - - - -
Sub total 6248 0.00 6248 0.00

Others
a Private Corporate Bodies 73168 0.03 73168 0.02
b Indian public 1616291 0.70 1616291 0.57
c NRI 103565 0.04 103565 0.02
d Any other - - - -
Sub total 1793024 0.78 1739533 0.62

Total 231183745 100.00 281130254 100.00

pattern of the Company before and None of the Directors of the

after the issue is set out below Company are deemed to be
interested in the said resolution.
g. Proposed time within which the
allotment shall be completed: within The Board recommends the
one year from the date of the AGM adoption of the resolution
h. Whether a change in control is BY ORDER OF THE BOARD
intended or expected: There will be
Pramod S M
no change in control of the
Company Secretary
Company after the preferential issue.
Date : 23rd June, 2008
Place : Bangalore
 10
SKOL Breweries Limited
11
Directors’ Report

Dear Members,
Your Directors have pleasure in submitting their report and the Statement of
accounts for the year ended 31st March 2008.

FINANCIAL RESULTS
RESULTS (Rupees in Crores)

Financial Year Financial Year

2007-2008 2006-2007
Gross Revenue 1741.69 1348.54
Profit before taxation 40.85 45.33
Less: Provision for taxation 6.37 5.13
Profit after taxation 34.48 40.19
Surplus/(deficit) brought forward from previous year 129.69 169.89
Balance carried to Balance Sheet 95.21 129.69

OPERATIONS
OPERATIONS Corporation Limited that they would look
into this issue and provide resolution.
The performance of your Company
during the year 2007-08 has During the previous year your Company
considerably improved. The turnover acquired the Foster’s brand and trade
increased by 28% over the previous year mark in India for a consideration. An
to Rs.1741 Crores from Rs.1348 application for an advance tax ruling has
Crores. The net profit of the Company is been made by Foster’s Australia seeking
lower on account of deferred taxes. clarification on the taxability of this
The focus areas of your Company on the transaction in India. The advance ruling
way forward are sustainability and long authorities have held that the transaction
term growth. is taxable as the asset is situated in India.
Your Company is sufficiently covered by
A sum of Rs.281 Crores has been
Indemnity for any liability that may arise
invested in upgrading existing plant and
to your Company on account of any tax
machinery and in developing capacity.
claim on this account.
Your Company is putting up a state-of-
the-art one million hecto-litre capacity Your Board enjoys the unqualified
brown field project in the State of support of all its financiers whose
Haryana, which will be operational by the confidence in the future of your Company
end of this year. There has also been is evidenced by the fact that all
continuous upgradation and borrowings have been executed without
implementation of best practices at all the bankers taking any charges over any
units to increase productivity and bring of your Company’s assets. As such the
down the cost of production. New can borrowings are short term and renewed
lines have been put in place in Mysore from year to year.
Breweries and Rochees Breweries and
this has enabled the Company to meet Your Board considers that bottles used
the growing demand for cans. to deliver the Company’s products to the
market are in substance returnable
Your Company has been requesting for a containers and that this economic reality
price increase from the Andhra Pradesh should be reflected in the way the
Beverages Corporation Limited to partly Company accounts for its containers. For
offset the increase in the cost of raw this reason bottles are accounted for on
materials and other inputs. However, a returnable basis, in accordance with
even after protracted requests and previous years and Indian accounting
negotiations your Company has been practices.
unable to obtain such an increase and
DIVIDEND
this led to a stand off which resulted in
temporary suspension of operations at In order to conserve cash for expansion
Charminar Breweries for 38 days during and modernisation the Directors do not
the peak season. The plant has since recommend any dividend on the equity
been re-opened on the assurance from capital.
the Andhra Pradesh Beverages
VALUES computation for determining the
quantum of ex-gratia payment made
The five core values of the Company are
at the end of the year in accordance
as follows:
with its Performance Management
1. Our people are our enduring System. Moreover, the achievement
advantage: of these goals consistently creates a
growth path for executives in your
This value has been at the core of organization.
the Companies approach towards
its employees. 3. We work and win in teams:
The Indian growth story has all the This is not a corollary to the above
ingredients to drive the SKOL value, but in fact a supporting value
growth story. 28% of India lives in which highlights the importance of
urban areas and this is equivalent to ‘handshake zones’ where
the size of the US population. The employees need to combine to help
rural population is taking on more others to achieve goals.
and more urban characteristics The overlapping areas are clearly
everyday. Today the youth drives identified to ensure there are no
India and will continue to do so in conflicts between goals of team
the foreseeable future. Even in 2015, members and overall objectives
50% of the Indian population will be of the Company.
under 30 years. According to a
4. We understand and respect our
survey on GDP Growth conducted
customers and consumers
consumers:
by Global Insight, Lead Indicators of
Inflection are visible in India. This Your Company adopts best
presents a tremendous opportunity practices in dealing with consumers
for SKOL, especially in light of the and customers. A dedicated
fact that per capita beer Customer Complaint Cell has been
consumption in India is only one litre set up and all communications are
compared to the global average of monitored and relevant action is
22 litres. But this growth also means initiated. The Company has
a huge tussle for the right human developed software to bring focus
resources, both in terms of hiring into feedback from customers with a
and retaining talent. This has view to betterment of product
become a make or break factor for quality and service. This focus on
many organizations. We at SKOL the customer is intended to be used
are using various tools like Market as a major differentiator and a
Surveys, Exit Interview Analysis, competitive advantage for the
Focus Group Discussions to get Company. Moreover, your Company
insights into the Indian Talent Market believes in conducting extensive
and Data from prospective hires and market research both for monitoring
have in place strategies to address existing products as well as for
both hard and soft issues. introduction of new products in the
market with a view to satisfying the
2. Accountability is clear and
needs of the customers and
personal
personal:
consumers.
There are clear defined
Your Company has introduced new
accountability and goals laid down
products to meet the customers’
for all Directors and employees. The
aspirational values by launching
goals are clear, quantifiable and
Haywards Black and Peroni.
measurable. The performance of
every employee is closely monitored 5. Our reputation is indivisible:
and measured in accordance with
Towards the end the Company not
their goals and it is their
only internally but also externally
responsibility to accomplish them.
focuses on large number of areas of
On account of this value, there is a
Corporate Social Responsibility
desire in each and every employee
for betterment of the work force as
to achieve and exceed goals.
well as communities that we
Your Company has introduced
interact with some of the examples
various positive measures to drive
are as follows:
growth through clear accountability
by introducing STI method of

12
SKOL Breweries Limited
13
CORPORATE SOCIAL
CORPORATE improve quality, enhance productivity,
RESPONSIBILITY increase acreage and channelize barley
SKOL has been focusing on the following for our malting use, but also to work
areas of Corporate Social Responsibility towards the welfare of the farmers
for the betterment of its work force as through social programs.
well as the communities in which it The project adds value at all stages of
operates.. the value chain with eventual benefits to
Your Company recognises that HIV/AIDS trickle to the farmer. The farmers get
is a major threat to the world of work certified quality seeds and other
where it affects the most productive agricultural inputs from the SU centers
segment of the labor force and imposes besides the free but valuable agronomical
huge costs on enterprises through advice from our experts. They have an
declining productivity and loss of skills assured market, transparent dealings, fair
and experience. pricing, incur no hidden costs and get
spot payment which they do not receive
In order to curb the menace of HIV/AIDS when they market their produce to
the need of the hour is to have a traditional channels.
proactive approach. Your Company
acknowledges the seriousness of the The program has gained significant
issue and the future impact this may have momentum, from a beginning at about
on the broader communities, if left 4000 acres during 2005-06; the
unchecked. program is extended to about 13,000
acres during 2007-08 and a member
Your Company has signed a MOU with farmer base of 6020 across 4 districts in
International Labour Organisation (ILO) Rajasthan. During the year under review
for its work place programme in India. the Company has procured 7000 tonnes
The aim of this partnership is to help of Barely through this programme.
prevent the transmission of HIV among
workers and to mitigate the impact of the SWOT ANALYSIS OF THE COMP
ANALYSIS ANY
COMPANY
epidemic on work place productivity. Strengths:
Your Company has donated Medical Van u Access to SABMiller group’s
in Orissa to NGO Sadhana to provide technology and brands
health care facilities to rural communities
of Orissa. The van would work like a u Well established brands in the
mobile doctor going around villages to market
conduct routine check ups and provide u Well diversified brand portfolio
on time primary health services. covering all segments of the market
Your Company also conducted various u Nine plants spread across India
other activities such as blood donation covering all major beer markets
camps, health camps, polio drives etc
across its units. u High quality products
Saanjhi Unnati u On-going product innovation to
attract new consumers
The beer industry is expected to continue
growing rapidly as the Indian economy u Ability to set up new plants at
grows. Malted food industry is also minimal cost and in record time.
growing rapidly. Barley is the key u Strong management team
ingredient for both. Traditionally barley
has been grown in India by small and Weakness:
marginal farmers on rain-fed land.
u Inability to raise prices of the
The acreage, yield and production had
product as mainly the price is fixed
been shrinking over the years and the
by government
quality was poor.
u Each state has its own excise laws,
Considering our future demand for high
whereby movement of goods from
quality malting grade barley, we designed
one state to another is time
and implemented an initiative in 2005
consuming and costly
called “Saanjhi Unnati” (Progress
through Partnership) in Rajasthan.
The programme is aimed at not only to
 Directors’ Report

u No plant in Tamil Nadu, thereby Mr.Jean-Marc Delpon de Vaux was Particulars in the Report of Board of
inability to participate in the second appointed as Managing Director Directors) Rules, 1988 to the extent
biggest beer market in India w.e.f. 1st August 2006 and the Central applicable are set in the annexure hereto.
Government has approved his
Opportunities: DIRECTORS’ RESPONSIBILITY
appointment and remuneration payable
STATEMENT U/S 217 (2AA) OF THE
STA
u Per capita consumption of Beer is to the Managing Director vide its letter
COMP ANIES ACT
COMPANIES ACT,, 1956
one litre, way below world average dated 18.6.2007. His remuneration is
being proposed to increase from Your Directors state that:
u Growing per capita incomes raising Rs.18,00,000/- to Rs. 25,00,000/-
people’s aspirations can impact beer per month, subject to Members and 1. The financial statements have been
sales positively Central Government Approval. prepared in conformity with the
generally accepted accounting
u India has the highest number of Ms. Maya Makanjee has resigned as a principles and applicable accounting
young people who are the potential Director of the Company w.e.f. 23rd June standards in India.
consumers for the Company 2008. The Board places on record the
meritorious services rendered by Ms. 2. The Directors have selected such
u Easing of the regulatory environment
Maya Makanjee during her tenure as accounting policies as are applicable
can lead to tremendous market
Director on the Board. and have applied them consistently
growth
and made reasonable and prudent
Threats: AUDIT COMMITTEE judgment and estimates so as to
give a true and fair view of the state
u Rising cost of raw materials Pursuant to the provisions of Section
of affairs of the Company at the end
292A of the Companies Act, 1956 an
u Talent attraction and retention of the financial year and of the profit
Audit Committee has been constituted.
for the year.
u Increasingly competitive The present members of the Committee
environment with all major global are, Mr. Jonathan Andrew Kirby, Mr. Ari 3. The Directors have taken proper and
players entering the Indian market Mervis & Mr. Richard (Pete) L Lloyd. sufficient care for the maintenance of
Mr. Jonathan Andrew Kirby Chairman of adequate accounting records in
u Heineken partnering UB gives it a the Audit Committee was present at the accordance with the provisions of
national reach for an aggressive roll last Annual General Meeting. the Companies Act for safeguarding
out of the Brand the assets of the Company and for
AUDITORS
DIRECTORS preventing and detecting fraud and
M/s BSR & Co., Chartered Accountants, other irregularities.
In accordance with the Articles of retiring Auditors, have signified their
Association, Mr. Jonathan Andrew Kirby, 4. The financial statements have been
willingness to be reappointed as
Director of the Company retires by prepared on the basis of “Going
Statutory Auditors of the Company. They
rotation at this meeting and being Concern” considering the ability of
have confirmed that their reappointment
eligible, offer himself for re-appointment. the Company to carry on its
if made will be within the limits prescribed
business in the foreseeable future.
During the year Mr. Ari Mervis was under Section 224(1B) of the Companies
appointed as an additional Director of the Act, 1956. Your Directors recommend ACKNOWLEDGEMENT
Company, whose term of office expires their appointment at the ensuing Annual
General Meeting. Your Directors wish to place on record
at this Annual General Meeting and is their appreciation to employees at all
eligible for re-appointment. PUBLIC DEPOSIT levels for their co-operation. The
During the year Mr. T.S.R. Subramanian Directors would also like to acknowledge
During the year, the Company has not
was appointed as an additional Director the continued support of the Company’s
accepted any public deposits as defined
of the Company, whose term of office Bankers, Distributors, Shareholders,
in the Companies (Acceptance of
expires at this Annual General Meeting Customers and Suppliers.
Deposits) Rules, 1975.
and is eligible for re-appointment.
PAR TICULARS OF EMPLOYEES
ARTICULARS
Mr. Andre Charles Parker, Chairman of
the Board retired from the services of The details of employees covered under
SABMiller Group. The Board places on the provisions of Section 217 (2A) of the
record its appreciation for the valuable Companies Act, 1956 and the rules FOR AND ON BEHALF OF THE BOARD
services rendered by Mr. Andre Charles framed thereunder, as amended to date
Parker during his tenure as Chairman of is attached herewith. Jonathan Andrew Kirby
the Board. It is on account of his vision CONSER
CONSERVVATION OF ENERGY AND Director
and foresight that the Beer business of TECHNOLOGY ABSORPTION
SABMiller group was set up and Jean-Marc Delpon de Vaux
expanded in India. The statement pursuant to Section 217 Managing Director
(1) (e) of the Companies Act, 1956 read Place: Bangalore
with the Companies (Disclosure of Dated: June 23, 2008

14
SKOL Breweries Limited
15
Directors’ Report

DISCLOSURE AS PER THE COMP ANIES (DISCLOSURE OF P

COMPANIES AR
PAR TICULARS IN
ARTICULARS
THE REPORT OF DIRECTORS) RULES, 1988.
A. CONSER
CONSERVVATION OF ENERGY
The output performance for boiler fuel consumption and electricity of the
Company is as under:

Boiler energy consumption MJ/HL Electricity consumption in kWh/HL

18
250
16
200 14
12
150 10
8
100 6
4
50
2
0 0
F’05 F’06 F’07 F’08 F’05 F’06 F’07 F’08

The measures taken by the Company at b) Technology absorption,

its various units are as under- adaptation and innovation
1. Extensive benchmarking including
international and target setting. Efforts in brief made towards It has always been our endeavour to
technology absorption, adaptation adopt the latest developments in Brewing
2. Use of methane generated from and innovation. Technology in order to minimize our
waste water treatment as boiler fuel. environmental impact. Trying various new
3. Fuel switch from fossil fuel to types of brewing aids to improve our
biomass in selected breweries to quality is an ongoing and continuous
reduce the carbon footprint. process.
4. Focussed initiatives on Water Benefits derived as a result of the The Company strives for continuous
conservation and recycling in above efforts are product improvement in quality, cost and
breweries. improvement, cost reduction, availability.
5. Use of treated effluent for gardening product development, import
of the factory campus by drain substitution.
system. Use of UF & RO technology
to recycle treated effluent water at In case of imported technology Keg cleaning and filling technology. Flash
strategic sites. (imported during the last 5 years pasteurization technology. Special bottle
reckoned from the beginning of the filling and labelling technology. Brewhouse
6. Identification of refrigeration as a financial year) technologies.
major energy user and preparation
of a health check to minimize power
consumption in the coming years. C. FOREIGN EXCHANGE EARNINGS
AND OUTGO
7. New capacity with new technology
and economy of scale. During the year, the Company has
earned Rs.7 Crores in foreign
8. Rationalizing the Brewing operations
exchange earnings. An amount of
in line with packing production plan
Rs.47.4 Crores was incurred in
(especially during the low volume
foreign exchange.
and non season periods)
B. TECHNOLOGY ABSORPTION
FOR AND ON BEHALF OF THE BOARD
a) Research & Development
Jonathan Andrew Kirby Jean-Marc Delpon de Vaux
Shared learning transferred from
Director Managing Director
global company community. Close
co-operation with supply chain
partners to improve quality and Place: Bangalore
reduce waste. Dated: June 23, 2008
 16
SKOL Breweries Limited
17
Auditors’ Report

To the Members of SKOL Breweries

Breweries (iv) in our opinion, the balance sheet, the
Limited profit and loss account and the cash
flow statement dealt with by this
We have audited the attached balance
report comply with the accounting
sheet of SKOL Breweries Limited
standards referred to in sub-section
(“the Company”) as at 31 March 2008,
(3C) of Section 211 of the
the profit and loss account and the cash
Companies Act, 1956;
flow statement for the year ended on that
date annexed thereto. These financial (v) on the basis of written
statements are the responsibility of the representations received from the
Company’s management. directors of the Company as on
Our responsibility is to express an 31 March 2008, and taken on
opinion on these financial statements record by the Board of Directors,
based on our audit. we report that none of the directors
is disqualified as on 31 March 2008
We conducted our audit in accordance
from being appointed as a director
with auditing standards generally
in terms of clause (g) of sub-section
accepted in India. Those standards
(1) of Section 274 of the Companies
require that we plan and perform the
Act, 1956; and
audit to obtain reasonable assurance
about whether the financial statements (vi) in our opinion and to the best of our
are free of material misstatement. An information and according to the
audit includes examining, on a test basis, explanations given to us, the said
evidence supporting the amounts and accounts give the information
disclosures in the financial statements. required by the Companies Act,
An audit also includes assessing the 1956, in the manner so required and
accounting principles used and significant give a true and fair view in
estimates made by management, as well conformity with the accounting
as evaluating the overall financial principles generally accepted in
statement presentation. We believe that India:
our audit provides a reasonable basis for
a. in the case of the balance sheet,
our opinion.
of the state of affairs of the
As required by the Companies (Auditor’s Company as at 31 March 2008;
Report) Order, 2003 (“the Order”),
b. in the case of the profit and loss
as amended, issued by the Central
account, of the profit of the
Government of India in terms of
Company for the year ended on
sub-section (4A) of Section 227 of the
that date; and
Companies Act, 1956, we enclose in
the Annexure a statement on the c. in the case of the cash flow
matters specified in paragraphs 4 and 5 statement, of the cash flows for
of the Order. the year ended on that date.
Further to our comments in the Annexure
referred to above, we report that:
for BSR & Co.
(i) we have obtained all the information Chartered Accountants
and explanations, which to the best
of our knowledge and belief were Zubin Shekary
necessary for the purpose of our Partner
audit; Membership No. 48814
(ii) in our opinion, proper books of Bangalore
account as required by law have 23 June 2008
been kept by the Company so far as
appears from our examination of
those books;
(iii) the balance sheet, the profit and
loss account and the cash flow
statement dealt with by this report
are in agreement with the books of
account;
 Annexure to the Auditors’ report

Annexure referred to in the Auditors’ unsecured, to companies, firms or other relevant provisions of the
Report to the Members of SKOL other parties covered in the Companies Act, 1956 and the
Breweries Limited (“the Company”) for register maintained under Section rules framed thereunder/ the
the year ended 31 March 2008. We 301 of the Companies Act, 1956. directives issued by the Reserve
report that: Accordingly, paragraph 4(iii)(a), Bank of India (as applicable) with
4(iii)(b), 4(iii)(c) and 4(iii)(d) of the regard to deposits accepted from
i. (a) The Company has maintained
Order is not applicable. the public. Accordingly, there
proper records showing full
have been no proceedings before
particulars, including quantitative (e) The Company has taken a loan the Company Law Board or
details and situation of fixed from a Company covered in the National Company Law Tribunal
assets, except for returnable register maintained under Section (as applicable) or Reserve Bank of
containers where the nature of the 301 of the Companies Act, 1956. India or any Court or any other
trade does not permit itemised The maximum amount Tribunal in this matter and no
recording of the location of outstanding during the year and order has been passed by any of
returnable containers at any the year-end balance of such the aforesaid authorities.
particular point of time. loans was Rs 483,141,746 and
Rs 385,269,911 respectively. vii. In our opinion, the Company has
(b) The Company has a regular
an internal audit system
programme of physical (f) In our opinion, the rate of interest commensurate with its size and
verification of its fixed assets by for the above loan taken from nature of its business.
which all fixed assets are verified companies, firms or other parties
over a period of three years, listed in the register maintained viii. The Central Government has not
except for returnable containers under section 301 of the prescribed the maintenance of
where the nature of the trade Companies Act, 1956 are not, cost records under Section
does not permit physical prima facie, prejudicial to the 209(1)(d) of the Companies Act,
verification. In our opinion, this interest of the Company. Tenure 1956 for any of the products
periodicity of physical verification and repayment terms have not manufactured and services
is reasonable having regard to the been specified for such loans. rendered by the Company.
size of the Company and the
(g) According to the information and ix. (a) According to the information and
nature of its assets. No material
explanations given to us, the explanations given to us and on
discrepancies were noticed on
tenure and repayment terms have the basis of our examination of
such verification.
not been specified for the above the records of the Company,
(c) Fixed assets disposed during the mentioned loan. Consequently, we amounts deducted/ accrued in
year were not substantial, and are unable to comment on the books of account in respect
therefore, do not affect the going paragraph 4(iii)(g) of the Order. of undisputed statutory dues
concern assumption. including Provident Fund,
iv. In our opinion and according to Employees’ State Insurance,
ii. (a) The inventory, except for goods- the information and explanations Income-tax, Sales Tax, Wealth
in-transit and stock lying with given to us, there is an adequate Tax, Service Tax, Customs Duty,
third parties, has been physically internal control system Excise Duty, Cess, Investor
verified by the management commensurate with the size of Education and Protection Fund
during the year. In our opinion, the Company and the nature of its and other material statutory dues,
the frequency of such verification business with regard to purchase have been regularly deposited
is reasonable. For stocks lying of inventories and fixed assets during the year by the Company
with third parties at the year-end, and with regard to the sale of with the appropriate authorities
written confirmations have been goods and services. We have not though there has been a slight
obtained. observed any major weakness in delay in a few cases.
the internal control system during
(b) The procedures for the physical
verification of inventories followed the course of the audit.
by the management are v. In our opinion and according to
reasonable and adequate in the information and explanations
relation to the size of the given to us, the particulars of
Company and the nature of its contracts or arrangements
business. referred to in Section 301 of the
(c) The Company is maintaining Companies Act, 1956 have been
entered in the register required to
proper records of inventory.
The discrepancies noticed on be maintained under that Section.
verification between the physical vi. In our opinion, and according to
stocks and the book records the information and explanations
were not material. given to us, the Company has
iii. (a) The Company has not complied with the provisions of
Section 58A, Section 58AA or
granted any loans, secured or

18
SKOL Breweries Limited
19
 Further, since the Central Investor Education and (b) According to the information and
Government has till date not Protection Fund and other explanations given to us, the following
prescribed the amount of cess material statutory dues were in dues of Income-tax, Sales Tax and
payable under Section 441A of arrears as at 31 March 2008 for a Excise Duty have not been deposited
the Companies Act, 1956, we are period of more than six months from by the Company on account of
not in a position to comment the date they became payable. In disputes. There are no dues of Wealth
upon the regularity or otherwise respect of sales tax, the Company is Tax, Service Tax, Customs Duty and
of the Company in depositing the in process of collecting Statutory Cess, which have not been deposited
same. Forms. Management has represented with the appropriate authorities on
that the same would be submitted to account of any dispute.
According to the information and
the authorities at the time of the
explanations given to us, no
assessment. Hence payment of
undisputed amounts payable in
differential sales tax has not been
respect of Provident Fund,
made on the Statutory Forms which
Employees’ State Insurance,
are pending to be collected for the
Income-tax, Wealth Tax, Service Tax,
periods for which assessments have
Customs Duty, Excise Duty,
not been completed.

Period to which the amount relates Amount (Rs million) Forum where dispute is pending
Excise Duty under State Excise Acts
2001 – 02 to 2004 – 05 10.88 Orissa High Court
1974 – 75 to 1990 – 91 13.75 Financial Commissioner, Haryana
2000 – 01 1.04 Commissioner of State Excise, Maharashtra
1997 – 98 to 1999 – 00 0.33 Karnataka High Court
1998 – 99 to 2004 – 05 6.68 Karnataka High Court
1983 – 84 to 1988 – 89 0.55 Bombay High Court
2005 – 06 2.15 Orissa High Court
1996 – 97 to 1999 – 00 70.24 Customs Excise Service Tax Appellate Tribunal,
Mumbai
1989 3.22 Orissa High Court
Sales Tax under State Sales T
Tax ax Acts
Tax
1994 – 95 to 2000-01 92.73 Appellate Tribunal, Orissa
1989 – 90 to 1996 – 97 and 1998 – 99 to 2003 – 04 5.97 Appellate Tribunal, Haryana
2002 – 03 to 2003 – 04 1.26 Assistant Commissioner of Commercial
Taxes (Appeals), New Delhi
1995 – 96 4.14 Appellate Tribunal, Maharashtra
2001 – 02 13.62 Appellate Tribunal, Maharashtra
1991 – 92 to 1992 – 1993 3.68 Andhra Pradesh High Court
2003 – 04 0.19 Appellate Tribunal, Uttar Pradesh
1992 – 93 1.51 Appellate Tribunal, Maharashtra
1996 – 97 1.45 Appellate Tribunal, Maharashtra
1981 – 82 to 1984 – 85 and 1997 – 98 to 1998 – 99 11.98 Assessing Authority, Pondicherry
2000 – 01 to 2003-04 6.18 Chandigarh High Court
2003 – 04 to 2005 – 06 7.47 Supreme Court
2002 – 03 5.43 Appellate Tribunal, Uttar Pradesh
2003 – 04 4.03 Commissioner of Appeals, Uttar Pradesh
2004 – 05 68.73 Deputy Commissioner, Meerut
2003 – 07 0.38 Deputy Commissioner, Meerut
2006 – 07 0.05 Joint Commissioner, Meerut
2004 – 05 0.14 Additional Commissioner Sales Tax, New Delhi
2002 – 03 8.05 Deputy Commissioner, Mumbai
Income-tax under Income-tax Act, 1961
AY 2003 – 04 32.73 Appellate Tribunal, Mumbai
AY 1996 – 97 0.15 Appellate Tribunal, Mumbai
 Annexure to the Auditors’ report

x. The Company has accumulated opinion that funds raised on short-

losses of Rs 952,184,208 at the term basis amounting to
end of the financial year. The Rs. 2,652,096,907 have been used
Company has not incurred cash for long-term investment in fixed
losses in the financial year and in the assets and investments.
immediately preceding financial year.
xviii. The Company has not made any
xi. In our opinion and according to the preferential allotment of shares to
information and explanations given companies/ firms/ parties covered in
to us, the Company has not the register maintained under
defaulted in repayment of dues to its Section 301 of the Companies Act,
bankers. The Company did not have 1956.
any outstanding dues to any
xix. The Company did not have any
financial institutions or
outstanding debentures during the
debentureholders during the year.
year.
xii. In our opinion the Company has
xx. The Company has not raised any
maintained adequate records in
money by public issues during the
cases where it has granted loans
year.
and advances on the basis of
security by way of pledge of shares. xxi. According to the information and
The Company has not granted any explanations given to us, no fraud on
loans and advances on the basis of or by the Company has been
security by way of pledge of noticed or reported during the
debentures and other securities. course of the audit.
xiii. In our opinion and according to the
information and explanations given
to us, the Company is not a chit for BSR & Co.
fund or a nidhi/ mutual benefit fund/ Chartered Accountants
society. Zubin Shekary
xiv. According to the information and Partner
explanations given to us, the Membership No. 48814
Company is not dealing or trading in
shares, securities, debentures and Bangalore
other investments. 23 June 2008

xv. According to the information and

explanations given to us, the
Company has not given any
guarantee for loans taken by others
from banks or financial institutions.
xvi. In our opinion and according to the
information and explanations given
to us, the term loans taken by the
Company have been applied for the
purpose for which they were raised.
xvii. According to the information and
explanations given to us and on an
overall examination of the balance
sheet of the Company, we are of the

20
SKOL Breweries Limited
21
Balance sheet as at 31 March 2008

(Rs.)
As at As at
Schedule 31 March 2008 31 March 2007
SOURCES OF FUNDS
Shareholders’ funds
Share capital 2 2,311,837,450 1,979,158,880
Reserves and surplus 3 6,406,852,856 4,610,316,326
8,718,690,306 6,589,475,206

Share application money pending allotment of shares - 1,863,000,000

Loan funds
Unsecured loans 4 3,774,422,006 4,652,648,467
Deferred tax liability, net 18 (10) 63,744,036 -
12,556,856,348 13,105,123,673
APPLICA TION OF FUNDS
APPLICATION
Fixed assets 5
Gross block 10,973,596,079 8,795,466,503
Less: Accumulated depreciation (2,074,943,657) (1,525,150,636)
Less: Provision for impairment of fixed assets (156,563,671) (52,523,898)
Net block 8,742,088,751 7,217,791,969
Capital work-in-progress 1,491,630,978 756,309,965
10,233,719,729 7,974,101,934

Investments 6 11,359,225 2,178,050

Current assets, loans and advances

Inventories 7 1,183,482,865 774,519,494
Sundry debtors 8 2,536,219,383 1,484,582,230
Cash and bank balances 9 311,251,107 4,047,462,855
Loans and advances 10 1,242,942,582 1,114,045,283
5,273,895,937 7,420,609,862
Current liabilities and provisions
Current liabilities 11 4,058,160,935 3,387,142,064
Provisions 12 361,193,684 426,751,996
4,419,354,619 3,813,894,060

Net current assets 854,541,318 3,606,715,802

Amalgamation adjustment reserve account 1,457,236,076 1,457,236,076

Debit balance in profit and loss account - 1,296,961,395

Less: Balance in general reserve account 3 - (1,232,069,584)
- 64,891,811
12,556,856,348 13,105,123,673

S ignificant accounting policies 1

Notes to the accounts 18
The schedules referred to above form an integral part of the balance sheet
As per our report attached
for BSR & Co. for SKOL Breweries Limited
Chartered Accountants
Zubin Shekary Jean-Marc Delpon de Vaux Jonathan Andrew Kirby
Partner Managing Director Director
Membership No. 48814
Kevin Heydenrych Pramod S M
Chief Finance Officer Company Secretary
Bangalore Bangalore
23 June 2008 23 June 2008
 Profit and loss account for the year ended 31 March 2008

(Rs.)
Schedule For the year ended For the year ended
31 March 2008 31 March 2007
Income
Sale of manufactured goods, gross 17,120,144,115 13,384,952,487
Sale of traded goods, gross 296,758,472 100,449,130
17,416,902,587 13,485,401,617
Less: Excise duty (6,307,912,578) (4,840,701,234)
Less: Discounts (743,348,972) (612,303,595)
Sales, net 10,365,641,037 8,032,396,788

Income from marketing operations 219,335,661 227,208,154

Other income 13 281,767,214 179,188,724

10,866,743,912 8,438,793,666
Expenditure
Material cost of sales 14 3,059,852,296 2,197,111,990
Personnel costs 15 804,928,296 603,282,581
Other expenses 16 5,469,854,808 4,348,072,365
Depreciation 5 858,090,043 625,247,195
Provision for impairment of fixed assets 18 (14) 117,306,243 (101,662,427)
Interest 17 148,166,541 313,366,314
10,458,198,227 7,985,418,018

Profit before tax 408,545,685 453,375,648

Provision for tax
- current tax - 37,573,724
- pertaining to earlier years (37,573,724) -
- wealth tax 238,542 151,668
- fringe benefit tax 30,320,522 13,758,454
- deferred tax 18 (10) 70,783,158 -
Profit after tax 344,777,187 401,891,802
Debit balance in profit and loss account brought forward (1,296,961,395) (1,698,853,197)
Debit balance in profit and loss account carried over (952,184,208) (1,296,961,395)
to the balance sheet

Earnings per share (par value: Rs. 10 each) 18 (3)

- Basic earnings per share 1.52 2.14
- Diluted earnings per share 1.49 2.13

Significant accounting policies 1

Notes to the accounts 18
The schedules referred to above form an integral part of the profit and loss account.
As per our report attached
for BSR & Co. for SKOL Breweries Limited
Chartered Accountants
Zubin Shekary Jean-Marc Delpon de Vaux Jonathan Andrew Kirby
Partner Managing Director Director
Membership No. 48814
Kevin Heydenrych Pramod S M
Chief Finance Officer Company Secretary
Bangalore Bangalore
23 June 2008 23 June 2008

22
SKOL Breweries Limited
23
Schedules to the financial statements

1. Significant accounting policies management to make estimates and Advances paid towards the
assumptions that affect the reported acquisition or construction of fixed
amounts of assets and liabilities and assets outstanding at the balance
Background
the disclosure of contingent liabilities sheet date and the cost of the fixed
SKOL Breweries Limited (“the Company” on the date of the financial assets not ready for their intended
or “SKOL”) was incorporated as a public statements and the results of use before such date, are disclosed
limited company under the Companies operations during the reporting as capital work-in-progress.
Act, 1956 on 18 November 1988. The period end. Actual results could
The Company considers containers
Company is primarily engaged in the differ from those estimates. Any
procured as fixed assets due to its
business of brewing, packaging, revision to accounting estimates is
substantive nature of arrangement,
distribution, marketing and sale of beer. recognised prospectively in current
that the Company sells beer and not
and future periods.
1.1 Basis of preparation the accompanying container and
1.4 Revenue recognition empty containers are essentially
The financial statements have been returnable.
prepared and presented under the Revenue is recognised to the extent
historical cost convention on the that it is probable that the economic Accordingly, new containers
accrual basis of accounting. The benefits will flow to the Company purchased are capitalised as fixed
financial statements have been and the revenue can be measured assets and the obligation arising on
prepared to comply in all material reliably. sale, for these returnable containers
respects with the mandatory are disclosed separately in the
(i) Sale of goods
Accounting Standards (‘AS’) balance sheet as liability for
prescribed by Companies Revenue from sale of goods is returnable containers.
(Accounting Standards) Rules, 2006 recognised on transfer of all the
1.6 Depreciation
and the relevant provisions of the significant risks and rewards of
Companies Act, 1956, to the extent ownership to the buyer which Depreciation on fixed assets is
applicable. These financial normally takes place on despatch. provided on the straight-line method
statements are prepared and The amount recognised as sale is as per the rates and in the manner
presented in Indian Rupees. net of sales tax and sales returns. prescribed in Schedule XIV to the
Sales are presented both gross and Companies Act, 1956. The rates of
1.2 Going concern
net of excise duty. depreciation prescribed in Schedule
These financial statements have XIV to the Companies Act, 1956 are
(ii) Income from services
been prepared on a going concern considered as minimum rates.
basis, notwithstanding accumulated Income from marketing operations However, where the management’s
losses, due to the following is recognised when the services are estimate of the useful life of a fixed
considerations: rendered in accordance with the asset at the time of acquisition of
arrangements with tie up units. the asset or of the remaining useful
- Expected steady future growth life on a subsequent review is
reflected in financial projections (iii) Interest shorter than that envisaged in the
prepared by the management; aforesaid schedule, depreciation is
Interest is recognised using the time
- Expected continual technical and proportion basis taking into account provided at a higher rate based on
financial support by the the amount outstanding and the the management’s estimate of useful
SABMiller group. In the current interest rate applicable. life/ remaining useful life.
year 33,267,857 equity shares Leasehold land is amortised over the
1.5 Fixed assets
of Rs 10 each were allotted at a lease term. Leasehold
premium of Rs 46 per share, Fixed assets are carried at cost of improvements are amortised over
resulting in increase in share acquisition or construction less the lease term or its estimated
capital by Rs 1,863,999,992. accumulated depreciation and useful life of five years, whichever is
provision for impairment of assets. lower.
These financial statements,
The cost of fixed assets includes
therefore, do not include any
freight, duties, taxes and other
adjustments relating to
incidental expenses related to the
recoverability and classification of
acquisition or construction of the
asset amounts or to amounts and
respective assets. Borrowing costs
classification of liabilities that may be
directly attributable to acquisition or
necessary if the Company was
construction of those fixed assets
unable to continue as a going
which necessarily take a substantial
concern.
period of time to get ready for their
1.3 Use of estimates intended use are capitalised to the
extent they relate to the period till
The preparation of financial
such assets are ready to be put to
statements in conformity with
use. Intangible assets are recorded
generally accepted accounting
at their acquisition cost.
principles in India requires
Pursuant to this policy the following fixed assets are depreciated to their residual
value over their estimated useful life:
Class of assets Years
Returnable containers (included in plant and machinery) 2
Wooden pallets (included under plant and machinery) 3
Computer equipments 4
Furniture, fittings and office equipments 6
Brands 20
Computer software 3

Pro-rated depreciation is provided asset, less its residual value (if any),
on all assets purchased or sold over its remaining useful life.
during the year. Assets, costing
individually Rs 5,000 or less, other If at the balance sheet date there is
than returnable containers, are an indication that if a previously
depreciated in full in the year of assessed impairment loss no longer
purchase. exists, the recoverable amount is
reassessed and the asset is
The useful lives of brands, which reflected at the recoverable amount
primarily represent brand licenses subject to a maximum of
purchased, have been determined depreciable historical cost. An
based on management’s impairment loss is reversed only to
assessment of market conditions in the extent that the carrying amount
India, intent to use and ability to of asset does not exceed the net
maintain these assets, previous book value that would have been
history of these brands and determined; if no impairment loss
internationally accepted practices. had been recognised.
1.7 Impairment 1.8 Borrowing costs
The Company periodically assesses Borrowing costs directly attributable
whether there is any indication that to acquisition or construction of
an asset or a group of assets those fixed assets, which necessarily
comprising a cash generating unit take a substantial period of time to
may be impaired. If any such get ready for their intended use, are
indication exists, the Company capitalised. Other borrowing costs
estimates the recoverable amount of are accounted as an expense.
the asset. For an asset or group of
assets that does not generate 1.9 Investments
largely independent cash inflows, the Long-term investments are carried
recoverable amount is determined at cost less any other-than-
for the cash-generating unit to which temporary diminution in the value, as
the asset belongs. If such determined by management on
recoverable amount of the asset or commercial consideration
the recoverable amount of the cash determined separately for each
generating unit to which the asset individual investment.
belongs is less than its carrying
amount, the carrying amount is 1.10 Inventories
reduced to its recoverable amount. Inventories are valued at lower of
The reduction is treated as an cost and net realisable value. Cost
impairment loss and is recognised in of inventories comprises purchase
the profit and loss account. The price, costs of conversion and other
recoverable amount is higher of the costs incurred in bringing the
assets, net selling price and value in inventories to their present location
use. and condition.
After recognition of impairment loss, The methods of determination of
depreciation is provided on the cost of various categories of
revised carrying amount of the inventories are as follows:

24
SKOL Breweries Limited
25
 Raw materials, packing materials The exchange difference on the accordance with the transitional
and stores and spares – First-in- forward exchange contract entered provision in AS 15 - Employee
first-out (FIFO) method into to hedge the foreign currency benefits (Revised 2005),
risk of the underlying outstanding at Rs 13,670,268 (net of deferred tax
Work-in-progress and finished
the balance sheet date, is calculated asset of Rs 7,039,122) has been
goods – FIFO method. Production
as the difference between the foreign adjusted to the general reserve.
overheads are allocated on the basis
currency amount of the contract This change did not result in a
of normal capacity of production
translated at the exchange rate at material impact on the profit for the
facilities.
the reporting date, or the settlement current year.
Maintenance spares, which are in date where the transaction is settled
1.13 Leases
regular use and are not an integral during the reporting period, and the
part of any fixed asset, are treated corresponding foreign currency Leases where the lessor effectively
as inventory and valued at cost. amount translated at the later of the retains substantially all the risks and
date of inception of the forward rewards of ownership of the leased
The comparison of cost and net exchange contract and the last asset, are classified as operating
realisable value is made on an item- reporting date. Such exchange leases. Operating lease payments
by-item basis. The net realisable differences are recognised in the are recognised as an expense in the
value of work-in-progress is profit and loss account in the profit and loss account on a
determined with reference to the reporting period in which the straight-line basis over the lease
selling prices of related finished exchange rates change. term.
goods in the ordinary course of
business, less estimated cost of In accordance with the ICAI
completion and estimated costs announcement – Accounting for
necessary to make the sale. Raw derivatives, the Company provides
materials, packing materials and for losses in respect of all
other supplies held for use in outstanding derivative contracts at
production of inventories are not the balance sheet date by marking
written below cost except in cases them to market.
where material prices have declined,
1.12 Retirement benefits
and it is estimated that the cost of
the finished products will exceed (i) Contributions to provident funds,
their net realisable value. which is a defined contribution
scheme, are charged to the profit
1.11 Foreign exchange
and loss account on an accrual
Foreign exchange transactions are basis.
recorded at the rates of exchange
(ii) The Company has an arrangement
prevailing on the dates of the
with Life Insurance Corporation of
respective transactions. Exchange
India to administer its
differences arising on foreign
superannuation scheme, which is a
exchange transactions settled
defined contribution scheme. The
during the year are recognised in the
contributions to the said scheme are
profit and loss account for the year.
charged to the profit and loss
Monetary assets and liabilities account on an accrual basis.
denominated in foreign currencies as
(iii) Liability for gratuity, which is a
at the balance sheet date are
defined benefit schemes is provided
translated at the closing exchange
for based on an actuarial valuation
rate on that date; the resultant
carried out by an independent
exchange differences are recognised
actuary as at the balance sheet date.
in the profit and loss account.
Actuarial gains/ losses are
Forward contracts are entered into recognised immediately in the profit
to hedge the foreign currency risk of and loss account and are not
the underlying outstanding at the deferred.
balance sheet date. The premium or
(iv) Long term compensated absences
discount on all such contracts
are provided for based on actuarial
arising at the inception of each
valuation.
contract is amortised as income or
expense over the life of the contract. In the current year due to adoption
Any profit or loss arising on the of the AS 15 - Employee benefits
cancellation or renewal of forward (Revised 2005), the Company has
contracts is recognised as income provided for long term
or as expense for the period. compensated absences based on
actuarial valuation. Further in
 Schedules to the financial statements

1.14 Provisions and contingent The Company offsets, the current outstanding shares). In computing
liabilities (on a year on year basis) and the dilutive earnings per share, only
deferred tax assets and liabilities, potential equity shares that are
The Company recognises a
where it has a legally enforceable dilutive and that either reduces the
provision when there is a present
right and where it intends to settle earnings per share or increases loss
obligation as a result of an obligating
such assets and liabilities on a net per share are included.
event that probably requires outflow
basis.
of resources and a reliable estimate 1.17 Employee stock compensation
can be made of the amount of the Minimum Alternative Tax (“MAT”) cost
obligation. A disclosure of a credit is recognised as an asset only
The Company applies intrinsic value
contingent liability is made when when and to the extent there is
method of accounting for stock
there is a possible obligation or a convincing evidence that the
options granted by the ultimate
present obligation that may, but Company will pay normal income tax
holding company to the employees
probably will not, require an outflow during the specified period. In the
of the Company after 1 April 2005.
of resources. When there is a year in which the MAT credit
The intrinsic value of the employee
possible obligation or a present becomes eligible to be recognised
services received in exchange for the
obligation that the likelihood of as an asset in accordance with the
grant of such options is recognised
outflow of resources is remote, no recommendations contained in the
as an expense. The amount
provision or disclosure is made. guidance note issued by ICAI, the
recognised is spread over the
said asset is created by way of a
Provisions for onerous contracts, vesting period which is also the
credit to the profit and loss account.
i.e. contracts where the expected period over which some of the
The Company reviews the same at
unavoidable costs of meeting the scheme performance criteria relate.
each balance sheet date and writes
obligations under the contract At each balance sheet date, the
down the carrying amount of MAT
exceed the economic benefits estimates of the number of options
credit entitlement to the extent there
expected to be received under it, are that are expected to become
is no longer convincing evidence to
recognised when it is probable that excercisable are revised. It
the effect that Company will pay
an outflow of resources embodying recognises the impact of the revision
normal income tax during the
economic benefits will be required to of the original estimates, if any, in the
specified period.
settle a present obligation as a result profit and loss account over the
of an obligating event, based on a The Company provides for and remaining vesting period. The effect
reliable estimate of such obligation. discloses the Fringe Benefit Tax of uncertainty as to whether any
(“FBT”) in accordance with the performance criteria of share
1.15 Taxation
provisions of Section 115 WC of the options will be met is dealt with by
Income tax expense comprises Income-tax Act, 1961 and the estimating the probability of shares
current tax (i.e. amount of tax for the guidance note on FBT issued by vesting and therefore the cost is
year determined in accordance with ICAI. adjusted and readjusted for the
the income tax law) and deferred tax probability of vesting in the vesting
1.16 Earnings per share period.
charge or credit (reflecting the tax
effects of timing differences between The basic earnings per share is
accounting income and taxable computed by dividing the net profit
income for the year). The deferred or loss attributable to equity
tax charge or credit and the shareholders for the year by the
corresponding deferred tax liabilities weighted average number of equity
or assets are recognised using the shares outstanding during the year.
tax rates that have been enacted or The number of equity shares used in
substantively enacted by the balance computing diluted earnings per share
sheet date. Deferred tax assets are comprises the weighted average
recognised only to the extent there shares considered for deriving basic
is reasonable certainty that the earnings per share, and also the
assets can be realised in future; weighted average number of equity
however, where there is unabsorbed shares, which would have been
depreciation or carried forward issued on conversion of all
business loss under taxation laws, potentially dilutive equity shares.
deferred tax assets are recognised Potential dilutive equity shares are
only if there is a virtual certainty of deemed converted as of the
realisation of such assets. beginning of the year, unless they
have been issued at a later date.
Deferred tax assets are reviewed as
The potentially dilutive equity shares
at each balance sheet date and
have been adjusted for the proceeds
written down or written up to reflect
receivable had the shares been
the amount that is reasonably/
actually issued at a fair value (i.e. the
virtually certain (as the case may be)
average market value of the
to be realised.

26
SKOL Breweries Limited
27
Schedules to the financial statements

(Rs.)
2. Share capital As at As at
31 March 2008 31 March 2007
Authorised
250,000,000 (previous year: 200,000,000) equity shares of Rs. 10 each 2,500,000,000 2,000,000,000
2,500,000,000 2,000,000,000
Issued, subscribed and paid up
231,183,745 (previous year: 197,915,888) equity shares of Rs. 10 each fully paid-up 2,311,837,450 1,979,158,880
2,311,837,450 1,979,158,880
Of the above :

1) 142,041,561 (previous year: 142,041,561) equity shares of Rs. 10 each are held by SABMiller Breweries Private Limited
(formerly Foster’s India Private Limited), the holding company. 87,341,038 (previous year: 54,073,181) equity shares of Rs. 10
each are held by SABMiller Asia B.V. SABMiller Plc is the ultimate holding company.

2) Pursuant to a scheme of arrangement 34,636,335 (previous year: 34,636,335) equity shares of Rs. 10 each were allotted, in
earlier years, for consideration other than in cash.

(Rs.)
3. Reserves and surplus As at As at
31 March 2008 31 March 2007
Capital reserve 2,000,000 2,000,000

Securities premium
At the beginning of the year 4,608,316,326 3,500,620,686
Addition during the year 1,530,321,422 1,107,695,640
6,138,637,748 4,608,316,326
General reserve
At the beginning of the year 1,232,069,584 1,232,069,584
Less: Adjustment for employee benefit provision (net of tax of Rs. 7,039,122) (13,670,268) -
(Refer to note 1.12)
Less: Debit balance in profit and loss account (952,184,208) (1,232,069,584)
266,215,108 -

6,406,852,856 4,610,316,326

(Rs.)
4. Unsecured loans As at As at
31 March 2008 31 March 2007

Bank overdraft 263,732,853 -

Short term loans

From banks 2,650,010,288 3,115,000,000
From others - 700,000,000

Other loans and advances

From banks [Refer note (a) below] 442,092,599 624,887,850
From others:
- loan from holding company [Refer note (b) below] 385,269,911 179,444,262
- deferred sales tax loan 33,316,355 33,316,355
3,774,422,006 4,652,648,467
Notes:
a) Amount repayable within a period of 12 months Rs. 207,625,175 (previous year: Rs. 264,545,950).
b) Tenure and terms for repayment have not been specified for loans obtained from holding Company.
 5. Fixed assets

Provision
Gross Block Accumulated Depreciation Net block
for
impairment
Description As at As at As at As at as at 31 As at As at
1 April 2007 Additions Deletions 31 March 2008 1 April 2007 Charge Deletions March 2008
31 March 2008 31 March 2008 31 March 2007
(refer note 2
below)
Tangible assets
Freehold land 147,517,616 46,185,015 10,805,695 182,896,936 - - - - 16,600,000 166,296,936 130,917,616
Leasehold land 15,831,621 - - 15,831,621 3,536,169 1,015,095 - 4,551,264 - 11,280,357 12,295,452
Leasehold improvements - 9,698,369 - 9,698,369 - 488,904 - 488,904 - 9,209,465 -
Buildings 783,707,471 443,976,590 36,896,827 1,190,787,234 115,374,408 55,231,991 23,630,357 146,976,042 8,466,565 1,035,344,627 646,600,028
Plant and machinery
- Returnable containers (Refer note 1 below) 1,063,171,463 884,245,631 436,707,701 1,510,709,393 234,012,381 273,183,404 190,154,360 317,041,425 - 1,193,667,968 829,159,082
- Others 3,160,530,313 1,394,037,647 146,774,326 4,407,793,634 862,546,465 313,851,063 91,947,826 1,084,449,702 129,592,485 3,193,751,447 2,283,792,985
Computer equipment 62,379,167 18,691,706 2,079,814 78,991,059 45,425,841 16,288,010 1,974,094 59,739,757 841,707 18,409,595 16,953,326
Furniture, fittings and office equipment 54,196,861 8,153,255 - 62,350,116 26,513,938 8,127,195 - 34,641,133 804,358 26,904,625 27,682,923
Motor vehicles 34,253,617 - 1,952,750 32,300,867 8,899,376 3,006,371 590,385 11,315,362 258,556 20,726,949 25,354,241
Intangible assets
Brands 3,410,920,245 - - 3,410,920,245 206,091,438 170,546,012 - 376,637,450 - 3,034,282,795 3,204,828,807
Computer software 62,958,129 8,358,476 - 71,316,605 22,750,620 16,351,998 - 39,102,618 - 32,213,987 40,207,509
Total
Total 8,795,466,503 2,813,346,689 635,217,113 10,973,596,079 1,525,150,636 858,090,043 308,297,022 2,074,943,657 156,563,671 8,742,088,751 7,217,791,969
Previous year 6,143,511,506 3,020,533,559 368,578,562 8,795,466,503 1,056,802,634 625,247,195 156,899,193 1,525,150,636 52,523,898 7,217,791,969

Note 1: Deletions to gross block include Rs 246,432,320 (previous year: Rs 189,386,897) representing normative cost, which has been adjusted with container liability. Loss on deletion in excess of normative cost has been included in cost of returnable containers
in the profit and loss account.

Note 2: Provision for impairment (Also refer note 14 of Schedule 18): (Rs.)

Provision for impairment

Description As at 1 April 2007 Char ge / (reversal)
Charge Deletion As at 31 March 2008

Freehold land 16,600,000 - - 16,600,000

Buildings 21,733,035 - 13,266,470 8,466,565
Plant and machinery - others 14,190,863 115,401,622 - 129,592,485
Computer equipment - 841,707 - 841,707
Furniture, fittings and office equipment - 804,358 - 804,358
SKOL Breweries Limited

Motor vehicles - 258,556 - 258,556

Total
otal 52,523,898 117,306,243 13,266,470 156,563,671
Previous year 154,186,325 (101,662,427) - 52,523,898
29
28
 (Rs.)
6. Investments As at As at
31 March 2008 31 March 2007

Long term investments

1. Non trade - unquoted
(i) Government and trust securities
National Savings Certificates 2,019,500 2,151,500
Indira Vikas Patra 26,550 26,550
2,046,050 2,178,050

(ii) Fully paid equity shares

1 (previous year: Nil) fully paid equity shares of Rs. 10 each of MBL (AP) Breweries Limited 1 -
12,000 (previous year: Nil) fully paid equity shares of Rs. 10 each of Shushruta Medical Aid 12,000 -
and Research Hospitals Limited
5,000 (previous year: Nil) fully paid equity shares of Rs. 10 each of Maini Granites Limited 5,000 -
300 (previous year: Nil) fully paid equity shares of Rs. 10 each in AP Heavy Machinery & 300 -
Engineering Limited
10,000 (previous year: Nil) fully paid equity shares of Rs. 10 each in Ramanashree 10,000 -
Comforts Limited
10,000 (previous year: Nil) fully paid equity shares of Rs. 10 each in Anusha 10,000 -
International Limited
1,700 (previous year: Nil) fully paid equity shares of Rs. 100 each in Maa Communication 1,700 -
Bozel Limited
7,000 (previous year: Nil) fully paid equity shares of Rs. 10 each in Sachdev 7,000 -
International Limited
12,500 (previous year: Nil) fully paid equity shares of Rs. 10 each in Scarlet Flowers 12,500 -
and Agritech Limited
100 (previous year: Nil) fully paid equity shares of Rs. 10 each in Indana Spices 100 -
and Food India Limited
80,000 (previous year: Nil) fully paid equity shares of Rs. 10 each in Vulcan Leasing 80,000 -
and Investments Limited
5,005 (previous year: 5,005) fully paid equity shares of Rs. 100 each in 500,500 500,500
Janata Sahakari Bank Limited
295 (previous year: 295) fully paid equity shares of Rs. 100 each in Haryana State 29,500 29,500
Cooperative Bank Limited
668,601 530,000

2. Non trade - quoted

Fully paid equity shares
15,000 (previous year: Nil) fully paid equity shares of Rs. 1 each in ITC Limited 2,619,750 -
400 (previous year: Nil) fully paid equity shares of Rs. 10 each in Ultratech Cement Limited 400,060 -
80 (previous year: Nil) fully paid equity shares of Rs. 10 each in Tata Motors Limited 56,944 -
15,000 (previous year: Nil) fully paid equity shares of Rs. 2 each in Gujarat Ambuja 2,115,000 -
Cement Limited
500 (previous year: Nil) fully paid equity shares of Rs. 2 each in Larsen & Toubro Limited 2,598,850 -
700 (previous year: Nil) fully paid equity shares of Rs. 2 each in Satyam Computers Limited 633,500 -
50,000 (previous year: Nil) fully paid equity shares of Rs. 10 each in Super Star 50,000 -
Distilleries Limited
8,600 (previous year: 8,600) fully paid equity shares of Rs. 10 each in 700,470 -
Syndicate Bank Limited
9,174,574 -

Total long ter m investment

term 11,889,225 2,708,050
Less: Provision for, other than temporary, diminution in the value of investments (530,000) (530,000)
11,359,225 2,178,050

The aggregate book value and market value of quoted investments and book value of unquoted investments are as follows:
Quoted investment
Aggregate book value 9,174,574 -
Aggregate market value 7,775,281 -
Aggregate book value of unquoted investments 2,184,651 2,178,050
 Schedules to the financial statements

(Rs.)
7. Inventories As at As at
31 March 2008 31 March 2007

Raw materials and packing materials 424,926,983 337,185,005

Stores and spares 61,739,226 52,980,580
Work-in-progress 124,986,877 99,559,379
Finished goods 560,769,112 272,181,012
Goods in transit - finished goods 3,372,180 9,755,154
Traded goods 7,688,487 2,858,364
1,183,482,865 774,519,494

(Rs.)
8. Sundry debtors As at As at
31 March 2008 31 March 2007

Unsecured
Debts outstanding for a period exceeding six months
- considered good 30,028,871 24,356,971
- considered doubtful 210,674,357 251,018,532
240,703,228 275,375,503

Other debts
- considered good 2,506,190,512 1,460,225,259
- considered doubtful 88,980,586 31,803,092
2,835,874,326 1,767,403,854
Less: Provision for doubtful debts (299,654,943) (282,821,624)
2,536,219,383 1,484,582,230

(Rs.)
9. Cash and bank balances As at As at
31 March 2008 31 March 2007

Cash on hand 666,437 716,440

Cheques in hand 41,338,772 12,177,795
Balances with scheduled banks
- in current accounts 256,264,031 3,369,335,296
- in deposit accounts (Refer note below) 11,864,657 663,375,409
- in unclaimed dividend accounts 1,117,210 1,857,915
311,251,107 4,047,462,855
Note:
Balance in deposit account include Rs. Nil (previous year: Rs. 651,824,262) held in an escrow account pursuant to a share
purchase agreement and Rs. 11,864,657 (previous year: Rs. 11,551,147) in margin money account.

30
SKOL Breweries Limited
31
Schedules to the financial statements

(Rs.)
10. Loans and advances As at As at
31 March 2008 31 March 2007

Unsecured
Considered good
Advances recoverable in cash or in kind or for value to be received 537,839,857 629,683,132
Inter-corporate deposits [Refer note (b) below] - 117,947,601
Other deposits 172,613,021 98,352,285
Advance fringe benefit tax (net of provision) 1,264,449 3,163,673
Advance tax and tax deducted at source (net of provision for income-tax) 135,499,862 80,469,118
Balances with excise authorities 393,797,080 182,569,025
Interest accrued but not due 1,928,313 1,860,449
1,242,942,582 1,114,045,283
Considered doubtful
Advances recoverable in cash or in kind or for value to be received 170,218,956 78,697,798
Less: Provision for doubtful advances (170,218,956) (78,697,798)
1,242,942,582 1,114,045,283

Notes:
(a) Dues from companies under the same management outstanding as at the balance sheet date:
MBL Investments Limited - 110,785,131
SABMiller India Limited - 7,162,470

Maximum amount outstanding during the year:

MBL Investments Limited 128,785,130 1,285,871,421
SABMiller India Limited 9,560,863 7,162,470

(b) Terms for repayment, utilisation and tenure are not specified for inter-corporate deposits.

(Rs.)
11. Current liabilities As at As at
31 March 2008 31 March 2007

Acceptances 19,956,173 75,794,196

Sundry creditors
- micro and small enterpises 34,630,832 22,730,751
- others 710,036,322 841,449,692
Payable to group companies 1,008,195,088 592,392,333
Deposits from customers and del credre 81,907,134 69,767,947
Book overdraft - 299,863
Interest accrued but not due 11,167,966 23,225,241
Liability for returnable containers 601,678,875 452,728,876
Accrual for schemes 302,293,444 293,875,492
Excise duty payable 290,387,687 140,906,636
Other current liabilities 996,760,204 872,083,122
Investor education and protection fund shall be credited by the following amounts when due:
- Unclaimed dividend 1,117,210 1,857,915
- Unclaimed matured public deposit 30,000 30,000
4,058,160,935 3,387,142,064

(Rs.)
12. Provisions As at As at
31 March 2008 31 March 2007

Provision for other retirement benefits 48,395,186 36,231,793

Provision for gratuity 44,489,785 33,649,994
Provision for income-tax (net of advance tax and tax deducted at source) 96,752,121 96,752,121
Provision for claims (Refer to note 8 to Schedule 18) 171,556,592 260,118,088
361,193,684 426,751,996
 (Rs.)
13. Other income For the year ended For the year ended
31 March 2008 31 March 2007

Sale of spent malt and scrap 107,032,547 68,652,855

Interest
- inter-corporate deposit [tax deducted at source Rs. 836,719 3,692,493 76,980,042
(previous year: Rs. 17,274,321)]
- fixed deposit [tax deducted at source Rs. 10,294,726 48,743,316 7,082,208
(previous year: Rs. 1,412,752)]
Profit on sale of fixed assets, net 111,962,935 -
Foreign exchange gain, net - 482,590
Miscellaneous income 10,335,923 25,991,029
281,767,214 179,188,724

(Rs.)
14. Material cost of sales For the year ended For the year ended
31 March 2008 31 March 2007

Cost of traded goods sold 129,050,240 54,968,572

Raw materials and packing materials consumed 2,902,518,808 2,049,716,722
Malt processing charges 172,798,620 163,061,821

Opening stock
Work-in-progress 99,559,379 73,454,460
Finished goods 281,936,166 216,594,652
381,495,545 290,049,112
Less: Excise duty on opening stock 140,906,636 120,095,328
(A) 240,588,909 169,953,784

Closing stock
Work-in-progress 124,986,877 99,559,379
Finished goods 564,141,292 281,936,166
689,128,169 381,495,545
Less: Excise duty on closing stock 304,023,888 140,906,636
(B) 385,104,281 240,588,909

(Increase) in work-in-progress and finished goods (A-B) (144,515,372) (70,635,125)

3,059,852,296 2,197,111,990

(Rs.)
15. Personnel costs For the year ended For the year ended
31 March 2008 31 March 2007

Salaries, wages and bonus 729,129,579 530,219,354

Contributions to provident and other funds 27,672,075 24,512,076
Gratuity expense 10,839,791 (368,972)
Other retirement benefits 1,625,400 13,532,254
Workmen and staff welfare 35,661,451 35,387,869
804,928,296 603,282,581

32
SKOL Breweries Limited
33
 (Rs.)
16. Other expenses For the year ended For the year ended
31 March 2008 31 March 2007

Cost of returnable containers 1,652,361,344 1,321,272,433

Sales scheme expenses 399,092,351 295,341,245
Freight outward 641,104,558 478,639,388
Power and fuel 594,402,878 511,425,819
Advertisement and publicity 579,909,782 494,186,897
License fees 409,179,310 317,551,028
Rates and taxes 220,206,608 179,916,536
Legal and professional fees 132,552,686 88,661,721
Clearing and forwarding 187,930,192 167,139,691
Travel 97,313,383 82,708,264
Consumption of stores and spares 102,150,451 78,409,579
Rent 75,261,801 31,655,513
Repairs and maintenance
- buildings 12,283,695 4,787,995
- plant and machinery 24,739,869 20,486,550
- others 25,023,663 6,328,192
Telephone and other communication 31,940,020 25,257,507
Training and development 21,112,274 23,304,872
Insurance 24,455,559 18,781,313
Provision for doubtful debts 16,833,319 14,063,536
Bad debts written off 14,296,898 13,321,823
Printing and stationery 11,613,540 10,115,826
Provision for doubtful loans and advances 91,521,158 7,553,477
Doubtful advances written off 8,322,007 -
Provision for claims, net (88,561,496) 7,465,500
Bank charges 5,348,994 5,847,358
Loss on sale of fixed assets/ assets discarded, net - 3,652,936
Foreign exchange loss, net 49,754,609 -
Miscellaneous expenses 129,705,355 140,197,366
5,469,854,808 4,348,072,365

(Rs.)
17. Interest For the year ended For the year ended
31 March 2008 31 March 2007

On long term loans 37,764,439 62,310,463

On short term loans 111,094,489 218,907,190
Others 17,297,303 32,148,661
166,156,231 313,366,314
Less: Interest capitalised (17,989,690) -
148,166,541 313,366,314
 Schedules to the financial statements

18 . Notes to the accounts

1. Contingent liabilities and other commitments (Rs.)

As at As at
31 March 2008 31 March 2007
Claims against the Company not acknowledged as debts in respect of:
a) Sales tax matters 99,301,341 19,266,669
b) Excise matters 91,641,840 12,008,822
c) Other matters 32,379,016 32,379,016
Other commitments
d) Bank guarantees 16,414,057 11,423,917
e) Estimated amount of contracts remaining to be
executed on capital account (net of advances) and not provided for 1,243,881,396 526,933,187

2. Auditors’ remuneration, net of service tax (included under legal and professional fees) (Rs.)
For the year ended For the year ended
31 March 2008 31 March 2007
Audit fees 8,300,000 8,300,000
Taxation matters 1,000,000 1,000,000
Other matters 1,750,000 -
Reimbursement of expenses 466,327 467,271

3. Earnings per share (Figures in Rs. except number of shares)

For the year ended For the year ended
31 March 2008 31 March 2007
Profit for the year attributable to equity shareholders 344,777,187 401,891,802
Weighted average number of equity shares of Rs. 10 227,184,330 188,085,831
each used for calculation of basic earnings per share
Adjustments for dilutive effect of share application money 3,999,415 380,211
Weighted average number of equity shares of Rs. 10 231,183,745 188,466,042
each used for calculation of diluted earnings per share
Basic earnings per share 1.52 2.14
Diluted earnings per share 1.49 2.13

34
SKOL Breweries Limited 35
Schedules to the financial statements

18. Notes to the accounts

4. Additional information pursuant to the provisions of paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies
Act, 1956 (quantitative information has been compiled from records and technical data in respect of each class of goods
manufactured/ purchased by the Company):
(a) Details of finished goods and turnover
For the year ended For the year ended
31 March 2008 31 March 2007
Beer Quantity Amount Quantity Amount
(in cases) (Rs.) (in cases) (Rs.)
Opening stock 1,330,528 281,936,166 936,242 216,594,652
Sales (gross of excise duty and discounts)* 47,428,745 17,120,144,115 39,022,719 13,384,952,487
Closing stock 2,182,355 564,141,292 1,330,528 281,936,166
* Includes 62,321 (previous year: 102,035) cases charged to consumption on account of breakages, damages and wastage.

(b) Details of traded goods

For the year ended For the year ended
31 March 2008 31 March 2007
Beer Quantity Amount Quantity Amount
(in cases) (Rs.) (in cases) (Rs.)
Opening stock 11,154 2,858,364 - -
Purchases 837,335 133,880,363 412,834 57,826,936
Sales (gross of excise duty and discounts)** 831,010 296,758,472 401,680 100,449,130
Closing stock 17,479 7,688,487 11,154 2,858,364
** Includes 65 (previous year: 46) cases towards breakages, damages and wastage.

(c) Details of capacity and production (in cases)

For the year ended For the year ended
31 March 2008 31 March 2007
Licensed capacity 50,126,379 50,544,973
Installed capacity* 50,007,210 47,358,393
Actual production 48,280,572 39,417,005
* Installed capacity is as certified by management and relied upon by the auditors being a technical matter.

(d) Consumption of raw materials and packing materials

For the year ended For the year ended
31 March 2008 31 March 2007
Units Quantity Amount (Rs.) Quantity Amount (Rs.)
Malt (Note 1) MT 55,597 1,349,766,485 44,869 883,393,935
Cartons Nos 43,940,130 263,950,089 35,189,509 214,282,721
Cans Nos 53,451,141 348,979,529 35,294,669 235,326,858
Others (Note 2) 1,112,621,324 879,775,029
Total 3,075,317,427 2,212,778,543
Note 1: Includes processing charges.

Note 2: It is not practicable to furnish quantitative information in view of the large number of items which differ in size and nature, each being less than 10% in
value of the total consumption.
 18. Notes to the accounts

(e) Consumption of imported and indigenous raw materials and packing materials
For the year ended For the year ended
31 March 2008 31 March 2007
Amount Percentage Amount Percentage
(Rs.) (Rs.)
Imported 477,663,725 16 264,642,115 12
Indigenous 2,597,653,702 84 1,948,136,428 88
Total 3,075,317,427 100 2,212,778,543 100

(f) Consumption of imported and indigenous stores and spares

For the year ended For the year ended
31 March 2008 31 March 2007
Amount Percentage Amount Percentage
(Rs.) (Rs.)
Imported 1,749,696 2 2,002,513 3
Indigenous 100,400,755 98 76,407,066 97
Total 102,150,451 100 78,409,579 100

5. Value of imports on CIF basis

imports (Rs.)
For the year ended For the year ended
31 March 2008 31 March 2007
Raw materials and packing materials 447,980,124 220,932,703
Spare parts 1,367,463 1,463,646
Capital goods 128,484,910 18,639,095
577,832,497 241,035,444
6. Gratuity plan
The Company has a defined gratuity plan. Every employee who has completed 5 years or more of service, is eligible for
gratuity on separation, worked out at 15 days salary (last drawn salary) for each completed year of service. The obligation
under the scheme is partially funded by contributions being made to an insurance company.
Profit and loss account
Net employee benefit expense (recognised in personnel expenses) (Rs.)
Particulars For the year ended For the year ended
31 March 2008 31 March 2007
Current service cost 6,028,085 5,981,296
Interest cost on benefit obligation 4,503,848 3,497,924
Expected return on plan assets (1,569,374) (1,530,691)
Net actuarial loss/ (gain) recognised for the year 1,877,232 (8,317,501)
Net benefit expense 10,839,791 (368,972)
Actual return on plan assets 1,318,667 1,680,632

Balance Sheet
Details of provisions for gratuity (Rs.)
Particulars As at As at
31 March 2008 31 March 2007
Defined benefit obligations 62,980,939 51,632,939
Fair value of plan assets 18,491,154 17,982,945
Plan liabilities 44,489,785 33,649,994

36
SKOL Breweries Limited
37
18. Notes to the accounts

Changes in the present value of the defined benefit obligation (Rs.)

Particulars For the year ended For the year ended
31 March 2008 31 March 2007

Opening defined benefit obligation 51,632,939 55,673,233

Current service cost 6,028,085 5,981,296
Interest cost 4,503,848 3,497,924
Benefits paid (810,458) (5,351,954)
Actuarial loss/ (gain) on obligation 1,626,525 (8,167,560)
Closing defined benefit obligation 62,980,939 51,632,939

Changes in the fair value of plan assets (Rs.)

Particulars For the year ended For the year ended
31 March 2008 31 March 2007

Opening fair value of plan assets 17,982,945 18,726,037

Expected return on plan assets 1,569,374 1,530,691
Actuarial gain/(loss) on plan assets (250,707) 149,941
Contributions by employer - 2,928,230
Benefits paid (810,458) (5,351,954)
Closing fair value of plan assets 18,491,154 17,982,945

The Company expects to contribute Rs. 10,000,000 in the qualifying insurance policy during 2008-09.

Major categories of plan assets as a percentage of the fair value of total plan assets
Particulars As at As at
31 March 2008 31 March 2007

Investments with the insurer 100% 100%

Principal assumptions used in determining gratuity benefit obligations for the Company’s plan
Particulars As at As at
31 March 2008 31 March 2007

Discount rate 7.60% 8.10%

Expected rate of return on plan assets 7.50% 7.50%
Salary increase 10% for Executives 10% for Executives
7% for Workers 7% for Workers
Employee turnover 10% for Executives 10% for Executives
2% for Workers 2% for Workers
Retirement age 55 - 60 Years 55 – 60 Years

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other
relevant factors such as supply and demand factors in the employment market.

The overall expected rate of return on plan assets is determined based on the market prices prevailing on that date, applicable to
the period over which the obligation is to be settled.

Amounts for the current and previous two periods (Rs.)

Particulars As at As at As at
31 March 2008 31 March 2007 31 March 2006

Defined benefit obligation 62,980,939 51,632,939 55,673,233

Plan assets 18,491,154 17,982,945 18,726,037
Surplus/(deficit) 44,489,785 33,649,994 36,947,196
Experienced adjustments on plan liabilities (293,399) (904,245) -
Experienced adjustments on plan assets (250,707) 149,941 (105,070)
 Schedules to the financial statements

18. Notes to the accounts

7. Segment reporting
The Company’s sole business segment is ‘Beer’ and the only geographical segment is ‘India’. Consequently, the requirement for a
separate disclosure as required under AS 17 – ‘Segment Reporting’ is not applicable.

8. Provision for claims

The provision for claims is utilised to settle previously anticipated and determined adverse outcomes of legal cases against the
Company. The provision is based on independent advice obtained by the Company from external legal counsel. The time frame of
utilization of the provision is determined by the course of the legal proceedings.

(Rs.)
31 March 2008 31 March 2007

Opening balance 260,118,088 262,046,509

Add: Addition during the year - 7,465,500
Less: Amounts used during the year - (9,393,921)
Less: Unused amounts reversed during the year (88,561,496) -
Closing balance 171,556,592 260,118,088

Details of provisions reversed during the year are:

(i) Franchisee fees
The Orissa State Excise Department had raised a demand for franchisee fee pertaining to the brands owned by Shaw Wallace
Breweries Limited (“SWBL”), and manufactured in East Coast Breweries and Distilleries Limited (“ECBDL”, now a unit of the
Company). The Company had provided Rs. 54,845,466 against the said demand.

During the current year, the honourable Supreme Court of India has ruled the case in favour of the Company. Consequently, the
said provision, has been reversed.

(ii) Labour related cases

The Haryana State Government had imposed a prohibition on manufacture and sale of beer in the state of Haryana in 1996.
Accordingly, Haryana Breweries Limited (“HBL”, now a unit of the Company) temporarily discontinued its operations and
terminated services of employees. Subsequently, HBL re-commenced operations in 2001, after relaxation of rules by the State
Government and hired services of new employees. The erstwhile employees of HBL were aggrieved of this decision and hence
filed cases against the Company for reinstatement/ compensation. The Company had provided Rs. 33,716,030 against the
said labour demands.

During the current year, majority of the cases were settled in favour of the Company and the probability of adverse outcome in
the rest of the cases has been assessed as remote. Hence, provision has been reversed.

38
SKOL Breweries Limited
39
Schedules to the financial statements

18. Notes to the accounts

9. Related parties
(i) Names of related parties and description of relationship with the Company:
Enterprises where control exists
1. Ultimate holding SABMiller plc
company
2. Holding company SABMiller Asia & Africa BV (effective 30 March 2007).
SABMiller Breweries Private Limited (formerly Foster’s India Private Limited) (effective 30 March 2007)
SABMiller Asia B.V. (up to 30 March 2007)
SABMiller India Limited (up to 30 March 2007)
MBL Investments Limited (up to 30 March 2007)

Names of other related parties with whom transactions have taken place during the year
1. Fellow MBL Property Developers Limited
subsidiaries SABMiller Finance B.V.
S.p.A. Birra Peroni
SABMiller Breweries Private Limited (formerly Foster’s India Private Limited) (up to 30 March 2007)
SABMiller Asia & Africa BV (up to 30 March 2007)
MBL Investments Limited (from 30 March 2007 to 30 September 2007)
SABMiller India Limited (effective 30 March 2007)
SABMiller Asia B.V. (effective 30 March 2007)
SABMiller Africa & Asia (Pty) Limited
2. Key managerial Richard Mark Rushton, Managing Director (up to 31 July 2006)
personnel
Jean-Marc Delpon de Vaux, Managing Director (effective 1 August 2006)

(ii) Related party transactions

(Rs.)
Nature of transactions Holding / ultimate Fellow Key Total
holding company subsidiaries managerial
personnel
Income from marketing operations 83,191,895 - - 83,191,895
(-) (48,222,324) (-) (48,222,324)

Interest income - 3,692,493 - 3,692,493

(73,823,431) (87,762) - (73,911,193)

Purchase of traded goods and raw materials 41,910,792 110,443,152 - 152,353,944

(-) (5,339,795) (-) (5,339,795)

License fees - 409,179,310 - 409,179,310

(-) (317,551,028) (-) (317,551,028)

Interest expense 2,758,904 - - 2,758,904

(-) (16,767) (-) (16,767)

Remuneration - - 22,434,668 22,434,668

(-) - (20,706,454) (20,706,454)

Reimbursement of expenses incurred 76,072,145 217,094 - 76,289,240

on behalf of the Company (1,111,255) (16,302,884) (-) (17,414,139)

Reimbursement of expenses incurred 15,350,134 1,895,208 - 17,245,342

on behalf of other companies (11,900,755) (9,056,742) (-) (20,957,497)

Inter-corporate deposit given, net - - - -

(7,094,402) (-) (-) (7,094,402)

Inter-corporate deposit refunded, net - 117,947,601 - 117,947,601

(1,218,523,943) (-) (-) (1,218,523,943)
18. Notes to the accounts
(Rs.)
Nature of transactions Holding / ultimate Fellow Key Total
holding company subsidiaries managerial
personnel
Loan repaid, net - - - -
(503,185) (1,000,000) (-) (1,503,185)

Loan taken, net 205,825,649 - - 205,825,649

(-) (220,000,000) (-) (220,000,000)

Share application money received - - - -

(-) (1,863,000,000) (-) (1,863,000,000)

Proceeds from issue of shares - - - -

(1,348,499,040) (-) (-) (1,348,499,040)

Purchase of investments - 9,313,175 - 9,313,175

(-) (-) (-) (-)

Sale of fixed assets 1,352,663 - - 1,352,663

(-) (-) (-) (-)

Purchase of fixed assets - 738,310 - 738,310

(-) (-) (-) (-)

(iii) Amount outstanding as at the balance sheet date:

(Rs.)
Nature of transactions Holding / ultimate Fellow Key Total
holding company subsidiaries managerial
personnel

Unsecured loans 385,269,911 - - 385,269,911

(179,444,262) (-) (-) (179,444,262)

Payable to group companies 12,953,750 995,241,338 - 1,008,195,088

(9,882,626) (582,509,707) (-) (592,392,333)

Inter corporate deposit - - - -

(-) (117,947,601) (-) (117,947,601)

Advances recoverable in cash or in 1,001,003 8,521,725 - 9,522,728

kind or for value to be received (-) (-) (-) (-)
Figures in brackets represent previous year figures.

(iv) Tenure and terms for repayment have not been specified for unsecured loan obtained from the holding Company.

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SKOL Breweries Limited
41
18. Notes to the accounts

10. Deferred tax assets/ (liabilities) (Rs.)

As at As at
31 March 2008 31 March 2007
Deferred tax assets
Investments 180,147 178,398
Debtors 94,153,813 87,573,603
Loans and advances 51,127,403 19,824,999
Provision for retirement benefits 31,571,602 23,522,210
Provision for claims 52,349,240 63,189,810
Others 7,681,544 37,050,862
Unabsorbed depreciation 728,559,450 551,621,273
Total 965,623,199 782,961,155
Deferred tax liabilities
Fixed assets 1,029,367,235 782,961,155
Total 1,029,367,235 782,961,155
Deferred tax liabilities, net (63,744,036) -

In view of the accumulated losses and in accordance with AS 22 – “Accounting for taxes on income”, deferred tax assets on
unabsorbed depreciation and other temporary timing differences have been recognised only to the extent of those timing
differences, the reversal of which will result in sufficient taxable income.
The above deferred tax liability includes Rs. 7,039,122 of deferred tax credit recognised directly in general reserve, which
pertains to provision towards employee benefits recognised directly in general reserve, using the transitional provision of AS 15
(Revised).

11. Expenditure in foreign currency (accrual basis) (Rs.)

For the year ended For the year ended
31 March 2008 31 March 2007
Travel 8,672,944 6,441,321
License fees 409,179,310 317,551,028
Interest 29,531,653 45,744,418
Professional and consultation fees 23,244,952 14,793,793
Brand - 1,621,200,000
Others 8,791,717 12,054,585
479,420,576 2,017,785,145
 Schedules to the financial statements

18. Notes to the accounts

12. Derivative instruments and un-hedged foreign currency exposure

Derivative instruments
Particulars Purpose As at
31 March 2008
Forward contract Hedge against repayment of foreign currency loan JPY 113,010,836
Currency swap contract Hedge against repayment of foreign currency loan JPY 260,000,000
Currency swap contract Hedge against repayment of foreign currency loan USD 7,000,000

Hedge transactions are those which are defined as such at the inception of the transaction. No periodic evaluation of re-designation
of hedges is required to be carried out. Notwithstanding the above, all hedge transactions are translated at year end rates and the
resulting gain or loss is recognised in the profit and loss account.

Particulars of un-hedged foreign currency exposure as at the balance sheet date

Underlying asset / liability As at March 2008 As at 31 March 2007
Foreign Amount Foreign Amount
currency amount in Rs currency amount in Rs
Bank balance USD 237,368 9,504,220 – –
JPY 111,163,791 44,474,410 – –
Sundry creditors USD 645,120 25,830,605 USD 36,016 1,553,729
EURO 950,423 54,009,069 – –
Interest accrued but not due USD 266,437 10,668,131 – –
Payable to group companies USD 5,409 216,587 USD 13,340 575,474
ZAR 2,635,493 12,953,750 ZAR 1,602,984 9,533,569

13. Managerial remuneration

The details of remuneration paid to the managing director are as follows: (Rs.)
For the year ended For the year ended
31 March 2008 31 March 2007
Salary and allowance 13,231,671 11,277,721
Perquisites 9,202,997 9,428,733
22,434,668 20,706,454

Note: As the future liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole, the
amount pertaining to managing director is not ascertainable and, therefore not included above.

14. Provision for impairment of fixed assets

The impairment loss amounting to Rs. 117,306,243 in the current year represents the write down of certain fixed assets to
their recoverable amount. These fixed assets (excluding assets already impaired in the prior year) have been rendered as
redundant / idle as a result of significant capacity expansion at certain breweries and have been identified as such based on the
physical verification conducted by the management during the year.

In the previous year, due to significant growth in the beer market and constraints in capacities, management revisited its
decision to discontinue one of its brewery, which was impaired in earlier years. Accordingly, management had reassessed the
recoverable value of the brewery which resulted in reversal of impairment loss amounting to Rs. 101,662,427 being the lower
of recoverable value and the carrying amount of fixed assets determined (net of depreciation) had there been no impairment.

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SKOL Breweries Limited
43
 Schedules to the financial statements

18. Notes to the accounts

15. Management has initiated the process of identifying enterprises which have provided goods and services to the Company and
which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises
Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2008
has been made in the financials statements based on information received and available with the Company. Further in the view of
the management, the impact of interest, if any, that may be payable in accordance with the provisions of the said Act is not
expected to be material. The Company has not received any claim for interest from any supplier under the said Act.
(Rs.)
31 March 2008 31 March 2007

(i) The principal amount remaining unpaid to any supplier 34,095,709 22,387,599
as at the end of each accounting year;
(ii) The amount of interest paid by the Company along Nil Nil
with the amounts of the payment made to the supplier
beyond the appointed day during the year;
(iii) The amount of interest due and payable for the period of Nil Nil
delay in making payment (which have been paid but beyond
the appointed day during the year) but without adding
the interest specified under this Act;
(iv) The amount of interest accrued and remaining 535,123 343,152
unpaid at the end of the year
(v) The amount of further interest remaining due and payable 535,123 343,152
even in the succeeding years, until such date when the interest
dues as above are actually paid to the small enterprise.

16. Operating leases

The Company is obligated under non-cancellable operating leases for office premises which are renewable at the option of both
the lessor and lessee. Total rental expense under non-cancellable operating leases entered on or after 1 April 2001 amounted
to Rs. 8,260,160 (previous year: Rs. Nil) for the year ended 31 March 2008.
Future minimum lease payments under non-cancellable operating leases are as follows:
(Rs.)
Period As at 31 March 2008 As at 31 March 2007

Not later than 1 year 16,336,414 -

Later than 1 year and not later than 5 years 32,588,625 -
Later than 5 years - -

The Company is also obligated under cancellable lease for residential, vehicles and office premises, which are renewable at the
option of both the lessor and lessee. Total rental expense under cancellable operating lease entered amounted to Rs. 67,001,641
(previous year: Rs. 31,655,513) for the year ended 31 March 2008.

17. Employee stock compensation cost

Guidance Note on “Accounting for Employee Share Based Payments” issued by the ICAI (‘the Guidance Note’) establishes
financial and reporting principles for employees share based payments plans. The Guidance Note applies to employee share
based payment plans, the grant date in respect of which falls on or after 1 April 2005. SABMiller Plc (‘the Group’) operates a
variety of equity-settled share-based compensation plans for the employees of the Company.
(i) During the year ended 31 March 2008, the Group had the following share-based payment arrangements for the employees
of the Company.
 18. Notes to the accounts

Type of arrangement
arrangement Executive Share Option Scheme
[Approved and (No.2) Scheme]
As at March 2008 As at March 2007
Date of grant 18 May 2007 19 May 2006
Number of shares granted 92,200 95,377
Method of settlement Equity Equity
Contractual life 10 years 10 years
Vesting period 3 years 3 years
Vesting conditions Achievement of a target Achievement of a target
growth in earnings per share growth in earnings per share

Type of ar rangement
arrangement International Performance
Share Award Sub-Scheme
As at March 2008 As at March 2007
Date of grant 18 May 2007 -
Number of shares granted 7,000 -
Method of settlement Equity -
Contractual life 10 years -
Vesting period 3 years -
Vesting conditions Achievement of a target -
growth in earnings per share

(ii) The details of the activity under Executive Share Option Scheme [Approved and (No.2) Scheme] are as follows:

31 March 2008 31 March 2007

Number of Weighted average Number of Weighted average
Options exercise price (Rs) Options exercise price (Rs)
Outstanding at the beginning of the year 125,677 801 73,000 643
Granted during the year 92,200 942 95,377 911
Lapsed during the year 3,950 794 - -
Transferred during the year * 38,750 779 - -
Outstanding at the end of the year 217,877 865 168,377 800
Exercisable at the end of the year - - - -

* The options transferred represents options relating to employees transferred to other companies within the SABMiller Group during the year.

The weighted average share price at the date of exercise for stock options exercised during the year was Rs. 961 (previous year:
Rs. 881). The options outstanding as at 31 March 2008 had a weighted average remaining contractual life of 8.3 years (previous
year: 8.7 years).

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SKOL Breweries Limited
45
18. Notes to the accounts

The details of the activity under International Performance Share Award Sub-Scheme are as follows:
31 March 2008 31 March 2007
Number Weighted Number Weighted
of Options average of Options average
exercise price exercise price
Outstanding at the beginning of the year - - - -
Granted during the year 7,000 - - -
Outstanding at the end of the year 7,000 - - -
Exercisable at the end of the year - - - -

The weighted average share price at the date of exercise for stock options exercised during the year was Rs. 961. The options
outstanding as at 31 March 2008 had a weighted average remaining contractual life of 9.3 years.

(iii) The weighted average fair value of stock options granted during the year is Rs. 283 (previous year: Rs. 234). The estimate of
fair value on the date of the grant was made using the Black-Scholes model with the following assumptions:
For the year ended For the year ended
31 March 2008 31 March 2007
Share price at the grant date Rs. 961 Rs. 881
Exercise price at the grant date Rs. 942 Rs. 910
Expected volatility 22.5% 22.5%
Contractual life (vesting and exercise period) in years 10 years 10 years
Expected dividends 2.11% 2.11%
Average risk-free interest rate 4.48% 4.49%
The expected volatility was determined based on historical volatility by assessing the historic share price data in the United
Kingdom and South Africa since May 1999 and May 2001 respectively.
(iv) Since the Company used the intrinsic value method the impact on the reported net profit and earnings per share by applying
the fair value based method. The Guidance Note requires the Proforma disclosures of the impact of the fair value method of
accounting of employee stock compensation accounting in the financial statements. Applying the fair value based method
defined in the said Guidance Note, the impact on the reported net profit and earnings per share would be as follows:
(Rs.)
For the year ended For the year ended
31 March 2008 31 March 2007
Net income as reported 344,777,187 401,891,802
Add: Employee stock compensation under intrinsic value method - -
Less: Employee stock compensation under fair value method 18,391,746 10,912,108
Proforma net income 326,385,441 390,979,694
Earnings per share as reported
- Basic 1.52 2.14
- Diluted 1.49 2.13
Proforma earnings per share
- Basic 1.44 2.08
- Diluted 1.41 2.07

18. The comparative figures have been regrouped/ reclassified, wherever necessary, to conform with the current year’s
presentation.

for SKOL Breweries Limited

Jean-Marc Delpon de Vaux Jonathan Andrew Kirby

Managing Director Director
Kevin Heydenrych Pramod S M
Chief Finance Officer Company Secretary
Bangalore
23 June 2008
 46
SKOL Breweries Limited
47
Cash flow statement for the year ended 31 March 2008

(Rs.)
For the year ended For the year ended
31 March 2008 31 March 2007

Cash flows from operating activities

Profit / (Loss) before tax 408,545,685 453,375,648
Adjustments:
Provision for impairment of fixed assets 117,306,243 (101,662,427)
Depreciation 858,090,043 625,247,195
Interest expense 148,166,541 313,366,314
Interest income (52,435,809) (84,062,250)
Loss/ (profit) on sale of fixed assets/ assets discarded (111,953,510) 17,028,530
Unrealised foreign exchange difference (36,484,812) -
Operating cash flows before working capital changes 1,331,234,381 1,223,293,010
Increase in sundry debtors (1,051,637,153) (5,096,929)
Increase in loans and advances (193,645,516) (321,708,500)
Increase in inventories (408,963,371) (235,213,089)
Increase in current liabilities and provisions 1,032,704,887 1,186,712,169
Cash generated from operations 709,693,228 1,847,986,661
Taxes paid (46,116,860) (70,489,732)
Net cash provided by operating activities a 663,576,368 1,777,496,929
Cash flows from investing activities
Purchase of fixed assets (3,724,094,832) (3,655,242,114)
Proceeds from sale of fixed assets 179,174,811 5,263,942
Inter-corporate deposits, net 117,947,601 1,151,723,818
Interest received 52,367,945 83,612,459
Purchase of investments (9,181,175) -
Net cash used in investing activities b 3,383,785,650)
(3,383,785,650) (2,414,641,895)
Cash flows from financing activities
Proceeds from issue of shares - 1,348,499,040
Share application money received - 1,863,000,000
Proceeds from borrowings 20,529,309,506 15,127,038,959
Repayment of borrowings (21,386,584,822) (13,599,646,487)
Interest paid (160,223,816) (311,185,951)
Unclaimed dividend paid (740,705) (341,582)
Net cash (used in)/ provided by financing activities c (1,018,239,837) 4,427,363,979
Effect of exchange rate changes on cash and cash equivalents d 2,237,371 -
Net increase in cash and cash equivalents a+b+c+d (3,736,211,748) 3,790,219,013

Cash and cash equivalents at the beginning of the year 4,047,462,855 257,243,842
Cash and cash equivalents at the end of the year 311,251,107 4,047,462,855
Net increase in cash and cash equivalents* (3,736,211,748) 3,790,219,013

*Balance in deposit account include Rs. Nil (previous year: Rs. 651,824,262) held in an escrow account pursuant to a share
purchase agreement and Rs. 11,864,657 (previous year: Rs. 11,551,147) in margin money account.

As per our report attached

for BSR & Co. for SKOL Breweries Limited

Chartered Accountants

Zubin Shekary Jean-Marc Delpon de Vaux Jonathan Andrew Kirby

Partner Managing Director Director
Membership No. 48814

Kevin Heydenrych Pramod S M

Chief Finance Officer Company Secretary

Bangalore Bangalore
23 June 2008 23 June 2008
 Additional information pursuant to Part IV of Schedule VI of the Companies Act, 1956.

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE

COMPANY’S

I Registration Details
Registration No : 49687 State Code :11
Balance Sheet Date: 31-Mar-08

II Capital Raised during the year (Amount In Rs Thousands)

Public Issue Rights Issue
Nil Nil

Bonus Issue Private Placement

Nil 186,300

III Position of Mobilisation and Deployment of Funds (Amount In Rs Thousands)

Total Liabilities Total Assets
8,257,520 8,257,520
Sources of Funds
Paid - up Capital Reserves and Surplus
2,311,837 6,406,852

Secured Loans Unsecured Loans

0 3,774,422

Application of Funds
Net Fixed Assets Investments
8,742,088 11,359

Net Current Assets Misc Expenditure

854,541 Nil

Accumulated Losses
Nil

IV Performance of the Company (Amount In Rs Thousands)

Turnover Total Expenditure
10,584,976 10,458,198

Profit/(Loss) Before Tax Profit/ Loss After Tax

408,545 344,777

Earnings Per Share in Rs Dividend Rate %

1.52 0

V Generic Names of Three Principal Products/ Services of the Company (as per monetary terms)
Item code No [ITC Code] 220300
Product Description Beer

for SKOL Breweries Limited

Jean-Marc Delpon de Vaux Jonathan Andrew Kirby
Managing Director Director
Kevin Heydenrych Pramod S M
Chief Finance Officer Company Secretary
Bangalore
23 June 2008

48
SKOL Breweries Limited
49
SKOL Breweries Limited Tel +91(0)22 - 67103890-93
1, Mahal Industrial Estate, Fax +91(0)22 - 67103894
Mahakali Caves Road,
Andheri East, Mumbai - 400 093
Maharashtra, India www.sabmiller.in

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