RAINBOW BREWERIES LIMITED
ANNUAL REPORT 2002-2003
Your Directors are presenting herewith 33rd Annual Report alongwith the
Audited Balance Sheet of the Company as at 31st March, 2003 and Profit &
Loss Account for the year ended on that date
During the year, the Company could achieve sales of Rs.387.48 lakhs against
a sales of Rs 639.36 lakhs in last year. This is because, due to
circumstances beyond the control of the management, the company remained
closed from October, 2002 to March 2003. This has also resulted in a loss
of Rs.293.84 Lacs during the year. Capacity utilization was not maximum.
The Company's arrangement with M/s United Breweries Ltd., for manufacturing
their brands continues, which is expected to improve the position of the
1. Loss before interest
Deferred Expenses 116.34 122.16
2. Interest 30.71 26.17
3. Depreciation 102.67 115.60
4. Preliminary/Public issue/Deferred
Expenditure 44.12 44.12
5. Loss for the year 293.84.00 308.04
The Management is hopeful that the Company will perform better in the
Your Directors are unable to recommend any dividend for the Financial Year
ended 31st March. 2003 in view of continued loss.
FUTURE OUTLOOK AND OPERATIONS:
The requirements of the franchiser viz. M/s United Breweries Ltd., are
ambitious and the Company will be making all out efforts to step-up
production in the coming year in order to cater to their requirements,
which will in turn improve the financial position
AUDITORS & AUDITORS REPORT:
M/s DINESH K. SHARMA & ASSOCIATES, Chartered Accountants, Auditors of the
Company, retire at the conclusion of the ensuing Annual General Meeting and
have expressed their willingness to be re-appointed as Auditors. The
Company has received confirmation from M/s DINESH K. SHARMA & ASSOCIATES,
Chartered Accountants, to the effect that their appointment, if made, will
be within the limits as prescribed in Section 224 of the Companies Act,
DIRECTORS RESPONSIBILITY STATEMENT:
It is hereby confirmed:
i) That in the preparation of Annual Accounts, the applicable Accounting
Standards have been followed alongwith proper explanation relating to
material departures, if any
ii) That Accounting Policies have been selected and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the State of Affairs of the
Company for that period.
iii) That proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the Assets of the Company and for
preventing and detecting fraud and other irregularities
vi) That the Directors had prepared the Annual Accounts on a going concern
The Company has not accepted any deposit from the public within the meaning
of Section 58A of the Companies Act, 1956 and the rules made thereunder
Strict quality control is exercised at every stage of manufacturing,
starting from incoming raw material upto the outgoing finished products.
Testing is done at different stages of production at our laboratory
All the assets of your Company, including Plant & Machinery, Buildings,
Equipments etc., have been adequately insured.
PARTICULARS OF EMPLOYEES:
In accordance with the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 there
was no employee who was in receipt of remuneration exceeding Rs.12,00,000/-
per annum employed for full year or Rs.1,00,000/- per month, if employed
for part of the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING
Boiler Capacity is utilized to the maximum with minimum wastage.
Wastage is minimised. The treated water from Effluent Treatment Plant is
utilized in plantation pre-washing of Bottles, refrigeration plant etc.
Fast fermentation techniques are being exprimented at our laboratory. The
quality of Beer produced in the factory is one of the best available in the
FOREIGN EXCHANGE EARNINGS & OUTGO:
There is no Foreign Exchange earnings and no outgo too during the year.
Developing green belt with plants in the factory premises is an attraction
to the Company
During the year under review, relations with employees and officers
Your Directors acknowledge the co-operation and continued valuable support
received from Customers, Banks, Suppliers, Employees & Officers.
On behalf of the Board
Place : Shiwar Managing Director
Date : 06/05/03