2. The accounts for the year ended March 31, 2006, carry a qualification with regard to diminution in value of investments in a Joint Venture Millennium Alcobev Private Ltd.,(MAPL) amounting to Rs.58.95 crores. MAPL, being a JV between the Company and S & N, has already made significant inroads into the market by achieving a 10% market share within a period of four years. The said JV has their manufacturing locations in critical markets and meets almost 33% of the Company's capacity requirement. Considering these investments are strategic and long term in nature, the management is of the view that no provision is necessary at this stage.

3. In accordance with the transitional provisions contained in the revised Accounting Standard 15 issued by the Institute of Chartered accountants of India, the difference of Rs.5,20,898/- between the liability in respect of short term employee benefits existing on the date of adoption (April 1, 2006) and the liability that would have been recognized at the same date under the previous accounting policy has been adjusted against the opening balance in General Reserve. However, there is no material impact on the profit for the current quarter.

4. The Company is engaged in manufacture, purchase and sale of beer including licensing of brands which constitute a single business segment. The Company also considers the whole of India as a single geographical segment.

5. Comparative figures do not include the figures of the erstwhile Mangalore Breweries & Distilleries Limited & Associated Breweries & Distilleries Limited, which were amalgamated with the Company retrospectively with effect from April 1, 2005 consequent to the Schemes of Amalgamations of these companies becoming effective August 2006. Consequently, the comparative figures are not comparable with the figures for the quarter ended September 30, 2006. The quarterly results are not indicative of the overall profitability of the year.

6. The investor complaints pending as on July 1, 2006 were Nil. The complaints received and disposed off during the quarter ended September 30, 2006 were 20 and there were no complaints unresolved as on that date.

7. The results for the quarter ended September 30, 2006 have been subjected to a limited review by the statutory auditors of the company and the same have been approved by the Board of Directors at the meeting held on October 26, 2006.

8. The Board approved the proposal for amalgamating Karnataka Breweries & Distilleries Private Limited, London Pilsner Breweries Private Limited and London Draft Pubs Private Limited, subsidiary Companies into the Company. The Company would be filing a Scheme of Arrangement under Section391-394 of the Companies Act, 1956 in this regard.

By the Authority of the Board