Annual Report 2011 - 2012 - United Breweries Limited

Notes to the Consolidated Financial Statements (contd.)
(All amounts in Rs.lacs, unless otherwise stated)
c) Accounting for Amalgamation:
The amalgamation of CBPL with the Company is accounted for on the basis of the Pooling of Interest Method as
envisaged in the Accounting Standard (AS) -14 on Accounting for Amalgamations specified in the Companies
(Accounting Standard) Rules 2006 and in terms of the scheme, as below,
– All asset and liabilities of CBPL were recorded at their respective book values under the respective accounting
heads of the Company.
– Rs.1,645 being the difference between the value of net assets of CBPL transferred to the Company
(determined as stated above) and the carrying value of the Company’s investment has been adjusted to
Capital/General Reserve of the Company.
– The inter company balances stood cancelled.
CBPL was engaged in the brewing business.
D. The scheme of amalgamation between Millennium Beer Industries Limited (MBIL) and the Company (the Scheme)
and their respective shareholders and creditors with April 1, 2010 as the appointed date has been approved by
the Honorable BIFR Court, Delhi vide its order dated November 11, 2011. Upon necessary filing with the Registrar
of Companies, the scheme has become effective on November 16, 2011 and the effect thereof has been given
in these accounts. Consequently, in respect of the merger of Millennium Beer Industries Limited (MBIL) with the
Company
a) In terms of the Scheme, approved by the BIFR Court, the entire business and the whole of the undertaking
of MBIL, as a going concern stands transferred to and vested in the Company with effect from April 1, 2010,
being the Merger Appointed Date.
b) On the amalgamation of MBIL with the Company, the Company’s holding stands cancelled and for the rest
the Company has issued 504,731 equity shares of Re.1/- each aggregating to Rs.5 in the ratio of 1 fully paid
up Equity shares of the face value of Re.1/- each of the Company for every 12 fully paid up equity shares of
Re.1/- of MBIL allotment.
c) Accounting for Amalgamation:
The amalgamation of MBIL with the Company is accounted for on the basis of the Pooling of Interest Method as
envisaged in the Accounting Standard (AS) -14 on Accounting for Amalgamations specified in the Companies
(Accounting Standard) Rules 2006 and in terms of the scheme, as below,
– All asset and liabilities of MBIL were recorded at their respective book values under the respective accounting
heads of the Company.
– Rs.30,514 being the difference between the value of net assets of MBIL transferred to the Company
(determined as stated above) and the carrying value of the Company’s investment has been adjusted to
Capital/General Reserve of the Company.
– The inter company balances and transactions stood cancelled.
MBIL was engaged in the brewing business.
E. The scheme of amalgamation between United Millennium Breweries Limited (UMBL) and the Company (the
Scheme) and their respective shareholder and creditors with April 1, 2010 as the appointed date has been
approved by the Honorable BIFR Court, Delhi vide its order dated November 21, 2011. Upon necessary filing with
the Registrar of Companies, the scheme has become effective on November 21, 2011 and the effect there of have
been given in these accounts. Consequently, in respect of the merger of United Millennium Breweries Limited
(UMBL) with the Company.
a) In terms of the Scheme approved by the BIFR Court, the entire business and the whole of the undertaking of
UMBL, as a going concern stands transferred to and vested in the Company with effect from April 1, 2010
being the Merger Appointed Date.
b) As UMBL was a wholly owned subsidiary of the Company, no consideration was payable pursuant to
amalgamation of UMBL with the Company.
c) Accounting for Amalgamation:
The amalgamation of UMBL with the Company is accounted for on the basis of the Pooling of Interest
Method as envisaged in the Accounting Standard (AS) -14 on Accounting for Amalgamations specified in the
Companies (Accounting Standard) Rules 2006 and in terms of the scheme, as below,
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