Annual Report 2011 - 2012 - United Breweries Limited

c) Accounting for Amalgamation:
The amalgamation of EBL 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 the EBL were recorded at their respective book values under the respective
accounting heads of the Company.
– Rs.13,645 being the difference between the value of net assets of the EBL 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 Shares issued to UBL Benefit Trust appears as a separate line item in the Balance Sheet of the
Company as Interest in UBL Benefit Trust.
– The inter company balances and transactions stood cancelled.
EBL was engaged in the brewing business.
Notes to Financial Statements (contd.)
(All amounts in Rs.lacs, unless otherwise stated)
B. The scheme of amalgamation under sections 391 to 394 of the Companies Act, 1956 between UB Nizam
Breweries Private Limited (UBNPL) 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 High Court of Karnataka vide its
order dated August 26, 2011. Upon necessary filing with the Registrar of Companies, the scheme has become
effective on November 8, 2011 and the effect thereof has been given in these accounts. Consequently, in respect
of the merger of UB Nizam Breweries Private Limited (UBNPL) with the Company -
a) In terms of the Scheme, the entire business and the whole of the undertaking of UBNPL, as a going concern
stands transferred to and vested in the Company with effect from April 1, 2010, being the Merger Appointed
Date.
b) In consideration of the amalgamation of UBNPL with the Company, the Company had issued 145,902 equity
shares of Re.1/- each aggregating to Re.1 in the ratio of 1 fully paid up equity shares of the face value of
Re.1/- each of the Company for every 454 fully paid up equity shares of Rs.10/- each held in UBNPL and in the
ratio of 1 fully paid up Equity Shares of the face value of Re.1/- each of the Company for every 454 fully paid
preference shares of Rs.10/- each in UBNPL.
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c) Accounting for Amalgamation:
The amalgamation of UBNPL 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 UBNPL were recorded at their respective book values under the respective
accounting heads of the Company.
– Rs.488 being the difference between the value of net assets of UBNPL 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 the transactions stood cancelled.
UBNPL was engaged in the brewing business.
C. The scheme of amalgamation under sections 391 to 394 of the Companies Act, 1956 between Chennai Breweries
Private Limited (CBPL) and the Company (the Scheme) and their respective shareholders and creditors with March
31, 2011 as the appointed date has been approved by the Honorable High Court of Karnataka and Honorable
High Court of Madras, vide its order dated August 26, 2011 and October 11, 2011 respectively. Upon necessary
filing with the Registrar of Companies, the scheme has become effective on November 12, 2011 and the effect
thereof has been given in these accounts. Consequently, in respect of the merger of Chennai Breweries Private
Limited (CBPL) with the Company -
a) In terms of the Scheme, the entire business and the whole of the undertaking of CBPL, as a going concern
stands transferred to and vested in the Company with effect from the closing hours of March 31, 2011, being
the Merger Appointed Date.