Annual Report 2011 - 2012 - United Breweries Limited

(4) Transaction with Heineken Brouwerijen B.V.
Technical services fee
Sales promotion
(5) Transaction with Heineken International B.V.
Reimbursements
Final dividend on equity shares
(6) Transaction with Heineken Supply Chain B.V.
Consultancy fee
Notes to Financial Statements (contd.)
(All amounts in Rs.lacs, unless otherwise stated)
Rs.600 (2011: Rs.600)
Rs.2 (2011: Rs.NIL)
Rs.66 (2011: Rs.56)
Rs.3 (2011: Rs.NIL)
Rs.54 (2011: Rs.17)
40. OPERATING LEASE
The Company has entered into leasing arrangements for vehicles, computers, equipments, office premises and
residential premises that are renewable on a periodic basis, and cancellable/ non-cancellable in nature. Such leases are
generally for a period of 11 to 60 months with options of renewal against increased rent and premature termination
of agreement through notice period of 2 to 3 months, except in the case of certain leases where there is a lock-in
period of 11 to 26 months.
Particulars
Year ended
March 31, 2012 March 31, 2011
Lease payments during the year 1,136 1,014
At the balance sheet date, future minimum lease rentals under
non-cancellable operating leases are as under:
Not later than one year 173 196
One to five years 108 269
Total 281 465
41. DETAILS OF SUBSIDIARY/ASSOCIATE
Particulars
Ownership %
Country of
2012 2011 Incorporation
Name of the Subsidiary
Maltex Malsters Limited (MML) 51 51 India
Name of the Associate
United East Bengal Football Team Private Limited
(UEBFTPL)
49.99 49.99 India
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42. ADVANCE MADE TO STAR INVESTMENTS
The Company had entered into an agreement with the promoters of Balaji Distilleries Limited (BDL) with a view
to secure perpetual usage of its brewery and grant of first right of refusal in case of sale or disposal of its brewery
unit in any manner by BDL, towards which the Company had made a refundable facility advance of Rs.15,500 to
Star Investments Private Ltd. (Star Investments), one of the Promoter Companies of BDL, acting for itself and on
behalf of the other Promoters.
Subsequently, BDL filed a scheme of arrangement for amalgamation of its distillery into United Spirits Limited (USL)
and de-merger of its brewery into Chennai Breweries Private Limited (CBPL) and the said Scheme was approved by
Appellate Authority for Industrial & Financial Reconstruction in November 2010. The Brewery assets proposed to be
acquired by the Company from the Promoters of BDL eventually vested in CBPL which was a 100% subsidiary of
USL. A Scheme for Amalgamation of CBPL into the Company was then filed. Upon amalgamation of CBPL into the
Company, USL has been allotted equity shares in terms of the approved Scheme.
On November 22, 2011, the Company has entered into an agreement extending the repayment of principal and
interest outstanding till March 2012, and obtained a pledge of securities from associate companies of Star to secure
the outstanding amounts. Commitment has been received from Star Investments for accruing of interest on the
outstanding till the same is fully repaid.