Annual Report 2009-10 - United Breweries Limited

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Notes on Consolidated Accounts for the year ended March 31, 2010 (contd.)Rs. in ThousandsParticulars Rs. Rs.Net Worth as on March 31, 2008 23,505UBL’s Share - 51% 11,988Purchase Consideration 450,000Goodwill 438,012Minority Interest 11,5176. Loan Funds:Particulars 2010 2009Secured Loans(a) Foreign Currency Loans Including Interest Accrued and due1,679,721 2,338,948Rs.18,848 (2009: Rs.21,839)Loans repayable within one year – Rs.871,207 (2009: Rs.1,056,260)Foreign Currency Loans consist of External Commercial Borrowing (ECB) from BNPParibas and Foreign Currency Loan from Axis Bank. ECB from BNP Paribas is securedby first charge on all moveable and immovable properties of the Company exceptTaloja plant. Foreign currency loan from Axis bank includes demand loan and termloan which are secured by first Charge on the Fixed Assets of a subsidiary of jointventure and current assets namely, Stock of Raw Material, Work In Progress & FinishedGoods, Stores & Spares, Bills Receivable and Book Debts of the Company and coveredby corporate guarantee isused by the Company.(b) Term Loan from Bank141,091 225,685[including interest accrued and due Rs.716 (2009: Rs.1,060)]Loan repayable within one year – Rs.84,250 (2009: Rs.84,250)Secured against charge on all movable and immovable fixed assets of Empee BreweriesLimited and covered by a corporate guarantee issued by the Company.Term Loan from Bank5,571 12,296Secured by way of hypothecation of all plant and machineries lying at factory orelsewhere both present and future of MML, a subsidiary of the Company.Term Loan from Bank493,151 657,534Loan repayable within one year – Rs. 164,384 (2009: Rs.164,384)Secured by first charge on all moveable and immovable assets.Term Loan from Bank562,500 812,500Loan repayable within one year – Rs. 250,000 (2009: Rs.250,000)Secured by Pari-Passu charge on all moveable and immovable properties of theCompany except Taloja plant.(c) From Banks [including interest accrued and due Rs.5,053 (2009: Rs.5,321)]2,374,013 866,204Amount repayable within one year – Rs.2,374,013 (2009: Rs.866,204)Secured by hypothecation of stock in trade, stores, raw materials, book debts and asecond charge on all the immovable properties of the Company.(d) From Others [including interest accrued and due Rs.Nil (2009: Rs.68,824)] 605,108 564,924(e) From Rabo Finance India Private Limited123,155 193,529Amounts repayable within one year – Rs.70,374 (2009: Rs.70,431)Secured by charge on all movable and immovable properties and current assets, bothpresent and future of the MBIL (a subsidiary of the Joint Venture) and covered by acorporate guarantee issued by the Company.Unsecured Loans(i) Loans from Banks [including interest accrued and due Rs.Nil (2009: Rs. Nil)]1,750,000* 1,750,000*Amount repayable within one year – Rs.Nil (2009: Rs.Nil)*Covered by personal guarantee of a Director of the Company.(ii) From OthersAmount repayable within one year – Rs. Nil (2009: Rs.Nil) 227,195 227,19572
Notes on Consolidated Accounts for the year ended March 31, 2010 (contd.)7. Fixed Assets:Rs. in ThousandsBuildings amounting to Rs.53,030 (2009: Rs.49,619) and Plant and Machinery amounting to Rs.502,517 (2009: Rs.473,319)are in premises not owned by the Group.8. The Company does not own any brewing facility in Tamil Nadu, which is one of the major markets in India contributingabout 18% of the Company’s business. With an intention of ensuring supplies from Balaji Distilleries Limited (BDL), havingbrewing facilities in Tamil Nadu, the Company has entered into an agreement with the promoters of BDL to secure to theCompany perpetual usage of the brewery owned by BDL, and has advanced an amount of Rs.1,550,000 to one of thePromoter Companies of BDL, acting for and on behalf of the other Promoters also.Subsequently, the Boards of Directors of BDL and United Spirits Limited (USL) have considered and approved a proposal formerger of BDL into USL, which is subject to obtaining of the necessary regulatory approvals by both the Companies. TheCompany has obtained a commitment from USL that the arrangement with Promoters will be adhered to on completionof the proposed merger. The advance will be repaid upon the completion of the merger or in accordance with the terms ofthe related Agreement, whichever is earlier.In June 2009, BDL has allotted 90,000 Equity Shares upon conversion of warrants to certain parties. These parties haveentered into a supplemental agreement with the Company to the effect that they will be bound by the terms and conditionsof the earlier agreement between the Company and the promoters of BDL.9. Capital Commitments:Particulars 2010 2009Estimated amount of Contracts remaining to be executed on capital account and notprovided for.257,321 689,134Share of joint venture:Particulars 2010 2009Estimated amount of Contracts remaining to be executed on capital account and not 8,896 46,348provided for.10. Contingent Liabilities:Particulars 2010 2009a) Sales Tax/other taxes demands under appeal* 14,672 14,672b) Employee State Insurance Demand* 265 265c) Demand towards Water charges under appeal* — 133,019d) Excise Duty/Customs Duty demands under appeal* 36,709 36,709e) Income Tax demands under appeal 188,844 82,262f) Service Tax demands under appeal* 229,114 377,708g) Claims against the Company not acknowledged as debt* 30,568 27,377h) Letter of Credit outstanding 78,926 33,230i) Guarantees given by the company:- on behalf of Subsidiaries of Joint Venture to third partiesMillennium Beer Industries LimitedUnited Millennium Breweries LimitedEmpee Breweries Limited- to third parties800,000600,000730,00019,060800,000600,000730,00028,348j) Letter of undertaking to distributors towards countervailing duty for imports fromNepal38,500 38,500Share of joint venture:Particulars 2010 2009a) Sales Tax/other taxes demands under appeal [Amount paid under dispute3,774 3,281Rs.223 (2009: Rs.22) and disclosed in loans and advances in Schedule 10]b) ESIC / PF demands under appeal [Amount paid under dispute Rs.Nil (2009: Rs.53)845 898and disclosed in loans and advances in Schedule 10]c) Bank Guarantees given* 10,155 5,855d) Demand towards Water charges under appeal* — 26,25073
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Report of the Directors (contd.)Unl
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Report on Corporate Governance (con
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Page 30 and 31: Balance Sheet as at March 31, 2010R
Page 32 and 33: Cash Flow Statement for the year en
Page 34 and 35: Schedules to Balance SheetRs. in Th
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Page 40 and 41: Schedules to Profit and Loss Accoun
Page 42 and 43: SCHEDULE 18Significant Accounting P
Page 44 and 45: Notes on Accounts for the year ende
Page 48 and 49: 14. Remuneration to Auditors:Notes
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Page 56 and 57: SUMMERISED FINANCIALS OF SUBSIDIARY
Page 58 and 59: Consolidated Balance Sheet as at Ma
Page 62 and 63: Schedules to Consolidated Balance S
Page 68 and 69: Schedules to Consolidated Profit an
Page 70 and 71: Significant Accounting Policies for
Page 74 and 75: Notes on Consolidated Accounts for
Page 76 and 77: Notes on Consolidated Accounts for
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Annual Report 2009-10 - United Breweries Limited

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