Annual Report 2011 - 2012 - United Breweries Limited

Notes to Financial Statements (contd.)b) In consideration of the amalgamation of CBPL with the Company, the Company has issued 8,500,000 equityshares of Re.1/- each aggregating to Rs.85 in the ratio of 17 fully paid up Equity shares of the face value ofRe.1/- each of the Company for every 30 fully paid up equity shares of Rs.10/- each held in CBPL which ispending allotment.c) Accounting for Amalgamation:The amalgamation of CBPL with the Company is accounted for on the basis of the Pooling of Interest Method asenvisaged 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 accountingheads 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 toCapital/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 bythe Honorable BIFR Court, Delhi vide its order dated November 11, 2011. Upon necessary filing with the Registrarof Companies, the scheme has become effective on November 16, 2011 and the effect thereof has been givenin these accounts. Consequently, in respect of the merger of Millennium Beer Industries Limited (MBIL) with theCompany.a) In terms of the Scheme, approved by the BIFR Court, the entire business and the whole of the undertakingof 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 restthe Company has issued 504,731 equity shares of Re.1/- each aggregating to Rs.5 in the ratio of 1 fullypaid up Equity shares of the face value of Re.1/- each of the Company for every 12 fully paid up equityshares 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 InterestMethod as envisaged in the Accounting Standard (AS) -14 on Accounting for Amalgamations specified inthe 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 respectiveaccounting 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 adjustedto Capital/General Reserve of the Company.– The inter company balances and transactions stood cancelled.MBIL was engaged in the brewing business.(All amounts in Rs.lacs, unless otherwise stated)E. The scheme of amalgamation between United Millennium Breweries Limited (UMBL) and the Company (theScheme) and their respective shareholder and creditors with April 1, 2010 as the appointed date has beenapproved by the Honorable BIFR Court, Delhi vide its order dated November 21, 2011. Upon necessary filing withthe Registrar of Companies, the scheme has become effective on November 21, 2011 and the effect there of havebeen given in these accounts. Consequently, in respect of the merger of United Millennium Breweries Limited(UMBL) with the Companya) In terms of the Scheme approved by the BIFR Court, the entire business and the whole of the undertaking ofUMBL, as a going concern stands transferred to and vested in the Company with effect from April 1, 2010being the Merger Appointed Date.61