president & cfo - UB Group

Schedules forming part of account for the year ended March 31, 2009 (Contd.)d) Interest free loans in foreign currency aggregating to Rs. 7,345.279 Million as on April 1, 2007, grantedby the Company to Zelinka for acquisition of long term strategic investments, stand cancelled. Exchangedifference on such loans aggregating to Rs.144.912 Million as on April 1, 2007, accumulated by theCompany in Foreign Currency Translation Reserve, has been transferred to General Reserve. Thisaccounting treatment of the reserve has been prescribed in the ZL Scheme. Had the ZL Scheme notprescribed this treatment, this amount would have been debited to the Profit and Loss Account for theyear instead of General Reserve, having corresponding impact on the net profit for the year.Exchange differences of Rs. 570.131 Million on loan to Zelinka arising during the year ended March 31,2008 stands reversed on cancellation of such loans on amalgamation.C. All costs and expenses (including those of the Transferor Companies) incidental with the finalisation of theschemes and to put these into operation, including expenses in connection with excise and label re-registrations,all advisory fees, stamp duty charges, meeting expenses, professional fees, consultant fees including expenses andother expenses or charges attributable to the implementation of the Scheme (expenses relating to amalgamation),aggregating to Rs.146.879 Million are debited to General Reserve in the books.This accounting treatment of the costs and expenses has been prescribed in the Scheme. Had the Scheme notprescribed this treatment, this amount would have been debited to the Profit and Loss Account for the yearinstead of General Reserve, having corresponding impact on the net profit for the year.D. From April 1, 2007, the Transferor Companies had carried out the business in trust on behalf of the Company.Accordingly, Profit for the year ended March 31, 2008 of the Transferor Companies after making the followingadjustments have been added to the Profit and Loss Account:Rs. MillionProfit after Taxation for the year ended March 31, 2008 as per audited accounts 673.956Transfer to General Reserve (20.000)Transfer to Capital Redemption Reserve (37.000)Proposed Dividend (Net of dividend received by the Company) (32.940)Corporate Tax on Proposed Dividend (8.159)Adjustments on Amalgamation (471.874)Amount Transferred to Profit and Loss Account on Amalgamation 103.983E. The Board of Directors of the erstwhile Central Distilleries & Breweries Limited (CDBL) (amalgamated with erstwhileSWDL amalgamated with the Company in an earlier year) on April 29, 1986 decided to issue 134,700 Equity Sharesof Rs.10 each, the allotment whereof was stayed by the Hon’ble High Court of Delhi on September 13,1988. TheHon’ble High Court of Delhi had vacated its order and has ordered to keep in abeyance the allotment on 72,556shares and the matter is sub-judice. The holders, in exchange of these shares will be entitled to 17,776 equityshares of Rs.10 each of the Company pursuant to a Scheme of Arrangement. Necessary adjustments in this respectwill be carried out on disposal of the matter pending before the aforesaid Court.F. Pursuant to the Scheme of amalgamation, the bank accounts, agreements, licences and certain immovableproperties are in the process of being transferred in the name of the Company.3. The Board of Directors of the Company at their meeting held on November 29, 2008 have approved the proposalof merger of Balaji Distilleries Limited with the Company with effect from April 1, 2009 as per the Schemeof Arrangement between BDL, Chennai Breweries Private Limited and the Company, subject to the necessaryapprovals.49