UBHL annual report - United Spirits Limited

Notes to the financial statements for the year ended March 31, 2012 (Contd.)(c) The Company has, granted interest free loans in foreign currency amounting to Rs.39,816.801 Million (2011:Rs. 36,857.536 Million), to USL Holdings Limited, BVI (USL Holdings) a subsidiary of the Company, for acquisition oflong term strategic investments. Management is of the view that out of these loans, Rs.38,110.395 Million (2011: Rs.33,411.109 Million), from the inception of the grant of loans, in substance, form part of the Company’s net investmentin the subsidiary, as the settlement of these loans is neither planned nor likely to occur in the foreseeable futureand management intends to convert these loans into investment in share capital of the subsidiary in near future.Accordingly, in line with AS 11 - The Effects of Changes in Foreign Exchange Rates, exchange difference aggregatingto Rs.2,428.044 Million (credit) [2011: Rs. 2,271.244 Million (debit)] arising on such loans has been accumulated ina foreign currency translation reserve, which at the time of the disposal of the net investment in these subsidiarieswould be recognised as income or as expenses.Rs. Million2012 201110. Other Non-Current Assets(Unsecured)(i) Long-term Trade Receivables- Considered Doubtful 61.935 61.935Less: Provision for Doubtful Debts 61.935 61.935- -(ii) OthersLong-term deposits with banks:On Deposit account 58.702 47.408On Margin money deposits 1.300 1.30060.002 48.70860.002 48.7082012 201111.1. Current Investments(Valued at Cost or Market Value, whichever is less)UnquotedInvestments in Mutual Funds :HSBC Mutual Fund 1.696 1.633ICICI Prudential Liquid Fund 6.796 6.361SBI SHF Liquid Plus 87.056 15.370SBI-Premier Liquid Fund 93.228 -188.776 23.36411.2.Inventories(Valued at lower of Cost and Net Realisable Value)Raw Materials 1,587.703 1,010.865[(including materials in transit Rs 125.153 Million (2011: Rs 198.544 Million)]Work-in-Progress 8,172.494 6,406.805[(including held by a branch outside India Rs 5,095.178 Million(2011: Rs 3,753.177 Million)]Finished goods 2,906.990 2,730.874Stock-in-trade[including goods in transit Rs 3.857 Million (2011: Rs 30.408 Million)] 86.672 111.781Packing Materials, Stores and Spares 1,768.501 1,360.99014,522.360 11,621.315Interest included in the Closing Stock of Work in progress (Malt and Grape Spirit under maturation) 883.907 494.11547