UBHL annual report - United Spirits Limited

Consolidated Financial StatementsNotes to the financial statements for the year ended March 31, 20121. Significant accounting policies1.1 Basis of preparation of Financial StatementsThe Consolidated Financial Statements relate to United Spirits Limited (the Company) and its subsidiaries and associates(the Group). The Consolidated Financial Statements are prepared in accordance with Accounting Standard (AS) 21 onConsolidated Financial Statements and AS 23 on Accounting for Investments in Associates in Consolidated FinancialStatement as specified in the Companies (Accounting Standard) Rules, 2006, and the relevant provisions of the CompaniesAct, 1956 of India. The Consolidated Financial Statements are prepared by adopting uniform accounting policiesfor like transactions and other events in similar circumstances and are presented to the extent possible, in the samemanner as the Company’s separate financial statement. Accounting policies have been consistently applied exceptwhere a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requiresa change in the accounting policy hitherto in use.The Consolidated Financial Statements of the Group have been prepared under historical cost convention, except asotherwise stated, in accordance with the Generally Accepted Accounting Principles (GAAP) in India, the AccountingStandards as specified in the Companies (Accounting Standard) Rules, 2006, and the relevant provisions of theCompanies Act,1956 of India.On occasion, a subsidiary company whose financial statements are consolidated may issue its shares to third parties aseither a public offering or private placement at per share amounts in excess of or less than the Company’s average pershare carrying value. With respect to such transactions, the resulting gains or losses arising from the dilution of interestare recorded as Capital Reserve/Goodwill. Gains or losses arising on the direct sale by the Company of its investment insubsidiaries or associated companies to third parties are transferred to Statement of Profit and Loss. Such gains or lossesare the difference between the sale proceeds and the net carrying value of the investments.1.2 Subsidiary and Associate Companies considered in the Consolidated Financial Statements:(A) Subsidiary Companies:SlNo.Name of the CompanyCountry ofIncorporationProportion of voting powerProportion ofownership interest (%)held directly or indirectly, ifdifferent from proportion ofownership interest (%)2012 2011 2012 20111 Asian Opportunities & Investments Limited (AOIL) Mauritius 100 100 - -2 United Spirits Nepal Private Limited Nepal 82.46 82.46 - -3 Ramanreti Investments & Trading Ltd. (RITL) India 100 100 - -4 Shaw Wallace Breweries Limited (SWBL) India 100 100 - -5 Palmer Investment Group Ltd.(PIG) British Virgin100 100 - -Islands6 RG Shaw & Company Ltd. (RGSC) U.K. 100 100 - -7 Shaw Scott & Company Ltd. (SSC) U.K. 100 100 - -8 Shaw Darby & Company Ltd. (SDC) U.K. 100 100 - -9 Tern Distilleries Private Limited (Tern) India 100 100 - -10 Thames Rice Milling Company Limited (TRMC) U.K. 100 100 - -11 Shaw Wallace Overseas Limited (SWOL) U.K. 100 100 - -12 JIHL Nominees Limited(JIHL) Jersey Islands 100 100 - -13 Montrose International S.A (MI) Panama 100 100 - -14 USL Holdings Limited (UHL) British Virgin100 100 - -Islands15 USL Holdings (UK) Limited (UHUKL) U.K. 100 100 - -16 United Spirits (UK) Limited (USUKL) U.K. 100 100 - -72