UBHL annual report - United Spirits Limited

Consolidated Financial StatementsNotes to the financial statements for the year ended March 31, 2012 (Contd.)Nature of Security(xviii) Term loans from banks amounting to Rs 309.624Million (2011: Rs 288.42 Million) are secured by acharge on the property.(xix) Term loans from banks amounting to Rs 36.956Million (2011: Rs 43.845 Million) are secured by acharge on the plant and machinery.(xx) Term loans from banks amounting to Rs 34.744Million (2011: Rs 41.226 Million) are secured by acharge on the plant and machinery.(xxi) Term loans from banks amounting to Rs 5.131Million (2011: Nil) are secured by a charge on theplant and machinery.(xxii) Term loans from banks amounting to Rs 30,162.4Million (2011: Nil) are secured by a charge on theimmovable properties, current assets includinginventories held by the subsidiary companies inUnited Kingdom, charge on Trademarks and secondcharge by hypothecation of certain Trademarksheld by the holding company.Terms of RepaymentRepayable in 15 years with a moratorium of 5 yearsfrom the date of loan (October 10, 2007) alongwitha interest of 5%.Repayable in 28 quarterly installments from the dateof loan (April 15, 2008) alongwith a interest of 5.5%.Repayable in 84 monthly installments from the dateof loan (June 1, 2008) alongwith a interest of 5.5%.Repayable in 60 monthly installments from the dateof loan (February 1, 2012) alongwith a interest of4.46%.Moratorium of 3 years from drawdown. Repaymentcommences from FY 2014-15 and is repayable withinthe next 4 years. Rate of interest is LIBOR+4.1%.b. Terms of repayment for unsecured borrowingsBorrowingsi. Long term loan from banks:(a) amounting to Rs 750 Million (2011: Rs 750 Million)are guaranteed by a director of the Companyw(b) amounting to Rs 598.353 Million (2011: Rs 770Million).(c) amounting to Rs 1,000 Million (2011: Nil)(d) amounting to Rs 532.5 Million (2011: Nil) areguaranteed by the holding company.ii. Fixed DepositsTerms of RepaymentRepayable in 2 equal installments, 4 years from thedate of loan (December 18, 2008) alongwith interestof 17.2%.Repayable in 36 monthly installments with aMoratorium of 1 year from the date of loan (August,27, 2010) alongwith interest of 15.5%.Repayable in 16 equal quarterly installments, starting15 months from the date of first disbursement(December 12, 2011) alongwith interest of 12%.Repayable within 3 years from the date of loan(September 24, 2011) alongwith interest of base rateplus 2.75%.Repayable within 1-2 years from the date of issue andnot on demand or notice except at the discretion ofthe Company. Rate of interest is 11-11.5%.iii. Inter-corporate deposits These represent an obligation acquired onamalgamation of SWCL in an earlier year, wherenegotiation/settlement has not been finalised andthe same has been provided in terms of the decreeand/or otherwise considered adequate by themanagement. Adjustments, if any, shall be carriedout as and when the amounts are determined onfinal disposal/settlement of the matter.c. The Company has re-negotiated the repayment terms for the term loan specified in (a)(iv) above and hasaccordingly disclosed Rs.558.500 Million under Current Borrowings.d. The liability on Sales Tax Deferment provision for Pioneer Distilleries Limited made up to 2009-10 is Rs. 287.806Million which has been collected under deferral scheme of Maharashtra State Government and is repayable in 14years starting from the end of the 10th year i.e 2010-11. During the year 2011-12 the subsidiary has repaid its 2ndinstallment of Rs.6.240 Million.84