MIRA INFORM REPORT

Report Date :

30.03.2011

Note: UB Global in the division of United Breweries (Holdings) Limited

IDENTIFICATION DETAILS

Name :	UNITED BREWERIES (HOLDINGS) LIMITED

Registered Office :	“UB Tower”, Level 12, UB City, No. 24, Vittal Mallya Road, UB City, Bangalore – 560001, Karnataka

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	23.03.1915

Com. Reg. No.:	000740

CIN No.: [Company Identification No.]	L85110KA1915PLC000740

TAN No.: [Tax Deduction & Collection Account No.]	BLRU00460F

Legal Form :	A Public Limited Liability company. The company’s shares are listed on the Stock Exchange.

Line of Business :	The Company's principle activities are to develop, market and export alcoholic beverages, leather footwear, pharmaceutical products, agrochemicals and processed foods.

RATING & COMMENTS

MIRA’s Rating :

A (63)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 62830928

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION DECLINED BY

Management Non Co-operative (Name not disclosed)

LOCATIONS

Registered Office / Head Quarters / Corporate Office:	“UB Tower”, Level 12, UB City, No. 24, Vittal Mallya Road, UB City, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-39856078-80 / 39856097 / 39856000
Fax No.:	91-80-22274890 / 39856034
E-Mail :	kmajumder@ubmail.com ubhlinvestor@ubmail.com
Website :	http://www.theubgroup.com

DIRECTORS

AS ON 26.12.2008

Name :	Dr Vijay Mallya
Designation :	Chairman
Date of Birth/Age :	18.12.1955
Date of Appointment :	17.10.1983

Name :	Mr. Sidhartha V Mallya
Designation :	Director
Date of Birth/Age :	07.05.1987
Date of Appointment :	07.05.2005

Name :	Mr. N Srinivasan
Designation :	Director
Date of Birth/Age :	27.07.1931
Date of Appointment :	25.08.1997

Name :	Mr. Shrikant G Ruparel
Designation :	Director
Date of Birth/Age :	31.12.1940
Date of Appointment :	21.12.1991

Name :	Mr. A Harish Bhat
Designation :	Director
Date of Birth/Age :	18.12.1953
Date of Appointment :	30.09.2002

Name :	Mr. Piyush G Mankad
Designation :	Director
Date of Birth/Age :	18.11.1941
Date of Appointment :	30.12.2005

Name :	Mr. Babugouda S Patil
Designation :	Director
Date of Birth/Age :	20.01.1944
Date of Appointment :	22.03.2006

Name :	Mr. Rup N Pillai
Designation :	Managing Director
Date of Birth/Age :	11.05.1956
Date of Appointment :	18.03.2004

Name :	Mr. Pathai A Murali
Designation :	Director
Date of Birth/Age :	04.01.1958
Date of Appointment :	30.09.2002
Date of Ceasing :	24.07.2008

KEY EXECUTIVES

Name :	Mr. P Subramani
Designation :	Secretary
Date of Birth/Age :	07.07.1937
Date of Appointment :	12.10.1992
Date of Ceasing :	04.01.2008

Name :	Mr. Kaushik Majumdar
Designation :	Secretary
Date of Birth/Age :	21.01.1963
Date of Appointment :	05.01.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.12.2010)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	5284978	7.91
Bodies Corporate	12103488	18.11

(2) Foreign
Bodies Corporate	16981504	25.41

(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2839890	4.25
Financial Institutions / Banks	20234	0.03
Central Government / State Government(s)	198	--
Insurance Companies	785354	1.18
Foreign Institutional Investors	14629452	21.89

(2) Non-Institutions
Bodies Corporate	5577249	8.35

Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	5963083	8.92
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	1984111	2.97

Any Others (Specify)
Trusts	76807	0.11
Non Resident Indians	308318	0.46
Clearing Members	263855	0.39

Total	66818521	100.00

BUSINESS DETAILS

Line of Business :

The Company's principle activities are to develop, market and export alcoholic beverages, leather footwear, pharmaceutical products, agrochemicals and processed foods.

Products :

ITC Code	Product Description
1 Trading in following goods
Beer	220300
Liquor	220830
Leather Shoes	640320

2 Real Estate Development and Investment holding	NA

GENERAL INFORMATION

Bankers :

Housing Development Finance Corporation Limited, Ramon House 169 backbay Reclamation, H T Parekh Marg, Mumbai - 400020, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Banks (for securities and amounts due within one year)	362.902	573.725
From Others (for securities and amounts due within one year)	7428.881	7671.607
Total	7791.783	8245.332

Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Inter corporate Deposits	0.000	95.000
Public Deposits	1287.902	0.000
Total	1287.902	95.000


Banking Relations :	--

Auditors :
Name :	Vishnu Ram and Company Chartered Accountants
Address :	2^nd Floor, Above IDBI Bank,Between 8th and 9th Cross, Margosa Road, Malleswaram, Bangalore – 560 003, Karnataka, India

Subsidiary Companies :	UB Electronic Instruments Limited * UB Infrastructure Projects Limited * UB International Trading Limited * Kingfisher Finvest India Limited (Formerly known as Kingfisher Radio Limited) * Kingfisher Airlines Limited (Formerly known as Deccan Aviation Limited)* Kingfisher Training and Aviation Services Limited (Formerly known as Kingfisher Airlines Limited )* Kingfisher Aviation Training Limited (Formerly known as Kingfisher Training Academy Limited) * City Properties Maintenance Company Bangalore Limited* Bangalore Beverages Limited * Vitae India Spirits Limited Rigby International Corp. United Breweries of America Inc, Delaware

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000,000	Equity Share	Rs.10/- each	Rs.1000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
66,818,521	Equity Share	Rs.10/- each	Rs.668.185 Millions

Of the above shares

1. 34,008 shares to the extent of Rs. 7.50 per share were issued for a consideration other than cash.

2. 7,905,249 shares were allotted for consideration other than cash under scheme / arrangement sanctioned by the Court.

3. 1,114,089 shares allotted through conversion of debentures in 1989.

4. 5,784,099 shares were allotted as fully paid bonus shares by capitalisation of reserves.

5. 825,256 shares were allotted, as per scheme of amalgamation in 1995.

6. 29,720,949 shares were allotted as fully paid bonus shares by capitalising the securities premium.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		668.185	668.185	668.185
2] Equity Warrants		0.000	490.165	490.165
3] Reserves & Surplus		15039.547	13952.314	0.000
4] (Accumulated Losses)		0.000	0.000	13575.160
NETWORTH		15707.732	15110.664	14733.510
LOAN FUNDS
1] Secured Loans		7791.783	8245.332	6999.620
2] Unsecured Loans		1287.902	95.000	0.000
TOTAL BORROWING		9079.685	8340.332	6999.620
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Foreign Currency Monetary		0.371	54.929	0.000

TOTAL		24787.788	23505.925	21733.130

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		2208.290	2210.230	2189.336
Capital work-in-progress		13.185	13.037	59.041

INVESTMENT		10594.610	9041.238	9501.922
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	53.808	25.816	33.650
	Sundry Debtors	331.065	274.337	219.900
	Cash & Bank Balances	1848.707	292.730	583.112
	Other Current Assets	63.276	466.406	80.896
	Loans & Advances	14294.338	13740.359	10890.005
Total Current Assets		16591.194	14799.648	11807.563
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	885.774	407.279	447.663
	Other Current Liabilities	2788.319	1835.770	1084.652
	Provisions	945.398	315.179	292.417
Total Current Liabilities		4619.491	2558.228	1824.732
Net Current Assets		11971.703	12241.420	9982.831

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		24787.788	23505.925	21733.130

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales and Services	3345.536	3243.140	2735.583
		Profit on sale of old assets	0.365	2.067	0.377
		Profit on sale of land and building	292.664	220.110	545.027
		Profit on sale of investments	114.843	26.631	400.000
		Assignment of License	0.000	0.000	396.652
		Other Income	742.527	535.591	429.819
		TOTAL (A)	4495.935	4027.539	4507.458

Less	EXPENSES
		Direct Costs	1787.620	1744.493	1930.934
		Personnel Costs	170.139	168.500	136.272
		Other Expenses	645.560	351.348	268.289
		TOTAL (B)	2603.319	2264.341	2335.495

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		1892.616	1763.198	2171.963

Less	FINANCIAL EXPENSES (D)		1472.868	1167.755	1346.746

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		419.748	595.443	825.217

Less/ Add	DEPRECIATION/ AMORTISATION (F)		107.072	80.799	39.004

	PROFIT BEFORE TAX (E-F) (G)		312.676	514.644	786.213

Less	TAX (I)		389.614	106.769	138.329

	PROFIT AFTER TAX (G-I) (J)		702.290	407.875	647.884

Less	APPROPRIATIONS
		Proposed Dividend	66.819	0.000	66.819
		Tax on proposed Dividend	11.099	0.000	11.356
	SURPLUS FOR THE YEAR		624.372	407.875	569.709

	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB basis	NA	1947.960	1853.230

	IMPORTS
		Raw Materials	NA	12.383	221.824
		Packing Materials	NA	36.241	21.083
		Capital Goods	NA	10.025	4.024
	TOTAL IMPORTS		NA	58.649	246.931

	Earnings Per Share (Rs.)		10.51	6.10	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	681.200	912.200	1158.800
Total Expenditure	420.300	503.900	642.700
PBIDT (Excl OI)	260.900	408.300	516.100
Other Income	297.800	8.900	24.500
Operating Profit	558.700	417.200	540.600
Interest	402.800	242.600	383.900
Exceptional Items	0.000	0.000	0.000
PBDT	155.900	174.600	156.700
Depreciation	31.900	23.000	19.500
Profit Before Tax	124.000	151.600	137.200
Tax	46.300	43.900	48.600
Reported PAT	77.700	107.700	88.600
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	77.700	107.700	88.600

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	15.62	10.13	14.37

Net Profit Margin (PBT/Sales)	(%)	9.35	15.87	17.44

Return on Total Assets (PBT/Total Assets}	(%)	1.66	3.03	5.62

Return on Investment (ROI) (PBT/Networth)		0.02	0.03	0.05

Debt Equity Ratio (Total Liability/Networth)		0.87	0.72	0.60

Current Ratio (Current Asset/Current Liability)		3.59	5.79	6.47

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009	Rs. In Millions 31.03.2008
Sundry Creditors
- Due to SSI Units	0.000	0.000	0.000
- Due to Others	885.774	407.279	447.663

OPERATIONS

The Company's revenues comprise of rentals of property at UB City, Bangalore, and Export Sales. Trade Mark License Fees, Dividends, Guarantee Commission and Interest on Loans and Deposits.

PROPERTY DEVELOPMENT

A Joint Development Agreement was executed on April 26^th, 2010 with Prestige Estates Projects Limited [PEPL] to develop 1.93.266 sq. ft [4.44 acres] in the residential area "Brewery House" in the property bearing Municipal No.33, Vittal Mallya Road, Bangalore into a Luxury Residential Apartment Buildings with first class specifications. it is intended to develop a minimum super built up area of 500000 sq. ft. or such area as may finally be approved by the authorities and the Company will be entitled to 55% of the constructed area. The sanction of the plan is awaited. When built, this residential development will add 2 yet another landmark to Bangalore's skyline. Reflecting the changed scenario arising from the global economic slow down since last year, several Lessees of rental space (both office and retail) have re-negotiated the rentals. This has impacted the potential revenue. A re-negotiated package worked out with the retail lessees is now in place.

SALE OF PROPERTY

During the year, the Company has sold Commercial Space measuring 26,696sq.ft. of saleable super built up area inclusive of proportionate share in all the common areas in the Comet Blockin 'UBCITY and 7868.50sq.ft. of undivided right, title and interest and ownership in the land in the UB City Property together with 30 covered parking spaces in basement to the developer of the property, Prestige Estates Projects Limited.

EXPORT BUSINESS

For the eleventh consecutive year, UB Global was awarded APEDA's Golden Trophy for outstanding export performance of Alcoholic Beverages, along with the Silver Award for the Best Merchant Exporter from the Federation of Karnataka Chamber of Commerce and Industry. Recessionary economic conditions continued to haunt UB Global's markets, with several European countries experiencing a liquidity crisis. The gradual boom witnessed by the domestic economy only added to the woes through increased input costs. The combined effect of such environmental impediments marginally affected revenues and profitability. However, performance in the branded leather footwear and apparel export was satisfactory.

For the first time, the overseas beer shipments crossed the one million cases mark during the year. Exports of wines to South Africa. This commenced in January 2009, widened its foot-print spreading its presence to twelve countries. Recognizing the financial benefits accruing from owned production units, UB Global acquired a footwear manufacturing unit at Arnbur, a leather industry centre in Tamil Nadu, which is currently in an expansion phase. The exports division is focusing on ascending the value- chain and will be putting up a new facility to produce high-end casual-wear apparel from the following financial year. Both production units have been entirely funded from internal accruals.

Form 8:

Corporate identity number of the company	L85110KA1915PLC000740
Name of the company	UNITED BREWERIES (HOLDINGS) LIMITED
Address of the registered office or of the principal place of business in India of the company	"UB TOWER", Level 12, UB City, No.24 Vittal Mallya Road, Bangalore – 560001, Karnataka, India
This form is for	Creation of charge
Type of charge	Movable Property
Particular of charge holder	HDFC BANK LIMITED
Nature of instrument creating charge	Hypothecation by way of First Charge on all the moveable Plant and Machinery, Furniture and Fixtures both present and Future (Save and except the assets which are already under charge)
Date of instrument Creating the charge	13/11/2010
Amount secured by the charge	Rs.320.00 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per market. The interest payable at monthly rests. Presently @ 12% p.a or as mutually agreed Terms of Repayment Overdraft- On demand or as mutually agreed Extent and Operation of the charge Hypothecation by way of First Charge on all the moveable Plant and Machinery, Furniture and Fixtures both present and Future (Save and except the assets which are already under charge)
Short particulars of the property charged	Hypothecation by way of First Charge on all the moveable Plant and Machinery, Furniture and Fixtures both present and Future (Save and except the assets which are already under charge)

Fixed Assets

Land
Building
Plant and Machinery
Office Equipments
Furniture and Fixture
Computer
Aircraft
Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.67
UK Pound	1	Rs.71.62
Euro	1	Rs.63.09

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

53.808

25.816

331.065

274.337

1848.707

292.730

63.276

466.406

14294.338

13740.359

16591.194

14799.648

885.774

407.279

945.398

315.179

4619.491

2558.228

11971.703

12241.420

15.62

10.13

9.35

15.87

1.66

3.03

0.02

0.03

0.87

0.72

3.59

5.79

885.774

407.279

Unit