MIRA INFORM REPORT

Report Date :

26.07.2013

IDENTIFICATION DETAILS

Name :	UNITED BREWERIES LIMITED
Registered Office :	“UB Tower”, UB City, 24, Vittal Mallya Road, Bangalore- 560001, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.05.1999
Com. Reg. No.:	08-025195
Capital Investment / Paid-up Capital :	Rs.1005.100 Millions
CIN No.: [Company Identification No.]	L36999KA1999PLC025195
TAN No.: [Tax Deduction & Collection Account No.]	BLRU00927D
Legal Form :	A Public Limited Liability Company. The Company’s shares are listed on Stock Exchange.
Line of Business :	Manufacture and Sale of Beer
No. of Employees :	2489 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 540000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Exist
Comments :	Subject is an established company having satisfactory track record. Eventhough the sales turnover has seen a moderate increase, there appears a slight dip in the net profitability during 2012. The rating also takes into consideration the improving margins, moderate capital structure and comfortable debt maturity profile in relation to its operating cash accruals. The company has elevated its debt levels primarily attributed to increase in its working capital requirements. There appears a loss of market share in Tamilnadu owing to unfavourable procurement policy but the national market share continues to be healthy. However, overall financial position seems to be sound and healthy. Trade relations are fair. Business is active. Payment terms are usually correct. 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

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

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	Long Term Fund Based Facilities = A
Rating Explanation	Adequate degree of safety and low credit risk
Date	July 2013

Rating Agency Name	ICRA
Rating	Short Term Fund Based Facilities = A1+
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	July 2013

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

Management Non-cooperative (91-80-3985500)

LOCATIONS

Registered Office :	UB Tower, UB City, 24, Vittal Mallya Road, Bangalore- 560001, Karnataka, India
Tel. No.:	91-80-39855000 / 22272806 /22272807
Fax No.:	91-80-22211964-22229488
Email.:	deepaknath@ubmail.com ublinvestor@ubmail.com gri@ubmail.com
Website :	http://www.theubgroup.com
Corporate Office :	United Breweries Limited, Level 3, 4 and 5, UB Towers, UB City, 24 Vittal Mallya Road, Bangalore- 560001, Karnataka, India
Tel. No.:	91-80-22293333/22272807
E-Mail :	goodtimes@kingfisherworld.com
Manufacturing Network :	Andhra Pradesh – Mallepally, Kothlapur and Srikakulam Goa – Ponda Kerala – Cherthala and Palakkad Karnataka – Mangalore, Nelmangala and Mysore Odisha – Khurda Tamilnadu – Kuthambakkam and Aranvoyal Punjab – Ludhiana West Bengal – Kalyani Rajasthan – Chopanki Maharashtra – Taloja and Aurangabad Haryana – Dharuhera
Regional Sales Office 1:	C/o.Blitz Publication Private Limited, 3rd Floor, Canada Building, Dr. D.N. Road, Mumbai – 400 001, Maharashtra, India
Tel. No.:	91-22-22620580 / 2/ 3
Regional Sales Office 2:	Wallace House, 1st Floor 4, Bankshall Street, Kolkata - 700 001, West Bengal, Indi
Tel. No.:	91-33-22317853 / 2231 7850
Fax No.:	91-33-22805830
Regional Sales Office 3:	Level 15, Canberra,24, Vittal Mallya Road, Bangalore - 560 001, Karnataka, India
Tel. No.:	91-80-39855231
Fax No.:	91-80-39855299
Regional Sales Office 4:	1002, Bikaji Kama Bhavan, 10th Floor, Bikaji Kama Place, New Delhi – 110066, India
Tel. No.:	91-11-41644873 / 41644876 / 5
Fax No.:	91-11-4164487

DIRECTORS

AS ON 30.09.2012

Name :	MR. Kalyan Ganguli
Designation :	Managing Director
Qualification :	B.A. (Hons), PGDBM (XLRI)
Experience :	39 Years
Date of Appointment :	01.02.1979
Age .:	61 Years
Name :	Mr. Guido de Boer
Designation :	Director and CFO
Qualification :	M.Sc. Economics and Business
Experience :	15 Years
Date of Appointment :	1.10.2009
Age:	40 Years
Name :	Dr. Vijay Mallya
Designation :	Chairman Director
Name :	Mr. A.K. Ravi Nedungadi
Designation :	Director
Name :	Ms. Rene Hooft Graafland
Designation :	Director
Name :	Mr. Theo de Rond
Designation :	Director
Name :	Mr. Chugh Yoginder Pal
Designation :	Director
Name :	Mr. Chhaganlal Jain
Designation :	Director
Name :	Mr.Sunil Kumar Alagh
Designation :	Director
Name :	Mr. Kiran Mazumdar Shaw,
Designation :	Director
Name :	Mr. Mahadev Bhatkuly
Designation :	Director
Name :	Mr. Stephan Gerlich
Designation :	Director

KEY EXECUTIVES

Name :	Mr. Shekhar Ramamurthy
Designation :	Deputy President
Qualification :	B. Tech./(Civil)-IIT, Delhi, PGDBM – IIM - Kolkata
Experience :	25 Years
Date of Appointment :	15.05.1989
Age.:	51 Years
Name :	Mr. cedric Vaz
Designation :	Executiove Vise President – Manufacturing
Qualification :	B.Tech. (Chem. Eng.), IIT-Kanpur
Experience :	30 Years
Date of Appointment :	15.05.2006
Age.;	54 Years
Name :	Mr. Joseph Noronha
Designation :	Executiove Vise Presiden – HR
Qualification :	B.Com. (Hons.), PGDPM-IR (XLRI)
Experience :	32Years
Date of Appointment :	15.07.1991
Age.:	57 Years
Name :	Mr. Kiran Kumar
Designation :	Senior Vise Presiden – Sales
Qualification :	B.Com., PGDBM, IIM-Ahmedabad
Experience :	21Years
Date of Appointment :	28-04-1997
Age.:	44 Years
Name :	Ms. Perry Goes
Designation :	Senior Vise Presiden – Strategic, Planning and Business, Analysis
Qualification :	B.E. (Meh.), PGDBM, (Marketing-Finance and HR) – Goa, Institution of Management
Experience :	25 Years
Date of Appointment :	14.06.2004
Age.:	47 Years
Name :	Mr. Henk Breederveld
Designation :	Technological Advisor
Qualification :	Chemical Engineer (M.Sc., Biochemistry) ,Delft University of Technology - The Netherlands
Experience :	34 Years
Date of Appointment :	11.10.2010
Age.:	61 Years
Name :	Mr. Samar Singh Sheikhawat
Designation :	Senior Vise Presiden - Marketing
Qualification :	B.A., MBA (Marketing) Symbiosis Institution of Management, Pune
Experience :	22 Years
Date of Appointment :	09.11.2009
Age.:	46 Years
Name :	Mr. Govind Iyengar
Designation :	Senior Vise Presiden - Legal and Secretarial
Qualification :	B.Com., L.L.B, A.C.S
Experience :	22 Years
Date of Appointment :	05-02-2001
Age.:	45 Years
Name :	Mr. Govind Tiwari
Designation :	DVP - UBL Goa
Qualification :	B.Sc., PGD IFAT, DBA, PGDM and IR
Experience :	42 Years
Date of Appointment :	12.02.1975
Age.:	60 Years
Name :	Mr. R K Jindal
Designation :	Senior Vise Presiden – Operations and Malting
Qualification :	B.Com., F.C.A
Experience :	27 Years
Date of Appointment :	19.03.1985
Age.:	51 Years
Name :	Mr. R Santosh Kumar
Designation :	Senior Vise Presiden - Procurement and Logistics
Qualification :	B.E. (Industrial and Production), PGDCA
Experience :	24 Years
Date of Appointment :	01.07.1998
Age.:	46 Years
Name :	Mr. P A Poonacha
Designation :	AVP - Finance
Qualification :	B.com, M.Com, A.C.A, A.I.C.W.A.
Experience :	17 Years
Date of Appointment :	01.07.1996
Age.:	41 Years
Name :	Mr. S Ramakrishnan
Designation :	AVP – IT
Qualification :	B.Com., M.Com., DCM, MBA-IIMS Calcutta
Experience :	31 Years
Date of Appointment :	01.06.1995
Age.:	51 Years

SHAREHOLDING PATTERN

AS ON 30.06.2013

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	21353620	8.08
Bodies Corporate	77141340	29.18
Sub Total	98494960	37.25
(2) Foreign
Bodies Corporate	99339710	37.57
Sub Total	99339710	37.57
Total shareholding of Promoter and Promoter Group (A)	197834670	74.82
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	251602	0.10
Financial Institutions / Banks	30737	0.01
Central Government / State Government(s)	660	0.00
Foreign Institutional Investors	49672726	18.79
Sub Total	49955725	18.89
(2) Non-Institutions
Bodies Corporate	6322929	2.39
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	9398280	3.55
Any Others (Specify)	893545	0.34
Trusts	252761	0.10
Non Resident Indians	504120	0.19
Clearing Members	134784	0.05
Overseas Corporate Bodies	1880	0.00
Sub Total	16614754	6.28
Total Public shareholding (B)	66570479	25.18
Total (A)+(B)	264405149	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	264405149	0.00

BUSINESS DETAILS

Line of Business :

Manufacture and Sale of Beer

PRODUCTION STATUS [AS ON 31.03.2011]

Particulars	Unit	Licensed Capacity*	Installed Capacity*	Actual Production
Beer	In Hectolitres	13787500	12115500	7787868

* NOTE: Licensing of products of the Company under the Industries (Development and Regulation) Act, 1951 is discontinued and consequently the reported capacities are as per permissions obtained from the respective regulatory authorities on a yearly basis. As regards installed capacity, the same has been certified by the Management and relied upon by the Auditors, being a technical matter.

GENERAL INFORMATION

No. of Employees :

2489 (Approximately)

Bankers :

· ING Vysya Bank

· Yes Bank

· HDFC Bank Limited

· DBS Bank Limited

· Citibank Limited

· Axis Bank Limited

· Standard Chartered Bank

Facilities :

Secured Loan

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Foreign Currency Term Loan :

External commercial borrowings from banks

3581.000

0.000

Term loan from banks

0.000

62.500

Indian currency term loans from banks

0.000

334.400

Working capital loan / Cash Credit from Banks (repayable on demand)

3852.000

2648.600

TOTAL

7433.000

3045.500

Nature of security and terms of repayment for secured borrowings

Nature of security	Terms of repayment
Foreign currency term loans
HDFC Bank Limited: Rs.62.500 Millions (2011: Rs.312.500 Millions) secured by first pari-passu charge on all moveable and immoveable properties of the company except Taloja, Aurangabad, Dharuhera, Chennai Breweries, Empee Breweries, UB Nizam, UB Ajanta and Srikakulam breweries.	Repayable in 16 quarterly instalments from the date of loan (June 2008) along with interest of 9.45% per annum (fully hedged)
DBS Bank Limited: Rs.2557.800 Millions (2011: Rs. Nil) secured by pari-passu charge on other than current assets of present and future except Taloja and Aranvoyal breweries.	Repayable from February 27, 2016 i.e. end of 4th year in 9 equal quarterly instalments till February 27, 2018 along with interest of 9.58% per annum (fully hedged)
Rabobank International: Rs.1023.200 Millions (2011: Rs. Nil) secured by pari-passu charge on other than current assets of present and future except Taloja and Aranvoyal Breweries.	3 year ECB Loan repayable on January 10, 2015. Interest of 7.15% per annum payable on quarterly basis (fully hedged)
BNP Paribas: Rs. Nil (2011: Rs.465.600 Millions) secured by first charge on all moveable and immovable properties of the Company except Taloja, Aurangabad, Dharuhera, Chennai Breweries, Empee Breweries, UB Nizam, UB Ajanta and Srikakulam breweries.	Repayable in December 2011 on completion of 5 years from the date of loan (December 2006) along with interest of 8.85% per annum (fully hedged)
Axis Bank Limited: Rs. Nil (2011: Rs.125.600 Millions) secured by first charge on fixed assets and current assets of Srikakulam brewery.	Repayable in 16 quarterly instalments from the date of loan (December 2007) along with interest of 6-months Libor + 275 basis points (not hedged)
Citibank Limited: Rs. Nil (2011: Rs.328.800 Millions) secured by first charge on all moveable and immoveable properties of the company except Taloja, Aurangabad, Dharuhera, Chennai Breweries, Empee Breweries, UB Nizam, UB Ajanta and Srikakulam Breweries.	Repayable in 73 monthly instalments after completion of one year moratorium period from the date of loan (April 2006) along with interest of 8.5% per annum
Standard Chartered Bank: Rs.170.000 Millions (2011: Rs.425.000 Millions) secured by first mortgage and charge on all immoveable and movable properties (excluding current assets) of Chennai Breweries.	Repayable in 56 monthly instalments from the date of loan (February 2008) along with interest of 12% per annum
Yes Bank: Rs. Nil (2011: Rs.56.000 Millions) secured by second charge on all moveable and immoveable assets of Empee Breweries.	Repayable in 60 monthly instalments from the date of loan (March 2007) along with interest of 13% per annum
BNP Paribas: Rs. Nil (2011: Rs.56.200 Millions) secured by first charge on all moveable and immoveable assets of Empee Breweries	Repayable in 48 monthly instalments after completion of one year moratorium period from the date of loan (September 2006) along with interest of 9.71% per annum
Rabo India Finance Limited: Rs. Nil (2011: Rs.105.600 Millions) secured by exclusive charge on all moveable and immovable properties and second charge on all current assets	Repayable in 59 equal monthly instalments from January 2007 along with interest of 1 year Government of India Security yield + 225 basis points per annum. Interest rate reset on annual basis.

Working capital loan from banks are secured by hypothecation of stock-in-trade, stores, raw materials, book debts.

Short-term loans from banks comprise of ING Vysya Bank: Rs.250.000 Millions (2011: Rs.500.000 Millions) repayable in maximum of 365 days and Yes Bank: Rs.250.000 Millions (2011: Rs.250.000 Millions) repayable in maximum of 90 days.

Banking Relations :	--
Auditors :
Name :	Price Waterhouse Chartered Accountant
Subsidiary :	Maltex Malsters Limited (MML)
Associates :	United East Bengal Football Team Private Limited (UEBFTPL)
Entity which has significant influences :	· Scottish and Newcastle India Limited (SNIL) · United Breweries (Holdings) Limited (UBHL)
Others :	· Scottish and Newcastle Limited (S and N) · Heineken UK Limited, Holding Company of SNIL and Subsidiary of Scottish and Newcastle Limited · Scottish and Newcastle UK Limited (SNUK), Subsidiary of Scottish and Newcastle Limited · Scottish and Newcastle India Private Limited (SNIPL), Subsidiary of Heineken UK Limited · Heineken International B.V. · Heineken Romania S.A. · Heineken Brouwerijen B.V. · Heineken Supply Chain B.V. · Force India F1 Team Limited

CAPITAL STRUCTURE

AS ON 26.09.2012

Authorised Capital : Rs.9534.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.1005.105 Millions

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3674000000	Equity Shares	Rs.1/- each	Rs.3674.000 Millions
58600000	Preference Shares	Rs.100/- each	Rs.5860.000 Millions
	TOTAL		Rs.9534.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
264405149	Equity Shares	Rs.1/- each	Rs.264.405 Millions
7407000	3% Cumulative Redeemable Preferences Shares [The above shares are redeemable at par at the earliest on March 31, 2015]	Rs.100/- each	Rs.740.700 Millions
	TOTAL		Rs.1005.100 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	1005.100	2723.500
(b) Reserves & Surplus	12646.300	10217.400
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	9.200
Total Shareholders’ Funds (1) + (2)	13651.400	12950.100
(3) Non-Current Liabilities
(a) long-term borrowings	4028.000	2747.200
(b) Deferred tax liabilities (Net)	514.000	288.800
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	110.800	70.400
Total Non-current Liabilities (3)	4652.800	3106.400
(4) Current Liabilities
(a) Short term borrowings	4355.000	3401.600
(b) Trade payables	5742.600	3905.600
(c) Other current liabilities	4122.900	4284.200
(d) Short-term provisions	401.100	394.100
Total Current Liabilities (4)	14621.600	11985.500
TOTAL	32925.800	28042.000
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	11983.700	10620.900
(ii) Intangible Assets	203.200	273.200
(iii) Capital work-in-progress	2073.500	719.500
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	254.700	450.200
(c) Interest in UBL Benefit Trust	0.000	1429.400
(d) Deferred tax assets (net)	0.000	0.000
(e) Long-term Loan and Advances	1437.600	1198.500
(f) Other Non-current assets	116.600	108.600
Total Non-Current Assets	16069.300	14800.300
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	3998.800	2898.000
(c) Trade receivables	6999.700	5198.600
(d) Cash and cash equivalents	1772.300	1290.600
(e) Short-term loans and advances	2926.500	2912.200
(f) Other current assets	1159.200	942.300
Total Current Assets	16856.500	13241.700
TOTAL	32925.800	28042.000

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		2709.048
2] Capital Pending Allotment		0.000
3] Share Application Money		0.000
4] Reserves & Surplus		8888.712
5] (Accumulated Losses)		0.000
NETWORTH		11597.760
LOAN FUNDS
1] Secured Loans		4960.341
2] Unsecured Loans		1753.006
TOTAL BORROWING		6713.347
DEFERRED TAX LIABILITIES		216.306
TOTAL		18527.413
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		7807.876
Capital work-in-progress		575.331
INVESTMENT		1530.699
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1960.165
	Sundry Debtors	6162.470
	Cash & Bank Balances	833.169
	Other Current Assets	354.491
	Loans & Advances	2769.404
Total Current Assets		12079.699
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1803.354
	Other Current Liabilities	1408.816
	Provisions	254.022
Total Current Liabilities		3466.192
Net Current Assets		8613.507
MISCELLANEOUS EXPENSES		0.000
TOTAL		18527.413

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	36276.900	30598.100	19974.494
		Other Income	729.800	449.900	776.834
		TOTAL	37006.700	31048.000	20751.328
Less	EXPENSES
		Cost of Material Consumed	16037.600	13325.800
		Purchase of stock in trade	423.000	600.700
		Change in inventories of fin9ished goods, Work in progress and stock in trade	(182.500)	33.700
		Employee benefit expenses	1882.300	1441.100
		Other expenses	13996.000	11298.100
		TOTAL	32156.400	26699.400	17802.342
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		4850.300	4348.600	2948.986
Less	FINANCIAL EXPENSES		991.200	781.300	555.006
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		3859.100	3567.300	2393.980
Less/ Add	DEPRECIATION/ AMORTISATION		1486.600	1305.100	882.692
	PROFIT / (LOSS) BEFORE EXCEPTIONAL ITEMS AND TAX		2372.500	2262.200	1511.288
	EXCEPTIONAL ITEMS		195.900	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX		2176.600	2262.200	1511.288
Less	TAX		912.200	1210.700	541.579
	PROFIT / (LOSS) AFTER TAX		1264.400	1472.900	969.709
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	14.900	19.900	N.A
	TOTAL EARNINGS		14.900	19.900	N.A
	IMPORTS
		Raw Materials	387.900	272.700	366.030
		Stores & Spares	12.700	5.300	20.834
		Capital Goods	459.300	53.300	31.294
	TOTAL IMPORTS		859.900	331.300	418.158
	Earnings Per Share (Rs.)		4.68	5.26	3.68

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012	31.03.2013
	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	12258.200	8737.500	8386.800	10036.200
Total Expenditure	10366.600	7635.000	7542.100	9108.200
PBIDT (Excl OI)	1891.600	1102.500	844.700	928.000
Other Income	149.500	13.100	29.300	200.300
Operating Profit	2041.100	1115.600	874.000	1128.300
Interest	189.400	169.500	214.100	229.100
Exceptional Items	0.000	0.000	0.000	0.000
PBDT	1851.700	946.100	659.900	899.200
Depreciation	376.400	433.900	419.300	472.800
Profit Before Tax	1475.300	512.200	240.600	426.400
Tax	488.900	170.200	(94.600)	367.900
Provisions and contingencies	0.000	0.000	0000	0.000
Profit After Tax	986.400	342.000	335.200	58.500
Extraordinary Items	0.000	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000	0.000
Net Profit	986.400	342.000	335.200	58.500

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.42	4.74	4.67
Net Profit Margin (PBT/Sales)	(%)	5.99	7.39	7.56
Return on Total Assets (PBT/Total Assets}	(%)	7.11	8.89	13.40
Return on Investment (ROI) (PBT/Networth)		0.16	0.17	0.13
Debt Equity Ratio (Total Debt /Networth)		0.61	0.48	0.90
Current Ratio (Current Asset/Current Liability)		1.15	1.10	3.49

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	No
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

DETAILS OF LITIGATIONS

HIGH COURT OF KARNATAKA - PRINCIPAL BENCH AT BANGALORE

CA 235/1999

CASE PENDING

Petitioner/Appnt. Name (Click)	MYSORE SALES INTERNATIONAL LIMITED
Respondent/Defnt. Name	UNITED BREWERIES LIMITED
Petnr./Appnt. Advocate	B G SRIDHARAN
Respnt./Defnt. Advocate
Date Filed	15.04.1999
District	Bangalore City

Stage	PENDING FOR ADMISSON
Last Action Taken
Before Hon'ble Judge/s	Unknown

UNSECURED LOAN

Rs. In Millions

Particular

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

From Banks

0.000

1903.300

Deferred payments liabilities

447.000

447.000

From Banks

500.000

750.000

From Others

3.000

3.000

TOTAL

950.000

3103.300

Nature of security	Terms of repayment
Deferred sales tax liability of Millennium Beer Industries Limited - Aurangabad unit amounting to Rs.447.000 Millions (2011: Rs.447.000 Millions) is payable to the Government of Maharashtra by virtue of being eligible after having established a manufacturing unit in a notified backward area. The confirmation of the sanction to the Company is contained in 'Certificate of Entitlement' No. 431133-S/R-31B/Pioneer Unit /1322 dated 17.07.2002 issued under Part-I of the 1993 Package Scheme of Government of Maharashtra.	This amount is repayable in 10 years from May 2013.
ICICI Bank Limited.: Rs. Nil (2011: Rs.1750.000 Millions) covered by personal guarantee of a director of the company	Loan availed in October 2008, repayable in 2 annual installments starting from end of 4th and 5th year from date of first drawdown. This has been repaid during the current year. Applicable interest rate is 15.7%
Citibank: Rs.153.300 Millions (2011: Rs.306.600 Millions) shown as current liablities since payable within next 12 months period	Loan availed in February 2010 repayable in 3 annual equal instalments from February 2011. Applicable interest rate is 12%.

AMALGAMATIONS

U.B Ajanta Breweries Private Limited has been amalgamated into The Company by the Order of the Hon’ble Board for Industrial and Financial Reconstruction with the appointed date of April 1, 2011.The consolidation has ensured creation of a larger combined entity, and synergies in the businesses besides economies of scale. Combining all functions and operations has not only resulted in enhanced financial performance but also has provided benefits in the form of managerial and technical expertise, and financial resources thereby enhancing shareholder value.

As a final step towards consolidation and restructuring of all brewing entities of the Group, the Board of Directors of The Company and of Scottish and Newcastle India Private Limited (SNIPL), an Indian subsidiary of Heineken UK Limited (Heineken Group), have approved amalgamation of SNIPL into the Company under Sections 391 to 394 of the Companies Act, 1956. All requisite regulatory approvals for the said amalgamation have been obtained and an application has been filed with the High Courts of Karnataka and Bombay by the Company and SNIPL respectively.

CAPITAL

In view of the consolidation of share capital through the amalgamation of UB Ajanta Breweries Private Limited, the Authorized Share Capital of the Company now comprises of Equity Share Capital aggregating to Rs.3674.000 millions and Preference Share Capital of Rs.5.860 million. The Issued, Subscribed and Paid-up Share Capital as on March 31, 2012 stood at Rs.1005.100 million, comprising of Equity Share Capital of Re.1 each aggregating to Rs.264.400 millions and Cumulative Redeemable Preference Shares of Rs.100 each aggregating to Rs.740.700 millions.

INDUSTRY OVERVIEW

The Indian beer market is at the start of its growth trajectory, with a per capita consumption of only about 1.5 liter. This is significantly below the global average per capita consumption of 27 liters and other emerging markets such as China (37 liter), Brazil (65 liter) and Russia (72 liter), as estimated by Canadean for the calendar year 2011.

Beer accounts for about 32% of the Indian alcoholic beverages market by volume. The largest segment in the Indian alcoholic beverages market is Indian Made Foreign Liquor (‘IMFL’) that accounts for about 41% by volume, while country liquor accounts for around 27% of the market. Both are spirits that typically contain over 40% alcohol.

Key reasons for the significantly lower consumption of beer, both compared to spirits consumption in India and to beer consumption in other emerging markets, are the taxation structure, which does not substantially differentiate between the alcohol content of various classes of beverages, and the limited number of outlets that are allowed to sell beer in India.

In India, regulation and taxation of alcoholic beverages is a State subject. The industry is highly regulated, often requiring a lengthy process to obtain a license for the manufacturing, distribution and sale of beer. In the majority of the country, the State governments control distribution and in states like Tamil Nadu and Kerala even the retail is operated by the government. Each state has its own taxation policy and regulations regarding cross border movements and pricing. In about 60% of the country, the State determines the price at which beer can be sold by the brewers.

Even though beer contains only 5-7% of alcohol by volume and spirits contain over 40% of alcohol, both are for historic reasons considered as liquor under the various State Excise policies and taxed on a similar basis. This results in a consumer price of beer that is 2 to 3 times higher than that of spirits on an equivalent alcohol basis.

The number of outlets that are permitted to sell beer is very low. It is estimated that 72,000 licensed outlets exist in India. This equates to one outlet per 17,000 people compared to an estimated 1 per 300 in China. This significantly reduces the availability of beer, and therewith reduces beer consumption.

Notwithstanding the constraints mentioned above, they believe the future of the industry is very bright.

A high growth economy and a young population bring significant opportunities for the beer industry. India’s growing young population has led to the emergence of a substantial active workforce that has increasing disposable income. Growth in the alcoholic beverages sector has also been fueled by the increasing social acceptability of alcohol consumption, especially for beer and wine, and evolving consumer taste.

The size of the Indian beer industry in the year is estimated at about 235 million cases, showing a compounded annual growth rate of around 11% in the past 5 years. As a result of a weak economic climate, regulatory changes and a poor summer, growth of the Indian beer market in FY12 was significantly lower than the previous year. They estimate the market to have grown by about 4%. Strong beer continues to take share from mild beer, and is now estimated to account for 81% of the beer market.

Subject has continued to expand its clear market leadership in the Indian beer market, overcoming the challenges of the highly regulated industry and competition from global brewers. For the 5th year in succession, the Company has increased its market share and widened the gap with its competitors.

OPERATIONS

SALES

The Company has achieved a volume growth of 6% on a like-for-like basis in the year, outgrowing the industry in a difficult year. The total sales volume has reached 133 million cases, driven primarily by growth in Andhra Pradesh, Karnataka, Rajasthan, Uttar Pradesh and Goa.

The net sales for the year 2011-2012 stood at Rs.36277.000 millions as against net sales of Rs.30598.000 millions in the previous year, registering a growth of 18.6%. This includes the first time consolidations of Chennai Breweries Private Limited and Asia Pacific Breweries Aurangabad Private Limited.

The national market share in FY12 has exceeded 54.5%, which is twice the size of the nearest competitor. They continue to lead the mild beer market with 70% market share, and hold over 51% of the strong beer market. In the year, the Company has increased its market share in the states of Andhra Pradesh, Uttar Pradesh, Haryana, Maharashtra, Punjab, Rajasthan, West Bengal, Karnataka and Goa. the shares in Tamil Nadu, Bihar and Kerala were affected by supply and environmental issues.

The flagship Kingfisher brand created history by achieving the milestone of 100 million cases sold in the financial year 2011-2012. A fantastic achievement in the history of the Indian beer industry, this success has been made possible by Kingfisher Strong, India’s largest selling beer, further consolidating its leadership position by registering record volumes, while Kingfisher Premium continued its lead in the mild beer segment.

During the financial year, the brewery in Taloja near Mumbai was approved by Heineken for the brewing and bottling of Heineken Lager Beer. India-brewed Heineken rolled out into the markets of Mumbai and Pune on International Beer Day – 5 August 2011. As at the end of the financial year, locally brewed Heineken is available in Delhi, Bangalore, Kolkata, Goa and Maharashtra, and has been well received. In the coming year they will roll out in further markets.

MANUFACTURING

Manufacturing expenses for the financial year 2011-2012 amounted to Rs.16278.000 millions, constituting 44.9% of net sales, as against Rs.13960.000 millions in the previous financial year, which constituted 45.6% of net sales.

In the year, the company has continued the infusion of its own patented bottles in order to ensure sufficient availability of recycled bottles and to contain the cost of such bottles. The initiative has proven to be successful and has been the key driver behind the reduction in manufacturing variable cost, notwithstanding significant increases in the prices of new bottles.

Higher barley prices were the key reason behind the increase in cost of raw materials, although this was partly offset by better efficiencies. The cost of packaging materials was impacted by the decision to use higher quality cartons as well as by an increase in paper prices. In order to secure further growth, the Company has agreements in place for the supply of malt, barley and bottles.

The unit cost of power and fuel increased significantly in the year, the impact of which was mitigated by improved consumption efficiencies. In order to further reduce power consumption, the Company is exploring conversion of organic waste into energy to obtain savings in electricity cost in an environmentally sustainable manner.

The breweries continue to achieve efficiency improvements through enhanced operating procedures as well as through economies of scale, and thereby limiting the increase in cost of goods sold.

The Company continues to expand its brewing and bottling capacity to be able to cater to the market growth. In the year, the Company has expanded capacity in its breweries in West Bengal, Orissa, Andhra Pradesh and Maharashtra. the Greenfield brewery at Nanjangud, Karnataka is expected to be commissioned shortly. In view of the rapid growth, the Company has proposed to set up Greenfield brewery in the state of Bihar.

CONTINGENT LIABILITIES:

Particulars	31.03.2012 (Rs. in millions)	31.03.2011 (Rs. in millions)
Sales Tax/other taxes demands under appeal *	134.900	130.400
Employees State Insurance / Provident Fund Demand *	1.900	2.300
Demand towards Water charges under appeal *	269.400	182.500
Excise Duty/Customs Duty demands under appeal *	39.200	41.300
Income Tax demands under appeal*	1023.800	403.800
Service Tax demands under appeal*	751.300	244.600
Claims against the Company not acknowledged as debt *	100.200	41.300
Letter of Undertaking to distributors towards countervailing duty for imports from Nepal	0.000	38.500
TOTAL	2320.700	1084.700

NOTE.:

It is not practicable for the company to estimate the timing of cash flows if any, in respect of the above, pending resolution of the respective proceedings. The company does not expect any reimbursements in respect of the above contingent liabilities.

AMALGAMATIONS IN BRIEF

2011-12

The scheme of amalgamation under sections 391 to 394 of the Companies Act, 1956 between UB Ajanta Breweries Private Limited (UBA) and the Company (the Scheme) and their respective shareholders and creditors with April 1, 2011 as the appointed date has been approved by the Honorable BIFR court, Delhi vide their order dated February 13, 2012. Upon necessary filing with the Registrar of Companies on February 21, 2012, the scheme has become effective and the effect thereof has been given in these accounts. Consequently, the scheme of amalgamation under sections 391 to 394 of the Companies Act, 1956 between UB Ajanta Breweries Private Limited (UBA) and the Company (the Scheme) and their respective shareholders and creditors with April 1, 2011 as the appointed date has been approved by the Honorable BIFR court, Delhi vide their order dated February 13, 2012. Upon necessary filing with the Registrar of Companies on February 21, 2012, the scheme has become effective and the effect thereof has been given in these accounts. Consequently,

In respect of the merger of UBA with the Company –

a) In terms of the scheme, the entire business and the whole of the undertaking of UBA, as a going concern stands transferred to and vested in the Company with effect from April 1, 2011, being the Merger Appointed Date.

b) In consideration of the amalgamation of UBA with the company, the company has issued 709,578 equity shares of Re.1/- each aggregating to Rs.7 in the ratio of 135:1.

c) Accounting for Amalgamation:

The amalgamation of UBA with the Company is accounted for on the basis of the pooling of interest Method as

envisaged in the Accounting Standard (AS)-14 on Accounting for Amalgamations specified in the Companies (Accounting Standard) Rules 2006 and in terms of the scheme, as below,

– All asset and liabilities of the UBA at their respective Book Values under the respective heads of the company.

– Rs.28 being the difference between the value of net assets of the UBA transferred to the Company (determined as stated above) and the carrying value of the Company’s investment (cancelled as above) has been adjusted to Capital/General Reserve of the Company.

– The inter company balances and the transactions stood cancelled.

UBA was engaged in brewing business.

[The Authorised Share capital of the Company stands increased by Rs.54.000 million of Equity Share Capital of Re.1/- each and enhanced by Rs.946.000 millions of Rs.100/- each in Preference Share Capital. This increase is arising on account of amalgamation of UBA with United Breweries Limited.]

UBL Benefit Trust

Arising out of the Amalgamation of EBL into UBL, UBL Benefit Trust held 6,007,413 equity shares in UBL constituting 2.36% of UBL’s paid up equity capital. The Trust has sold its entire shareholding and remitted the entire proceeds aggregating Rs.28,357 to UBL. The entire proceeds has been used in reducing the Debt of the Company. In the absence of any specific accounting treatment being prescribed in the Accounting Standards notified pursuant to the Companies (Accounting Standards) Rules, 2006 as per section 211(3C), the gain on sale of these shares held by UBL Benefit Trust (of which the Company is the sole beneficiary) aggregating to Rs.14,049 has been credited to the General Reserve.

STATEMENT OF AUDITED RESULTS FOR THE QUARTER AND YEAR ENDED SEPTEMBER 30, 2012

Rs. in Millions

Sr. No.	Particular	Quarter Ended		HALF Year Ended
		30.09.2012 (Unaudited)	30.06.2012 (Unaudited)	30.09.2012 (Unaudited
1.	Income From Operation
	Net Sales/Income from Operations	7969.000	11222.000	1919.300
	Other Operating Income	768.500	1035.900	18 04.400
	Total Income from Operation	8737.500	12258.200	20995.700
2.	Expenditure
	a) Cost of materials consumed	3503.900	5076.000	8579.900
	b) Purchases of stock-in-trade	35.800	230.300	266.100
	c) Changes in inventories of finished goods, work-in progress and stock-in-trade	(145.700)	19.700	(126.000)
	d) Employee benefits expense	553.500	479.300	1032.800
	e) Depreciation and amortization expense	433.900	376.400	810.300
	f) Advertisement & Sales promotion	1658.700	2043.200	3701.900
	g) Selling & Distribution	984.800	1414.300	2399.100
	h) Other expenses	1044.000	1103.800	2147.800
	Total	8068.900	10743.000	18811.900
3.	Profit From Operations before Other Income, Interest and Exceptional Items (1-2)	668.600	1515.200	2183.800
4.	Other Income	13.100	149.500	162.60
5.	Profit Before Interest and Exceptional Items (3+4)	681.700	1664.700	2346.400
6.	Interest	169.500	189.400	358.900
7.	Profit After Interest but before Exceptional Items (5-6)	512.200	1475.300	1987.500
8.	Exceptional Items	0.000	0.000	0.000
9.	Profit from Ordinary Activities before Tax (7+8)	512.200	1475.300	1987.500
10.	Tax Expenses	170.200	488.900	659.100
11.	Net Profit from Ordinary Activities after Tax (9-10)	342.000	986.400	1328.400
12.	Extraordinary Item (net of expense)	0.000	0.000	0.000
13.	Net Profit for the period (11-12)	342.000	986.400	1328.400
14.	Paid-up Equity Share Capital (Face Value of Rs.10/- Each)	264.400	264.400	264.400
15.	Reserves Excluding Revaluation Reserve	12646.300	12646.300	12646.300
16.	Basic and Diluted Earnings Per Share (EPS) (Rs.)-Not Annualised
	a) Basic and diluted EPS before extraordinary items	1.27	3.71	4.98
	b) Basic and diluted EPS after extraordinary items	1.27	3.71	4.98
17.	Public Shareholding
	-Number of Shares	66570479	66570479	66570479
	- Percentage of Shareholding	2.518	25.18.	2.518
18.	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	- Number of Shares	23419142	19984142	23419142
	- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)	1.184	1.010	1.184
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	0.886	0.756	0.886
	b) Non Encumbered
	- Number of Shares	174415528	177850528	174415528
	- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	8.816	8.990	9.087
	- Percentage of Shares (as a % of the Total Share Capital of the Company)	6.596	6.596	6.729

PARTICULAR	QUARTER ENDED MARCH 31, 2012
Pending at the beginning of the quarter	Nil
Received during the quarter	7
Disposed of during the quarter	7
Remaining unresolved at the end of the quarter	Nil

STATEMENT OF ASSETS AND LIABILITIES

Rs. in Millions

PARTICULARS	30.09.2012 AUDITED
Equity and liabilities
Shareholders' fund
Share capital	1005.100
Reserve & surplus	13961.800
Sub-total - Shareholders' funds	14966.900
Non – current liabilities
Long term borrowings	4104.900
Deferred tax liability (net)	630.600
Other long-term liabilities	0.000
Long term provisions	56.100
Sub-total - Non-current liabilities	4791.600
Current liabilities
Short term borrowings	4986.400
Trade payables	1710.400
Other current liabilities	5541.300
Short term provisions	487.900
Sub-total - Current liabilities	12726.000
Total - Equity & Liabilities	32484.500
Assets
Non-current assets
Fixed assets	15374.700
Non-current investment	254.700
Long term loans & advances	1728.100
Other Non – Current Assets	175.700
Sub-total - Non-current Assets	17533.200
Current assets
Inventories	5111.200
Trade receivables	7423.400
Cash & bank balances	817.600
Short term loans & advances	1250.100
Other current assets	349.000
Sub-total - Current Assets	14951.300
Total – Assets	32484.500

NOTES:

1. The Company is engaged in manufacture, purchase and sale of beer including licensing of brands which constitutes a single business segment. The Company also considers the whole of India as a single geographical segment.

2. During the financial year ended March 31, 2012, the investment in Maltex Malsters Limited (MML), which had a carrying value of Rs.450.000 million, has been revalued at Rs.254.100 million. In the opinion of management, no further provision for diminution is considered necessary as at September 30, 2012.

3. Millennium Beer Industries Limited (MBIL), United Millennium Breweries Limited (UMBL), UB Nizam Breweries Private Limited (UBNB), Chennai Breweries Private Limited (CBPL) and UB Ajanta Breweries Private Limited (UBAB) have been amalgamated with the company on various dates during the previous financial year, consequent to this, the figures for the quarter and half year ended September 30, 2012 are not comparable with those of corresponding periods of the previous year. The Board of Directors in its meeting held on February 7, 2012 has approved the merger of Scottish and Newcastle India Private Limited into the Company with effective date being April 1, 2012. The Company is in the process of obtaining necessary approvals to effect the same.

4. The Company has paid a dividend of Re.0.70 per Equity Share amounting to Rs.215.100 million (inclusive of Dividend Distribution Tax) for the year ended March 31, 2012. The Company has paid a dividend of Rs.3/- per Cumulative Redeemable Preference Share amounting to Rs.28.100 million (inclusive of Dividend Distribution Tax) for the year ended March 31, 2012 to Scottish and Newcastle India Limited.

5. Earnings per Share (EPS) is stated after providing for Dividend on the Cumulative Redeemable Preference Shares for the respective periods.

6. Pursuant to Notification No.447(E) dated February 28, 2011 and Notification No.653(E) dated March 30, 2011 issued by the Ministry of Corporate Affairs and Notification no.CIR/CFD/D IL/4/2012 dated April 16, 2012, issued by the Securities and Exchange Board of India, the Company has prepared its financial statements / results as per revised Schedule VI to the Companies Act 1956. Accordingly, the previous period figures have been regrouped/rearranged, wherever required to align the financial results to the revised format.

7. The unaudited results for the quarter ended September 30, 2012 have been approved by the Board of Directors at its meeting held on November 8, 2012 and have been subjected to a limited review by the auditors of the Company.

FIXED ASSETS:

v Goodwill

v Licenses

v Land – Freehold

v Land – Leasehold

v Buildings

v Leasehold Improvements

v Plant and Machinery

v Office Equipments

v Furniture and Fittings

v Laboratory Equipments

v Vehicles

AS PER WEBSITE

PRESS RELEASE

KARNATAKA HIGH COURT TELLS UNITED BREWERIES HOLDINGS NOT TO SELL ASSETS

BANGALORE, JUL 23 2013

A Karnataka High Court bench on Monday directed United Breweries Holdings (UBHL) not to sell, transfer or part with the possession of the company's assets until further orders on an appeal filed by one of its creditors. The bench passed the directive while hearing an appeal by BNP Paribas against a recent court order that gave permission to United Breweries Holdings (UBHL) to sell shares to British liquor company Diageo Plc.

The bench, which directed the issue of notices to Vijay Mallya, Diageo Plc, Relay BV and Kingfisher Finvest, who were listed as respondents in the appeal, has adjourned the hearing by four weeks.

So far, three appeals challenging the earlier court order have been filed by aircraft lessors and financiers of the grounded Kingfisher Airlines, including two by Rolls Royce and Partners Finance. These companies are among the five petitioners seeking winding up of UBHL.

A May 24 order of the Karnataka High Court allowed UBHL to sell 13.61 million shares in its group company, United Spirits, to Diageo Plc subject to certain conditions such as depositing Rs.2500.000 Millions out of the proceeds in the court and not creating new pledges or encumbrances on its assets till the winding up cases were disposed of. The British firm had

completed the purchase of a 25.02% stake in

United Spirits in the month of July.

Two weeks ago, the lenders’ consortium to the grounded Kingfisher Airlines moved the Karnataka High Court seeking a direction to proceeds from its stake sale to British liquor firm Diageo Plc.

In a separate hearing on Monday, the court directed the petitioners in the winding-up cases to file their responses to the consortium's petition.

The five winding-up petitions against UBHL had been filed separately between March and November 2012 by Rolls Royce and Partners Finance, BNP Paribas, Avions de Transport Regional GTE and IAE International Aero Engines AG, who were aircraft lessors and financiers to Kingfisher Airlines.

KFA LENDERS MULL LEGAL PATH FOR UNITED BREWERIES SHARES

Bangalore July 19, 2013

The lenders to UB Group-owned Kingfisher Airlines are understood to be considering legal options on how they could gain part-access to the highly-valued United Breweries shares, owned by promoters, including Chairman Vijay Mallya.

Along with UB Holdings, his primary holding company, besides some other firms, Mallya holds a 37.5 per cent stake in United Breweries, the country’s largest brewing company with a market capitalisation of around Rs.216000.000 Millions. Mallya’s total holding in the company is valued at about Rs 80000.000 Millions. Though neither Mallya nor UB Holdings have pledged these shares directly to the Kingfisher Airlines lenders, the former has given personal and the latter corporate guarantees for the now-grounded airline’s Rs 80000.000 Millions-odd debt. So, technically, lenders have recourse to these shares.

According to Sajan Poovayya, managing partner of Poovayya and Company, a leading law firm, lenders can file a summary suit action, as the process of enforcing guarantees is much faster through this route. Simultaneously, the lenders could also move the Debt Recovery Tribunal (DRT) and restrain the promoters from alienating their assets. “There have been many instances when guarantors’ assets have been encashed. It’s surprising that Kingfisher lenders have not yet moved on this. I am not sure of the reason for that,” Poovayya said.

When contacted by Business Standard, senior officials from the lenders’ consortium indicated they were looking at this option seriously and might look at various routes on how they could access the United Breweries shares held by Mallya and promoter companies.

If the lenders decide to go ahead with this move and try to encash United Breweries shares, Dutch brewing major Heineken, which also owns a 37.5 per cent stake in the company, will emerge as the single largest shareholder. If that happens, Mallya might lose control over this asset, too.

Among other group companies in which Mallya has lost or had to share control, Diageo already has board control over United Spirits. An intense tussle is on between Deepak Fertilisers and Zuari Group to gain control over Mangalore Chemicals and Fertilizer.

Senior UB Group officials, however, added that they were working to settle the issue of Kingfisher Airlines, squarely saying they were not going to let the issue stay “suspended in mid air”.

The consortium of 17 banks has tried hard to get back as much from UB Group as possible by enforcing various securities and assets directly pledged with them over the past two quarters. It is understood to have recovered around Rs 1,000 crore worth of loans through these measures.

The lenders have been quite aggressive after announcing they were recalling the loans to Kingfisher Airlines. They had also refused to part with the 2.38 per cent United Spirits stake pledged with them to facilitate Mallya’s transaction with global spirits major Diageo, in which United Spirits is divesting close to 27 per cent stake.

“We believe this refusal is in clear breach of applicable contractual arrangements and we are taking steps to expedite release of the security to enable the balance sale under the share-purchase agreement,” UB Group had recently said.

PERFORMANCE HIGHLIGHTS - FOR THE PERIOD ENDING DECEMBER 31, 2012.

· PROFIT AFTER TAX INCREASE OF 40%

· EBITDA UP BY 15%

· VOLUME GROWTH OF 6% AND SALES UP BY 10%

UBL overall volumes remained flat versus the same quarter in the previous year, hugely affected by the unfavourable ordering pattern of TASMAC in Tamilnadu.

The Company posted growth in key profitable markets, namely Karnataka, Maharashtra, Rajasthan, Bihar and Uttar Pradesh, it also posted growth in Andhara Pradesh, the country's largest market by volume.

On the cost front the Company has done well to contain the overall inflationary trend by managing the costs of packaging material. This has helped to offset in the increase in the prices of other input materials in an inflationary economy.

EBITDA for the 3rd quarter was Rs.874.000 millions, and Profit before Tax for Q3 stands at Rs. 241.000 millions; Profit after Tax for the period increased by 17% on account of tax reversals.

The Greenfield brewery in Nanjangud has started commercial operations in the quarter. The brown field expansions at other sites are progressing as scheduled to meet the demand of the coming summer months.

Current quarter results are not comparable to the corresponding quarter of the previous year due to the consolidation of 9 months results of MBIL, UMBL, UB Nizam, and CBPL in the corresponding quarter of the previous year consequent to the merger of these entities into the Company. In addition the current quarter includes the results of UB Ajanta which was not part of the results of the corresponding quarter of the previous year.

Bangalore, February 6, 2013

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 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 proeeding 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.58.94
UK Pound	1	Rs.90.48
Euro	1	Rs.77.87

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		49

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	-

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