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Company Information

Home » Market » Company Information

United Spirits Ltd.

Aug 03, 03:55
574.10 -7.35 ( -1.26 %)
 
VOLUME : 50714
Prev. Close 581.45
Open Price 575.00
TODAY'S LOW / HIGH
572.00
 
 
 
584.80
Bid PRICE (QTY.) 574.10 (32)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
443.00
 
 
 
742.95
Aug 03, 03:59
574.00 -7.20 ( -1.24 %)
 
VOLUME : 1155921
Prev. Close 581.20
Open Price 582.70
TODAY'S LOW / HIGH
572.10
 
 
 
584.85
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 574.00 (220)
52 WK LOW / HIGH
442.65
 
 
 
742.70
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Market Cap. ( ₹ ) 41709.06 Cr. P/BV 11.19 Book Value ( ₹ ) 51.31
52 Week High/Low ( ₹ ) 743/443 FV/ML 2/1 P/E(X) 63.30
Bookclosure 21/08/2019 TTM EPS ( ₹ ) 2.96 Div Yield (%) 0.00
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2019-03 

NOTES TO THE FINANCIAL STATEMENTS

(All amounts in INR Millions unless otherwise stated)

49. Capital and other commitments

Particulars

As at March 31, 2019

As at March 31, 2018

(a) Capital commitments for property, plant and equipment

1,065

696

(b) Other commitments: i. relating to advertisement, sales promotion and trade mark fee

773

1,150

ii. Towards minimum offtake commitment for purchase of bulk scotch from a related party

1,900

1,560

Notes:

a) The Company has given letters of financial support to the following subsidiaries to conduct their operations in such a manner as to enable them to meet their obligations, as and when they fall due for a period of twelve months from the balance sheet date:

i. Pioneer Distilleries Limited, ii. Sovereign Distilleries Limited, iii. Tern Distilleries Private Limited, iv. Asian Opportunities & Investment Limited, v. United Spirits Singapore Pte Limited, vi. Montrose International SA, vii. Palmer Investment Group Limited, viii. UB Sports Management Overseas Ltd, ix. USL Holdings Limited,x. USL Holdings (UK) Limited,xi. United Spirits (UK) Limited, xii. United Spirits (Great Britain) Limited, xiii. McDowell & Co. (Scotland) Limited, xiv.Shaw Wallace Overseas Limited,xv. Liquidity Inc.xvi. United Spirits (Shanghai)Trading Co. Limited.

b) The Company has given a letter of comfort to a bank, towards a loan facility amounting to INR 1,500 million availed by Pioneer Distilleries Limited (PDL), a subsidiary, from the bank. As per the letter, the Company has expressed its intention to ensure that PDL repays the outstanding amount under the facility on due date and in the event of default by PDL, to take appropriate steps to cause PDL to repay the outstanding out of PDL resources. The said letter does not constitute a guarantee by USL, as in the event of default by PDL, the bank shall have no recourse to USL.

50. Contingent Liabilities

Particulars

As at March 31, 2019

As at March 31, 2018

(a) Tax matters:

(i) State Excise

1,980

1,861

(ii) Central Excise

2

378

(iii) Service Tax

-

233

(iv) Income Tax

7,281

7,220

(v) Sales tax and entry tax

3,509

1,216

(b) Other civil litigations and claims

1,549

2,932

Notes:

(a) Income taxes- Income tax matters primarily relate to exposures under transfer pricing and disallowance of certain expenses that the Company had claimed as deductions in its Income Tax returns.

(b) Indirect taxes-The Company has extensive operations across various states in India.The Company has identified possible exposures relating to local sales tax, state excise duty and central excise duty.

(c) Other civil litigations and claims- Other civil litigations relate to various claims from third parties under dispute which are lying with various courts/appellate authorities.

(d) Provident fund-The Company is in the process of evaluating the impact of the Supreme Court ("SC") judgement dated February 28, 2019 in the case of Regional Provident Fund Commissioner (II) West Bengal v/s Vivekananda Vidyamandir and Others, in relation to non-inclusion of certain allowances in the definition of "basic wages" of the relevant employees for the purposes of determining contribution to Provident Fund ("PF") under the Employees' Provident Fund & Miscellaneous Provisions Act, 1952. There are interpretation issues relating to the said SC judgement. In the assessment of the management, the aforesaid matter is not likely to have a significant impact and accordingly.no provision has been made in the financial statements.

(e) Use of Judgement- Management categorizes the matters based on the probability of cash outflow, which require judgement. Management obtains the views of external consultants where necessary. Based on the assessment, management recognises liability/ provision, or discloses the matter as a contingent liability, except for matters where the probability of outflow of cash is considered remote. Due to uncertainties involved in the process, actual outflows may be different from those originally estimated.

(All amounts in INR Millions unless otherwise stated)

The Company may be involved in legal proceedings in respect of which it is not possible to make a reliable estimate of any expected settlement. In such cases, appropriate disclosure is provided but no provision is made and no contingent liability is quantified.

(f) Management is optimistic of a favourable outcome in the above matters based on legal opinions / management assessment. It is not practicable for the Company to estimate the timing of the cash outflows, if any, in respect of the above, pending resolution of respective proceedings.

51. Research expenses

Particulars

For the year ended March 31, 2019

For the year ended March 31, 2018

Salaries and wages

52

57

Contribution to provident fund and other funds

5

5

Staff welfare expenses

1

1

Rent

6

5

Miscellaneous expenses

30

24

Total Research expenses

94

92

52. Dues to Micro and Small Enterprises

Particulars

As at March 31, 2019

As at March 31, 2018

Principal amount due to suppliers registered under the MSMED Act and remaining unpaid as at year end (Refer Note 19)

269

89

Interest due to suppliers registered under the MSMED Act and remaining unpaid as at year end

8

17

Principal amounts paid to suppliers registered under the MSMED Act, beyond the appointed day during the year

1,033

230

Interest paid, other than under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year

-

-

Interest paid, under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year

38

1

Interest due and payable towards suppliers registered under MSMED Act, for payments already made

0

4

Further interest remaining due and payable for earlier years

-

13

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company, which has been relied upon by the auditors.

53. Corporate Social Responsibility (CSR)

CSR amount required to be spent as per Section 135 of the companies Act, 2013 read with schedule VII thereof by the company during the current year is INR 104 million (2018: INR 36 million).

Details of actual CSR expenditure incurred:

Particulars -

For the year ended March 31, 2019

For the year ended March 31, 2018

In cash

Yet to be paid in cash

Total

In cash

Yet to be paid in cash

Total

Amount spent during the year on:

i) Construction/ Acquisition of assets

-

-

-

-

-

ii) On purposes other than i) above (Refer Note 27)

112

9

121

105

-

105

(All amounts in INR Millions unless otherwise stated)

54. (a) Details of Investments (Original cost) as per Section 186 (4) of Companies Act, 2013 i) Investment in subsidiaries:

Name of the Subsidiaries

Relationship

As at March 31, 2019

As at March 31, 2018

Domestic subsidiaries

Royal Challengers Sports Private Limited

Wholly owned subsidiary

1,699

1,699

Four Seasons Wines Limited

Wholly owned subsidiary

-

693

Tern Distilleries Private Limited

Wholly owned subsidiary

1,127

1,127

Sovereign Distilleries Limited

Wholly owned subsidiary

4,582

4,582

Pioneer Distilleries Limited

Subsidiary

1,117

1,117

Overseas subsidiaries

Asian Opportunities & Investments Limited

Wholly owned subsidiary

301

301

McDowell & Co. (Scotland) Limited

Wholly owned subsidiary

126

126

USL Holdings Limited

Wholly owned subsidiary

22

22

United Spirits (Shanghai) Trading Company Limited

Wholly owned subsidiary

27

27

Liquidity Inc.

Subsidiary

119

119

Shaw Wallace Overseas Limited

Wholly owned subsidiary

14

14

Palmer Investment Group Limited

Wholly owned subsidiary

6,918

6,918

Montrose International S.A

Wholly owned subsidiary

134

134

Total

16,186

16,879

ii) Investment in associate:

iii) Bar Private Limited

Associate

270

-

54. (b) Details of loans (gross) as per Section 186 (4) of Companies Act, 2013

Name of the borrower

Relationship

Purpose

Rate of Interest 2018-19

Rate of Interest 2017-18

Term/ Repayment schedule

As at March 31,2019

As at March 31,2018

Domestic subsidiaries

Royal Challengers Sports Private Limited

Wholly owned subsidiary

Working capital

9%

9%

Principal and interest to be repaid on July 31, 2021

2,433

2,983

Four Seasons Wines Limited [Refer Note 42(d)]

Wholly owned subsidiary

Working capital

9%

9%

Repaid on December 24, 2018

-

781

Tern Distilleries Private Limited

Wholly owned subsidiary

Working capital

9%

9%

Principal and interest to be repaid on July 31, 2021

38

22

Sovereign Distilleries Limited

Wholly owned subsidiary

Working capital

9%

9%

Principal and interest to be repaid on July 31, 2021

45

35

Pioneer Distilleries Limited

Subsidiary

Working capital / Capex funding

9%

9%

Principal to be repaid on Augusts, 2026. Schedule of interest payment not stipulated.

1,354

1,354

Overseas Subsidiaries

Asian Opportunities & Investments Limited

Wholly owned subsidiary

Working capital / Funding towards acquisition of Bouvet Ladubay

Interest free

Interest free

Refer note (b) below

514

532

USL Holdings Limited

Wholly owned subsidiary

Working capital / Funding towards acquisition of Whyte and Mackay Limited

Interest free

Interest free

Refer note (b) below

53,685

50,987

United Spirits (Shanghai) Trading Company Limited

Wholly owned subsidiary

Working capital

Interest free

Interest free

Refer note (b) below

20

19

McDowells Co. (Scotland) Limited

Wholly owned subsidiary

Working capital

Interest free

Interest free

Refer note (b) below

333

319

Liquidity Inc.

Subsidiary

Working capital

Interest free

Interest free

Refer note (b) below

69

66

USL Holdings (UK)Limited

Wholly owned subsidiary

Working capital

Interest free

Interest free

Refer note (b) below

174

177

Others

United Breweries (Holdings) Limited

Unrelated

Refer Note 43

9.50%

9.50%

8 years

13,082

13,374

Total

71,747

70,649

Notes:

a) Simple interest is charged for loans to domestic subsidiaries

b) The loans granted to these companies in earlier years are interest free without any repayment terms stipulated and were largely intended towards acquisition of long term strategic investments overseas.

55: Disclosure as per Regulation 34 (3) and 53 (f) read with Part A of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in respect of loans/ advances/ investments outstanding as at year end

Particulars

Investments in equity at cost held as at

Gross loans outstanding as at

Maximum amount of loans and advances outstanding during the year

March 31, 2019

March 31, 2018

March 31, 2019

March 31, 2018

March 31, 2019

March 31, 2018

Asian Opportunities & Investments Limited

301

301

514

532

558

532

Four Season Wines Limited

-

693

-

781

781

781

Shaw Wallace Overseas Limited

14

14

-

-

-

-

USL Holdings Limited

22

22

53,685

50,987

57,159

50,987

USL Holdings UK Ltd

-

-

174

177

182

177

Pioneer Distilleries Limited

1,117

1,117

1,354

1,354

1,354

1,354

Palmer Investment Group Limited

6,918

6,918

-

-

-

-

Montrose International S.A

134

134

-

-

-

-

United Spirits (Shanghai) Trading Co. Limited

27

27

20

19

21

19

McDowell & Co (Scotland) Limited

126

126

333

319

354

416

Royal Challengers Sports Private Limited

1,699

1,699

2,433

2,983

3,723

4,269

Tern Distilleries Private Limited

1,127

1,127

38

22

38

22

Liquidity Inc.

119

119

69

66

74

66

Sovereign Distilleries Limited

4,582

4,582

45

35

45

35

Hip Bar Private Limited

270

-

-

-

-

-

Total

16,456

16,879

58,665

57,275

The aforesaid amounts are gross of provisions, if any, made based on Management assessment of recoverability. For repayment schedule and interest related terms. Refer Note 54(b).

(All amounts in INR Millions unless otherwise stated)

56. The Company does not have any derivative contracts as at March 31,2019. The Company has a process whereby periodically all long term contracts are assessed for material foreseeable losses. No provision for material foreseeable losses is considered necessary based on the review of such contracts as at yea rend.

57. Investment in Hip Bar, as associate

During the year ended March 31, 2019, the Company subscribed to 4,567,568 equity shares of Hip Bar Private Limited ("Hip Bar"), constituting 26% of the paid-up equity share capital of Hip Bar. The subscription price paid by the Company was INR 270 million representing INR 59.11/- (Fifty Nine Rupees and Eleven Raise) per equity share. Hip Bar, incorporated on February 20, 2015, owns and operates a web-based mobile application under the name and style of "HIPBAR", which acts as an electronic payment platform servicing the beverage alcohol industry and its consumers. Following the Company's investment. Hip Bar has became an "associate company", i.e., by virtue of the Company having a shareholding in excess of 20% in Hip Bar and by virtue of having a right to appoint a director on Hip Bar's Board.

58. Previous year figures have been regrouped/reclassified to conform to the current year's classification.

For Price Waterhouse & Co Chartered Accountants LLP

For and on behalf of the Board of Directors

Firm registration number: 304026E/E-300009

Mahendra Kumar Sharma

Anand Kripalu

Chairman

Managing Director & Chief Executive Officer

Pradip Kanakia

V. K.Viswanathan

Sanjeev Churiwala

Partner

Director

Executive Directors/ Chief Financial Officer

Membership number: 039985

Place: Bengaluru

Place : Bengaluru

V. Ramachandran

Date : May 29, 2019

Date: May 29, 2019

Executive Vice Presidents/ Company Secretary