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.(a) Pursuant to notification dated March 31, 2009 issued by the Ministry of Corporate Affairs, the Company has, with retrospective effect from April 01, 2007 changed its accounting policy in respect of exchange differences on long term foreign currency monetary items, with the exception of exchange differences on items forming part of the company´s net Investment in a non—integral foreign operation. Such exchange differences which were recognised in the Profit and Loss Account until March 31, 20008 are from the current quarter:

(i) adjusted to the cost of the asset in so far as they relate to the acquisition of a depreciable asset; and

(ii) accumulated in a Foreign Currency Monetary Item Translation Difference Account and amortised over the period of the related long term foreign currency monetary item but not beyond March 31, 2011.

As the company did not have any long term monetary, item since April 01, 2007 till date, the above change in the accounting policy has no impact on the profit for the quarter/year ended March 31, 2009.

(b) Exchange translation difference represents loss (gain) on liability restated at the exchange rates as at the end of the respective periods on the foreign currency loan availed by the Company for working capital purposes, which is a renewable facility.

3. The investment in Millennium Alcobev Pvt Ltd is strategic in nature and its diminution in value is considered temporary. The Company has obtained an independent valuation which is in excess or the book value of the investment, and, hence, no provision for diminution in the value of the investment is considered necessary.

4. The Company does not own any brewing facility in Tamil Nadu, which is one of the major markets in India contributing about 18% of the Company’s business. With an intention of ensuring supplies from Balaji Distilleries Ltd (BDL), having brewing facilities in Tamil Nadu, the Company has entered into an agreement with the promoters of BDL to secure to the Company perpetual usage of brewery and for grant of first right of refusal in case of sale or disposal of the brewery in any manner by BDL, and has advanced an amount of Rs 15,500 Lakhs to one of the Promoters Companies of BDL, acting for and on behalf of the other Promoters also.

Subsequently, the Boards of Directors of BDL and United Spirits Ltd (USL) have considered and approved a proposal for merger of BDL into USL, which is subject to obtaining of the necessary regulatory approvals by both the Companies. The Company has obtained a commitment from USL that the arrangement with Promoters will be adhered to on completion of the proposed merger. The advance will be repaid upon the completion of the merger or in accordance with the terms of the related Agreement, whichever is earlier.

5. During the quarter ended June 30, 2008 the Company has raised Rs 42,488 Lakhs through an issue of shares on right basis (Right Issue). The proceeds of the rights issue have been utilised in the following manner:

a. Rs 31,973 Lakhs for repayment of cash credit /overdraft accounts and for additional working capital requirements.

b. Rs 5,015 Lakhs for Capital Expenditure.

Pending utilisation the balance proceeds of Rs 5,500 Lakhs have been invested in Mutual funds.

6. The Company has paid dividend @ Rs 3/- per Cumulative Redeemable Preference Shares (CRPS) amounting to Rs 867 lakhs (inclusive of Dividend Distribution Tax) to Scottish & Newcastle India Ltd on CRPS held by them on April 02, 2008 for the year ended Match 31, 2008. The Company has declared an interim dividend of Re 0.15 per share on the enhanced equity capital (post Rights Issue) on September 10, 2008 amounting to Rs 421 Lakhs (Inclusive of Dividend Distribution Tax) and the same has been paid. At its Meeting held on April 28, 2009, the Board has approved payment of dividend @ Rs 3/- per CRPS amounting to Rs 867 Lakhs (inclusive of Dividend Distribution Tax) for the year ended March 31, 2009.

7. Earning per Share (EPS) is stated after providing for Dividend on the Cumulative Redeemable Preference Shares for the financial year 2008—2009. EPS for the current quarter and the prior periods have been adjusted for the issue of shares on rights basis during the current quarter, and, accordingly, EPS for the prior periods are restated.

8. The Securities of the Company have been voluntarily delisted From Ahmedabad & Calcutta Stock Exchanges and approvals from these Exchanges have been received.

9. The figures relating to the previous year / period(s) have been regrouped / reclassified wherever necessary.

10. The unaudited results for the quarter and year ended March 31, 2009 have been approved by the Board of Directors at the meeting held on April 28, 2009 and have been subjected to a limited review by the auditors of the company.

Kalyan Ganguly
Managing Director