1. The Company is engaged in the business of manufacture, purchase and sale of Beverage Alcohol (Spirits and Wines) including through Tie-up Manufacturing / brand franchise, which constitutes a single business segment. The Company’s operations outside India did not exceed the quantitative threshold for disclosure envisaged in AS-17 on Segment Reporting issued by the Institute of Chartered Accountants of India. In view of the above, primary and secondary reporting disclosures for business/geographical segment as envisaged in AS-17 are not applicable to the Company.

2. The equity shares of the Company have been delisted from Delhi Stock Exchange Ltd with effect from March 31, 2009. With this, the equity shares of the Company have been de-listed from the Stock Exchanges situated at Ahmedabad, Chennai, Kolkata and New Delhi.

3. With regard to the Scheme of Amalgamation of Shaw Wallace & Company Ltd (´SWCL´) and Primo Distributors Pvt Ltd (´Prima´) with the Company (´Scheme´) with April 1, 2007 as the Appointed Date, while the Scheme has been sanctioned by the Hon´ble High Court of Karnataka and Hon´ble High Court of Judicature at Bombay earlier, the Hon´ble High Court at Calcutta has sanctioned the Scheme vide Order dated January 16, 2009. The Certified copy of the Order is awaited. Necessary steps will be taken thereafter, to make the Scheme effective.

Pending completion of the above, the results published do not include the results of SWCL and Primo. The accounting effect of the scheme shall be given when the scheme becomes effective.

4. Consequent upon filing of the certified copy of the Order of the Hon´ble High Court of Karnataka sanctioning the Scheme of Amalgamation of Zelinka Ltd (Zelinka) with the Company (ZL Scheme) and Zelinka having complied with the procedure required to be followed under the local corporate laws of Cyprus, the ZL Scheme with the Appointed Date as April 1, 2007,has become operative from March 26, 2009. Accordingly, in terms of the ZL Scheme the entire business and undertaking of Zelinka including all assets and liabilities, as a going concern, stand transferred to and vested in the Company. As Zelinka is a wholly-owned subsidiary of the Company, no shares will be issued by the Company.

Further, consequent to the amalgamation of Zelinka with the Company.

(a) Zelinka ceased to be a subsidiary of the Company

(b) Palmer Investment Group Ltd, and Montrose International SA, have become direct wholly owned subsidiaries of the Company and

(c) Liquidity Inc. has become a direct subsidiary of the Company.

The Company has given effect to the ZL Scheme in the accounts with effect from April 1, 2007 being the Appointed Date. As stipulated in the ZL Scheme,

(a) difference between the value of net assets of Zelinka transferred to the Company after adjusting for investments cancelled is debited to the General Reserve of the Company;

(b) net loss for the year ended March 31, 2008 has been debited to the balance of the Profit and Loss Account and exchange difference on loan given to Zelinka debited to foreign currency translation reserve during the year ended March 31, 2008 has been reversed; and

(c) the results of Zelinka for the year ended March 31, 2009 have been given effect during the quarter.

resulting in increase in Reserves by Rs 5,923 lakhs and increase in net profit for the quarter and year ended March 31, 2009 by Rs 492 lakhs. Had the Scheme not prescribed the treatment described in (a) above, Rs 114 lakhs would have been debited to Goodwill, which would have been charged to the Profit and Loss Account as per the accounting policy of the Company, having corresponding impact on the results for the quarter and year ended March 31, 2009.

5. The Board of Directors of the Company at their meeting held on November 29, 2008 have approved the proposal of merger of Balaji Distilleries Ltd (´BDL´) with the Company with effect from April 01, 2009 as per the Scheme of Arrangement between BDL, Chennai Breweries Pvt Ltd (´CBPL´) and United Spirits Ltd (´the Company´), subject to the necessary approvals.

The Draft Rehabilitation Scheme along with the Scheme of Arrangement is pending with the Board for Industrial and Financial Reconstruction (BIFR) formed under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), for approval.

6. The Central Government vide notification dated March 31, 2009 has amended Accounting Standard (AS-11) - The effects of changes in Foreign Exchange Rates notified under the Company’s (Accounting Standard) Rules, 2006. The Company has exercised the option stated in paragraph 46 of AS 11 retrospectively from April 1, 2007.

As a result, the Company has changed its accounting policy for recognition of Exchange differences arising on reporting of long term foreign currency monetary items, with the exception of exchange differences arising on a monetary item that, in substance, forms part of an enterprise´s net investment in a non-integral foreign operation which are accumulated in a foreign currency translation reserve in the enterprise´s financial statements until the disposal of the net investment in accordance with paragraph 15 of AS 11, at rates different from those at which they were initially recorded during the period or reported in previous financial statements, which hither to were charged to the profit or loss account, as below:

(a) In so far as they relate to the acquisition of depreciable capital assets, are added to or deducted from the cost of the asset and are depreciated over the balance life of the asset.

This, however, did not have any impact on the results for the quarter and year ended March 31, 2009; and

(b) In other cases, the said exchange differences are accumulated in a ´Foreign Currency Monetary Item Transaction Differences Account´ and amortised over the balance period of such long term asset/liability but not beyond March 31, 2011. Exchange difference recognised in the Profit and Loss Account up to last financial year ending March 31, 2008 relating to said long term liabilities in foreign currency aggregating to Rs 933 lakhs (net off deferred tax Rs 480 lakhs) has been adjusted against opening revenue reserve as provided in the rules. As a result of this change in accounting for exchange difference, net profit for the quarter ended and year ended March 31, 2009 is lower by Re 1,701 lakhs. The amount remaining to be amortized in the financial statement as on March 31, 2009 is Rs. 3,113 lakhs.

7. The Limited Review of the above results as required under Clause 41 of Listing Agreement has been completed by the Statutory Auditors. The above unaudited results were taken on record at the meeting of Board of Directors held on April 27, 2009.

8. Previous period/year´s figures have been regrouped, wherever necessary, to conform to the current period/year´s classifications.

V K Rekhi
Managing Director