UNITED SPIRITS LIMITED
ANNUAL REPORT 2011-2012
The Members of
United Spirits Limited
1. We have audited the attached Balance Sheet of United Spirits Limited,
(the `Company`) as at March 31, 2012, and also the Statement of Profit and
Loss and the Cash Flow Statement for the year ended on that date, annexed
thereto (collectively referred as the `financial statements`). These
financial statements are the responsibility of the Company`s management.
Our responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor`s Report) Order, 2003 (the
`Order`)(as amended), issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Companies Act, 1956 (the `Act`), we
enclose in the Annexure a statement on the matters specified in paragraphs
4 and 5 of the Order.
4. Further to our comments in the Annexure referred to above, we report
(a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those books;
(c) The financial statements dealt with by this report are in agreement
with the books of account;
(d) On the basis of written representations received from the directors, as
on March 31, 2012 and taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2012 from being appointed as
a director in terms of clause (g) of sub-section (1) of Section 274 of the
(e) In our opinion and to the best of our information and according to the
explanations given to us, the financial statements dealt with by this
report comply with the accounting standards referred to in sub-section (3C)
of Section 211 of the Act and give the information required by the Act, in
the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, in the case of:
(i) The Balance Sheet, of the state of affairs of the Company as at March
(ii) The Statement of Profit and Loss, of the profit for the year ended on
that date; and
(iii) The Cash Flow Statement, of the cash flows for the year ended on that
For Walker, Chandiok & Co
Firm Registration No: 001076N
Per Aashish Arjun Singh
Membership No. 210122
Date : May 29, 2012
Annexure to the Auditors` Report
Annexure to the Auditors` Report of even date to the members of United
Spirits Limited, on the financial statements for the year ended 31 March
Based on the audit procedures performed for the purpose of reporting a true
and fair view on the financial statements of the Company and taking into
consideration the information and explanations given to us and the books of
account and other records examined by us in the normal course of audit, we
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its
fixed assets under which fixed assets are verified in a phased manner over
a period of three years which, in our opinion, is reasonable having regard
to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) (a) The management has conducted physical verification of inventory at
reasonable intervals during the year, except goods-in-transit.
(b) The procedures of physical verification of inventory followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.
(iii) (a) The Company has granted unsecured loans to one party covered in
the register maintained under Section 301 of the Act. The maximum amount
outstanding during the year is Rs. 1,129.700 Million and the year-end
balance is Rs. 180 Million.
(b) In our opinion, the rate of interest and other terms and conditions of
such loans are not, prima facie, prejudicial to the interest of the
(c) In respect of loans granted, receipt of the principal amount and
interest is regular.
(d) There is no overdue amount in respect of loans granted to such
companies, firms or other parties.
e) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties covered in the register maintained under
Section 301 of the Act. Accordingly, the provisions of clauses 4(iii)(f)
and 4(iii)(g) of the Order are not applicable.
(iv) In our opinion, there is an adequate internal control system
commensurate with the size of the Company and the nature of its business
for the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
(v) (a) In our opinion, the particulars of all contracts or arrangements
that need to be entered into the register maintained under Section 301 of
the Act have been so entered.
(b) In our opinion, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of rupees five lakhs in respect of any
party during the year have been made at prices which are reasonable having
regard to prevailing market prices at the relevant time.
(vi) In our opinion, the Company has complied with the directives issued by
the Reserve Bank of India, the provisions of Sections 58A and 58AA and
other relevant provisions of the Act and the Companies (Acceptance of
Deposits) Rules, 1975 as applicable with regard to the deposits accepted
from the public. According to the information and explanations given to us,
no order has been passed by the Company Law Board or National Company Law
Tribunal or Reserve Bank of India or any Court or any other Tribunal, in
(vii) In our opinion, the Company has an internal audit system commensurate
with its size and the nature of its business
(viii) To the best of our knowledge and belief, the Central Government has
not prescribed maintenance of cost records under clause (d) of sub-section
(1) of Section 209 of the Act, in respect of Company`s products/ services.
Accordingly, the provisions of clause 4(viii) of the Order are not
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees` state insurance, income-tax,
sales-tax, wealth-tax, service-tax, custom duty, excise duty, cess and
other material statutory dues, as applicable, have generally been regularly
deposited with the appropriate authorities. No undisputed amounts payable
in respect thereof were outstanding at the year-end for a period of more
than six months from the date they became payable.
(b) The dues outstanding in respect of sales-tax, income-tax, custom duty,
wealth-tax, excise duty, cess on account of any dispute, are given in
(x) In our opinion, the Company has no accumulated losses at the end of the
financial year and it has not incurred cash losses in the current and the
immediately preceding financial year.
(xi) In our opinion, the Company has not defaulted in repayment of dues to
any financial institution nor did it have any debentures outstanding during
the year. In respect of dues to banks, their acceptance of the Company`s
application for reschedulement of certain amounts originally due on March
30 and March 31, 2012 totalling to an amount of Rs. 1,058.500 Million, was
received subsequent to the year end and hence the amount is outstanding.
(xii) The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
Accordingly, the provisions of clause 4(xii) of the Order are not
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Accordingly, the provisions of clause 4(xiii) of the
Order are not applicable.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the provisions
of clause 4(xiv) of the Order are not applicable.
(xv) In our opinion, the terms and conditions on which the Company has
given guarantee for loans taken by others from banks or financial
institutions are not, prima facie, prejudicial to the interest of the
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been used
for long-term investment.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4(xviii) of the Order are not applicable.
(xix) The Company has neither issued nor had any outstanding debentures
during the year. Accordingly, the provisions of clause 4(xix) of the Order
are not applicable.
(xx) The Company has not raised any money by public issues during the year.
Accordingly, the provisions of clause 4(xx) of the Order are not
(xxi) No fraud on or by the Company has been noticed or reported during the
period covered by our audit .
For Walker, Chandiok & Co
Firm Registration No: 001076N
Per Aashish Arjun Singh
Membership No. 210122
Date : May 29, 2012
Appendix 1* to the Auditor`s Report
Referred to paragraph ix(b) of the Annexure to the Auditors` report of even
date to the members of United Spirits Limited, on the financial statements
for the year ended March 31, 2012.
Name of the Demand Payment Period for which Forum where
statute (Rs. (Rs. the amount relates dispute is
Million) Million) pending
The Income-tax 11.685 11.685 Assessment years Supreme Court
Act, 1961 1992-93, 1993-94,
468.252 434.539 Assessment years Income Tax
1994-95, 1995-96, Appellate
2000-01, 2001-02, Tribunal
569.880 567.057 Assessment years Commissioner
1991-92, 1992-93, of Income Tax
1995-96, 2002-03, (Appeals)
3.620 - Assessment year Assessing
Central and 84.823 95.178 1981-82, 1982-83, Supreme Court
Respective 1983-84, 1984-85
Tax Acts 87.724 27.992 1978-81, 1980-81, High Court`s
150.058 98.255 1978-81, 1980-81, Appellate
1981-82, 1982-83, Tribunal
215.451 217.930 1999-00, 2000-01, Joint
2001-02, 2002-03, Commissioner
53.690 42.671 1976-77, 1977-78, Deputy
1978-79, 1979-80, Commissioner
221.981 20.877 1974-76, 1982-83, Assistant
1995-96, 1996-97, Commissioner
8.612 6.604 1974-75, 1975-76, Assesing
1983-84, 1993-94, Officer
54.980 - 1993-94, 2004-05, Appellate and
2005-06, 2006-07 Revisional
13.723 0.544 1993-94, 2004-05, Additional
2005-06, 2006-07 Commissioner
Respective 46.778 - 1971-72, 1991-95, Supreme Court
State Excise 1995-98, 2001-02,
174.766 75.140 1963-64, 1972-74, High Court`s
17.464 - 1995-96 Appellate
269.808 1.283 1974-81, 1980-81, Excise
1981-82, 1982-83, Commissioner
1.593 - 1986-87, 1992-93, Excise
1992-99, 1997-98 Superintendent
1.701 - 1994-95 District
12.170 - 1981-84 Chinsurah Court,
8.311 - 1993-94 Additional
0.081 - 1994-95 Collector
The Central 6.000 - 1991-95, 1995-98, Supreme Court
Excise Act, 1944 2001-02
25.635 - 1989-97, 1996-97, High Court`s
0.534 - 1995-95, 1995-96, Commissioner of
2004-05 Central excise
0.481 - 1995-96 Assistant
* The annexure does not include cases where the respective authorities have
appealed against orders in favour of the Company.