1. ANALYSIS OF THE FINANCIAL STATEMENTS OF UNITED BREWERIES UNITED BREWERIES PRESENTED BY - AVINASH KAKATI DEBOPRATIM BORAH PUNEET CHOUDHURY RADHAKANTA NAIK SWEETY AGARWALLA VAISHALI GOSWAMI

2. UNITED BREWERIES GROUP OR UB GROUP  conglomerate of different companies with a major focus on the brewery (beer) and alcoholic beverages industry.  It is owned by Dr. Vijay Mallya.  The company markets beer under the Kingfisher brand.  United Breweries is India's largest producer of beer with a market share of around 48% by volume.  United Breweries now has greater than a 40% share of the Indian brewing market with 79 distilleries and bottling units across the world.

3. ACCOUNTING POLICY  Basis of Presentation of Financial Statements  Use of Estimates  Revenue Recognition  Borrowing Costs  Fixed Assets  Investments  Inventories ACCOUNTING POLICY

4. ACCOUNTING POLICY contd.  Foreign Currency Transactions  Depreciation and Amortisation  Employee Retirement benefits  Taxation  Earnings per share  Impairment of Assets  Provisions, Contingent Liabilities and Contingent Assets

5. BALANCE SHEET

6. BALANCE SHEET OF UNITED BREWERIES OF 2008, 09, 10 (Rs. In Crores) Sources of Fund Mar ‘10Mar ‘09Mar ‘08 Net worth1159.771081.54611.26 Total Debt671.33616.36525.22 Total Liabilities 1831.101697.901136.48

7. BALANCE SHEET(contd.) (Rs. In Crores) Application Of Funds MARCH’10 12 months MARCH’09 12 months MARCH’08 12 months NET BLOCK780.78697.76560.18 CAPITAL WORK IN PROGRESS 57.5386.53157.61 INVESTMENTS153.07194.10104.07 TOTAL CA, LOANS & ADVANCES 1212.73965.76567.72 NET CURRENT ASSETS 839.72719.51314.62 TOTAL ASSETS1831.101697.901136.48 CONTINGENT LIABILITIES 290.66351.95331.85 BOOK VALUE(Rs)38.0334.7716.87

8. PROFIT & LOSS ACCOUNT

9. PROFIT & LOSS ACCOUNT(In Crores) Income Sales Turnover2957.932462.581983.44 Less: Excise Duty971.65770.83612.97 Net Sales1986.281691.751370.47 Other Income69.7327.7318.30 Stock Adjustments17.9214.783.93 Total Income2073.931734.261392.70 Expenditure Raw Materials964.33817.96640.48 Power & Fuel Cost49.1157.5355.81 Employee Cost98.9287.0777.44 Other Manufacturing Expenses12.679.9310.58 Selling and Admin Expenses626.34486.06381.50 Miscellaneous Expenses33.1427.2433.15 Preoperative Exp Capitalised0.00 Total Expenses1784.511485.791198.96 MARCH’10MARCH’09MARCH’08

10. PROFIT & LOSS ACCOUNT (Contd.) Operating Profit219.69220.74175.44 PBDIT289.42248.47193.74 Interest55.5075.6941.74 PBDT233.92172.78152.00 Depreciation88.2776.2261.23 Other Written Off0.00 Profit Before Tax145.6596.5690.77 Extra-ordinary items5.475.112.44 PBT (Post Extra-ordinary Items)151.12101.6793.21 Tax54.1639.1830.74 Reported Net Profit96.9762.4962.47 Total Value Addition820.17667.83558.48 Preference Dividend7.41 Equity Dividend8.647.200.00 Corporate Dividend Tax2.692.481.26 Per share data (annualised) Shares in issue (lakhs)2400.48 2160.43 Earnings Per Share (Rs)3.732.292.55 Equity Dividend (%)36.0030.000.00 Book Value (Rs)38.0334.7716.87 MARCH’10MARCH’09MARCH’08

11. CASH FLOW(In Crores) MARCH’11MARCH’10MARCH’09 Net Profit Before Tax151.13101.6793.21 Net Cash From Operating Activities 133.05-152.5983.19 Net Cash (used in)/from Investing Activities -78.10-227.10-298.38 Net Cash (used in)/from Financing Activities -13.41403.8883.80 Net (decrease)/increase In Cash and Cash Equivalents 41.5424.18-131.39 Opening Cash & Cash Equivalents 41.7717.59139.27 Closing Cash & Cash Equivalents 83.32 41.777.89

12. RATIO ANALYSIS

13. EXPLANATION OF FINANCIAL RATIOS  Current ratio Computation= Current assets, loans and advances + short-term investments Current liabilities + Provisions + Short-term Debt  Quick ratio Computation= Current assets, loans and advances – Inventories + short-term investments Current liabilities + Provisions + Short-term Debt Net of working capital limits

14. CURRENT RATIO: YEAR200820092010 CURRENT RATIO 0.631.571.19 QUICK RATIO: YEAR 200820092010 LIQUID RATIO 1.773.242.71

15.  Debt equity Computation= Long-term Debt Total Net Worth (Equity Shareholders Funds) + Preference Capital  Interest Cover Computation = PAT + Interest on Long-term debt + Non-cash Charges Interest on long-term debt

16. DEBT-EQUITY RATIO: YEAR 200820092010 DEBT- EQUITY RATIO 2.121.031.01 INTEREST COVER : YEAR 200820092010 INTEREST COVER 3.283.413.42

17.  Return on Net Worth Computation = (PAT – Preference Dividend) x 100 Equity shareholder’s funds or Net Worth (equity capital + reserves & surplus - miscellaneous expenditure not written off)  Return on Capital Employed

18. YEAR200820092010 RETURN ON NET WORTH 14.97.687.95 RETURN ON NET WORTH: Year200820092010 ROCE 19.7621.1912.57 ROCE

19.  EARNINGS PER SHARE Computation = PAT – preference dividend Weighted number of equity shares outstanding Year200820092010 E.P.S 2.552.293.73

20. HORIZONTAL ANALYSIS OF UNITED BREWERIES Balance Sheet Base Year 2007  Total assets / liabilities up by 9.93% in 2008 from the base year, 64.24% in 2009 and 77.12% increase in 2010 from the base year.  Net Worth up by 9.62% in 2008 from the base year, 93.95% in 2009 from the base year and 107.98% in 2010 as against lower growth in loan fund of 29.44% in 2009 from the base year and 40.99% in 2010.  Net fixed assets (net block) up by 35.47% in 2008 from the base year, 68.74% in 2009 from the base year and 88.82% in 2010 from the base year. Utilization of fixed assets is not very efficient.  Inventories up by 4.06% in 2008 from the base year, 45.11% in 2009 from the base year and 74.46% in 2010 from the base year. As against increase in net sales by 30.99% in 2008, 61.70 % in 2009 from the base year and 89.85% in 2010 from the base year. Thus we can say that inventory management is somewhat efficient.  Current liabilities up by 13.66% in 2008 from the base year, 7.63% in 2009 from the base year and 64.15% in 2010 from the base year. Growth of current liabilities is lower than rise in raw materials cost. Maybe the company is paying its suppliers faster to avail cash discounts.  Strong financial position as the company has huge reserves.

21. Profit And Loss Account Base year 2007 Net sales: 30.99% increase in 2008, 61.70 % increase in 2009 from the base year and 89.85% increase in 2010 from the base year. Employee cost: 15.88% increase in 2008, 30.29% increase in 2009 from the base year and 48.02% increase in 2010 from the base year. Selling & Administration Costs: 35.11% increase in 2008, 72.14% increase in 2009 from the base year and 121.82% increase in 2010 from the base year. Total Expenses: 30.28% increase in 2008, 61.44% increase in 2009 from the base year and 93.90% increase in 2010 from the base year. Raw Material Cost: 32.61% increase in 2008, 69.35% increase in 2009 from the base year and 99.66% increase in 2010 from the base year. Interest: 49.18 % increase in 2008, 170.51% increase in 2009 from the base year and 98.36% increase in 2010 from the base year. Depreciation: 58.87% increase in 2008, 97.77% increase in 2009 from the base year and 129.03% increase in 2010 from the base year. Other Income: -3.89% increase in 2008, 45.64% increase in 2009 from the base year and 266.23% increase in 2010 from the base year.

22. Profit And Loss Account (CONTD.) Operating Profit: 24.27% increase in 2008, 56.35% increase in 2009 from the base year and 55.61% increase in 2010 from the base year. PBDIT: 20.92% increase in 2008, 55.08% increase in 2009 from the base year and 80.64% increase in 2010 from the base year. PBDT: 14.94% increase in 2008, 30.66% increase in 2009 from the base year and 76.89% increase in 2010 from the base year. Reported Net Profit: -4.03% increase in 2008, -3.99% increase in 2009 from the base year and 48.98% increase in 2010 from the base year.

23. comparative growth in net sales, raw material cost & employee cost over the years.

24. ComparisioN of net worth and loan fund

25. CompArision of inventories and net worth

26. -THE KING OF GOOD TIMES THANK YOU